Singapore, 8 October (Argus) — Indian ethanol producer Shree Renuka Sugars has agreed to supply 118mn l of ethanol to three state-owned oil companies under a one-year term contract starting in December.
Shree Renuka said it has received letters of intent to supply ethanol to IOC, Hindustan Petroleum (HPCL) and Bharat Petroleum.
The company said last month it is renewing its partnership with HPCL to build an ethanol plant in the western state of Maharashtra this year. Shree Renuka holds a 76pc stake in the project and HPCL the remainder. The integrated sugar and ethanol plant will have an ethanol capacity of 240 kl/d (1,500 b/d) and a co-generation power capacity of 30MW.
India has had a 5pc ethanol blending mandate since 2006, but the implementation is only partially successful because of pricing issues. Blending at 5pc requires 600mn l/yr of ethanol.
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