Hindustan Petroleum Corporation Limited (HPCL) is preparing to advance its Rs 1,400-crore second-generation (2G) bioethanol project in Punjab towards commercial operations. The facility, located at Nasibpura village in Bathinda, has entered its final trial phase, with the company targeting commissioning by March 2027, according to a report by Hindustan Times.
The project aims to convert agricultural waste, particularly paddy straw, into ethanol for blending with petrol. With an annual biomass processing capacity of two lakh tonnes and a designed ethanol production capacity of 100 kilolitres per day (KLD), the facility represents an important step towards promoting biofuel production and sustainable agricultural waste management in India.
Bathinda Plant Enters Final Testing Phase
HPCL has nearly completed construction of the Bathinda bioethanol plant and is preparing to undertake the final testing and commissioning activities. The testing process is expected to take two to three months. According to the project schedule, commissioning operations are expected to begin in December 2026, followed by full-scale testing targeted for completion by March 2027. The facility is unlikely to generate commercial revenue before next year. The plant will use lignocellulosic technology to convert agricultural residues into ethanol through a series of processing stages. The process involves treating paddy straw to break down complex plant materials into simpler sugars, which are subsequently fermented, distilled and purified to produce ethanol.
Paddy Straw to Serve as Primary Feedstock
The Bathinda facility will primarily use paddy straw as its raw material, with a designed annual processing capacity of two lakh tonnes. At full production capacity, the plant will require approximately 570 tonnes of paddy straw daily to manufacture 100 KLD of ethanol. Securing a consistent biomass supply will therefore remain essential for ensuring uninterrupted plant operations. HPCL began collecting paddy straw in 2023 and has already aggregated approximately 1.25 lakh tonnes over the previous two kharif seasons. However, the company has temporarily suspended procurement during the current harvesting season while it completes system calibration and machinery alignment. HPCL has stored the accumulated biomass in an open yard at Nasibpura. The company will determine the procurement price for the next commercial buying cycle when purchases resume.
Project Aims to Reduce Stubble Burning and Emissions
The project is expected to support more sustainable agricultural waste management by creating an industrial use for paddy straw, which farmers often burn after harvesting. Abhijit Kaplish, Chief Executive of the Punjab Energy Development Agency (PEDA), said the facility aims to demonstrate how agricultural residues can become valuable industrial resources. He highlighted the project’s potential to establish a structured supply chain for agricultural waste, reduce stubble burning and seasonal air pollution, and lower greenhouse gas emissions. Furthermore, domestic bioethanol production could help reduce India’s dependence on imported crude oil.
2G Bioethanol Project Could Offer a Model for Other States
Initially designed as a pilot initiative to address paddy-stubble management, HPCL’s Bathinda project could provide a scalable model for converting agricultural residues into renewable fuels. The facility also supports India’s broader ethanol-blending programme by expanding the availability of non-food biomass-based feedstocks. Unlike conventional first-generation ethanol, which primarily uses food-based crops and sugar-rich materials, second-generation bioethanol utilises agricultural residues and other lignocellulosic resources. As reported by chinimandi.com, successful commissioning and commercial operations could encourage similar projects across agricultural states, helping industries utilise farm waste, diversify renewable fuel sources and strengthen India’s bioenergy ecosystem.
