GUJARAT BANKS BIG ON BIOFUELS
Amul has begun producing bioethanol from whey and will invest ₹70 crore in a new plant. Driven by India’s 20% ethanol blending goal, companies in Ahmedabad like Grainspan, Chiripal Group, and Kineeva are investing over ₹3,300 crore in ethanol projects. Gujarat is emerging as a key player, though only a few plants are currently operational.
Last month, India’s dairy major Amul, otherwise known for milk production, achieved a significant milestone by successfully conducting its first large-scale trial to produce bioethanol from whey, a byproduct of cheese and paneer production.Buoyed by the success of this first-of-its-kind trial in the Indian dairy industry, the FMCG giant now plans to invest Rs 70 crore in a bioethanol plant capable of producing 50,000 litres per day. The initiative is expected to generate an additional income of Rs 700 crore for dairy farmers through the sale of bioethanol.But Amul is not the only player racing to capitalise on the rising demand for biofuels.
The govt of India’s mandate to blend up to 20% bioethanol in petrol under the Ethanol Blended Petrol (EBP) programme is fuelling multiple projects across the state.Several companies in Ahmedabad are preparing to enter ethanol manufacturing, anticipating strong growth.Ahmedabad-based Grainspan Nutrients Pvt Ltd, active in grain milling and exporting grain derivatives since 2012, has already launched its ethanol plant as part of a forward integration strategy.Sampatraj Chaudhary, chairman of the company, said, “We have been active in maize and rice production for years.
When the central government announced ethanol blending initiatives, we decided to set up an ethanol plant.”He added, “We invested about Rs 500 crore and currently have a capacity to produce 340 kilolitres per day (KLPD) of ethanol. We started with a 100 KLPD capacity in 2023 and later expanded. Today, we supply ethanol to two major Oil Marketing Companies (OMCs).”According to Chaudhary, India holds vast potential in agriculture-linked industries, and ethanol is a key opportunity. “We see growing demand due to the 20% blending policy.
As petrol consumption continues to rise, ethanol demand will follow,” he said.The Chiripal Group has also entered the sector with its new venture, True Green Bio Energy Limited. Deepak Chiripal, the group’s promoter, said, “The Government of India’s push to achieve 20% blending by 2025 aims to reduce crude oil imports, save foreign exchange, and cut carbon emissions.”He added, “We see renewable energy as a vital pillar of long-term sustainability. This ethanol plant is part of our futuristic green energy division. It has an installed capacity of 300 KLPD and will begin operations soon. We have invested around Rs 350 crore in this greenfield project near Ahmedabad.”Chiripal noted that the primary raw material is sourced from the Food Corporation of India (FCI), with additional requirements met via the open market to maintain an efficient and stable supply chain.
Ahmedabad-based Kineeva Industries LLP is also setting up an ethanol plant. Pranay Kabra, one of the directors, said, “This is an emerging sector, and demand for green fuels is set to surge. We’re currently in the process of securing necessary approvals. Our planned plant will have a capacity of 100 KLPD, with an investment of about Rs 120 crore.”Industry insiders say around 14 companies in Gujarat have received approval from OMCs to set up ethanol units. Collectively, these companies plan to invest around Rs 3,300 crore for setting up units with a total capacity of 2,800 KLPD.”While many are entering the ethanol space, caution is needed,” said a senior official from a leading company. “Currently, fewer than five ethanol units are operational in and around Ahmedabad. Others are in various stages of development. While Uttar Pradesh, Karnataka, and Punjab are leading ethanol producers, Gujarat has significant growth potential.
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Source : The Times Of India
