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GUJARAT BANKS BIG ON BIOFUELS
Last month, India's dairy major Amul, otherwise known for milk production, achieved a significant milestone by successfully conducting its first large-scale trial to produce bioethanol from whey, a byproduct of cheese and paneer production.
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Buoyed by the success of this first-of-its-kind trial in the Indian dairy industry, the FMCG giant now plans to invest Rs 70 crore in a bioethanol plant capable of producing 50,000 litres per day. The initiative is expected to generate an additional income of Rs 700 crore for dairy farmers through the sale of bioethanol.
But Amul is not the only player racing to capitalise on the rising demand for biofuels. The govt of India's mandate to blend up to 20% bioethanol in petrol under the Ethanol Blended Petrol (EBP) programme is fuelling multiple projects across the state.
Several companies in Ahmedabad are preparing to enter ethanol manufacturing, anticipating strong growth.
Ahmedabad-based Grainspan Nutrients Pvt Ltd, active in grain milling and exporting grain derivatives since 2012, has already launched its ethanol plant as part of a forward integration strategy.
Sampatraj Chaudhary, chairman of the company, said, "We have been active in maize and rice production for years.
When the central government announced ethanol blending initiatives, we decided to set up an ethanol plant."
He added, "We invested about Rs 500 crore and currently have a capacity to produce 340 kilolitres per day (KLPD) of ethanol. We started with a 100 KLPD capacity in 2023 and later expanded. Today, we supply ethanol to two major Oil Marketing Companies (OMCs)."
According to Chaudhary, India holds vast potential in agriculture-linked industries, and ethanol is a key opportunity.
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"We see growing demand due to the 20% blending policy. As petrol consumption continues to rise, ethanol demand will follow," he said.
The Chiripal Group has also entered the sector with its new venture, True Green Bio Energy Limited. Deepak Chiripal, the group's promoter, said, "The Government of India's push to achieve 20% blending by 2025 aims to reduce crude oil imports, save foreign exchange, and cut carbon emissions."
He added, "We see renewable energy as a vital pillar of long-term sustainability. This ethanol plant is part of our futuristic green energy division. It has an installed capacity of 300 KLPD and will begin operations soon. We have invested around Rs 350 crore in this greenfield project near Ahmedabad."
Chiripal noted that the primary raw material is sourced from the Food Corporation of India (FCI), with additional requirements met via the open market to maintain an efficient and stable supply chain.
Ahmedabad-based Kineeva Industries LLP is also setting up an ethanol plant. Pranay Kabra, one of the directors, said, "This is an emerging sector, and demand for green fuels is set to surge. We're currently in the process of securing necessary approvals. Our planned plant will have a capacity of 100 KLPD, with an investment of about Rs 120 crore."
Industry insiders say around 14 companies in Gujarat have received approval from OMCs to set up ethanol units.
Collectively, these companies plan to invest around Rs 3,300 crore for setting up units with a total capacity of 2,800 KLPD.
"While many are entering the ethanol space, caution is needed," said a senior official from a leading company. "Currently, fewer than five ethanol units are operational in and around Ahmedabad. Others are in various stages of development. While Uttar Pradesh, Karnataka, and Punjab are leading ethanol producers, Gujarat has significant growth potential."
Part 2: Circular Economy: Co-operatives Tap Dung for New Revolution
Byline: Prashant Rupera
Vadodara: While producing ethanol from milk is a recent innovation, Gujarat's dairy cooperatives are leading the next wave in green energy by turning to cattle dung to produce compressed biomethane gas (CBG) and biofertilisers.
To make India's traditional dairy system more environmentally sustainable and future-ready — while also boosting farmer incomes — the National Dairy Development Board (NDDB) and the Gujarat Co-operative Milk Marketing Federation (GCMMF) are capitalising on the fact that India has the world's largest bovine population, making it the largest producer of dung.
It's no longer just about milking cows and buffaloes — it's about completing the circular economy. Dairy farmers now not only earn from milk but also from the sale of dung.
Collected dung is used for producing biogas at household level (replacing LPG cylinders), while the slurry — the byproduct of biogas production — is used as manure. With further processing, this nutrient-rich slurry is sold as organic fertiliser.
Large-scale dung-based digesters generate raw biogas, which is compressed and purified for use as CBG in vehicles, while the remaining slurry feeds into the production of solid and liquid organic fertilisers.
Seven years ago, Banas Dairy, a member of GCMMF, with NDDB's support, established an institutional biogas plant at Dama, processing 40 metric tonnes of cattle dung daily. Apart from producing fertiliser, the plant's CBG output powers over 80,000 cars annually.
Banas Dairy has since entered a tripartite agreement with NDDB and Suzuki R&D Center India Pvt Ltd (SRDI) — the Indian arm of Suzuki Motor Corporation — to set up four dung-based CBG plants in Banaskantha district.
Each plant will process 100 metric tonnes of dung per day and generate 5,000 cubic metres of gas. These will be set up this year at an estimated cost of ₹230 crore, and there's more in the pipeline.
"All our 18 member unions will establish 30 CBG plants across Gujarat," said Jayen Mehta, Managing Director of GCMMF (AmulFed).
"Each plant will handle 100 metric tonnes of dung daily and produce 5,000 cubic metres of gas, with a total investment of nearly ₹1,000 crore."
"Additionally, we will install 32,550 household-level biogas units across Gujarat to reduce dependence on fossil fuels," he added.
"Apart from boosting farmer incomes through dung sales, these large-scale bio-CNG/CBG plants will produce vast amounts of organic fertilisers, revitalising farms across the region," said Meenesh Shah, Chairman of NDDB.
The board, along with dairy co-operatives, is now working to replicate the 'Banas Model' in other parts of India.
**Photo Quotes**
Banas Dairy was the first to set up a CBG plant that now fuels more than 80,000 cars a year. Now, all our 18 member unions will be setting up 30 CBG plants in various districts of Gujarat. This would require an investment of Rs 1,000 crore. Each of these plants will have the capacity to process 100 metric tonnes dung input per day to generate 5,000 cubic metres of gas."
Jayen Mehta | Managing Director, GCMMF (Amul Fed)
Suzuki R&D Center India (SRDI) Pvt Ltd has entered into an agreement with NDDB to expand biogas-based initiatives across India. Under the agreement, SRDI has invested in NDDB Mrida Ltd. NDDB Mrida Ltd has also entered into an agreement with a biogas plant suppliers to reduce the upfront costs of biogas plants, making them more affordable
Meenesh Shah | Chairman, NDDB
There is a huge potential for agro-based products in the state and ethanol is one of them. As the demand for petrol increases, the demand for ethanol will also increase
Sampatraj Chowdhary |Chairman, Grainspan Nutrients
Green fuel demand is set to go up and ethanol provides a significant opportunity because of blending targets. It will help in reducing import dependence and reducing carbon emissions
Deepak Chiripal | Promoter, Chiripal Group
