Ethanol supply: Nanda Devi Bio Energy signs Long-Term Offtake Agreement with OMCs
Aligned with India’s E20 blending policy, Nanda Devi Bio Energy LLP is setting up a 160 KLPD grain-based ethanol distillery in Gangaikondan SIPCOT, Tirunelveli, producing 5.28 crore liters annually. This project, South Tamil Nadu’s first of its kind, is expected to be operational by August 2024. A Long-Term Offtake Agreement was signed with Oil Marketing Companies on July 5, 2024, ensuring ethanol supply and creating 450 jobs.
Aligned with the Government of India’s E20 blending policy aimed at ensuring a sustainable future, Nanda Devi Bio Energy LLP is establishing a 160 klpd grain-based ethanol distillery at Gangaikondan SIPCOT, Tirunelveli District. This facility is anticipated to produce 5.28 Crore liters of ethanol annually using rice and maize. It marks the first grain-based ethanol project in South Tamil Nadu, crucial for meeting the blending targets of nearby Oil Marketing Companies’ depots in Tirunelveli and Madurai regions, thus mitigating high transportation costs.
The project is currently in an advanced stage and is slated for commissioning by August 2024. PRAJ Industries is overseeing the main process plant, with Thermax supplying the boiler, SIEMENS providing the turbine, and other crucial packages handled by leading industry players. The initiative is expected to directly employ approximately 150 personnel, with an additional 300 jobs created indirectly.
Today, on 5th July 2024, Nanda Devi Bio Energy LLP finalized a Long-Term Offtake Agreement (LTOA) with Oil Marketing Companies (OMCs) during an official meeting held at HPCL’s Zonal office in Chennai. As per this agreement, the company will supply 5.28 Crore liters of ethanol annually to the OMCs at the notified price, facilitating a mutually beneficial arrangement.
The signing ceremony was attended by Shri. V. S. Natarajan, Chairman of Nanda Devi Bio Energy LLP, a respected first-generation entrepreneur from Tirunelveli District known for his contributions to the glass bottle manufacturing industry. Also present was Smt. N. Vasantha Devi Mahendra Kumar, Executive Director of Nanda Devi Bio Energy LLP, overseeing the project execution. The group has future plans to venture into solar power generation and expand its ethanol production capacity further.
Source link : https://bioenergytimes.com/ethanol-supply-nanda-devi-bio-energy-signs-long-term-offtake-agreement-with-omcs/
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