Project Background
ENI is developing vertically integrated supply chains for biofuel production, leveraging oilseed crops and agro-industrial by-products. India offers a strategic opportunity due to its large cashew nut production and significant volumes of cashew nutshells, a valuable feedstock for Cashew Nut Shell Liquid (CNSL) and cardanol extraction.
India produces approximately 700,000 tons of raw cashew nuts and 500,000 tons of processed nuts annually, with Kerala, Andhra Pradesh, and Odisha being key production and processing hubs. Cashew nutshells contain around 25% CNSL, which is used in biofuels and various industrial applications. Valorizing this by-product can reduce waste, enhance local value chains, and supply ENI with a sustainable bio-based feedstock.
The feasibility study will assess the CNSL and cardanol value chains in India, including stakeholders, production volumes, processing capacities, seasonality, logistics, costs, and potential for expansion. AESA will support the project over 8 continuous weeks.
Project Objectives
The study aims to:
- Map the CNSL & cardanol supply chain in India, identifying processors, logistics operators, and industrial stakeholders.
- Analyze technical, economic, and logistical feasibility of CNSL and cardanol procurement.
- Evaluate existing business models and pricing mechanisms, and recommend strategies for supply chain efficiency.
- Provide sustainability and certification guidance for stakeholders in the CNSL and cardanol value chains.
- Estimate available volumes and expansion potential for CNSL and cardanol between 2025–2028.
Project Activities
The feasibility study will adopt a four-pillar methodology:
- Desk Review
- Analyze reports, scientific literature, policy documents, and market data.
- Identify key actors, value chain structures, and regulatory frameworks.
- Field Mission
- Two-week in-country mission across Kerala, Andhra Pradesh, Odisha, and Maharashtra.
- Conduct interviews with cashew processors, CNSL and cardanol producers, logistics companies, traders, and local authorities.
- Visit processing plants, storage facilities, and observe operational setups.
- Technical & Economic Assessment
- Analyze production and transformation costs, economies of scale, logistical scenarios, and investment requirements.
- Compare processing models and identify opportunities to expand ENI’s CNSL and cardanol supply chain.
- Environmental & Social Considerations
- Assess sustainability, social impact, certifications, and alignment with ENI’s environmental commitments.
Work Plan:
- Phase 1 (Week 1): Kick-off, stakeholder coordination, desk research, preliminary mapping of cashew, CNSL, and cardanol value chains.
- Phase 2 (Weeks 2–6): Field mission with interviews, site visits, and data collection on production, seasonality, costs, and logistics.
- Phase 3 (Weeks 7–8): Data analysis, draft feasibility report preparation, presentation of preliminary findings, and final report finalization.
Expected Results / Deliverables
1. Feasibility Report
The study will deliver a comprehensive report including:
- Executive Summary
- Background: Description of activities and analysis undertaken.
- Value Chain Overview: Mapping of cashew nutshells, CNSL, and cardanol production areas; industrial stakeholders; facilities; volumes; processing capacity; seasonality; storage; logistics; and commercialization.
- Program Implementation Plan:
- Recommended business models, procurement strategies, and pricing mechanisms.
- Quantitative and qualitative assessment including by-product valorization, economic viability, certifications, quality standards, risk analysis, and mitigation measures.
- Description of logistics, storage, and domestic/overseas transportation options (FOB delivery to Italy considered).
- Identification of target partners and achievable raw material and feedstock volumes for 2025–2028.
- Stakeholder Management & Sustainability: Recommendations addressing social, environmental, and sustainability aspects.
