Assured Offtake by OMCs to Boost Ethanol Supply

(Financial Express) Petroleum minister Dharmendra Pradhan on Wednesday emphasised the need for offtake guarantee by oil marketing companies (OMCs) to increase ethanol supply for blending with fuel. Speaking at a consultative workshop of stakeholders to chalk out a path for biofuel in India, Pradhan said: “This (using biofuel) is a weapon to reduce pollution we face every year.” The remarks come at a time the country, especially the Capital, is witnessing very high pollution levels mostly due to stubble burning by farmers. A draft national policy on biofuels released during the workshop noted that OMCs have agreed to offtake assurance. “Public-sector oil marketing companies have agreed to sign ethanol purchase agreements with 2G ethanol suppliers for a period of 15 years to provide assured market to private stakeholders and support 2G ethanol initiatives,” said the draft policy. Bio-compressed natural gas, which is a byproduct of 2G ethanol bio-refineries, will also get offtake assurance by state-owned gas marketing companies.

Earlier this month, the Union Cabinet increased the price of ethanol under ethanol-blended petrol programme for supply to oil marketing companies by around 5% for supply period December 1, 2017, to November 30, 2018. READ MORE