(Corrects headlines to reflect Indian LPG needs.)
India can potentially cut 8% of its commercial liquefied petroleum gas requirements by redirecting its surplus ethanol production, according to Denmark-headquartered biosolutions provider Novonesis.
Ethanol manufacturers in the country have an annual available capacity of 7 billion to 8 billion liters, which can be used to substitute 8% of the commercial LPG with reliable, clean cooking fuel. An additional ethanol output of 6.4 billion liters could help replace all the LPG used in commercial kitchens in the country, the company said.
Earlier this month, India's Union Cabinet approved the GOBARdhan National Circular Bioenergy Scheme with an outlay of 237.31 billion Indian rupees ($2.49 billion) to expand compressed biogas production nationwide.
The scheme will run from fiscal year 2026-2027 through fiscal 2035-2036 and aims to increase domestic compressed biogas production by almost 10 times, while converting agricultural residue, cattle dung and other biomass into clean energy.
Novonesis provides biosolutions for agriculture, food, beverages, biofuels and biogas among other industries to improve yields, shorten fermentation cycles and reduce energy use.
The company is not involved in biofuel production, but it works with manufacturers who then sell to oil marketing companies, Regional President for the Middle East, India, and Africa Krishna Mohan Puvvada said at a media event in Mumbai earlier this week.
The company's biogas conversion trials have shown over 15% gains in some substrates and 20%-25% in others through the use of microorganisms, enzymes and other technologies, Puvvada said.
Novonesis is working with several leading biogas players and engineering, procurement and construction firms, Puvvada said.
On the concerns surrounding the mandatory rollout of the E20 petrol and its impact on vehicle mileage, fuel quality and compatibility in India, Puvvada said concerns over ethanol blending were largely linked to the transition to the new technology, and said that automakers need time to adapt to higher ethanol blends.
Novonesis has recently signed an agreement with Maharashtra government state to invest 25 to 30 billion rupees over the next two to three years, with the investment plan expected to be announced this year, subject to some government approvals.
The investment will primarily support an expansion of its existing manufacturing plant in Patalganga, where only 10% of the overall land is currently utilised. The company also has another facility in Wada in the state.