Nayara Energy to invest INR 600 Cr to set up Ethanol manufacturing plants in India
National, 17 May 2024: Nayara Energy, a leading downstream Energy company of international scale, has announced a strategic investment of INR 600 crores setting up Ethanol plants taking a significant step towards integration within the energy sector. These plants would play a pivotal role in bolstering the company’s reliability in ethanol supplies and would be crucial for Nayara to contribute to its sustainability agenda. The company runs the largest private fuel network in the country and setting up Ethanol plants will mark a significant step towards achieving downward integration within the energy sector.
In line with the Government of India’s Ethanol blending target of 2025, Nayara Energy plans to set up two Ethanol manufacturing plants of 200 KLPD each in Andhra Pradesh and Madhya Pradesh. The company has already identified and purchased land in both the states with Andhra Pradesh and Madhya Pradesh Government for the proposed plants.
Speaking on the development, Mr. Alessandro des Dorides, Chief Executive Officer, Nayara Energy, said, “The establishment of ethanol facilities will significantly enhance Nayara Energy’s ethanol supply reliability, playing a crucial role in meeting the Indian government’s 20% blending target by the end of fiscal year 2025-2026. This strategic move into ethanol manufacturing highlights our dedication to sustainability, regulatory compliance, and long-term growth in the dynamic energy sector. By expanding the presence in the ethanol segment, we aim to actively contribute to India’s renewable energy goals and fostering a greener future.”
Establishing ethanol plants will significantly enhance Nayara Energy’s production capacity within the country. The company aims to gradually increase the number of plants to 5 with ethanol production capacity of ~ 1,000 KLPD with a focus on value enhancement in retail operations and ensuring the reliability of the Ethanol Blending Program in the future. As a major downstream player, delivering ~8% of India’s refining output, Nayara Energy fuels the country’s dreams and aspirations, contributing significantly towards India’s energy security.