In the wake of restrictions imposed by the central government on ethanol production, Sharad Pawar, former Minister for Agriculture and Farmers’ Welfare of India and President of the Vasantdada Sugar Institute (VSI), has urged sugar mills to explore Compressed Biogas (CBG) as a viable alternative. The limitations on ethanol production, enforced on December 7, 2023, have created financial challenges for sugar mills, necessitating innovative approaches to address the critical situation surrounding B-heavy molasses sales.
The government’s directive imposes a cap of 1.7 lakh tonnes of sugar for ethanol production from sugar syrup and B-heavy molasses. This restriction has not only impacted distillation project capacities but has also presented difficulties in managing stocks of B-heavy molasses.
Sharad Pawar emphasized the need for sugar mills to consider CBG production, aligning with the government’s mandate for blending CBG with Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) by 2023. The ultimate goal is to achieve a five per cent CBG mix by 2028-29. Notably, sugar factories possess the potential to produce CBG from press mud and spent wash.
Highlighting the significant CBG production capacity of 20 lakh tonnes in the country, Pawar asserted that this alternative could generate an annual income of Rs. 12 thousand crores.
