With E25 and E30 plans on hold, ethanol makers are searching for new markets. Could blending bio-isobutanol with diesel offer a way out?
As India’s ethanol industry contends with a severe oversupply crisis, manufacturers are continuing to scramble for new buyers and alternative markets to absorb nearly seven billion litres of unused surplus capacity.
Rapid capacity expansion in recent years, driven by the government’s aggressive fuel blending push to reduce dependence on crude imports, has far outpaced domestic demand, forcing ethanol producers to operate well below capacity, industry executives told ET.