BCL Industries, a producer of ethanol, is concentrating on green energy and the biodiesel sector, identifying significant opportunities for growth.
During the Q2 FY 25 Earnings Conference Call on October 30, Kushal Mittal, Joint Managing Director of BCL Industries, highlighted the importance of both ethanol and biodiesel.
The company is currently establishing a 75 KLPD biodiesel plant in Bathinda, Punjab. Construction is progressing well, and upon completion, this plant will enable full vertical integration and enhance the value addition in ethanol production. It is expected to be commissioned in April or May of the upcoming calendar year. BCL also has plans for a similar facility in Kharagpur and is awaiting the necessary clearances.
Mittal noted, “There is a significant opportunity in the biodiesel sector. The country has a 5% blending mandate, yet current blending rates are below 1%. Recent reports indicated blending rates as low as 0.3%. Thus, the demand is substantial, and the 5% blending mandate is just the beginning. We are optimistic about this sector. Moreover, since most of our raw materials are sourced locally, this will benefit us as we extract oil without disrupting our ethanol production, thereby adding value through biodiesel.”
When questioned about competitors in the biodiesel market, he stated, “If there’s a company producing biodiesel using mother oil, it’s not much of a competition for us. We rely on our own indigenous oil. The demand in the country is enormous, and I’m not aware of any ethanol producers exploring this avenue, so we believe we’ll be pioneers in this space.”
Mittal also remarked on the shifting focus in Punjab, stating, “Punjab is no longer centered on edible oil. Even with government support for indigenous oil, there are better states for business. Therefore, we decided to exit the edible oil market and concentrate on green energy and biodiesel, which we anticipate will yield better value.”
With over 40 years of experience in grain processing, BCL Industries has emerged as a leading producer of grain-based ethanol and ENA in India. The strategic move to diversify into the distillery sector, leveraging its grain processing expertise, has yielded positive outcomes. Currently, BCL operates two distilleries in Bathinda and Kharagpur with a combined capacity of 700 KLPD. Recently, the company increased capacity at its Svaksha Distillery by 100 KLPD, which is now fully operational. As part of its expansion plans, BCL has acquired Goyal Distillery Private Limited in Fatehabad, Haryana, which has the necessary land and permissions to establish 250 KLPD grain-based ethanol units. Goyal Distillery is now a wholly owned subsidiary of BCL Industries. This acquisition will facilitate the establishment of an additional 250 KLPD ethanol plant and a power plant using paddy as the primary fuel source. With land and clearances already secured, this plant can be operational in significantly less time than usual. This initiative is expected to enhance BCL’s leadership position in the grain-based ethanol manufacturing sector in India.
Additionally, the company plans to construct a biogas plant with a capacity of 20 metric tons per day on its newly acquired nine-acre plot near the Fatehabad unit, where approximately 250 metric tons of paddy straw will be processed daily. This project underscores BCL’s commitment to green energy solutions. Furthermore, a new 150 KLPD unit is anticipated to be established soon in Bathinda, raising the company’s total capacity to 850 KLPD.
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