Govt to set up first 2G ethanol bio-refinery in Punjab

To be set up by Hindustan Petroleum Corp at Bathinda in Punjab at a cost of Rs 600 crore

The foundation stone for India's first second generation ethanol bio-refinery to be set up by Hindustan Petroleum Corp (HPCL) at Bathinda in Punjab at a cost of Rs 600 crore will be laid on December 25, an official said on Friday.

The foundation stone laying ceremony will be held at village Tarkhanwala, in Bathinda district of Punjab, a Petroleum Ministry release here said.

"The government is encouraging production of second generation ethanol from agricultural residues to provide additional sources of remuneration to farmers, address the growing environmental concerns and support the Ethanol Blended Petrol (EBP) programme," it said.

The Bathinda bio-refinery will produce 100 kilolitres of ethanol per day, or 3.20 crore litres per annum, which may be sufficient to meet the 26% of the ethanol blending requirement of Punjab, it added.

According to the Ministry, the proposed bio-refinery will generate employment for about 1,200-1,300 persons in the biomass supply chain and generate an additional income of approximately Rs 20 crore per annum for farmers through purchase of their agriculture residues like sugarcane.

"The project shall also help in reducing CO2 emissions from the paddy straw which currently is being burnt after harvesting," it said.

The bio-refinery will also produce about 30,000 tonnes of bio-fertiliser per annum that can be used as soil nutrient.

It will also produce more than 1 lakh kilograms of Bio-CNG per annum which can cater to transport and clean cooking requirements.

HPCL and other state-run oil firms are setting up 12 2G ethanol bio-refineries across 11 states at an estimated cost of Rs 10,000 crore, the statement said.

"These Bio-refineries shall produce around 35-40 crore litres of ethanol annually, thus contributing significantly towards the EBP programme," it added.