Second Generation Ethanol Bio-Refineries in India

Ethanol Blended Petrol (EBP) Programme is being implemented by the Government of India to promote the use of alternative and environment friendly fuels. This intervention is also sought to reduce import dependency for energy requirements and provide necessary boost to the agriculture sector.

To support the aforesaid programme, Oil PSUs have decided to set up 12 Second Generation (2G) Ethanol bio-refineries in 11 States of the Country as an effective tool for development of rural economy. One such plant is being set up by Bharat Petroleum Corporation Ltd. (BPCL) in village Baulsingha, Tehsil- Bhatli, District Bargarh (Odisha) with a proposed investment of Rs. 750 crores. BPCL has already appointed Project Management Consultant for early commencement of developmental activities at the site.

BPCL has requested the State Government of Odisha through Industrial Promotion & Investment Corporation of Odisha (IPICOL) for allocation of land during November, 2016. Even after elapse of almost of one year, land allotment for the project has not been done. This is adversely affecting the project which is being pursued in the interest of the people of Odisha.

With the setting up of this bio-refinery, there will be an increase in the overall economic activity in the surrounding area. This bio-refinery will also necessitate setting up of around 10 decentralized biomass collection depots in a radius of 50km.

There will be quantum jump in the labour and transportation activities from the agricultural fields to the biomass collection depots to the bio-refinery and movement of finished product. The demand for equipment such as bailers, compacters, loaders, tractor trolleys will also rise. During the construction of the bio-refinery, employment opportunities will also be created for the locals.

Feedstock for the plant will be agricultural waste, crop, residues from the adjoining area which will be converted into ethanol and bio-manure. While ethanol produced from this bio-refinery will supplement the EBP Programme promoted by Government of India, bio-manure will get consumed in the nearby areas thereby improving the soil fertility.

The estimated feedstock consumption for this plant is 1,30,000 MT per annum. This is expected to generate a value of Rs. 8 crore per annum for the adjoining farmers for their agricultural waste which otherwise requires spending by the farmer for its disposal.

Additionally, this venture will provide opportunity for rural entrepreneurs to generate direct and indirect employment for 800- 1000 persons thereby generating additional income of Rs. 10- 12 crores per annum.