India is set to become the third-largest market for ethanol in the world after the US and Brazil by 2026, a recent report by the International Energy Agency (IEA) said, adding that the country has tripled ethanol demand to an estimated 3 billion litres between 2017 and 2021.
Buoyed by India’s growing appetite, Asia is set to overtake Europe in terms of biofuels production by 2026, the agency said. While annual global dem-and for biofuels is set to grow by 28% from 2021 levels by 2026, reaching 186 billion litres, Asia is seen to account for almost 30% of new production over the forecast period.
Government policies are seen to be the principal driver of the demand expansion. Other factors such as overall transport fuel demand, costs and specific policy design will also play a major role.
