How to Start Ethanol Production Plant – A Booming Business

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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 2020â€“21. India buys more crude oil each year due to the lack of petroleum sources in the nation to meet the rising local demand.

Visit this Page for More Information: Start a Business in Ethanol Industry

The Indian government is looking at several options to address the problem of increasing oil and petroleum imports, including increasing the production of renewable energy and using ethanol as a fuel alternative. By FY24, the government hopes to have mixed 20% ethanol with petrol. Because ethanol has a lower value than fuel, the government might be able to save about $4 billion annually on the import of petroleum. Additionally, as ethanol is less polluting than fuel, using it as a substitute for petroleum also contributes to reducing the environmental pollution.

Numerous businesspeople across India are being encouraged by the government to investigate the potential in ethanol production and start its manufacturing plants with the availability of food grains and sugar cane as well as the government’s effort to gradually replace all fuel with ethanol.

Allow NPCS to explore the government incentives, raw materials as well as equipment required, and other variables involved in successfully starting and operating the ethanol production business to assist entrepreneurs in setting up an ethanol production plant.

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,

C heavy molasses â€“ Rs. 46.69
B heavy molasses â€“ Rs. 59.08
Sugarcane juice â€“ 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.

Read Similar Articles: ETHANOL AND ALCOHOL INDUSTRY

The Indian government has also reduced GST from 18% to 5%. Also, the government has made amendments to the Industries Act 1951 and allowed free movement of the ethanol blended program.

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.

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 section

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Raw material

C Heavy Molasses â€“ produces 250-275 litre rectified spirit (R.S.) per tonne
B Heavy Molasse â€“ produces 300-325 litre rectified spirit (R.S.) per tonne
Sugarcane Juice â€“ produces 70-80 litre rectified spirit (R.S.) per tonne
Cereals â€“ produces 300 litre rectified spirit (R.S.) per tonne

Related Feasibility Study Reports: Production Of Ethanol (ethyl Alcohol) From Broken Rice, Maize & Wheat

Licence and Registration Required

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

Land Requirement

If youâ€™re planning to create a distillery of 50,000 litres 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.

Read our Books Here: Handbook on Biofuel, Ethanol and Bioenergy Based Products

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 NPCS 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.

Niir Project Consultancy Services (NPCS) has prepared project report on Ethanol – Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics. The project report provided by NPCS gives a detailed market review. The report analyses the market confirms the availability of various necessities such as plant & machinery, raw materials and tells about the forecasting financial requirements. A lot of professionals have taken benefit from the project reports if you are interested in the manufacturing business of Ethanol or any other business get in contact with us from the official website of NPCS.

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â—Our research report helps you get a detailed picture of the industry by providing an overview of the industry along with the market structure and classification.

â—Our report provides market analysis covering major growth driving factors for the industry, the latest market trends and the regulatory framework of the industry.

â—Our Report provides an analysis and in-depth financial comparison of major Players / Competitors.

â—Our Report provides indispensable buyers’ data with their company financials as well as the contact details, which can be an important tool in identifying the target customers.

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