Spray Engineering Devices Limited (SED) has received approval for financial assistance of Rs 150 crore under the Ministry of Petroleum and Natural Gas (MoPNG)'s PM JI-VAN Yojana to establish a 91 KLPD second-generation (2G) ethanol biorefinery at Wave Sugar, Dhanaura, Uttar Pradesh. The project, supported through the Centre for High Technology (CHT), marks a significant development in India's advanced biofuel sector and aims to convert agricultural residues into low-carbon ethanol.
The proposed facility is among India's first privately developed commercial-scale 2G ethanol projects to integrate biomass gasification with advanced gas fermentation technology. It will combine LanzaTech's gas fermentation platform with Ankur Scientific Energy Technologies' indigenous oxygen-enriched biomass gasification technology through a thermally integrated configuration. The process will convert biomass-derived synthesis gas into sustainable ethanol, while establishing a platform for potential future production of green chemicals, sustainable aviation fuel (SAF) intermediates and other renewable products.
The project represents a strategic expansion for SED, which brings more than three decades of engineering experience in the sugar and process industries. Its partnership with LanzaTech and Ankur Scientific combines international carbon-recycling technology with domestic engineering capabilities to advance commercial-scale production of next-generation biofuels.
Commenting on the development, SED Managing Director Vivek Verma said the future of the sugarcane industry extends beyond sugar and conventional ethanol towards integrated bio-industrial ecosystems. He highlighted the potential of agricultural residues to become valuable resources for clean fuels and green chemicals. He also said the project supports SED's Smart Village vision and India's energy security, while aligning with the Aatmanirbhar Bharat and Make in India initiatives.
Sukhraj Soni, Director – Biofuels and Green Chemicals at SED, described the 91 KLPD facility as an important advancement in India's biofuel landscape. He said combining thermochemical gasification with biological gas fermentation would create a flexible technology platform for advanced ethanol production and future renewable fuel applications.
India's ethanol programme has largely developed around first-generation feedstocks such as sugarcane and grains. The Dhanaura project aims to advance the next phase by unlocking agricultural residues for commercial biofuel production. It also forms a key part of SED's Smart Village Initiative, which seeks to develop decentralised bio-industrial ecosystems supporting rural manufacturing, renewable energy and sustainable industrial growth.
