Wed, Oct 28, 2026 • 1:07 AM Nepal Time • Kathmandu, Nepal
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Nepal Oil Corporation Allows Ethanol Blending in Petrol Using Seven Domestic Raw Materials

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Summary:

Nepal Oil Corporation has informed domestic producers that ethanol for petrol blending can be manufactured from seven approved raw-material categories, while food-grade grains are barred from use for ethanol production.

The Nepal Oil Corporation (NOC) has issued an informational notice clarifying the raw materials that may be used to produce ethanol for blending with petrol under the government’s Ethanol Blending in Petrol and Usage Order, 2082. The notice is intended for domestic ethanol producers interested in supplying fuel-grade ethanol that meets the quality and specifications required by NOC.

According to the corporation, ethanol may be produced from molasses obtained from sugar industries, Nepier grass, agricultural and forestry biomass that goes to waste, agricultural residues such as straw, maize stalks and wheat straw, non-food-grade rotten grains, cassava, and starch and other necessary chemicals required for fermentation.

However, NOC has specifically clarified that grains suitable for human consumption cannot be used as raw materials for ethanol production under the programme. The restriction is intended to prevent competition between fuel production and the food supply.

Domestic producers interested in producing and supplying ethanol have been asked to register an application with NOC. The corporation said details of the procurement procedure and relevant bylaws are available through its official website, as Nepal moves toward increased use of domestically produced ethanol in petrol.

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