India is the world’s third-largest crude oil importer, spending USD 132+ billion annually. The primary reason for such imports is the absence of adequate domestic petroleum reserves. However, rather than fixating on this deficiency, India has pivoted towards a sustainable path by adopting green energy alternatives.
India opted for blending with ethanol biofuel to fulfill its domestic energy needs, achieve energy self-reliance, and diminish its carbon footprint, reducing dependence on crude oil and imports.
Ethanol Biofuel Landscape in India
Ethanol biofuel is a renewable energy source made from organic materials like corn, sugarcane, or other biomass materials. Its molecular structure allows it to be blended with petrol, making it a fuel additive in several industrial applications and an intoxicated component for alcoholic beverages.
It helps reduce greenhouse gas emissions, reliance on finite fossil resources, and the carbon footprint of transportation fuels. Today, the ethanol market in India is growing rapidly. It was valued at $6,512 million in 2023 and is projected to reach $10,456 million by 2029 at a CAGR of 8.84%.
Also, the government’s Ethanol Blended Petrol (EPB) programme mandates up to 10% ethanol blending across the country. It has led to a decrease in imports by more than ₹24,300 crore in 2022-23, with ethanol capacity doubling yearly, currently 500+ crore liters.
Ethanol is a significant choice in pursuing sustainable energy solutions because it can reduce reliance on non-renewable resources and mitigate environmental impact.
Ethanol Biofuels in Industries
In industrial settings, Ethanol serves as a solvent and plays a crucial role in the synthesis of organic chemicals such as ethylene, acetone, acetaldehyde and more. Moreover, its potential as a sustainable alternative to fossil fuels like gasoline is highly acknowledged by the government, both state and central.
The Central Government’s Interest Subvention Scheme provides a 6% interest subsidy for up to five years. It aims to increase the freestanding distilleries dedicated solely to ethanol production, which also boosted investments in ethanol production.
Meanwhile, state governments are providing incentive programmes such as:
- Priority lending from nationalized and private banks for ethanol distilleries
- Fast-track approval process for authorities to speed up project implementation and ensure that ethanol facilities operate on schedule
- Payment cycle of 21 days
Also, the government has reduced the tax (GST) on ethanol consumption from 18% to 5%.
Jakson Biofuels Business Venture
In line with the government’s initiatives, Jakson Biofuels is focused on its ground-breaking 150 KLPD (Kilo Liters Per Day) Grain-Based Distillery in Balaghat District, Madhya Pradesh. Connected to Maharashtra and Chhattisgarh, Balaghat is also known as the rice bowl of India, which produces 10 lac MT of rice yearly.
Jakson’s distillery harnesses the region’s geographically rich conditions and high cultivation by using broken rice and maize to make Ethanol. This biofuels business also aims to expand to 450 KLPD soon, fostering economic growth and energy sustainability in India.
Impact on the Environment and Regional Economy
The choice of feedstocks underscores Jakson’s commitment to sustainability. By utilizing abundant and locally available resources such as rice and maize, the company aims to minimize its environmental footprint while positively impacting the regional economy & achievement of national objectives.
Also, the strategic location of the Distillery in Balaghat District offers logistical advantages, with easy access to major markets in the country like Maharashtra and Chhattisgarh. It ensures efficient distribution while strengthening the region’s position as a hub for biofuels production.
Promoting the Use of Biofuels
Biofuel uses extend beyond powering vehicles; they hold the key to reducing greenhouse gas emissions, mitigating climate change, and fostering energy independence.
By prioritizing renewable resources and adopting advanced technologies, Jakson is shaping the biofuels business landscape to set a precedent for responsible energy production. Through strategic partnerships and ongoing research, the company remains committed to driving innovation and promoting a sustainable journey with the widespread adoption of biofuels.
Charting a Sustainable Journey Forward
As Jakson Biofuels aims for 450 KLPD in two phases, aligning with India’s preparation to introduce 20% ethanol-blended petrol by 2025, meeting sustainability goals is slowly becoming a reality. By harnessing the power of biofuels and embracing a holistic approach to energy production, we can start our sustainable journey towards a greener future.
Jakson Biofuels exemplifies biofuels’ transformative potential in meeting our energy needs while minimizing our impact on the environment. With a steadfast commitment to sustainability and innovation, the Group plays a vital role in shaping a more sustainable energy landscape for future generations.
