India extends fuel ethanol loan interest aid scheme

Spanish Market: Agriculture, Biofuels
31/12/20

The Indian government has expanded its loan interest aid scheme for bioethanol distilleries to cover additional first-generation feedstocks, following yesterday's approval by the economic affairs cabinet committee.

Ethanol producers using grains, sugar beet, sweet sorghum or cereal feedstocks will be eligible for five years' government interest aid on bank loans for setting up or expanding existing distilleries. Dual feed distillery projects using multiple feedstocks will also be covered. This amends the existing scheme in which only molasses-based distilleries qualified for loan aid, in a bid to double ethanol production capacity nationwide by 2024. Current nameplate capacity for molasses-based distilleries totals 3.4mn t/yr.

Distilleries must supply at least 75pc of the ethanol produced from the added distillation capacity for fuel blending, rather than industrial or potable use, to secure the government aid.

The scheme will also cover installation of molecular sieve dehydration columns — drying units that increase the purity of ethanol produced through conventional distillation, as well as approved waste water treatment technologies at existing distilleries.

Projects will receive a one-year interest moratorium on loans after which the government will cover four years of interest up to 6pc/yr or 50pc of the rate charged by banks, whichever is lower.

India aims to achieve 10pc fuel ethanol blending with gasoline (E10) by 2022 and E20 by 2030 or earlier. Only 1.4mn t of ethanol was blended during the December 2019-November 2020 ethanol supply year, or around a 5pc ratio, according to the cabinet committee.

By Lauren Moffitt

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04/11/24

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October a record month for AOM Ucome trading

01/11/24

October a record month for AOM Ucome trading

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US biofuel feedstock use dips in August

31/10/24

US biofuel feedstock use dips in August

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US court set to weigh biofuel blend mandates

31/10/24

US court set to weigh biofuel blend mandates

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Cepsa rebrands to Moeve to reflect sustainability shift

30/10/24

Cepsa rebrands to Moeve to reflect sustainability shift

Madrid, 30 October (Argus) — Spain-based integrated energy company Cepsa has changed its name for the first time in its 95 years of existence, to Moeve (pronounced Moo-eh-vey). The change reflects Cepsa's transition "in which the majority of profits will come from sustainable activities by the end of this decade," said chief executive Maarten Wetselaar. Cepsa has sold nearly 70pc of its oil and gas production over the past two years, including its stakes in upstream assets in Abu Dhabi , in Peru and in Colombia . It has retained stakes in light crude and gas production in Algeria, which has a significantly lower carbon footprint. The company reported provisional working interest crude production of 36,000 b/d in July-September, down from 80,000 b/d in the same period of 2021. Since then it has announced an €8bn ($8.65bn) investment strategy to decarbonise much of its business through ventures such at the planned 2GW Andalusian Hydrogen Valley , announced at the end of 2022, together with second-generation biofuels, biomethane and renewables development. Cepsa, or Compañia Espanola de Petroleos SA, was founded in 1929. It has been been majority controlled by Abu Dhabi sovereign wealth investors IPIC and Mubadala Investment Company since 2011. US investment fund Carlyle acquired 37pc of the firm in 2019. By Jonathan Gleave Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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