India Approves INR 150 Crore for First Private-Sector Hybrid 2G Ethanol Project in Uttar Pradesh

India's Ministry of Petroleum and Natural Gas has approved INR 150 crore in financial assistance for the country's first private-sector hybrid second-generation (2G) ethanol project in Uttar Pradesh. The 91 KLPD integrated biorefinery will convert sugarcane bagasse and other agricultural residues into clean transportation fuel using a combination of biomass gasification and gas fermentation technologies. The project brings together Spray Engineering Devices, Ankur Scientific, and LanzaTech to demonstrate a scalable waste-to-fuel pathway that does not compete with food production. The facility uses Ankur Scientific's gasification technology to turn biomass into synthesis gas, which is then fed into LanzaTech's gas fermentation platform where microorganisms convert the carbon into ethanol. This approach addresses two problems at once: reducing open burning of agricultural residues and producing low-carbon fuel for India's ethanol blending program. The project is supported under the PM JI-VAN Yojana and aims to strengthen energy security while creating value for farmers. This project matters because it shows a concrete path for converting non-food biomass into renewable fuels at commercial scale. If successful, it could be replicated across India's agricultural regions, reducing both emissions from residue burning and dependence on fossil fuel imports. The integration of thermochemical and biological processes also points toward future production of other low-carbon chemicals and materials from waste biomass.