A government committee is currently formulating a pricing framework for second-generation (2G) ethanol based on the type of feedstock used, such as bamboo, rice straw, according to the senior official, reported Moneycontrol.
The draft report is expected to be submitted by the end of April, the official added.
“The discussions are still in the early stages. The committee is working on a pricing formula considering different feedstocks like bamboo, and rice straw,” the official stated.
India is set to receive its first 2G ethanol produced from bamboo at Numaligarh Refinery Ltd’s (NRL) bio-refinery in Assam.
Bhaskar Jyoti Phukan, Managing Director of NRL, while speaking to Moneycontrol highlighted that 2G ethanol is likely to be priced higher than 1G ethanol due to the higher capital expenditure involved. The refinery is also planning to export part of the produced 2G ethanol with the expectation of getting a premium in the international market.
“2G ethanol requires a more complex production process and higher capital investment compared to 1G ethanol plants. Therefore, to expect a higher price for 2G ethanol is natural,” Phukan explained.
He further stated, “On the other hand, we have been given the freedom to export 2G ethanol as we may get a premium in the international market. We are also looking at it.”
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