Indian Oil Corporation (IOC) is planning to set up a foodgrain-based, mega scale ethanol production facility each in Indian states of Telangana and Andhra Pradesh with an estimated total investment of ₹1,200 crore ($164.3 million).
Spoilt and surplus foodgrain, sourced from the Food Corporation of India (FCI), will serve as feedstock to make ethanol, for blending with petrol and reducing dependence on crude oil imports.
Director (R&D) SSV Ramakumar mentioned about the proposed facilities during a media interaction here on Wednesday. ED and State Head of IOC for Telangana and Andhra Pradesh R.Sravan S.Rao added the 500,000 litres per day capacity plants will entail an investment of ₹600 crore ($82 million) each.
Both IOC officials appreciated Telangana government for its proactive response and suggesting two locations for the plant in the State. The oil company would be evaluating the options, Mr.Rao said, adding about 80 acres, a continuous source of water and proximity to FCI godowns are aspects important for the facility. IOC was yet to approach the Andhra Pradesh government, he said.
According to Mr.Ramakumar, the Centre has mandated usage of 10% ethanol in petrol by 2022 and 20% in 2025. In view of the limited availability, the ethanol blend in petrol is around 6% at present.
Indian Oil’s research and development thus is focusing on new avenues to produce ethanol, including from agriculture residue such as wheat straw, paddy straw as well as converting carbon dioxide by a biotechnology pathway.
The first such 3rd generation ethanol production facility, a 3,000 tonne per annum plant at Panipat, in which carbon dioxide emissions from the IOC refinery will be converted into ethanol, will be commissioned this year.