Oil Marketing Companies Offer Incentives to Boost Ethanol Production from C-Heavy Molasses

Oil Marketing Companies Offer Incentives to Boost Ethanol Production from C-Heavy Molasses

VoM News Desk | December 29, 2023 | 06:19 PM IST | Breaking News, Energy | Follow on Google News

Oil Marketing Companies Offer Incentives to Boost Ethanol Production from C-Heavy Molasses

Oil Marketing Companies Offer Incentives to Boost Ethanol Production from C-Heavy Molasses

Public sector oil marketing companies have recently unveiled a significant incentive of Rs 6.87 per litre for ethanol production derived from C-heavy molasses, a by-product of sugar factories. This incentive aims to foster a greener economy by effectively utilizing C-molasses to produce ethanol, contributing to the Ethanol Blended Petrol Programme.

Union Petroleum Minister Hardeep Puri hailed this move, highlighting its role in ensuring farmer prosperity, reducing foreign exchange dependence, and advancing sustainability. This incentive aligns with Prime Minister Narendra Modi’s vision for a cleaner, eco-friendly future through the Ethanol Blended Petrol Programme.

Earlier, the Food Ministry directed sugar mills to refrain from using cane juice or syrup for ethanol production. However, the government’s directive in mid-December expanded the scope to include juice and B-heavy molasses for ethanol production, while imposing a cap on sugar diversion for the ongoing marketing season at 17 lakh tonnes.

Despite these measures, the ethanol production pause from sugarcane juice in 2023-24 might impact the government’s ambitious targets of reaching 20 percent ethanol-blended petrol by 2024-25 and 30 percent by 2029-30, according to Crisil. Presently, ethanol from cane juice contributes around 25-30 percent, while that from B-heavy molasses constitutes over 60-65 percent of the total ethanol production in the country.

India has already commenced the phased rollout of 20 percent blended fuel in April 2023, aiming to make it widely available soon. The introduction of E20 blending in petrol by 2025, five years ahead of the previous target of 2030, aims to curtail oil import expenses, enhance energy security, minimize carbon emissions, and improve air quality.

VoM News Desk

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