Indian Oil Corporation’s ₹900-crore 2G ethanol plant, which was inaugurated by Prime Minister Modi in August 2022, is set to reach 100 per cent capacity utilisation in a few months from 30 per cent now, said IOC’s Chairman and Managing Director, Shrikant Madhav Vaidya. 

In an interaction with the journalists of The Hindu Group of publications, Vaidya said the feedstock for the bioethanol plant — rice husk (parali) — is available for collection only for about 45 days, and will need to be stored for the entire year. The plant will need 150,000 tonnes of feedstock every year. The collection of the feedstock has begun now, and the plant, therefore, will reach full capacity shortly, he said. 

Refiners like IOC are required to supply petrol that has 20 per cent (bio)ethanol by 2025. Vaidya said that in October, IOC’s blend was 12.5 per cent, which will be raised to 15 per cent next year, and then, gradually, to 20 per cent by 2025. 

Also, part of the 2G ethanol will go to the production of SAF (sustainable aviation fuels), which is also coming up near the Panipat refinery, under a joint venture with Lanzajet, a subsidiary of Lanzatech in which IOC has a stake. The Carbon Offsetting and Reduction Scheme of International Aviation (CORSIA) of the International Civil Aviation Organisation has said that airlines will fly with 2 per cent SAF blends. IOC will be supplying fuels that comply with that decision, said Vaidya.