KATHMANDU: The world is seeing a paradigm shift toward cleaner energy solutions as the use of alternative energy is on the rise. This has driven the rapid adoption of electric vehicles (EVs) globally.
This transition presents complex challenges for countries like Nepal, where a significant portion of revenue comes from the fossil fuel-powered automotive sector. Despite this, the government is providing tax incentives for EVs, demonstrating a strong commitment to clean energy adoption.
While the focus on EVs is praiseworthy, incentives are currently limited to smaller vehicles. The adoption of EVs for large commercial vehicles remains a distant goal due to infrastructure and technological constraints. This calls for research into alternative energy solutions for such vehicles.
Among the available options, flex (flexible) fuel technology and hydrogen engines stand out as potential alternatives.
Hydrogen fuel engines, although promising, are still in the developmental stage and face challenges related to scale and high costs. On the other hand, flex-fuel engines, which can run on ethanol blends, are a near-term possibility. Ethanol-based solutions offer a practical and affordable approach to transitioning towards cleaner energy in the transportation sector, bridging the gap until more advanced technologies become viable.
Ethanol and FFVs explained
Ethanol is a biofuel primarily produced through sugarcane processing or sugar fermentation. It is widely used in industries ranging from energy and chemicals to healthcare. Importantly, ethanol can be blended with petrol to reduce fossil fuel consumption and emissions, making it a key component of sustainable energy strategies.
Ethanol is a renewable biofuel, primarily produced by fermenting sugarcane or other sugar-rich crops. It is widely used across sectors such as energy, chemicals and healthcare. When blended with petrol, ethanol helps reduce fossil fuel dependency and greenhouse gas emissions. This makes it an important component in sustainable energy strategies.
Traditional internal combustion engine (ICE) vehicles contribute significantly to air pollution, emitting harmful pollutants like carbon monoxide (CO), hydrocarbons (HC), nitrogen oxides (NOx) and particulate matter (PM). These emissions not only degrade air quality but also accelerate the global climate crisis.
As urban areas struggle with deteriorating air quality and rising fuel costs, flex-fuel vehicles (FFVs) have emerged as a promising solution. These vehicles can run on ethanol or a blend of ethanol and petrol, such as E20 (20% ethanol, 80% petrol). FFVs are equipped with engines and fuel systems that automatically adjust to varying fuel compositions, thereby ensuring efficient performance while reducing reliance on fossil fuels.
Although ethanol has a lower energy density, leading to approximately 30–35% higher fuel consumption, its higher octane rating and superior cooling effect can enhance engine power by 4–5%.
However, ethanol’s higher ignition point makes cold starts difficult in regions where temperatures drop below 5°C, requiring fuel heating systems.
Cutting Fossil Fuel Use
Nepal is facing a pressing environmental challenge, especially in major cities like Kathmandu, where air pollution is reaching alarming levels. In April 2025, the Air Quality Index (AQI) frequently surpassed 200, which is considered hazardous, leading to widespread health problems such as respiratory illnesses and eye irritation.
According to studies, ethanol-based biofuels offer significant environmental benefits, producing up to 80% less CO₂ than gasoline. India has recognized this potential and is fast-tracking its ethanol program, aiming to achieve a 20% ethanol blend in petrol by the 2025/26 Ethanol Supply Year, five years ahead of its original 2030 goal.
In India, Ethanol Supply Year refers to the ethanol supply period from November 1 to October 31 of the next year.
Given Nepal’s reliance on fuel imports from India and the prevalence of Indian-manufactured ICE vehicles in the country, aligning with India’s ethanol blending policy could be a strategic and practical move.
Embracing ethanol technology could help Nepal improve energy security, reduce dependence on fossil fuels, and significantly improve urban air quality. Moreover, it can stimulate local economic activity through the development of biofuel supply chains.
