Ethanol Production

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Young corn plants grow next to the Guardian Energy ethanol plant in Janesville, Minn. Five years ago, the U.S. government projected that in 2012, ethanol production would use up 30 percent of the nation's corn supply. Last year, it used 40 percent.

Ethanol Production

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Overview Ethanol, a biofuel produced primarily from agricultural crops such as sugarcane, maize, and wheat, is increasingly being used as an alternative to gasoline. The production of ethanol has grown significantly due to its role in reducing carbon emissions and promoting sustainable fuel sources. In India, the government has also mandated blending ethanol with petrol, further driving the demand for this eco-friendly fuel. Scalability & Profitability The ethanol production business is highly scalable, especially in regions with abundant raw materials such as sugarcane and maize. Profit margins in ethanol production can range from 15% to 30% depending on the cost of raw materials, technology used, and government incentives. The rise of biofuels and increasing support for ethanol-blended petrol further contribute to the industry’s profitability. Eligibility Criteria
  • Facility Setup: Requires fermentation and distillation equipment, including fermenters, evaporators, and distillation columns.
  • Environmental Compliance: The business must comply with environmental guidelines to ensure sustainable ethanol production and waste management.
Where You Can Apply for Subsidies
  • National Biofuels Policy: Government schemes provide financial assistance for setting up ethanol plants.
  • MSME Schemes: Financial support for machinery, raw materials, and working capital.
Project Cost & Subsidy The cost of setting up an ethanol production unit generally ranges from INR 50 Lakhs to INR 5 Crores, with subsidies available up to 30% of the total project cost.