Spray Engineering Devices Ltd (SED) secures Rs 150 crore from Centre to build 2G ethanol facility in Uttar Pradesh

Spray Engineering Devices Ltd (SED) has announced to have secured approval for Rs 150 crore financial assistance under the Centre’s PM JI-VAN Yojana through the Centre for High Technology (CHT) for setting up a 91 KLPD second generation (2G) ethanol biorefinery. The ethanol facility will come up at Wave Sugar, Dhanaura, Uttar Pradesh.

The project is among India’s first privately developed commercial-scale 2G ethanol biorefineries integrating biomass gasification with advanced gas fermentation technology, creating a new pathway for converting agricultural residues into low-carbon fuels and future green chemical applications.

SED will integrate gas fermentation platform of LanzaTech and Ankur Scientific Energy Technologies’ indigenous oxygen-enriched biomass gasification technology in a thermally integrated configuration. The biorefinery will convert biomass-derived syngas into sustainable ethanol while creating a pathway for the future production of green chemicals, sustainable aviation fuel (SAF) intermediates and other renewable molecules.

SED says that its collaboration with LanzaTech represents a significant step in bringing global carbon recycling innovation to India’s biofuel ecosystem.

Vivek Verma, Managing Director, SED, said, “The future of the sugarcane industry lies beyond sugar and conventional ethanol. It lies in creating integrated bio-industrial ecosystems where agricultural residues become a valuable resource for clean fuels, green chemicals, and sustainable economic growth.”

“This project is a major step towards realizing SED’s Smart Village vision, where rural India can become a hub for next-generation bio-manufacturing. The Government’s support under PM JI-VAN reinforces the role of advanced biofuels in strengthening India’s energy security and reducing carbon emissions,” Verma added.

Sukhraj Soni, Director – Biofuels & Green Chemicals, SED, added, “The 91 KLPD 2G Ethanol Biorefinery represents a significant advancement in India’s biofuel landscape. By integrating thermochemical gasification with biological gas fermentation, we are creating a flexible technology platform for producing advanced ethanol today and enabling the next generation of renewable fuels and green chemical products.”

He said that the initiative is more than an ethanol project; it is a blueprint for future bio-refineries capable of converting agricultural residues into multiple high-value products while supporting long-term energy security and sustainable industrial growth.”

India’s ethanol programme has built a strong foundation through first-generation feedstocks such as sugarcane and grains. The next phase of growth will require commercially viable second-generation technologies that unlock the potential of agricultural residues and strengthen the country’s renewable energy ecosystem.

The project is also a key pillar of SED’s Smart Village Initiative, a long-term vision to develop decentralized bio-industrial ecosystems where agriculture, renewable energy, and advanced technologies converge to create clean fuels, green chemicals, and sustainable materials.