In a major boost to India’s circular bioeconomy and clean energy ambitions, the Ministry of Petroleum and Natural Gas (MoPNG) has approved financial assistance of ₹150 crore under the PM JI-VAN Yojana for the country’s first private-sector Hybrid Second-Generation (2G) Ethanol Project in Uttar Pradesh.
The project will produce sustainable 2G ethanol from sugarcane bagasse and other agricultural residues, paving the way for the large-scale conversion of agricultural waste into clean transportation fuel.
Supporting India’s Ethanol Blending Goals
As India continues to expand its ethanol blending programme, policymakers and industry stakeholders are increasingly focusing on feedstocks that do not compete with food production. Traditionally, ethanol production has relied on sugar and grain-based feedstocks. However, next-generation biofuel technologies now enable the use of agricultural residues such as bagasse, crop stalks and other biomass waste that are often underutilized or burned in fields.
The upcoming 91 KLPD integrated biorefinery will primarily use agricultural residues and showcase an innovative waste-to-fuel model based on three complementary technologies.
Advanced Technology to Convert Waste into Fuel
The process begins with agricultural residues, including sugarcane bagasse. Ankur Scientific’s advanced biomass gasification technology converts the biomass into clean synthesis gas (syngas), a mixture of carbon monoxide, hydrogen and carbon dioxide.
Subsequently, LanzaTech’s proprietary gas fermentation platform uses naturally occurring microorganisms to convert the syngas into ethanol. Unlike conventional ethanol production methods that depend on sugars or starches, this technology produces ethanol from biomass residues that otherwise offer limited economic value.
Industry Leaders Join Hands
The project brings together the expertise of Spray Engineering Devices Limited (SED), Ankur Scientific Energy Technologies and LanzaTech.
SED will lead the engineering, development and execution of the integrated biorefinery. Meanwhile, Ankur Scientific will provide the biomass-to-syngas conversion platform, while LanzaTech will supply its gas fermentation technology to convert syngas into sustainable ethanol.
As per the press release, the collaboration demonstrates how thermochemical and biological processes can work together to transform agricultural residues into high-value renewable fuels. By integrating gasification and gas fermentation technologies, the project creates a scalable pathway for producing transportation fuels from non-food biomass while reducing dependence on fossil fuels and minimizing agricultural waste.
Industry Perspective
Commenting on the development, Ankur Jain, Managing Director of Ankur Scientific, said that India generates vast quantities of biomass residues every year and that the key challenge lies in converting them efficiently into valuable products.
He noted that gasification technology enables the conversion of agricultural waste such as bagasse into clean syngas, creating the foundation for next-generation fuels. He further emphasized that integrating biomass gasification with advanced gas fermentation technologies can help transform agricultural residues into an important source of sustainable ethanol without competing with food resources.
According to Jain, the project marks an important step towards building a circular bioeconomy driven by indigenous innovation.
Strengthening India’s Energy Transition
Beyond ethanol production, the project underscores the broader role agricultural residues can play in India’s energy transition. As the country explores higher ethanol blending targets and works to strengthen energy security, technologies capable of converting waste biomass into fuels, chemicals and other low-carbon products are expected to become increasingly important.
Driving Sustainable Growth
The project serves as a significant example of how agricultural waste streams can be transformed into renewable fuels. In doing so, it can create additional value for farmers, reduce residue burning, and contribute to India’s long-term decarbonization and bioenergy goals.
With the integration of advanced gasification and gas fermentation technologies, the initiative represents a major milestone in the development of sustainable, non-food-based biofuels in India.
