By: ICN Bureau
Last updated : January 29, 2026 6:34 am
24K MTA ethanol plant would be the first facility in India using LanzaTech’s technology for converting sugarcane bagasse to produce essential fuels and chemicals
Sustainable energy specialist Spray Engineering Devices Ltd (SED) has commissioned carbon recycling firm LanzaTech Global to construct a next-generation recycling facility in Uttar Pradesh, India.
The plant will process up to 300 tons per day of sugarcane bagasse—a common agricultural waste—into vital fuels and green chemicals.
Beyond fuel, the facility is expected to produce nutrient-rich biochar (5–10%), which local farmers can use to enhance soil fertility.
As a cornerstone of the "SED Smart Village" framework, the facility aims to maximize the economic value of renewable power and local carbon resources.
This is one of the first private-sector ethanol projects under India’s PM JI-VAN Yojana, an initiative supporting advanced bioethanol production from agricultural residue.
The model anticipates that abundant low-cost power will shift carbon demand toward high-value products like green chemicals, polymers, aviation fuels, and e-fuels. In addition, the LanzaTech project is expected to generate nutrient-rich biochar (5–10%), achieving permanent carbon sequestration and improving soil fertility.
Vivek Verma, MD, Spray Engineering Devices Ltd (SED) said, "Modern agriculture is poised for a significant transformation through green solar power and hydrogen, which will create boundless opportunities for rural economies. India’s year-round solar potential, fertile land, and growing energy demand position it uniquely for a low-cost renewable energy future. As solar, wind, battery, and storage technologies mature, electricity costs are expected to decline significantly, supported by distributed energy storage. The critical element is ensuring biomass processing and nutrient recycling occur locally to preserve soil health and strengthen rural economies. By utilizing non food agricultural biomass and animal waste as carbon feedstock, we can both decarbonize agriculture and create a sustainable hydrocarbon ecosystem."
LanzaTech equips industrial facilities with bioreactor hardware that captures carbon-rich gases at the source, before they are emitted into the atmosphere. Inside the bioreactor, LanzaTech’s technology works like a brewery, but instead of using yeast to convert sugar into beer, proprietary microbes convert carbon-rich gases, including CO2 coupled with green H2, to ethanol, a key building block for the production of consumer goods and sustainable fuels, including sustainable aviation fuel (including e-fuels) and renewable diesel.
By leveraging the existing supply chain, the facility will divert bagasse/biomass wastes from being burned and enable local production of sustainable fuels, green organic chemicals, and raw materials.
This innovative approach supports circular economies, reduces greenhouse gas emissions, and helps build a more resilient future for sugarcane-growing communities. The plant will have an annual CO2 abatement capacity of approximately 19,200 tonnes of CO2 equivalent per year and is expected to begin operations within two years.
Dr. Jennifer Holmgren, LanzaTech’s CEO and member of the US-India Strategic Partnership Forum’s (USISPF)’s Board of Directors said, “Our partnership with SED for this project expands our footprint in India while creating a roadmap for commercial deployment of agricultural residue as a key feedstock for producing ethanol. Waste-based feedstocks can support Prime Minister Modi’s Make in India initiative by boosting the regional domestic manufacture of essential goods and materials. What’s better for the environment can also be better for business.”
In India, LanzaTech’s carbon recycling technology is already deployed at Indian Oil Corporation’s Panipat facility using refinery off-gases, the sixth commercial scale plant using LanzaTech’s technology worldwide. A 10 ton per day ethanol production unit by NTPC from waste CO2 and green H2 is under advanced stage of execution at NTPC’s Pudimadaka site in Andhra Pradesh.