Ethanol adoption, carbon capture and stronger public transport seen as vital to India’s energy transition

As India advances towards greener mobility, alternate fuels have emerged as the centrepiece of its sustainable transport strategy. Naveen Raj, Senior Consultant and Head – Environment at the Oil Industry Safety Directorate (OISD), Government of India, says there is no long-term alternative to alternate fuels when it comes to reducing emissions and combating climate change.

“Why are we talking about sustainability? Because everything is fossil fuels, the result is in front of you, climate change. If we are talking of climate sustainability, these things have to be reduced. And what is the option with you? Alternate fuels only,” said Raj in a conversation with BW Businessworld.

India has committed to achieving 20 per cent ethanol blending in petrol (E20) by 2025, five years ahead of the original target. This places the country ahead of several Western economies, many of which still operate on E5 or E7 blends. Ethanol blending is expected to cut oil import dependence, reduce carbon emissions and support domestic farmers, given that surplus sugarcane and maize are key feedstocks.

Still, questions remain around ethanol’s impact on engine performance. Raj acknowledged the concern, “Yes, ethanol is better sustainable. If it is used, your fuel consumption is reduced, and climatic impact is reduced. But as far as the engineering part is concerned, more ethanol affects the engines. Technologies are needed.” Automakers are working on flex-fuel engines and material upgrades to address these issues.

On the role of the oil and gas sector, Raj emphasised that producers are often unfairly seen as polluters. “Oil and gas are a product. The user is the polluter, not the producer. But the industry is still making efforts, especially through carbon capture, utilisation and storage (CCUS) projects,” he said. Companies are exploring CCUS in upstream operations to cut emissions from installations and processes.

Yet, the real challenge lies at the point of use. Raj noted that emissions in heavily polluted zones have a much larger impact than in offshore areas with cleaner air, making stricter urban emission controls vital.

Looking ahead, he underlined the importance of strengthening public mobility systems in India’s urban centres. “We are a highly populated country. Can you imagine, if the metro was not there, what would have been the condition of Delhi? This public mobility system is definitely going to enhance,” he said, pointing to lessons from China, Japan and Singapore where mass transit has curbed congestion and fuel use.

With fossil fuels still meeting over 75 per cent of India’s energy demand, the path to sustainable mobility will require coordinated efforts expanding ethanol and other alternate fuels, deploying carbon capture technologies, and building robust public transport.