Bio Fuel / Bio Diesel


Bio Ethanol


Bio Ethanol


Production of Ethanol

Molasses Fermentation

Ethanol being a renewable resource of energy is probably a cleaner alternative to fossil fuels. Demand for Ethanol is increasing day by day due to its versatile application and utility. To meet the acing demands, production of Ethyl Alcohol or Ethanol through fermentation is gaining momentum and acclamation globally.

At industrial level, ethanol is prepared by molasses fermentation. A residue begotten from sugar cane processing, molasses is the mother liquor left after crystallization of sugarcane juice. It is a dark colored viscous liquid that contains approximately 40 to 50% fermentable sugar. Being one of the earliest biotechnologies used by humans for the production of Ethanol, molasses Fermentation is also the most cost-effective way.

Other than the formation of ethyl alcohol or ethanol, molasses is a microbiological energy source that helps in the process of growing yeast, bacteria and moulds. Not only is it the most cost-effective amongst the available energy sources for such industries but is also the easiest to incorporate in fermentation processes. A sound source of B Vitamins and biotin in molasses hastens fermentation processes that help in faster ethanol production.

Molasses Fermentation is a biological process in which sucrose from molasses is converted into cellular energy that eventually produces ethanol and carbon dioxide. Molasses from sugarcane or sugar imparts an appropriate substrate for ethanol production. They are the basic sources of Sucrose (C12H22O11) which is present in them in concentrated sugar form. Only 50% of molasses contains eminent reducing sugars that prove useful in the fermentation process. Molasses constitutes many fermentable and un-fermentable sugars with traces of Nitrogen, Phosphorus, Solid Sludge and Ash. Fermentable sugars are directly used during Molasses fermentation, while the un-fermentable sugars like Starch, Cellulose or Pectins can be used only after being hydrolyzed. With the help of apposite enzymes and reactions, Ethanol is formed. The Ethanol begotten from the whole process is used in the form of absolute or rectified spirit.

Raw Materials/Substrates

Ethyl Alcohol (Ethanol) can be produced from a large number of raw materials, which fall into three main categories

  • Sugar based
  • Starch based
  • Cellulose based

Sugar Based
In this category the main crops are sugar cane (sugar cane juice & molasses), sugar beet (beet juice and molasses), and sweet sorghum.
Starch Based
All types of grain including wheat, rice, corn (maize), barley, malt, millet etc. are included in this. In addition, tubers such as potatoes, cassava (tapioca) etc. are also starch based.
Cellulose Based
This category includes agro-waste, agro- residues, bagasse, rice husk, straw, groundnut shells, wood chips, sawdust, organic municipal waste etc.
Sector Specific Statutory Requirement

  • Environmental Clearance from Ministry of Environment & Forests
  • Clearance from Central / State Excise department for production of Ethanol
  • Project clearance from Pollution Control Board.
  • Industrial Entrepreneur Memorandum (IEM) from Ministry of Commerce & Industry, Government of India.

Projects Eligible for the Assistance:
All the commercially viable Ethanol manufacturing plants either newly set up Distilleries (or) expansion (enhancement of capacity) of existing Distilleries.
Promoter Contribution and Quantum of Loan
Quantum of loan from IREDA / Minimum Promoters’ Contribution shall be linked to eligibility of the Project for availing benefit of Interest Subvention as notified by Govt. of India:

Eligibility for availing Interest Subvention IREDA Loan Amount (%) of the project cost Minimum Promoters’ Contribution (%) Total Term Loan (%) of the project cost
If the Project is eligible Upto 70% 25% 75%*
If the Project is not eligible Upto 50% 30% 70%*

*Limit of Total term loan in the project is subject to its’ commercial viability.

Repayment Period & Moratorium: - The repayment period shall be maximum of 7 years (including moratorium) depending on the project cash flows & DSCR of the project and it shall be after the implementation & grace period. The moratorium period shall be upto 12 months from the date of commercial operation of the project.

List of officers Name in sector- Bio Energy
Sl. No. Name Designation Email Id Mobile No.
1 Rajeev Kumar Additional General Manager rajeevkumar[at]ireda[dot]in 9718953007
2 Om Prakash Manager omprakash[at]ireda[dot]in 9650595664
4 Shaleen Bhola Deputy Manager shaleen@ireda.in 9891899079
5 Dwijesh Kumar Singh Manager dwijesh@ireda.in 9871797383
6 Aditi Das Assistant Manager aditi@ireda.in 7358281919
Last Updated on 05/09/2023