EID Parry, the sugar manufacturing company under Murugappa Group, is in talks with Indian Oil Corporation and other firms to explore opportunities in producing Compressed Biogas (CBG), following the central government’s announcement in October to start 5,000 CBG plants to curb oil imports.
It may require a long-term contract with the oil marketing firm and an investment partner for this, said senior officials from EID Parry. Oil Marketing firms like Shell and IOCL are trying to tie up with the sugar mills, said the company.
“The raw material source for compressed biogas could be predominantly from press mud, spent wash, bagasse. There is an opportunity, we are now looking at the end to-end to unlock value from the press mud by converting it into the biogas and then selling CBG to Indian Oil or other oil marketing companies,” said S Suresh, managing director, EID Parry India in a recent earnings call with analysts.
The oil marketing firms have announced Rs 46 per liter or kg of biogas. The net realisation for a mill will be somewhere around Rs 40. Read More