India water shortage potential raises questions about ethanol production capacity

In India, questions are being raised about the ability of the country to cultivate sufficient crops to produce ethanol to meet current and future mandates. Currently, high oil prices and the Indian sugar glut is creating strong demand for ethanol plants among sugar producers and those affected by high oil prices. However, researchers indicate that India will need 4,000 liters of water for every liter of ethanol produced — acceptable for water-laden Brazil, but not viable in India given the looming water shortage. 60% of Indian water supply is currently diverted to human use, according to a International Water Management Institute study. The researchers point out that it will require 26% of India’s water supply to produce enough ethanol to meet a 10 percent mandate.

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