ISLAMABAD, July 14: The government is finalizing a plan to mix locally- produced surplus alcohol (ethanol) with petroleum to reduce its dependence on imported fuel. Pakistan exports around 80,000 tons of ethanol every year, although the industrial sector has a total capacity of 400,000 tons. Its 10 per cent blending with petrol would produce an additional 160,000 tons of petrol. The country’s total petrol consumption is about 1.6 million tons.

Senior government officials said a mandatory 10 per cent blending of ethanol with petrol coupled with certain incentives would soon be announced after consultation with oil companies. No change in car engines is required for 10 per cent blending.

The 10 per cent blend would be increased, subsequently, with minimal changes in the engine. All auto mobile companies would be given a target to produce a certain percentage of flex fuel cars by a certain date. This percentage should then increase in the following years.

Besides the industrial sector production, the ministry of food, agriculture and livestock (Minfal) has also been asked to explore other sources of raw material for alcohol production like maize, wheat, rice, potatoes, sorghum, etc.

As the programme moves ahead and the consumption of fuel ethanol increases, the sugar industry can make ethanol directly from cane juice, as is done in Brazil and many other countries.

The ministries of petroleum and natural resources and industries and production are currently in the process of ethanol blending with petrol.

For the programme to succeed, the government is considering to set the price of fuel ethanol according to the price of molasses in consultation with all the stakeholders. It is also considering a move to restrict the export of molasses for maximum blending purposes.

According to the ministry of industries, the production of molasses remained between 1.3 million tons and 2.1 million tons during the last ten years, while the export of molasses remained between 0.703 million tons and 1.748 million tons in the last 10 years.

Apart from export of substantial quantities of molasses from Pakistan, production of alcohol from molasses comprises the only major value-added product manufactured in the country.

The major portion of alcohol is being exported, increasing from six million litres in 1994-95 to 100.351 million litres (80,285 tons) in 2003-04.

Other domestic consumption of alcohol includes usage in varnishes, paints, cosmetics, medicines, explosives, acetic acid, ethyl acetate, butyl acetate, acetone, acetic anhydride, acetate yarn, paper, paint, leather, etc.

The alcohol industry in the country has grown from two distilleries with capacities of four million litres to nine distilleries with capacities of 156.75 million litres in 2002-03. The number of distilleries is expected to increase to 21 by 2005-06 with capacity of 504 million litres (403,500 tons).

The distillery industry normally operates for 250 days and with the alcohol production efficiency of 250 litres per ton of molasses, the total production capacity is 400,000 tons. Local consumption is about 2,000 tons and about 80,000 tons is exported leaving a surplus of 318,000 tons.

The Hydrocarbon Development Institute of Pakistan (HDIP) is currently examining its technical viability in the local context, because some experts believe the local ethanol was not of blending quality.

However, the ministry of industry believes that this could be produced in the form of industrial, superfine or fuel ethanol through a simple process of molecular sieve technology with a capital expenditure of $1.6 million in 5-6 months.