Centre Backs India’s First Private 2G Hybrid Ethanol Plant With Rs 150 Cr Support
India approved ₹150 crore under the PM JI-VAN Yojana for Uttar Pradesh’s first private-sector hybrid 2G ethanol plant. The 91 KLPD facility will convert sugarcane bagasse and agricultural residues into ethanol, reducing stubble burning, boosting energy security, and supporting higher biofuel blending targets.
The Ministry of Petroleum and Natural Gas (MoPNG) has approved financial assistance of Rs 150 crore under the PM JI-VAN Yojana for India’s first private-sector hybrid second-generation (2G) ethanol project in Uttar Pradesh. The project, with a production capacity of 91 kilolitres per day (KLPD), will convert sugarcane bagasse and other agricultural residues into sustainable ethanol, marking a step towards expanding the use of non-food biomass in India’s biofuel programme.
The integrated biorefinery will combine biomass gasification and gas fermentation technologies to produce second-generation ethanol. Agricultural residues will first be converted into synthesis gas, or syngas, through technology developed by Ankur Scientific Energy Technologies. The gas will then be processed using LanzaTech’s gas fermentation platform, where naturally occurring microorganisms convert it into ethanol. The project brings together Spray Engineering Devices (SED), which is responsible for engineering and execution of the biorefinery, Ankur Scientific Energy Technologies and LanzaTech.
The approval comes as India seeks to diversify ethanol feedstocks beyond sugar and grain to support higher blending targets without affecting food production. Second-generation ethanol uses crop residues and other biomass waste that would otherwise have limited commercial value or be disposed of through open burning.
Ankur Jain, Managing Director of Ankur Scientific, said the project demonstrates how agricultural residues can be converted into renewable fuels through advanced gasification and gas fermentation technologies. He added that such projects could contribute to building a circular bioeconomy while reducing dependence on fossil fuels.
Besides producing ethanol, the project is expected to create an alternative use for agricultural waste, reduce residue burning and support India’s broader objectives of strengthening energy security, lowering transport emissions and advancing the transition to low-carbon fuels.
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Source : Business World
