Dalmia Sugar to build Rs 58 cr CBG plant at distillery site

Delhi headquartered Dalmia Bharat Sugar and Industries Ltd. has approved a Rs 58 crore investment to set up a compressed bio-gas (CBG) project at its Kolhapur distillery. The decision was cleared by the company’s board and involves deploying waste-to-energy technology to convert spent wash—a liquid byproduct of the distillation process—into compressed bio-gas.

The CBG project will be implemented at the Kolhapur facility, with spent wash serving as the primary raw material for biogas generation. Dalmia Bharat Sugar wants to strive towards sustainable energy and circular economy practices. The disclosure has been made in a regulatory filing.

Dalmia Bharat Sugar wants to develop the CBG plant to address two key challenges simultaneously – effective waste management and clean energy production. By processing spent wash into CBG, the company plans to reduce environmental risks associated with disposal while creating a valuable renewable fuel. The compressed biogas produced can be utilised for multiple applications, including industrial energy needs and as a transportation fuel.

The CBG project is aligned with Dalmia Bharat Sugar & Industries’ broader sustainability strategy, which focuses on lowering the environmental footprint of its operations and improving resource efficiency.

The move also supports India’s national objectives of promoting bio-energy, reducing dependence on fossil fuels, and encouraging the adoption of renewable alternatives in industrial processes.

Once operational, the CBG plant is expected to enhance operational efficiency at the Kolhapur distillery while contributing to cleaner energy generation and long-term environmental sustainability.

Dalmia Bharat Sugar and Industries Limited claims to be one of the fastest-growing success stories in the Indian sugar industry. It is now a fully integrated player with 120 MW of co-generation capacity and a distillery of 255 KLPD along with incineration boilers. With regards to sustainability, the company strongly invests in water conservation, reducing energy usage and emissions, and enhancing resource efficiency.