Biodiesel and Ethanol Investing

Daily News & Analysis reports that after remaining shut for two years, ethanol factories in India are readying to whir again. With crude prices spiking to $80 per barrel levels and the government cracking down on the 5% blending requirement, oil companies have been negotiating with sugar producers for supply of ethanol. Ethanol factories costing about Rs 2,500 crore were set up after the ethanol blending program was announced in 2002. However, these facilities had been idle for almost two years as the government started easing up on ethanol blending requirements in 2005.