Using the wrong container for ethanol has been a recurring concern at a global scale since the early 1990s: Research carried out by the American Petroleum Institute (API) has shown that Stress Corrosion Cracking (SCC) of steel in fuel ethanol environment is a subject matter where awareness of the issue is growing dynamically as a result of documentation of experiences and research works in progress.

The conversation around the ideal container for ethanol still continues today: In a recent webinar conducted by ISSDA on ‘Stainless Steel for building ethanol supply chain’ in association with Nickel Institute, the expert speakers pointed out that stainless steel is in fact used extensively for ethanol sector in North America and Brazil, who are the world leaders in blending ethanol in motor fuel. (The Nickle Institute, an international non-profit industry association was established for the purpose of offering guidance and neutral technological advice regarding stainless steel applications). International Energy Agency (IEA) has said that India is set to overtake China to become third largest ethanol consumer by 2026, next only to Brazil and USA.  

The government has plans to even go beyond E20 fuel and working with automakers to develop flexi fuel engines which can use a range of fuel blends going up to 100% Ethanol, like in Brazil. In any case, whether the auto industry in India can successfully shift from petroleum to flexi fuels will depend entirely on what steps are taken to build and augment the ethanol supply chain down the line to ensure wider availability. In this context, stainless steel is considered critical for the ethanol eco-system for blending in motor fuel across the entire supply chain. It is estimated that about 1,00,000 tons of high-grade stainless steel will be required to augment ethanol capacity for achieving national goal of 20% blending. The potential is even higher when flexi fuel engines are introduced.  Indian stainless-steel producers have already stepped-up supplies to OEMs like Praj Industries, Excel Engineering, Alpha Level etc to meet this national objective. Indian stainless-steel producers are capable and committed to meet the growing requirement of ethanol industry. However, Government policy support in terms of ensuring a level playing field with respect to dumped and subsidised import of stainless steel is also crucial to enable further investment, so that such critical requirements are met by domestically produced stainless steel only.