Gujarat focuses on increasing biofuel production; companies plan to set up ethanol plants

Gujarat is accelerating its push towards sustainable energy solutions as 14 companies plans to establish ethanol production plants in the state. The move is part of a broader effort to increase biofuel production, reduce dependence on fossil fuels, and contribute to India’s renewable energy goals.

The Times of India citing industry sources reported that 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.

Amul, one of India’s leading dairy brands, has also taken a major step towards green energy by successfully conducting a large-scale trial to produce bioethanol from whey, a byproduct of cheese and paneer production. Encouraged by the results, the company now plans to invest Rs 70 crore in setting up a plant capable of producing 50,000 litres of bioethanol per day. This project is expected to bring in an additional Rs 700 crore in income for dairy farmers, reported The Times of India.

Amul’s move aligns with the central government’s target of blending 20% ethanol with petrol under the Ethanol Blended Petrol (EBP) programme. This target has triggered a wave of investment across Gujarat, with many companies setting up ethanol plants in anticipation of strong demand.

Grainspan Nutrients Pvt Ltd, based in Ahmedabad. The company, involved in maize and rice processing since 2012, has already started ethanol production. Chairman Sampatraj Chaudhary said the government’s ethanol policy motivated them to invest to set up a plant.

Chaudhary noted that the demand for ethanol is expected to grow steadily alongside petrol consumption. “There’s a lot of potential in agriculture-based industries. Ethanol production allows us to make better use of existing resources,” he said.

The Chiripal Group has also entered the green energy space through its new company, True Green Bio Energy Limited. The company is setting up an ethanol plant near Ahmedabad with a production capacity of 300 KLPD. Promoter Deepak Chiripal said the project, which has received Rs 350 crore in investment, will help reduce crude oil imports and carbon emissions. “Renewable energy is essential for a sustainable future. This plant is just the beginning of our efforts in that direction,” he said.

Chiripal added that raw materials for the plant will primarily be sourced from the Food Corporation of India (FCI), with additional supplies coming from the open market to ensure a steady production cycle.

Another local firm, Kineeva Industries LLP, is also entering the sector. Director Pranay Kabra said they are in the process of securing government approvals to build a 100 KLPD plant with an investment of Rs 120 crore. “Green fuels are gaining ground. We believe this is a good time to invest in the future,” he said.

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