Wilmar's Subsidiary Shree Renuka Sugars LTD to Enhance its Ethanol Capacity to 450 Million Litres Per Annum
Shree Renuka Sugars LTD, which is owned by Singapore-based Wilmar Group, is increasing its capacity for ethanol to 1,250 kilolitres per day (klpd) from 720 klpd. The company is anticipating ethanol to contribute around 40 percent of its revenue. This also includes the refinery industry as well.
The capacity expansion for the production of ethanol is approved by the company’s board from 970 KLPD to 1,400 KLPD. Due to the changing policies of the government on ethanol blending, the demand for ethanol is untapped.
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According to Atul Chaturvedi, Chairman of Shree Renuka Sugars LTD, the industry is likely to divert 4.5-5 million tons of sugar to yield ethanol, and the demand for ethanol has been going robust.
By 2025, the government is going to mandate twenty percent ethanol blending against a current blending of 7.79 percent.
About the Company
Shree Renuka Sugars LTD is one of the leading sugar and green energy (ethanol and renewable power) producers in India. The company is also a main leader in the branded sugar sector and a major sugar refiner in India. It was established in the year 1995. It has manufacturing units in Munoli, Athani, and Havalgah.
Additionally, it operates three leased units in Maharashtra's Ajara and Arag as well as Karnataka's Aland. The largest sugar refinery in India, SRSL, can produce 4,000 tonnes of sugar per day (TPD). Out of them, two are in Munoli and Athani and each produces 1,000 TPD. Another with a capacity of 2,000 TPD is now under construction in Haldia.
Ethanol Price Trend
Regarding production capacity and demand strength, the North American market showed mixed pricing patterns. Ethanol price saw a significant hike owing to low inventories and expanded production capability. The final cost of ethanol was impacted by the region's declining employment rate and higher inflation rate.
During the high energy cost and food crises, the cost valuations for the feedstock (corn) were also very high.
The stockpile, as per the United States Department of Agriculture (USDA), saw an increase. Storm Elliot's interruption led to a drop in the price of ethanol globally. The demand for gasoline production in the local market remained low.
The overall market dynamics for ethanol in the Asia Pacific area remained constant. Because of China's rise in COVID cases, the local market's production capacity is constrained. The higher costs of ethanol production caused the prices to rise again.
The nation's top financial centres hindered productivity in the midst of the economic upheavals. As the demand for the manufacturing of biofuels decreased, the value of the commodity's cost increased. The skyrocketing energy prices and the high cost of coal in the Asian market had an impact on the final prices of ethanol.
In the European Market, the cost of ethanol was on the rise. Continuous economic uncertainty contributed to high energy prices and inflation, which proportionally increased the cost of ethanol production.
The European Union is primarily focused on increasing sugar production and food storage in the area. The final consumer observed a balanced market trend and rising import prices for German ethanol. Despite rising expenses, the demand for fuel containing ethanol remained upbeat.
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As per Procurement Resource, Singapore-based Wilmar Group, Shree Renuka Sugars LTD is enhancing its ethanol capacity to 1,250 kilolitres per day (klpd) from 720 klpd. The company is estimating ethanol to contribute about 40 percent of its revenue. It also consists of the refinery industry.