Coastal Corporation Limited has welcomed the government’s plan to increase the national ethanol blending target to 30% by 2030.
India is preparing to set a new target of 30% ethanol blending in petrol by 2030, after successfully reaching the 20% mark by March this year, Business Standard reported, citing sources.
The company stated that this policy shift is a welcome and highly beneficial development for its wholly owned subsidiary, Coastal Biotech Private Limited.
Coastal Corporation Limited highlighted a few key reasons why this initiative aligns with and supports the company’s growth and operational objectives:
Increased demand for ethanol
The scaling of the blending target will directly lead to higher ethanol procurement by Oil Marketing Companies (OMCs), expanding the market opportunity for biofuel manufacturers like Coastal Biotech. This provides a strong foundation for enhancing our production capacity and long-term revenue streams’
Supportive feedstock dynamics
The growing reliance on grain-based ethanol, now accounting for 660/o of total supply, is favorable for our operations, especially as we continue to expand sourcing for broken rice and maize. This shift complements our supply chain strategy and strengthens our raw material availability.
Stable policy environment and investment encouragement
The government’s clear roadmap and early achievement of targets reflect a stable policy environment. This increases investor confidence and supports our ongoing capital investments in expansion and bio-refinery infrastructure’
Sustainability and carbon reduction goals
As a company committed to sustainable practices, we see significant alignment between our environmental objectives and the programme’s contribution to a projected 62.6 MMT in carbon emission avoidance. Our participation helps position us as a green energy stakeholder contributing to national climate goals.
Farmer linkages and rural economy integration
With over {L.04 lakh crore paid to farmers through ethanol procurement channels, the policy strengthens our engagement with the agri-sector and ensures stable supply through farmer-centric sourcing models, particularly beneficial to our procurement ecosystems.
Officials at the Petroleum and Natural Gas Ministry confirmed that inter-ministerial discussions have agreed to raise the national blending target to 30 per cent by the end of the decade, according to the news report.
Coastal Biotech Private Limited has begun trial runs at its ethanol plant located in Maringi Village, Paralakhemundi, Odisha. Commercial production at the plant is scheduled to commence by the end of April 2025.
