Grain-Based Distilleries - Pioneering Sustainable Bioeconomy

Welcome to our exploration of the pivotal role of biofuels and grain-based distilleries in shaping a sustainable future. As experts in renewable energy, we recognize the transformative impact of biofuels derived from organic sources such as grains and waste biomass. These biofuels offer a viable alternative to fossil fuels, crucial for mitigating climate change and securing our energy future.

 Why Biofuels Matter

 Biofuels, particularly ethanol from grains like corn and sugarcane, represent a renewable and environmentally friendly solution to our energy needs. Unlike finite fossil fuels, biofuels can be continuously produced from agricultural feedstocks, reducing greenhouse gas emissions and promoting energy independence. Ethanol, as a liquid biofuel, integrates seamlessly into existing infrastructure, offering a sustainable pathway for powering transportation and industry.

The Role of Grain-Based Distilleries

Grain-based distilleries stand as pillars in the bioeconomy, converting cereal grains into ethanol through advanced fermentation processes. This production not only yields ethanol but also generates valuable co-products such as Carbon di oxide, DWGS or DDGS. Traditionally wet cake (Distiller’s Wet Grain Soluble, DWGS) is used as livestock feed. DWGS being perishable in nature it has to be consumed within 24 hours hence it has to be dried to increase the shelf life and it is called Distiller's Dry Grain Soluble (DDGS). DDGS have huge market demand and also have potential to export.  

 Recently, DDGS being rich in protein content it is being explored for its potential in human food products and as a valuable input in various industrial applications.

 Government is promoting use of maize (Corn) as grain feedstock compared to broken rice (damaged) in grain-based ethanol plants due to reasons like, maize crop consumes less water and there can be 3 to 4 production cycles can be taken in one calendar year.  

 Ethanol prices in current Ethanol Supply Year (ESY – 1st Dec’23 to 30th Nov’24) are for Ethanol derived from damaged food grain is Rs 64.0 per litre. Ethanol derived from maize have price of Rs 66.07 per litre. Special pricing system for ethanol derived from maize. Oil manufacturing companies have declared additional incentive of Rs 5.79 per litre thus total price of  Rs 66.07+5.79 = 71.86 per litre for maize based Ethanol.

 Driving Towards Circular Bioeconomy

 The concept of a circular bioeconomy guides our approach to maximizing resource efficiency and sustainability. By optimizing the use of by-products like DDGS/DWGS/CO2, distilleries play a crucial role in closing the loop of waste management. Wet cake, for instance, it can be treated to recover nutrients for agricultural use or serve as a substrate, showcasing the versatility and innovation inherent in bio-based industries.

Economic and Environmental Benefits

India’s heavy reliance on oil imports poses significant economic and energy security challenges. Grain-based ethanol, produced from crops like maize and damaged food grains, offers a viable alternative. By blending ethanol with petrol, India can reduce its dependency on imported oil, saving substantial foreign exchange and enhancing energy security.

 Beyond energy security, grain-based distilleries contribute significantly to rural economies by creating jobs and diversifying agricultural markets. Their operations promote soil health and crop productivity through nutrient-rich by-products, reinforcing agricultural sustainability.

The production and use of grain-based ethanol can generate carbon credits, which can be traded in carbon markets. This not only provides an additional revenue stream for ethanol producers but also incentivizes further investments in renewable energy projects. The carbon credit market is expected to grow, offering new opportunities for industries to offset their emissions and contribute to climate change mitigation.

Also Ethanol has a lower carbon intensity (CI) compared to traditional fossil fuels. This means it produces fewer greenhouse gas emissions per unit of energy. The adoption of grain-based ethanol can significantly reduce the carbon footprint of India’s transportation sector, aligning with global decarbonization goals.

The Indian government has been proactive in promoting ethanol blending through various policies and incentives. The Ethanol Blended Petrol (EBP) Programme aims to achieve a 20% ethanol blend in petrol by 2025. This ambitious target underscores the government’s commitment to reducing fossil fuel consumption and promoting renewable energy sources.

In summary, grain-based ethanol holds immense potential to revolutionize India’s energy sector by enhancing energy security, reducing carbon emissions, creating economic opportunities, and supporting rural development. The integration of carbon credit trading further amplifies its impact, making it a game changer for the industry.

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Praj Industries Ltd. # Grain based Distillery # circular bioeconomy # Sustainable bioeconomy