Delhi : In a significant step towards advancing India’s circular bioeconomy, the Ministry of Petroleum and Natural Gas (MoPNG), under the PM JI-VAN Yojana, has approved financial assistance of ₹150 crore for India’s first private-sector Hybrid 2G Ethanol Project in Uttar Pradesh. The project is designed to produce sustainable second-generation (2G) ethanol from sugarcane bagasse and other agricultural residues, creating a pathway to convert agricultural waste into clean transportation fuel.
As India successfully advances its ethanol blending programme, the focus is increasingly shifting towards feedstocks that do not compete with food production. While conventional ethanol is largely produced from sugar and grain-based feedstocks, next-generation biofuel technologies enable the use of agricultural residues such as bagasse, crop stalks and other biomass wastes that are often underutilized or openly burned. The 91 KLPD integrated biorefinery will utilize agricultural residues as its primary feedstock and demonstrate an innovative waste-to-fuel pathway built on three complementary technologies.
The process begins with agricultural residues such as sugarcane bagasse. Using Ankur Scientific’s advanced biomass gasification technology, the biomass is converted into clean synthesis gas (syngas), a mixture of carbon monoxide, hydrogen and carbon dioxide. This syngas then becomes the feedstock for LanzaTech’s proprietary gas fermentation platform, where naturally occurring microorganisms convert the gaseous carbon into ethanol. Unlike conventional ethanol production that relies on sugars or starches, this approach enables the production of ethanol from biomass residues that would otherwise have limited economic value.
The project brings together the expertise of Spray Engineering Devices Limited (SED), which is responsible for engineering, development and execution of the integrated biorefinery; Ankur Scientific Energy Technologies, which provides the biomass-to-syngas conversion platform; and LanzaTech, whose gas fermentation technology converts syngas into sustainable ethanol.
The collaboration demonstrates how agricultural residues can be transformed into high-value renewable fuels through a combination of thermochemical and biological processes. By integrating gasification and gas fermentation technologies, the project creates a scalable pathway for converting non-food biomass into transportation fuels while reducing dependence on fossil fuels and minimizing agricultural waste.
Speaking on the development, Mr. Ankur Jain, Managing Director, Ankur Scientific, said “India’s agricultural sector generates vast quantities of biomass residues every year. The challenge is not the availability of biomass, but the ability to efficiently convert it into valuable products. Gasification enables us to transform agricultural waste such as bagasse into clean syngas, creating the foundation for next-generation fuels. By integrating biomass gasification with advanced gas fermentation technologies, projects such as this demonstrate how agricultural residues can become an important source of sustainable ethanol without competing with food resources. This represents an important step towards building a circular bioeconomy powered by indigenous innovation.”
Beyond ethanol production, the project highlights the broader potential of agricultural residues as a strategic resource for India’s energy transition. As the country explores higher ethanol blending levels and seeks to strengthen energy security, technologies capable of converting waste biomass into fuels, chemicals and other low-carbon products are expected to play an increasingly important role.
The project serves as an important example of how waste streams from agriculture can be transformed into renewable fuels, creating value for farmers, reducing residue burning, and supporting India’s long-term decarbonization and bioenergy goals.
