AP gets proposal for Rs. 300-cr bioethanol plant

The environment-friendly initiative will increase energy security, lower carbon emissions, better air quality, self-reliance, better use of damaged foodgrains, increase farmers' incomes and facilitate greater investment opportunities

Visakhapatnam: As Andhra Pradesh pronounced its commitment to give a big boost to the decarbonised economy at the recently held World Economic Forum annual meeting at Davos, a private firm has come forward with a proposal to set up an ethanol-blended fuel plant near Rajahmundry with an investment of Rs 300 crore.

Greenko has already started work at Kurnool, which is touted as the world's largest single location renewable energy pumped storage (10,800 MWh daily storage) at a cost of $3 billion. Adani Green Energy has signed MoU with the State Government for investing Rs 60,000 crore on green energy projects.

APIIC officials said Assago Industries Ltd has submitted a formal proposal for establishing ethanol fuel plant near Rajahmundry for which it has sought approval and allotment of land. The project, if materialised, will generate direct and indirect jobs for 200 people.

The company wants to produce bioethanol from damaged paddy and grains to give a fillip to the National Ethanol Blending Programme. The Government of India has achieved ahead of schedule of supplying 10% ethanol blended petrol and aims to double it by 2025-26 to slash oil bill and import dependence.

APIIC Chairman Mettu Govind Reddy after meeting senior officials from the company, said the project proponent envisaging production of 200 kilolitres per day has sought about 21 acres at Gummaladodi Industrial Park.

Prof H Purushotham, DPIIT-IPR Chair and Honorary Director Agro Research Centre Andhra University, told Bizz Buzz that from April 1, 2023 the government will allow 20 per cent ethanol blending in petrol as it provides immense benefits" to the economy such as saving of Rs 30,000 crore of foreign exchange per year.

He said the environment-friendly initiative will increase energy security, lower carbon emissions, better air quality, self-reliance, better use of damaged foodgrains, increase farmers' incomes and facilitate greater investment opportunities. "It is a great policy measure. However, we need to address a few technical challenges the ethanol blends pose such as corrosion and fuel efficiency. As a chemical engineer I fully support this move," he remarked.