Govt urges sugar industry to diversify into green fuels

Road, Transport and Highways Minister Nitin Gadkari called upon the sugar industry to explore multiple avenues for diversification, including ethanol-diesel blending and green hydrogen production. Addressing the annual general meeting of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) virtually, the minister emphasised the need for setting up ethanol and CNG pumps, including through private sector participation.

There is a huge potential for flex engines, ethanol-based engines, and bioCNG as alternatives to fossil fuels. Five automakers including Tatas, Suzuki, and Toyota are set to launch flex engine fuel cars in the market, he said and urged the tractor makers to start manufacturing tractors on alternative fuels. The minister suggested examining possibilities of exporting ethanol to neighbouring countries like Bangladesh, Bhutan, Nepal and Sri Lanka to expand market opportunities.

Bio-bitumen production using lignin and biomass sources, along with green hydrogen generation from sugar industry infrastructure, were highlighted as potential areas for expansion. He emphasised the potential of green hydrogen as an alternative fuel source and suggested using existing infrastructure in the sugar and ethanol industries to produce green hydrogen. The government will also consider the industry’s request for sugar exports and minimum selling price (MSP), the minister said. These initiatives are aimed at enhancing the sector’s viability while protecting the interests of both consumers and farmers, according to the minister.