In line with central government’s roadmap for Ethanol Blending released in June 2021 by Prime Minister Narendra Modi, Krishak Bharati Cooperative (Kribhco) is in the process of setting up three greenfield grain-based ethanol manufacturing plants in Gujarat, Andhra Pradesh and Telangana in next three years at an estimated cost of Rs1,000 crore.
Kribhco Green Energy, a special purpose vehicle (SPV), has been formed by Kribhco to implement these bio-ethanol projects. While Kribhco has received environmental clearance for ethanol distillery (grain-based) at Hazira (Surat), foundation stone for the Gujarat plant will be laid by Union minister of cooperation Amit Shah on September 14 near Kribhco’s existing urea and bio-fertiliser manufacturing facility.
“Upcoming ethanol plant at Hazira will have capacity to make 250 kilo litres per day (KLPD). Kribhco will invest approximately Rs350 crore for the Hazira ethanol project in next two years. We are expecting the plant to be commissioned by the end of 2024. The Hazira ethanol plant will provide employment to nearly 200 people,” said Paresh Patel, director, Kribhco.
Work for the other two ethanol plants in Andhra Pradesh and Telangana is expected to begin by the end of current calendar year, claimed Patel, adding that Kribhco will invest another Rs700 crore for both the ethanol plants in southern states.
“As part of advanced planning, Kribhco has inked a long-term offtake agreement with Bharat Petroleum Corporation (BPCL). We are expecting 100% offtake of ethanol by other oil marketing companies including Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited (HPCL), etc.,” said M R Sharma, director (operations) at Kribhco. The technology used for the setting up of ethanol plants would be 100% indigenous, said Sharma, adding that broken rice and maize are considered as the main raw-materials.
Broken rice would be sourced from FCI and additional requirements of rice and maize will also be procured from the open market, he said. “In addition to the ethanol production, there will be production of Distillers Dried Grain with Solubles (DDGS) as a by-product which is an important source of animal feed. Another by-product is CO2 that will be offloaded in the market,” he said.