Starting an Ethanol Production Plant in India: A Comprehensive Guide

India is one of the major consumers of products derived from petroleum worldwide. India imports 82% of crude oil from nations such as Iraq, the United States, Saudi Arabia, the United Arab Emirates, etc. India imported 185 million metric tonnes of petroleum for $55 billion in 2020–21. India buys more crude oil each year due to the lack of petroleum sources in the nation to meet the rising local demand.

As India’s Population is increasing daily basis and due to expansion in economy, and urbanization energy demand is growing fast. The 98% fuel requirement in the road transportation sector is currently met by fossil fuels and the remaining 2% by biofuels. It shows larger scope for biofuel currently. Apart from the alternative fuel source ethanol is one of the principal biofuels. Hence starting an Ethanol production Industry is one of the best ideas. India is facing a lot of issues regarding pollution and has taken numerous steps to reduce this. We hereby guide you all about the ethanol industry and how to start an ethanol production industry in India.

The main objective of this production plant is to blend it with petrol, currently, 10% of Ethanol is blended in Petrol, and by introducing the Ethanol Blended Petrol Programme the Government of India has set a target of 20% ethanol blend by 2025.

Starting an Ethanol Production Plant is one of the best steps to reduce pollution, save foreign exchange for country as well as being safe for the environment and the health of Individuals. There are several cases we have seen that people in the India are suffering from diseases due to high pollution levels.

Land Requirement 

If you’re planning to create a distillery of 50,000 liters of Molasses, then you will need land of 20-25 acres of land. The land capacity will also depend on the plant capacity and feedstock.

Machinery Required for The Ethanol Production

• Grain Storage and Cleaning Plant
• Grain grading and milling plant
• Liquefaction plant
• Fermenting unit
• Distillation plant
• Spent filtration
• Spent wash evaporator
• Cooling system
• Water treatment plant

Apart from the above-mentioned machinery there are some other infrastructures also required which include steam boilers, effluent treatment plants, etc.

Raw Material required to Start Ethanol Manufacturing Plant

• C Heavy Molasses: It gives 250 to 275 liters of rectified spirit per ton
• B Heavy Molasses: It gives 300 to 325 liters of rectified spirit per ton
• Sugarcane Juice: It gives 70 to 80 liters of rectified spirit per ton
• Cereals: It gives 300 liters of rectified spirit per ton

Ethanol Plant Section

The mentioned below sections in every distillery plant are important while ethanol production.

• Distillation section
• Fermentation section
• Boiler section
• Turbine section
• The raw material storage section
• The final product output storage section

The manufacturing process of Ethanol

Fermentation: Firstly, we have to ferment the Molasses, then add water and yeast to it and leave it for 24 hours after this the fermentation process will complete.

Distillation: To take out the sludge from the raw material it will pass through the sludge remover and send clear material for distillation, In the distillation process fermented wash will heat this leads to alcohol vaporized at the top after heating and alcohol condensed for collection.

Support from the Indian Government 

• To motivate and increase the local production of ethanol business, the government has fixed different rates for different raw materials used to produce ethanol.

For example,

1. C heavy molasses – Rs. 46.69
2. B heavy molasses – Rs. 59.08
3. Sugarcane juice – Rs. 63.45

These raw materials produce different types of ethanol; hence their rate has been set accordingly. Moreover, the government is only accepting locally produced ethanol to blend with petroleum, and they have banned the bending of imported ethanol in petroleum. This has given chance to start-ups and entrepreneurs in India to think about starting ethanol production.

• Also, Government has reduced the GST Rate from 18% to 5%.
• According to the Industries Act 1951, In the ethanol blended program government has allowed free movement of ethanol.
• The government gives a Moratorium on bank loans for the ethanol production plant
• The government has also initiated the Interest subvention scheme on loans, but with a clause that at least 75% of the ethanol produced from the business should go to Oil Manufacturing Companies.
• The government gives subsidies and schemes.

Government Subsidy 

1. In Gujarat – 25% Capital Subsidy, 7% Interest Subsidy and various other incentives to Ethanol Plant in Gujarat.

Licensees and Registration Required 

1. State Excise for Ethanol production
2. CPCB for plant operation
3. NOC from local and district bodies
4. Water lifting permission from water sources
5. Permission from the state electricity board

Profit Margin 

The profit margin depends on the kind of raw material you use for the ethanol production.

For example,

C heavy molasses provide Rs. 18 per litre profit, whereas B heavy molasses provides Rs. 21 per litre profit.

On an average a business can earn Rs. 20-25 per litre of profit from ethanol production from any raw material. The raw material plays an important role in the profit margin. The best way to save profit earning is by storing raw materials like sugarcane during their season. While looking for raw material in the off-season may cost a hefty amount.

Conclusion 

While developing and operating a successful ethanol manufacturing facility is not a simple process without help from specialists, ethanol manufacturing offers the excellent commercial potential to entrepreneurs. Please contact Adroit Corporation if you intend to start an ethanol producing plant. We give you access to vetted and trusted specialists who can help you set up the ethanol production sector.

Need of ethanol in India

Ethanol blending and ethanol production ratio, these are two related but distinct concepts in the context of biofuels. The blending ratio is usually expressed as a percentage, denoting the proportion of ethanol in the blend. For example, Year 2013-14 represents a blend containing 1.5% ethanol and 98.5% petrol, while Year 2022-23 denotes a blend containing 9.5% ethanol and 90.5% petrol.

Use of Ethanol & Its by Products

Ethanol blending and ethanol production ratio, these are two related but distinct concepts in the context of biofuels. The blending ratio is usually expressed as a percentage, denoting the proportion of ethanol in the blend. For example, Year 2013-14 represents a blend containing 1.5% ethanol and 98.5% petrol, while Year 2022-23 denotes a blend containing 9.5% ethanol and 90.5% petrol.

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• A by-product of ethanol production is distillers grains, which can be fed to livestock either wet or dried. Distillers grains are more stable and easier to transport when an ethanol producer dries them. Distillers grains retain many of the nutrients from corn, rice, since only the starch has been removed. Due to the high fiber content most of the distillers grains are fed to dairy cattle, however, they can also be used as poultry and pig feed.
• Another by-product would be in the gaseous form and that will be carbon itself which could be backbone of carbonated soft drink beverages.
• Saving the ash from the plant would be supportive hand in bricks industry and plant.
  • Much more could be done with Ethanol based products