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Oil costs spur India to produce ethanol from farm waste

Reference: Reuters

PANIPAT, India, Aug 10 (Reuters) - India opened its first factory to produce ethanol from rice straw or stubble on Wednesday as part of measures to reduce its reliance on oil imports and meet its net zero carbon goal.

Prime Minister Narendra Modi said the project will help cut pollution in India's capital New Delhi, which has been blanketed by smog from stubble burning in recent winters, as well as in the northern states of Haryana and Punjab.

India, one of the world's biggest emitter of greenhouse gases, has set a 2070 goal for net zero carbon emissions and has expedited steps to switch to cleaner energy to cut projected emission by a billion tonnes by 2030.

Modi said India, the world's third biggest oil importer, could not remain insulated from disruption in global markets, adding that the Panipat project would boost farmers' incomes.

A combination of oil prices rising well above $100 per barrel and a strong U.S. dollar have piled pressure on countries which are dependent on crude imports to drive their economies.

Indian state-run oil firms have announced plans for 12 plants in several states to produce ethanol using farm waste.

Commercial production from the new 9 billion Indian rupee ($114 million) Indian Oil Corp (IOC.NS) plant would begin in three months, India's oil minister Hardeep Singh Puri said... Read More