Nayara Energy announces Rs 600 cr investment in ethanol plants

Oil refining and marketing company Nayara Energy has announced a strategic investment of Rs 600 crores to establish ethanol plants in India. As per the company, this is marking a significant step in its integration within the energy sector. These plants will bolster the company’s ethanol supply reliability and are essential for supporting sustainability goals of Nayara.

As the operator of India’s largest private fuel network, this initiative represents a major move towards achieving greater integration and sustainability in the energy sector.

Aligning with the Government of India’s ethanol blending target for 2025, Nayara Energy plans to set up two ethanol manufacturing plants, each with a capacity of 200 KLPD, in Andhra Pradesh and Madhya Pradesh. The company has already identified and purchased land in both states in collaboration with their respective governments.

Alessandro des Dorides, CEO of Nayara Energy, commented, “The establishment of ethanol facilities will significantly enhance Nayara Energy’s ethanol supply reliability, playing a crucial role in meeting the Indian government’s 20% blending target by the end of fiscal year 2025-2026. This strategic move into ethanol manufacturing highlights our dedication to sustainability, regulatory compliance, and long-term growth in the dynamic energy sector. By expanding our presence in the ethanol segment, we aim to actively contribute to India’s renewable energy goals and foster a greener future.”

The new ethanol plants will significantly boost Nayara Energy’s production capacity in India. The company aims to gradually increase the number of plants to five, with a total ethanol production capacity of approximately 1,000 KLPD, focusing on value enhancement in retail operations and ensuring the reliability of the Ethanol Blending Program in the future.

As a major downstream player, contributing around 8% of India’s refining output, Nayara Energy fuels the country’s ambitions, playing a vital role in enhancing India’s energy security.