ISLAMABAD Pakistan is thinking about adding 5% ethanol to gasoline in an attempt to reduce carbon emissions, lessen reliance on fossil fuels, and encourage renewable energy. The Ethanol Blending Program (EBP) is anticipated to receive official approval shortly.
The government is expected to approve the program for blending ethanol.
According to an official source who spoke to The Nation, the Cabinet’s Economic Coordination Committee (ECC) would be provided with the Ethanol Blending Programme (EBP) draft for approval.
The source claims that on June 23, 2024, Pakistan’s prime minister formed a group to create a strategy for incorporating ethanol into gasoline. The Minister of Petroleum is in charge of the committee, which also consists of the Secretary of Petroleum, the Minister of State for Finance, and the Minister of Finance. After consultation with important stakeholders, the group developed the EBP draft.
Introducing Ethanol Blended Petrol Gradually
The EBP seeks to establish a long-term market for gasoline blended with ethanol. Depending on availability and economic viability, refineries will be encouraged to voluntarily blend ethanol into gasoline and market it as monograde gasoline.
Fuel additives, paints, varnishes, personal care items, and sanitizers are just a few of the businesses that use ethanol extensively. Ethanol is a renewable biofuel that has acquired international recognition as a substitute for gasoline. The main source of ethanol produced in Pakistan is sugarcane molasses.
Possible Advantages of Blending Ethanol
Blending ethanol with gasoline lowers carbon emissions, promotes the use of renewable energy sources, and lessens dependency on fossil fuels. E5 (5% ethanol), E10 (10% ethanol), and higher ratios like E15 and E85 are examples of common ethanol-petrol mixtures.
Numerous strategic and financial benefits are anticipated from the effort, including:
decrease in the price of oil imports
Energy source diversification
expansion of the domestic market for renewable energy
Prior Pakistani Efforts to Blend Ethanol
In the 2009–10 fiscal year, Pakistan introduced Ethanol Blended Petrol (E-10) as a distinct grade with a 10% ethanol content. With a price differential of Rs. 2.50 per liter over ordinary gasoline, it was offered during a two-year trial phase. Before branching out to Punjab, Pakistan State Oil (PSO) first sold E-10 in Sindh. However, issues like the scarcity of fuel-grade ethanol, worries from automakers, and shifting ethanol prices in global markets led to the initiative’s termination after a year.
Important Aspects of the Draft EBP
International best practices, Pakistan’s petroleum market, ethanol production data, and the difficulties in ethanol blending implementation serve as the foundation for the EBP draft.
Important components of the draft consist of:
Refineries will be permitted to voluntarily blend up to 5% ethanol in monograde gasoline due to the restricted supply of fuel-grade ethanol.
Infrastructure development: Depending on their commercial feasibility, refineries may set up facilities for blending and storing ethanol.
Long-term agreements: To guarantee a steady supply, refineries are urged to enter into medium- to long-term agreements with ethanol producers.
No extra financial impact: The price of gasoline, which is now determined by imported Euro-V standards, will not change for gasoline that has been blended with up to 5% ethanol.
Supervision and Upcoming Projects
Every six months, the EBP will be reviewed and monitored by an oversight group headed by the petroleum minister to guarantee successful implementation. Depending on how the market reacts to E-5 gasoline, the program will progressively change.
Long-term tactics consist of:
enhancing distilleries’ technology to increase the production of ethanol.
investigating feedstocks for ethanol other than sugarcane molasses.
promoting the development of engine technologies by the automotive sector that accommodate larger ethanol mixes.
The blending percentage may be progressively increased as domestic ethanol becomes more affordable and available. A larger commitment to sustainable energy solutions and lowering reliance on imported fossil fuels is reflected in the government’s plan.
