ETHANOL PRODUCTION
Jakson Green wins NTPC order for setting up project to produce 4G ethanol from flue gas
Jakson Green secured a contract from NTPC to build a plant in Chhattisgarh producing 10 tonnes per day of 4G ethanol from power plant flue gases. Utilizing Veolia’s carbon capture technology, the plant will capture 25 TPD CO2 and produce 3 TPD green hydrogen. The project will be operational in two years.
Ethanol blending in petrol now stands at over 15%
Ethanol blending in petrol exceeded 15% in May, driven by increased purchases from biofuel makers. Oil companies achieved an average blending ratio of 15.4%, surpassing April's 12.7%. State-run oil marketing companies blended about 670 million litres of ethanol in petrol, as per oil ministry data.
Sugar rush! Praj Industries, Balrampur Chini shares jump by over 6% on boost from ethanol blending
Praj Industries shares surged 6.4% to a 52-week high on NSE after Union Minister Hardeep Singh Puri's announcement on India's biofuel blending targets.
Sugar stocks surge over 8% as govt again backs ethanol
Sugar stocks surged on Tuesday as Oil & Petroleum Minister Hardeep Singh Puri reinforced the government's focus on ethanol production, with notable gains seen in companies like Bajaj Hindusthan, Triveni Engineering, Avadh Sugar, and Uttam Sugar.
Boosting oil & gas production, green H2 promotion on top of agenda
Oil minister Hardeep Puri emphasizes boosting domestic oil and gas production, promoting green hydrogen, and increasing ethanol use. State-run oil companies like BPCL will not be divested.
Elections still on for them? But macro structure has changed for good: 5 sugar stocks with upside potential of up to 27%
In a sector, where government policies have a major impact, the risk of any change in policy impacting the players is always present. That is the reason why the valuations of these stocks from such sectors don't cross a certain threshold. Probably the sugar sector tops the lists of such sectors and the reason is because both the central and state governments have some say in the policy making. While the general elections are over, there are many states which have exposure to the sugar sector and state elections are going to be held there over the next couple of quarters. So a narrative might get built against the sugar stocks. What needs to be done, make a distinction between the reality that the balance sheets of these companies are much stronger than what they were, their business model is not just about sugar, but about part of the clean energy which is something which is going to grow.
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Sugar exports to depend on monsoon, cane sowing in 2024-25
India may consider allowing sugar exports for the 2024-25 season pending final assessment of sugarcane sowing and output. The country anticipates a lower sugar production of 30 million tonnes compared to 32.8 million tonnes last year. Mills in Tamil Nadu and Karnataka have come close to the end of crushing for the current season and expect to reach 31.8 million tonnes by September. The government is prioritizing stock availability for domestic consumption and ethanol production.
Oil firms blamed for ethanol stock pile-up
India's ethanol production capacity was about 13.80 billion litres per year in November 2023, of which 8.75 billion litres were molasses-based and about 5.05 billion litres grain-based, according to government data. The production capacity was about 4.20 billion litres in 2014.
Nayara Energy to set up two ethanol plants for ₹600 crore
Each plant will have a production capacity of 200 kilo litres of ethanol per day. These will be set up in Andhra Pradesh's Naidupeta and Madhya Pradesh's Balaghat, and are slated for commissioning by 2026. The company will use broken rice and maize for feedstock. In the long run, the company plans to have five ethanol manufacturing plants.
Government's stance on sugar exports amidst industry demands
ISMA seeks sugar export despite surplus, impacting closing stock projections. Central government prioritizes ethanol over export, aiming to build reserves. Sugar prices rise despite production surprises, with 2024-25 forecast dependent on monsoon.
Decision on resumption of sugar exports is months away, Indian official says
The world's second largest sugar producer banned exports of the commodity since June 2022. The objective behind the move was to cover local consumption.
US offers to help India meet ethanol blending target by 2025
"We believe that there's a great opportunity to support India's advancement in increasing ethanol production," said Alexis Taylor, United States undersecretary for Department of Agriculture leading the agribusiness trade mission to New Delhi. She has met with officials from the ministries of agriculture, external affairs and commerce & industry. India plans to start using 20% ethanol blended petrol (E20) from 2025.
Diversion of B Heavy Molasses will release Rs 2300 crore for the distilleries; says NFCSF
The decision of the central government to allow use of the 7 lakh tonnes of B Heavy Molasses for ethanol production will help the sugar industry get a revenue of Rs 2300 crores, said National Federation of Cooperative Sugar Factories (NFCSF), which represents the cooperative sugar mills of the country.
NFCSF hails govt decision to allow use of 7 lakh tonne of excess B-heavy molasses for ethanol making
NFCSF welcomed govt's decision to allow 7 lakh tonne of B-heavy molasses for ethanol, aiding in ethanol production and improving sugar mills' finances. This move will release around Rs 700 crore from remaining stocks, impacting selling rate and distillation projects.
Govt allows sugar mills to use 6.7 lakh tons of B-heavy molasses for ethanol production
The government has allowed sugar mills to use 6.7 lakh tonnes of B-heavy molasses as feedstock for ethanol production in the current year. The move follows the industry's request to the food ministry to allow B-heavy molasses for ethanol production and improve the finances of sugar mills. The government reversed the ban and allowed cane juice and B-heavy molasses within the overall cap of 17 lakh tonnes of sugar for ethanol production for the 2023-24 supply year.
