Driving green growth: An economic assessment of ethanol as a strategic fuel alternative in India

Biofuels play a pivotal role in enhancing energy security, mitigating greenhouse gas emissions, and reducing dependence on fossil fuels. This study applies the life cycle cost analysis approach to assess ethanol production costs in India from 3 key feedstocks—sugarcane, maize, and rice—using primary distillery data supported by secondary sources. Results reveal significant regional and feedstock-specific cost variations, with sugarcane-based distilleries achieving higher profit margins due to superior conversion efficiencies. Energy consumption, particularly electricity and fuel, emerges as a dominant cost driver. For grain-based plants, revenues from byproducts such as distillers’ dried grains and CO₂ can offset production losses. The analysis also evaluates carbon capture and utilization technologies, highlighting their potential to reduce emissions and support India’s COP28 commitments. Additionally, this study compares ethanol with petrol, highlighting how ethanol fuel is more cost-effective and performs better overall, and explaining how blending reduces oil imports, saves foreign exchange, and stabilizes the economy. These insights are vital for policymakers seeking to set optimal ethanol prices, encourage cleaner tech, and build a sustainable, resilient biofuel strategy in India.