Potential contribution of ethanol fuel to the transport sector of Pakistan

Pakistan is an energy-deficient country. The indigenous reserves of oil and gas are limited and the country is heavily dependent on the import of oil. The oil import bill is a serious strain on the country's economy and has been deteriorating the balance of payments situation. The country has become increasingly more dependent on fossil fuels and its energy security hangs on the fragile supply of imported oil that is subject to disruptions and price volatility. The transport sector has a 28% share in the total commercial energy consumption in Pakistan. About 1.15 million tonnes of gasoline was consumed by this sector during 2005–2006. The gasoline consumption in the transport sector is also a major source of environmental degradation especially in urban areas. Consequently, Pakistan needs to develop indigenous, environment-friendly energy resources, such as ethanol, to meet its transport sector's energy needs. Pakistan produces about 54 million tonnes of sugarcane every year. The estimated production potential of ethanol from molasses is about 500 million liters per annum. Ethanol can be used in the transport sector after blending with gasoline, in order to minimize the gasoline consumption and associated economical and environmental impacts. This paper presents the assessment of the potential contribution of ethanol in the transport sector of Pakistan. It is concluded that 5–10% of the annual gasoline consumption in transport sector could be met from ethanol by the year 2030 under different scenarios. About US$200–400 million per annum could be saved along with other environmental and health benefits by using gasol in the transport sector.