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ENERGY IMPORTS BIOFUELS

Biofuel blending has saved Rs. 91,000-crore GEMA seeks support to ensure survival of grain-based

from import bill ethanol plants

The Grain Ethanol Manufacturers The letter emphasises that many of “Plants are restricted to producing ethanol
Union Minister for Petroleum and
Natural Gas, Mr. Hardeep Singh Puri Association (GEMA) has written a these plants were established with the exclusively for the EBP, as per our
letter to Union Petroleum and Natural support of government schemes, in-
environmental clearance (EC) under
has said biofuel blending has saved India Gas Minister, Mr. Hardeep Singh Puri, cluding loans and interest subventions, the B2 category. The OMCs remain our
Rs. 91,000-crore from its energy import bill highlighting the challenges faced by based on the assumption of a consistent sole buyers, and we are unable to manu-
and this money can be utilised for the bene- grain ethanol plants that do not have demand for ethanol under the Govern- facture any other products to offset our
fi t of the agricultural sector. Inaugurating long term offtake agreements (LTOAs) ment of India’s Ethanol Blended Pet- fi nancial burdens,” the letter added.
the 27th Energy Technology Summit in with oil marketing companies (OMCs). rol (EBP) Programme. These facilities
Bengaluru, he said India has achieved the were developed to produce ethanol The association urged the minister
second position in biofuel blending globally. The letter calls for immediate inter- specifi cally for blending into fuel, with to increase the blending percentages to
He expressed confi dence that India will vention to support the industry and assurances of LTOAs to secure their ensure the ethanol they produce can be
achieve the target of 20% biofuel blending prevent many plants from falling into fi nancial health. fully accommodated. “Revise the allo-
by next year, much ahead of schedule.
fi nancial instability. cation preferences, as the sugar indus-
The letter references offi ce memo- try, which lacks LTOAs, is currently
The event was organised by the Centre
In the letter, GEMA outlines that randum of the Department of Food and given priority, leaving grain ethanol
for High Technology (CHT), Ministry of during the Ethanol Supply Year (ESY) Public Distribution (DFPD) dated May producers at a disadvantage. Moreover,
Petroleum and Natural Gas, Government the role of digital innovation, the Minister technologies and resource optimisation, we 2024-25, many plants have received 2, 2022, which emphasised the concept the ethanol producers manufacturing
of India, in partnership with Indian Oil pointed to its potential to drive effi ciency can build a resilient and environmentally only 50-64% of the allocation in Q1 of tripartite agreement and assured ethanol from sugarcane have the option
Corporation (IOC) from November 12-14, in energy operations. responsible industry,” he said. and Q2. “This signifi cant reduction in purchase of ethanol by OMCs. of manufacturing sugar, whereas grain-
The Minister said India’s energy demand sales jeopardises the viability of opera- based ethanol industries like us are
will grow by two and a half times by 2047, ‘Technologies key for sustainable MRPL receives special award tions, putting us at risk of becoming GEMA claims that under the cur- left with the only option of producing
but the country will have to double efforts energy’ Mangalore Refi nery and Petrochemi- nonperforming assets (NPAs),” the rent allocation system, companies are ethanol to meet the requirement of the
to achieve the net carbon zero emission Mr. V. Satish Kumar, Chairman & cals Ltd. (MRPL) was honoured with a association said. struggling to meet fi nancial obligations. EBP,” it said.
target by 2070. “Energy security, sustain- Director (Marketing), IOC, noted that the special award for its pioneering work in
ability and technology innovation should future of the energy industry hinges on “First-Principles and Artifi cial Intelligence JOINT VENTURE
go hand-in-hand to achieve the targets in integrating green energy solutions into Hybrid Applications for Process Effi ciency
the energy sector,” he said. refi ning processes. “Through cutting-edge and Reliability Improvement.” GPS Renewables, OIL to set up 8 compressed

Mr. Puri lauded the Oil Marketing BROWNFIELD PROJECT biogas plants
Companies (OMCs) and private energy Tata Chemicals arm to invest in sodium
companies for their proactive approach GPS Renewables (GPSR), a lead- and support India’s net-zero goals. Our In a related development, GPSR
in achieving net-zero targets. He also bicarbonate plant in UK ing biogas engineering company, has partnership with Oil India is another recently secured Rs. 100-crore (ap-
affi rmed the readiness of the industry to Tata Chemicals has said its wholly for high grade sodium bicarbonate from teamed up with Oil India Ltd. (OIL) important step towards accelerating proximately $12-mn) in mezzanine
support the Prime Minister’s vision of a owned subsidiary, Tata Chemicals pharmaceutical manufacturers for use in to form a 50:50 joint venture aimed at the adoption of biofuels in India. Both fi nancing from InCred Opportunities
‘Viksit Bharat’ through advancements in Europe (TCEL), is planning an investment medicines and haemodialysis. setting up eight compressed biogas OIL and GPSR share the vision of Fund and Spark Capital. This funding
ethanol, hydrogen, and biofuels. of €60-mn to build a 180-ktpa pharma- (CBG) plants across India. building a nationwide network of CBG is part of a larger $100-mn fundraising
ceutical grade sodium bicarbonate plant Further, Tata Chemicals said that as plants that will reduce dependence on round that GPSR is currently underway
Emphasizing India’s refi ning sector, in Northwich, UK, tripling its capacity. part of the restructuring operations to The joint venture will manage fossil fuels and lower greenhouse gas with, which also includes $25-mn at the
the Minister noted that India has the capa- facilitate this investment, the Board of the full lifecycle of the projects, from emissions. ARYA level and an additional $50-mn
bility to process over 250 types of crude oil, Construction of the plant is expected TCEL has approved the proposal to cease design to operation, following a for its step-down subsidiaries.
with refi ning capacity anticipated to grow to commence in 2025, with fi rst produc- chemical production at its loss-making DBFOOT (Design, Build, Finance, We are eager to strengthen this
from the current 258-mtpa to 310-mtpa. tion likely to begin in 2027. The new Lostock plant by the end of January Own, Operate, and Transfer) model. partnership to enhance production These funds will support the deve-
“India’s refi ning expansion, coupled with plant, using a patented process, will use 2025, subject to completion of employee capacity and meet the country’s growing lopment of the CBG projects under the
petrochemical integration, positions India carbon dioxide captured from energy consultation as required under local law. “There has been signifi cant interest demand for sustainable energy,” said joint ventures with Indian Oil Corpora-
well on its way towards fl exible, effi cient generation emissions as a key raw The plant produces sodium carbonate, from leading oil companies in biofuels Mr. Mainak Chakraborty, CEO and tion (IOC) and Bharat Petroleum
energy transition,” he added. Addressing material and will meet growing demand salt and sodium bicarbonate. such as CBG to boost energy security Co-Founder, GPSR. Corporation Ltd. (BPCL).

138 Chemical Weekly November 26, 2024 Chemical Weekly November 26, 2024 139

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