BIO-BASED ECONOMY

Ethanol from sugarcane molasses for pharmaceutical industry

Ethanol from sugarcane molasses for pharmaceutical industry

Market

Final Products

Ethanol

Required Inputs

Sugarcane molasses

Competing Products

Low competition
Ethanol produced by other technologies

Potential for Export

High

Process

Complexity – Type of Process

Medium – chemical process

Technology

Fermentation process

Equipment and Material

Fermentation tank, distillation column and storage tanks

Human Resources

Manual labor, chemical engineers and quality control engineers

Business Linkage

Forward Linkage

Pharmaceutical industry

Local/Regional/Nationwide

Export & local markets (nationwide)

Backward Linkage

Sugar factories

Supporting Entities

Equipment and additive suppliers, testing facilities

Competitive Edge

Lower cost, could open new markets as it uses bio-based inputs

Economic Features

Revenue Stream

Sales of ethanol

CAPEX

2.4B EGP

Note: This CAPEX represents the indicative investment size, however, this investment opportunity can grow in implementation to a larger-sized investment.

Investment Size

Mega (Above 500M)

Considerations

Key Challenge

Seasonality of supply and mass production as well as maintaining high-quality, cost of transportation and absence of formal industrial waste collection services

Advantages

High profit margins and high value-addition

Potential Pathways to Growth

Production of alcohol-based chemicals (e.g., citric acid), increasing sales and outreach to various customer segments (packaged and branded or white label)

General Impact

Environmental

Eco-friendly use of industrial waste

Social

Increases returns on industrial waste and creates job opportunities.

Impact on Sub-market(s), Cluster(s) and Value Chain(s)

Relevant sub-market

Intermediary to industries (food, pharmaceutical, wood and paper))

Lies within the following
value chain/cluster(s)

Sugarcane, municipal and industrial waste

Impact

Promotes value-addition to sugarcane waste

* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

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