Booze May Be Hurdle to India’s Energy Independence
- India is targeting 20% ethanol content in gasoline in a decade
- Molasses for ethanol is being diverted to liquor manufacturers
Photographer: Amit Bhargava/Bloomberg
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India, the world’s fastest growing guzzler of oil, is seeking to reduce its addiction to imports by using more sugar cane ethanol as fuel -- but a mandate to supply molasses to the liquor industry in the top producing state is threatening to derail those plans.
In Uttar Pradesh state in northern India, there is a local government order requiring sugar mills to provide fixed amounts of molasses, a product of the refining process, to alcoholic drinks manufacturers at rates well below market levels, which means less is available to turn into ethanol for powering cars.