Amul creates bioethanol from cheese whey; mulls setting-up Rs. 70 crore production facility

In a significant breakthrough for India’s renewable energy and dairy sectors, dairy major Amul has successfully completed large-scale trials to produce bioethanol from whey — the liquid by-product left after making cheese and paneer.

Traditionally, India’s ethanol production has relied on raw materials such as sugarcane juice, molasses, maize, and damaged food grains. The new initiative of Amul marks a shift toward utilizing dairy by-products, potentially opening up a sustainable and previously untapped resource.

Following the success of the trial, Amul — the brand owned by the Gujarat Co-operative Milk Marketing Federation (GCMMF) — now plans to invest Rs. 70 crore in setting up a dedicated bioethanol production facility. The proposed plant will have the capacity to produce 50,000 litres of ethanol per day.

Amul is also exploring partnerships with existing bioethanol facilities in Gujarat’s sugar cooperative sector to scale up operations. This initiative underscores Amul’s broader commitment to sustainability, innovation, and value creation for India’s rural farming communities.

Jayen Mehta, Managing Director of GCMMF, said the trials were aimed at upcycling whey to create additional value for the cooperative’s 3.6 million farmer-owners. The pilot project used 4.5 lakh litres of cheese whey, yielding 20,000 litres of rectified spirit with an ethanol purity of 96.71%.

Mehta added that the current ethanol recovery rate of 4.4% could be increased to 8% with further process optimization. The production method also generates useful byproducts such as methane gas, dry ice, and water.

The trial was conducted at the Dharikheda unit of Shree Narmada Khand Udhyog Sahkari Mandli Ltd, a sugar cooperative located in Gujarat’s Bharuch district.

Amul currently processes approximately 3 million litres of whey daily. In Gujarat, it operates major cheese plants in Khatraj, Palanpur, and Himatnagar, run by Amul Dairy, Banas Dairy, and Sabar Dairy, respectively. Across India, Amul also manages more than 15 paneer production facilities, making the new bioethanol venture a natural extension of its existing operations.