India Glycols Limited, a prominent player in the Indian chemical industry, has secured a substantial ethanol supply contract, valued at Rs. 1,264.20 crore, for the Ethanol Supply Year (ESY) 2024-25. This win underscores the company's growing influence in India's burgeoning biofuels sector and reinforces its commitment to sustainable chemical solutions. The contract, awarded under the government's Ethanol Blended Petrol Programme (EBPP), positions India Glycols as a key contributor to India's ambitious ethanol blending targets.

Under the agreement, India Glycols will supply 18.06 crore litres of ethanol between November 1, 2024, and October 31, 2025. The supply allocation stems from a tender process involving major Oil Marketing Companies (OMCs) – Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL), and Hindustan Petroleum Corporation Limited (HPCL) – as well as private sector giants like Reliance Industries Ltd. and Nayara Energy Limited. OMCs account for the bulk of the order, procuring 17.53 crore litres (Rs. 1,227.10 crore), while Reliance and Nayara will receive 0.53 crore litres (Rs. 37.10 crore).

A key differentiator for India Glycols is its commitment to sustainable sourcing. The ethanol supplied under this contract will be derived from Damaged Food Grains (DFG) and Surplus Food Corporation of India (FCI) rice, processed at the company's strategically located production facilities in Kashipur and Gorakhpur. This approach aligns with the government's dual objectives of boosting biofuel production and utilizing surplus agricultural commodities, thereby promoting both economic and environmental sustainability. The use of DFG and FCI rice not only provides a feedstock for ethanol production but also addresses the issue of agricultural waste and surplus management, creating a value-added stream for the agricultural sector.

This significant contract win is a strategic coup for India Glycols, demonstrating its robust operational capabilities and its ability to scale production to meet the increasing demand for biofuels. The company's established infrastructure, coupled with its focus on sustainable sourcing, positions it favourably within the competitive ethanol market. For the chemical industry, this development signals a growing trend towards bio-based solutions and highlights the potential for chemical companies to play a pivotal role in the energy transition.

The contract aligns seamlessly with the Indian government's aggressive target of achieving 20% ethanol blending in petrol by 2025. This policy is a cornerstone of India's strategy to reduce reliance on imported crude oil, enhance energy security, and stimulate the agricultural economy. By participating in the EBPP and supplying ethanol from renewable sources, India Glycols is not only contributing to national energy goals but also strengthening its position as a leader in the sustainable chemicals space.

The company's success in securing this substantial order is a testament to its operational efficiency and its strategic foresight in recognizing the growing importance of biofuels. Moreover, the use of DFG and FCI rice as feedstock underscores the company's commitment to circular economy principles and its focus on creating value from agricultural surplus. As the government continues to promote ethanol blending, further tenders are expected, providing additional opportunities for India Glycols to expand its footprint in this dynamic sector. This development signifies the increasing convergence of the chemical and energy sectors, with companies like India Glycols at the forefront of this transformative trend.