Govt mulls allowing excess stock of B-heavy molasses for ethanol making
The government is contemplating allowing sugar mills to produce ethanol using their surplus B-heavy molasses amid stable sugar prices and ample supply. With more than 8 lakh tonnes of excess B-heavy molasses in storage, the industry seeks to use it for ethanol production following a ban reversal. Discussions on the proposal are ongoing.
No proposal to resume sale of subsidised rice for ethanol production: Food secretary
Government remains firm on not resuming subsidised rice sale for ethanol. Chopra encourages maize ethanol production and highlights the impact on distillery investments. Increased sugarcane FRP aims to boost cultivation for the upcoming season.
No proposal to resume sale of subsidised rice for ethanol production: Food Secy
The rice sale for ethanol makers was discontinued for various reasons, including apprehensions about domestic output and high retail prices, and economic unviability, he said. On the impact on investments on grain-based distilleries, Chopra said, "This is not a policy which is cast in stone. This policy will be renewed... Maize is being encouraged for ethanol production."
Balmer Lawrie to add more business verticals over three years: CMD
Balmer Lawrie plans to diversify its business verticals by adding new units such as FTWZ and ethanol production. The company aims to increase revenue from Rs 2,300 crore to Rs 6,000 crore in three years.
Maize prices surge, procurement for ethanol may be hit
Government's maize procurement for ethanol impacts prices, leading to concerns over reduced state procurement. Farmers may opt for private traders due to high prices. India promotes maize as a sugar alternative for ethanol production amid declining sugar production.
Net sugar output dips marginally at 280.79 lakh tonnes so far in 2023-24 mkt yr ending Sep: ISMA
India's sugar production declined to 280.79 lakh tonnes by March 15. Maharashtra, Karnataka, and Uttar Pradesh experienced varying levels of decrease. ISMA reported 371 active factories. Ethanol manufacturing and FRP hike were notable developments.
No proposal to allow further diversion of sugar for ethanol production: Food Secy
Food Secretary Sanjeev Chopra has said that there are no plans to permit additional diversion of sugar for ethanol production during the current 2023-24 supply year. In December of the previous year, the government imposed a cap on sugar diversion at 17 lakh tonnes for the current supply year (November-October). Additionally, it authorized the utilization of both cane juice and B-heavy molasses within the overall cap for ethanol production.
Gross sugar output may fall 10 pc to 330.5 lakh tonnes in 2023-24 marketing year ending Sep: ISMA
India's sugar production, without ethanol diversion, is estimated to decline 10% to 330.5 lakh tonnes in the current marketing year. Maharashtra and Karnataka are likely to see lower output. The gross production in Maharashtra is estimated to fall to 99.9 lakh tonnes, while in Karnataka it may dip to 49.7 lakh tonnes. In Uttar Pradesh, the gross output is seen increasing marginally. The government has allowed sugar diversion of only 17 lakh tonnes for ethanol production. This could result in a net sugar production of around 313.5 lakh tonnes.
AISTA's 1st estimate pegs sugar output 4 pc lower at 31.6 mn tons for 2023-24 season
AISTA projects India's sugar production for the 2023-24 season to be around 31.6 million tonnes, a four percent decrease from the previous season. The estimated net domestic sugar production excludes a sucrose diversion of 2 million tonnes for ethanol production. The availability of sugar in the country is estimated to be 37.3 million tonnes, higher than the estimated domestic consumption of 29 million tonnes.
Maize prices surge 20% in India as government promotes ethanol production
Maize prices in India have surged by 20% in the first two weeks of January compared to October due to increased demand after the government's plans to procure the commodity for ethanol production. This move comes as restrictions are placed on using sugar for biofuel production. The prices are expected to stay firm in the coming months, and there could even be a shortage of the commodity.
India's Oct 1-Jan 15 sugar output drops 7% y/y: Industry body
Maharashtra's sugar production fell to 5.1 million tons from 6.09 million tons, while Karnataka's production dropped 12.7% to 3.1 million tons, the National Federation of Cooperative Sugar Factories said in a statement.
Ban on sugar for ethanol: Centre files caveats in High Courts of Bombay and Karnataka fearing stay order
Several sugar firms have approached various courts seeking a stay on the Centre's December 7 order prohibiting mills from producing ethanol from sugarcane juice in the 2023-24 season. In the absence of a caveat, the courts can pass a stay order without hearing the government, explained the official cited above. The Centre issued the ban to keep a check on rising sugar prices in the domestic market despite restrictions on exports due to lower sugarcane yield in main producer states of Maharashtra and Karnataka.
Curbs may be eased on sugar use for ethanol production
The government's decision came amid concerns about a fall in the production of sugarcane due to erratic weather conditions, and rising prices of the sweetener in the domestic market. The all India average consumer wholesale price of sugar was ₹4,142.21 per quintal on December 14, compared with ₹3,934.39 on the same day last year, according to government data.
India's sugar production to increase by 2.5 million tonne in 2023-24: Crisil
CRISIL has expected a 2.5 million-tonne increase in India's sugar production in 2023-24 due to a ban on using sugarcane juice for ethanol. The government's move immediately stops ethanol production from cane juice but permits it from B and C heavy molasses. With sugarcane supply issues, sugar mills face a choice between sugar and ethanol.
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