Pune: Praj Industries and Gevo, Inc. have signed a Development & Commercialization Agreement for Bio-Isobutanol (Bio-IBA) technology in India, strengthening their efforts to develop renewable fuel solutions for the country’s large diesel market. Under the agreement, Praj will have exclusive rights to commercialize and deploy Gevo’s Bio-IBA technology in India, with the initial focus on diesel blending applications aimed at reducing the carbon intensity of transportation and industrial fuels.
The partnership builds on more than a decade of collaboration between the two companies to develop and adapt Bio-IBA technology for Indian feedstocks and market requirements. Praj brings expertise in sugar- and starch-based feedstocks, engineering, project execution, technology scale-up and market development, while Gevo contributes its Bio-IBA technology. The companies said the combination could support the development of commercially viable Bio-IBA production and accelerate its adoption in India. 
As part of efforts to advance the technology, Praj is establishing India’s first commercial Bio-IBA demonstration plant for a leading Oil Marketing Company (OMC). The facility is being designed, engineered, supplied and erected by Praj using Gevo’s licensed Bio-IBA technology. The demonstration project is expected to help validate production processes, supply-chain requirements and potential market applications, providing a pathway for larger-scale commercial projects.
Bio-IBA is being explored as a renewable blending component for diesel and could have applications across several sectors, including transportation, agriculture, mining, construction and industrial operations. The opportunity is particularly significant for India because of its substantial diesel consumption and availability of renewable feedstocks such as sugar- and starch-based materials. According to the Petroleum Planning & Analysis Cell (PPAC), India consumed around 94.7 million tonnes of high-speed diesel in FY2025-26, equivalent to approximately 29.7 billion US gallons.
The companies said stakeholders across the value chain are also working to enable Bio-IBA-based diesel blending in India. Fuel producers, vehicle and equipment manufacturers, research institutions and end users are involved in initiatives covering technology validation, application development, regulatory assessment and supply-chain preparedness. These efforts are aimed at establishing the technical and commercial framework required for wider adoption of Bio-IBA as India continues to explore lower-carbon alternatives for its transportation and industrial fuel requirements.
