Hindustan Petroleum Corporation Limited (HPCL) is fast-tracking its second-generation (2G) bio-ethanol project in Punjab, with the plant expected to be completed by March 2026. Located at Nasibpur village in Bathinda district, the facility will convert paddy straw into ethanol, helping curb stubble burning while strengthening India’s clean fuel supply chain. At full capacity, the plant will consume nearly 2 lakh tons of agricultural residue annually, turning farm waste into renewable energy. The project details were shared by Neelima, Chief Executive Officer, Punjab Energy Development Agency (PEDA), in the January 2026 edition of the Petroleum Planning & Analysis Cell (PPAC) Journal.
Turning Farm Waste into Clean Fuel
The 2G bio-refinery will use paddy straw as feedstock to produce ethanol for blending with petrol under the Government of India’s Ethanol Blending Programme (EBP).
By converting agricultural residue into fuel, HPCL aims to address two challenges simultaneously:
*Reducing crop residue burning
*Increasing domestic biofuel production
As a result, the project is expected to significantly lower instances of stubble burning in Bathinda and surrounding regions, improving air quality across Punjab and North India.
Capacity and Feedstock Requirements
Once operational, the plant will deliver 100 kilo litres (KL) of ethanol per day, making it one of the key 2G ethanol facilities in the region.
To support this output, the refinery will:
*Use 570 metric tonnes of paddy straw daily
*Consume around 2,00,000 metric tonnes annually at full capacity
In preparation, HPCL plans to procure approximately 1 lakh metric tons of biomass this season to ensure smooth commissioning and early operations.
Regulatory Oversight and Monitoring
Given its environmental significance, the project is being closely monitored by the Commission for Air Quality Management (CAQM) in NCR and adjoining areas. The oversight underscores the plant’s potential role in tackling air pollution caused by seasonal crop burning.
Meanwhile, PEDA, the state’s nodal agency for renewable energy projects, continues to facilitate implementation. The agency manages:
*Bid processes and project approvals
*Evaluation of proposals
*Detailed project report (DPR) scrutiny
*On-ground monitoring and execution
This coordinated approach aims to ensure timely completion and efficient operations.
Supporting India’s Ethanol and Energy Transition Goals
HPCL’s 2G ethanol initiative aligns with India’s broader push toward energy security, biofuels, and sustainable alternatives to fossil fuels. As reported by chinimandi.com, by converting agricultural waste into ethanol, the company not only supports farmers with an additional revenue stream but also contributes to the government’s targets for higher ethanol blending and lower carbon emissions. As the March 2026 deadline approaches, the Bathinda project is poised to become a key milestone in India’s waste-to-energy and clean fuel transformation.
