Bharat Petroleum Corporation Limited (BPCL) has commissioned a cutting-edge second-generation (2G) bioethanol refinery in Bargarh, marking a significant step in India’s shift toward sustainable fuel alternatives.
The newly operational plant has a production capacity of 100 kilolitres per day of fuel-grade ethanol, derived from rice straw. Using advanced lignocellulosic conversion technology, along with efficient pretreatment and fermentation processes, the facility converts agricultural waste into renewable energy.
The project is expected to strengthen India’s ethanol blending initiative, particularly the E20 Ethanol Blending Programme, which targets 20% ethanol blending in petrol. It also aligns with the National Policy on Biofuels, supporting efforts to enhance energy security and reduce greenhouse gas emissions.
Designed as a Zero Liquid Discharge (ZLD) facility, the refinery ensures that no wastewater is released into the environment. Its integrated solid-liquid separation systems further enhance resource efficiency while minimizing ecological impact.
By utilising rice straw—commonly burned in fields—the plant contributes to reducing air pollution and promotes a circular economy by converting farm residue into clean fuel.
The project also stands out for its strong safety performance, having been completed with around 20 million Lost Time Accident-free manhours, highlighting BPCL’s focus on operational safety and engineering excellence.
In addition to environmental gains, the refinery is expected to generate economic benefits for farmers by creating a market for agricultural residues, thereby supporting rural incomes while advancing India’s clean energy transition.
Last December, BPCL had been conferred the National Project Excellence Award (NPEA) 2025 in the “One of its Kind” category for pioneering 2G–1G Integrated Refinery at Bargarh.
Recently, the Central Government informed the Parliament that that the ethanol blending program (EBP) has resulted in expeditious payment to farmers to a tune of over Rs. 1,36,300 crores from Ethanol Supply Year (ESY) 2014-15 up to October 2025. The government sources have also been mulling to raise the blending target to 27% or beyond.
Morover, Union Minister Nitin Gadkari stated that farmers across India have earned an additional income of Rs 45,000 crore through ethanol production from corn, underscoring its growing role in strengthening India’s rural economy.
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