Godavari Biorefineries Limited, one of India’s largest ethanol producers and a pioneer in manufacturing ethanol-based chemicals, is exploring grain-based ethanol production to further increase its ethanol output as India continues its transition to green energy.
During a conference call to discuss the company’s financial performance for the second quarter ending September 30, 2024, Samir Somaiya, Chairman and Managing Director of Godavari Biorefineries, emphasized the importance towards grain-based ethanol production.
“We also exploring grain-based ethanol production. This would help us further increase our production of ethanol as India continues the transition to green energy,” Somaiya said. “Furthermore, this will also make the facility dual-feed and fungible. It will help us mitigate climate risk and any disruptions caused by a poor monsoon and consequent government policy should it occur again.”
In response to a question about the company’s initiative to develop capability for using grains such as maize as feedstock for producing rectified spirits and ethanol, he explained, “Currently, the company’s facilities are using sugarcane juice and B molasses, that is primarily B-molasses, to produce ethanol for participation in the ethanol blending program. The strategy of the company is to invest in grain-based ethanol in the future so that it gives the company a dual feedstock to produce ethanol, which will help mitigate climate risk, such as what happened in the poor monsoons of 2023. Corn, for example, is grown very much in the area in Karnataka where we operate. Corn being a four-month crop, it will allow the company to mitigate climate risk and consequent policy decisions that the government may take following a poor monsoons. So, this is something that the company is going to advance towards because India is growing its energy requirements for mobility.”
“As India increases the energy requirement for mobility, the requirement of ethanol for the blend will keep increasing. And we definitely want to look at how we can continue our participation in this program. And we want to make sure that we add a dual feed capability to our distillery. This will help us grow the business as well as mitigate risks of climate as well as give us fungibility. So that if there is an uncertainty in one of the feedstock, the other feedstock can fill in that,” he further added.
Godavari Biorefineries has recently reported a 25.2% increase in revenue for H1FY25 compared to H1FY24. The company reported a revenue of ₹843.4 crore for H1FY25, up from ₹673.4 crore in H1FY24.
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