India’s dairy major, Amul, has successfully conducted a large-scale trial to produce bioethanol from whey, a byproduct of cheese and paneer production. The company plans to invest Rs 70 crore in a bioethanol plant capable of producing 50,000 litres per day, which is expected to generate an additional income of Rs 700 crore for dairy farmers. This initiative is part of the Indian government’s mandate to blend up to 20% bioethanol in petrol under the Ethanol Blended Petrol (EBP) programme.
Several companies in Ahmedabad, including Grainspan Nutrients Pvt Ltd and the Chiripal Group, are also entering the ethanol manufacturing sector, anticipating strong growth. Grainspan Nutrients has already launched its ethanol plant with a capacity to produce 340 kilolitres per day, while the Chiripal Group has invested around Rs 350 crore in a greenfield project with an installed capacity of 300 KLPD.
Industry insiders say that around 14 companies in Gujarat have received approval from Oil Marketing Companies (OMCs) to set up ethanol units, with a total investment of around Rs 3,300 crore. However, experts caution that while many are entering the ethanol space, only a few units are currently operational, and the sector requires careful planning and execution.
In a related development, Gujarat’s dairy cooperatives are leading a new wave in green energy by turning to cattle dung to produce compressed biomethane gas (CBG) and biofertilisers. The National Dairy Development Board (NDDB) and the Gujarat Co-operative Milk Marketing Federation (GCMMF) are capitalizing on India’s large bovine population to produce CBG and biofertilisers, which will not only reduce dependence on fossil fuels but also boost farmer incomes.
Banas Dairy, a member of GCMMF, has established an institutional biogas plant that processes 40 metric tonnes of cattle dung daily, producing fertiliser and CBG that powers over 80,000 cars annually. The company plans to set up four more dung-based CBG plants in Banaskantha district, with a total investment of ₹230 crore. Additionally, GCMMF plans to install 32,550 household-level biogas units across Gujarat to reduce dependence on fossil fuels.
The NDDB and dairy cooperatives are working to replicate the ‘Banas Model’ in other parts of India, with a total investment of nearly ₹1,000 crore. The initiative is expected to produce vast amounts of organic fertilisers, revitalizing farms across the region, and boosting farmer incomes through dung sales. As the demand for green fuels continues to rise, India’s dairy sector is poised to play a significant role in the country’s transition to a more sustainable and environmentally friendly energy mix.