Nayara Energy, backed by Russian energy giant Rosneft, is gearing up to make significant strides in India’s ethanol production landscape with plans to invest ₹600 crore in setting up two ethanol manufacturing plants. These plants, each boasting a production capacity of 200 kilo litres of ethanol per day, are slated to be established in Andhra Pradesh’s Naidupeta and Madhya Pradesh’s Balaghat, with a target for commissioning by 2026. The company intends to utilize broken rice and maize as feedstock for these plants and harbors long-term ambitions of operating a total of five ethanol manufacturing facilities.
“We have big plans on the ethanol front. By 2025, we have to blend 20% ethanol, so we have a mission for 100% sourcing. We aim to have at least five ethanol plants in the long term, but to start with, we are setting up two,” affirmed Prasad Panicker, Executive Chairman at Nayara Energy.
Nayara Energy, known for its 20-million-metric-tonne capacity oil refinery in Vadinar, Gujarat, is poised to diversify its operations further with the inauguration of a polypropylene unit within the same facility. With an investment of ₹6,000 crore, the company is venturing into petrochemicals, aiming for an annual capacity of 450,000 tonnes. Additionally, a further ₹4,000 crore will be injected into modernizing the refinery, enhancing its longevity and reliability. These strategic investments are slated to be completed by 2026.
Panicker elaborated on Nayara Energy’s vision, emphasizing the company’s commitment to expanding its fuel retail footprint from 6,600 outlets to 10,000 in the next three to four years. Furthermore, Nayara Energy aims to fortify its position in the petrochemical industry while catering to the nation’s growing energy demands.
“We are very bullish about the India story. India needs oil, whether it is auto fuels or jet fuel or any of these other petrochemicals,” Panicker emphasized. In alignment with its focus on clean fuels, Nayara Energy is exploring the prospects of venturing into the sustainable aviation fuel (SAF) business. Panicker highlighted the economic attractiveness and potential policy-driven demand for SAF, underlining the company’s interest in this segment.
While studying the nuances of the SAF market, Nayara Energy is evaluating strategies to integrate SAF production into its refinery operations, leveraging available technologies to facilitate this transition. As Nayara Energy embarks on this ambitious journey, its endeavors underscore a commitment to innovation, sustainability, and meeting the evolving energy needs of India.
