Grand Butanol Challenge: 7 PSUs come together to bolster biofuel innovation

India’s push towards clean and self-reliant energy has received a significant boost with the launch of the Rs 12.5-crore MC²+ Grand Butanol Challenge, supported by seven leading public sector energy companies, including Hindustan Petroleum Corporation Limited (HPCL), ONGC, IOCL, BPCL, GAIL, Oil India and Petronet LNG.

The initiative marks one of the first major entries of the Centre for Cellular and Molecular Platforms (C-CAMP) into the energy innovation space. C-CAMP has signed a Memorandum of Understanding with MC2 Foundation, a not-for-profit organisation backed by energy PSUs, to jointly drive deep-tech innovation in India’s energy and industrial sectors.

Launched in Bengaluru, the challenge is designed as a national, milestone-based innovation programme offering both equity-free prizes and grant funding.

The total financial support includes a prize pool of up to ₹5 crore and grants of up to Rs 7.5 crore, along with ecosystem support, pilot deployment opportunities and pathways for commercialisation. Applications for the challenge are open until August 15, 2026.

The programme aims to identify and scale indigenous solutions for the production of bio-based n-Butanol and Iso-Butanol—promising alternatives to fossil fuels. Key focus areas include fermentation-based production, catalytic processes and innovative production pathways. It also targets critical gaps at Technology Readiness Levels (TRL) 4–7, such as microbial production using non-food feedstocks, low-energy separation techniques, and development of bio-derived fuel enhancers.

C-CAMP will serve as the implementation and mentorship partner, leveraging its extensive network of over 4,000 biotech startups to attract high-quality innovations from across the country’s biotechnology and deep-tech ecosystem.

Highlighting the importance of the initiative, C-CAMP Director-CEO Taslimarif Saiyed said that India, the world’s third-largest oil consumer, depends on imports for nearly 90% of its requirements. He emphasised that alternatives like butanol could play a crucial role in reducing carbon emissions and enhancing energy self-reliance.

The programme is being led by the Ministry of Petroleum and Natural Gas (MoPNG), with the Centre for High Technology (CHT) as the technology partner, and the Departments of Science and Technology (DST) and Biotechnology (DBT) as knowledge partners.

MC2 Foundation CEO Sandeep Maheshwari stated that the initiative seeks to bridge the gap between industry, academia and startups, fostering collaboration to accelerate innovation and support India’s transition to a cleaner, more resilient energy future.