NOC moves ahead with ethanol-blended petrol, Applications invited from producers

KATHMANDU: Nepal is moving toward the use of ethanol-blended petrol, with the government initiating a process to mix domestically produced ethanol into fuel in a bid to reduce petroleum imports, promote renewable energy, and support local industries.

The Nepal Oil Corporation (NOC) has started preparations to implement ethanol blending in petrol following the “Order Relating to the Use of Ethanol Blended in Petrol, 2082”, published in the Nepal Gazette on Falgun 28, 2082 by the Ministry of Industry, Commerce and Supplies.

Under the new provision, the corporation plans to procure ethanol suitable for fuel blending, provided it is produced domestically using approved raw materials and meets quality standards outlined in the gazette.

NOC spokesperson Manoj Thakur said the corporation has invited interested industrialists and businesses to come forward if they are capable of producing ethanol in line with government-approved standards and technical requirements.

“Our primary role is to purchase the ethanol produced and blend it into petrol according to the prescribed ratio,” Thakur said.

Up to 10% ethanol blending allowed

According to the government order, petrol sold in Nepal can contain up to 10 percent ethanol blending. However, the final percentage to be mixed will be determined by the Cabinet based on ethanol availability and supply capacity.

“At this stage, we are only seeking applications to identify interested producers,” Thakur said. “The blending process will move forward depending on ethanol availability and government decisions.”

The initiative marks Nepal’s first major institutional step toward adopting biofuel-mixed petrol, a system already used in countries such as India, Brazil, and Thailand to lower fossil fuel dependency and reduce emissions.

Domestic producers asked to apply

The corporation has opened an application process for domestic producers interested in manufacturing and supplying ethanol. According to NOC, producers must strictly comply with all legal provisions, technical standards, and quality benchmarks mentioned in the gazette.

The legal document clearly outlines responsibilities of stakeholders, production standards, procurement mechanisms, and compliance procedures for ethanol production and supply.

Detailed information and legal guidelines have been made available through the corporation’s official channels, and eligible producers have been encouraged to formally submit applications.

Wide range of raw materials permitted

According to NOC, Nepal has allowed the use of various domestic raw materials for ethanol production to support local industries and agricultural waste utilization.

Approved raw materials include molasses from sugar industries, Napier grass, and discarded agricultural and forest biomass.

Similarly, agricultural residues such as rice straw, corn stalks, wheat husk, non-edible spoiled grains, cassava (simaltarul), fermentation materials such as yeast, and other required chemicals may also be used in ethanol production.

However, the government has imposed a strict prohibition on the use of good-quality edible grains meant for human consumption, aiming to avoid food security concerns and prevent competition between fuel production and food supply.

Economic and environmental benefits expected

Officials believe the ethanol blending initiative could provide multiple benefits for Nepal’s economy and energy sector.

By encouraging domestic ethanol production, the government expects to support local industries, create economic opportunities in agriculture and manufacturing, and gradually reduce Nepal’s dependence on imported petroleum products.

The move is also expected to contribute to cleaner fuel consumption and lower carbon emissions by introducing renewable biofuel into the energy mix.

Early-stage implementation

NOC said the process is currently in its initial phase, focused on identifying potential producers and assessing production capacity before moving into commercial implementation.

The corporation will evaluate applications and supply feasibility before determining how and when ethanol blending begins on a larger scale in Nepal.