Indias HPCL to Produce Own Ethanol for Blending

Business Standard. India government-controlled Hindustan Petroleum Corporation Ltd (HPCL) will become the first petroleum company in the country to produce its own ethanol.

Last year, HPCL had taken over two sugar mills in Bihar, at Sugauli and Lauriya in East and West Champaran districts, on a 60-year lease, extendable by another 30 years...The two plants will produce a little over 60 kl of ethanol daily. The production would suffice for the blending requirements of Bihar and neighbouring states.

“We will begin ethanol production from these sugar mills by year-end. While we would be using ethanol to blend with petrol at our own fuel depots, we would also be selling the surplus to other industry players,” a senior executive from HPCL told Business Standard.

In November 2006, the government of India had mandated that ethanol-blended gasoline be sold through India, except in the northeastern states and Jammu and Kashmir. Subsequently, it stipulated a 10% blend by October 2008. Since a 5% level has yet to be fulfilled, the date for the higher blend has been pushed back.

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