SED secures Rs. 150 crore government-backed push for 2G ethanol biorefinery in UP
By: ICN Bureau
Last updated : June 23, 2026 9:21 am
SED said the collaboration brings together global carbon-recycling innovation and indigenous engineering capabilities
Spray Engineering Devices Limited (SED) has received Rs. 150 crore in financial assistance under the Ministry of Petroleum & Natural Gas’ PM JI-VAN Yojana, clearing the way for a 91 KLPD second-generation ethanol biorefinery at Wave Sugar, Dhanaura in UP.
The project marks one of India’s early privately developed commercial-scale 2G ethanol plants designed to convert agricultural residues into low-carbon fuels and future green chemical feedstocks.
It will integrate LanzaTech’s gas fermentation technology with Ankur Scientific Energy Technologies’ oxygen-enriched biomass gasification system in a thermally integrated setup, enabling biomass-derived syngas to be converted into sustainable ethanol.
The platform is also intended to support future production of sustainable aviation fuel (SAF) intermediates and other renewable chemicals.
SED said the collaboration brings together global carbon-recycling innovation and indigenous engineering capabilities. The company highlighted that the project combines its experience in sugar and bioenergy systems with international technology partnerships and government policy support to accelerate advanced biofuel deployment in India.
Speaking on the milestone, 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.
"By bringing together indigenous engineering, global technology partnerships, and local manufacturing capabilities, the project aligns with the vision of Aatmanirbhar Bharat and Make in India, while contributing to the broader ambitions of the Global Biofuel Alliance."
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.
"This 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, currently anchored in first-generation feedstocks such as sugarcane and grains, is now expanding toward second-generation technologies aimed at unlocking agricultural waste as a large-scale renewable resource.
SED said the project also forms a key part of its Smart Village Initiative, which focuses on building decentralized bio-industrial ecosystems that combine agriculture, renewable energy, and advanced manufacturing.
With over three decades in sugar and process engineering, SED said its expansion into advanced biofuels reflects a shift toward becoming a technology-driven partner in India’s clean energy transition.