Indian private-sector refiner Nayara Energy plans to invest 6bn rupees ($71.9mn) to set up two Indian ethanol plants, each with a production capacity of 200 kilolitre (kl)/d.
Nayara has already identified and purchased land in south India's Naidupeta town, Andhra Pradesh state and central India's Balaghat city, Madhya Pradesh state for the proposed plants. The plants will be commissioned by 2026 and will use broken rice and maize as feedstock.
The company aims to gradually increase the number of plants to five, with a combined ethanol production capacity of around 1,000 kl/d.
"The establishment of ethanol facilities will significantly enhance Nayara Energy's ethanol supply reliability, playing a crucial role in meeting the Indian government's 20pc blending target by the end of fiscal year 2025-2026," Nayara Energy's chief executive officer Alessandro des Dorides said. India achieved 12pc ethanol blending with petrol during November 2023-March 2024, according to the oil ministry.
Nayara Energy is also considering a significant expansion of its 400,000 b/d Vadinar refinery, and proposed doubling primary capacity to 800,000 b/d. The Vadinar expansion project would essentially mean building a new refinery at the existing site, Indian oil ministry secretary Pankaj Jain said in February, according to Russian state-owned news agency Tass. Russian state-controlled Rosneft has a 49pc shareholding in Nayara.
