Olam Agri will invest around $60 million in a new multi-input bio-ethanol facility in Rajgoli, Maharashtra. The plant will complement the company’s existing sugar factory in the area, which has a crushing capacity of 4,000 tons per day.
The decision to enter the bio-ethanol space is a strategic response to recent government mandates on fuel blending, specifically the B10 to B20 mix. “The push for blended fuels and government regulations made this the right time for us to invest. Our $60 million multi-input distillery will offer flexibility, allowing us to switch to corn if sugarcane production fluctuates,” commented Muthukumar Neelamani, Group CFO, Olam Agri.
As reported by newsonprojects.com, once operational, the bio-ethanol unit will increase Olam Agri’s daily sugarcane crushing capacity to about 8,500 tons, with a targeted completion date of March next year. Olam Agri operates across thirty countries and deals in commodities like rice, cotton, pulses, and bio-ethanol.
