Tata will invest $185 million to expand Indian ethanol capacity

March 12, 2008

In India, Tata Chemicals will invest $185 million between now and 2012 to develop ethanol production capacity. The company announced that it would invest the first $12.7 million of that fund in a 3 Mgy sweet sorghum ethanol demonstration plant in Maharastra. The facility, which will be constructed by Praj Industries, will open in 2010. Tata said that it is exploring jatropha cultivation at five labs in Maharashtra and Gujarat.

Tata Chemicals (TCL) recently said that it would join the Sweet Sorghum Ethanol Research Consortium. By joining the Consortium, TCL will have access to Consortium research, including cultivation best practices and superior hybrids.

India and other countries continue to increase their focus on sweet sorghum as a feedstock, primarily because it can be cultivated on otherwise non-arable land and is inexpensive.

Earlier this month, Rusni Distilleries is planning to double its sweet sorghum ethanol capacity to 8 Mgy in March 2008, and Ultimate Bio Fuels has announced a 19 Mgy sweet sorghum facility in Visakhapatnam.

The completion of the projects will increase India’s sweet sorgum ethanol capacity to 38 Mgy.

China and the US are among other countries expanding sweet sorghum capacity. Recently, China released details of its biofuels plan, calling for production of 3.8 million metric tons of ethanol from sweet sorghum stalks.

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Written by Jim Lane · Filed Under International, Producer News