As the biofuels industry grows, multi-feed distilleries are becoming essential for swiftly increasing ethanol production. These distilleries can use molasses, sugarcane juice, syrup, and grains to produce high-quality ethanol, allowing them to adapt to changing market conditions and resource availability. Industry experts and Union Ministers, including Amit Shah, have emphasized the importance of multi-feed distilleries in enhancing ethanol production.
The primary advantage of multi-feed distilleries lies in their flexibility. By being able to switch between different feedstocks based on availability and demand, these distilleries can effectively mitigate risks associated with market fluctuations and policy changes. For instance, during periods of high sugar production, distilleries can focus on producing ethanol from sugarcane juice. Conversely, when sugar demand necessitates a shift, they can pivot to grains, ensuring stable ethanol production year-round. This adaptability eliminates production bottlenecks and seasonal constraints, providing a smoother supply chain and maximizing feedstock utilization.
The government’s commitment to boosting ethanol production is evident through initiatives like the Ethanol Blended Petrol (EBP) Programme. Official data shows that India’s ethanol production capacity soared from 518 crore liters in 2017-18 to an impressive 1,623 crore liters (as of August 31, 2024) in 2023-24.
Recent government decisions, such as permitting sugar mills to produce ethanol from sugarcane juice and B-heavy molasses during the Ethanol Supply Year (ESY) 2024-25, further enhance the potential of this sector. Additionally, the government has lifted a previous ban and permitted the sale of up to 2.3 million tonnes of rice from Food Corporation of India (FCI) stocks to grain-based ethanol distilleries, representing another strategic move aligned with the goal of maximizing feedstock availability. By expanding the range of feedstocks that can be utilized, the government is ensuring that distilleries remain resilient in the face of potential feedstock shortages.
As of September 1, 2024, official data indicates that 16,059 PSU outlets out of a total of 82,617 are dispensing E20 ethanol-blended petrol. In August, ethanol blending in petrol reached 15.8%, with a cumulative blending rate of 13.6% from November 2023 to August 2024. The government is committed to achieving a 20% ethanol blending rate with petrol and is optimistic about meeting this goal. To ensure timely achievement, the government will eliminate any obstacles to ethanol production. Collaboration among the government, industry stakeholders, and technology providers is essential to meet the ethanol blending targets.
Various reports indicate that the government is considering increase in ethanol prices; if implemented, this could further boost biofuel production.
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