PM Modi to inaugurate India’s first bamboo-based ethanol bio-refinery in Assam; read why it is called 2G ethanol and how it differs from 1G, 3G and 4G ethanol

India is set to achieve a significant milestone in sustainable energy with the inauguration of the country’s first bamboo-based ethanol plant by Prime Minister Narendra Modi on 14th September. Located at Numaligarh in Golaghat district, Assam, this state-of-the-art facility has been established by Numaligarh Refinery Limited (NRL), a subsidiary of the Indian Oil Corporation Limited (IOCL), with 26% of the shares held by the state govt. The plant has been built with an investment of around Rs 5,000 crore aimed at promoting green energy, enhancing farmer incomes through bamboo cultivation, and reducing dependence on fossil fuels. The plant will be operated by Assam Bio Ethanol Private Limited (ABEPL), a joint venture between Numaligarh Refinery Limited and two Finnish companies, Fortum BV and Chempolis Oy. The facility is designed to process lignocellulosic biomass, primarily bamboo, into ethanol and other value-added products like bio-chemicals, contributing to the economy. The plant will process around 500,000 tonnes of bamboo annually, and will produce 48,900 tonnes of ethanol, significantly contributing to 20% ethanol blending in petrol. This is not just an ethanol producing plant, but a bio-refinery which will produce a range of products and byproducts from bamboo. Apart from bio-ethanol to be blended with fossil fuel, the bio-refinery will also produce furfural, a product used in making resins, acetic acid, and valuable by-products such as enzymes, formic acid and food grade carbon dioxide. The residue remaining after extraction of useful products will be used to generate power. The plant will produce 25 megawatts of electricity, of which 20 MW will be used internally, and the rest 5 MW will be supplied to the refinery. Apart from 48900 MT of ethanol,  the plant will produce 19000 MT of furfural, 11000 MT of acetic acid, and 31000 MT of food grade liquid CO₂ from bamboo. The plant is also working with IIT Guwahati on a pyrolysis project to produce biochar from bamboo waste. Assam's farmers will now be anchors of India's energy security Bharat's first bamboo to ethanol refinery has come up at Numaligarh, which will be inaugurated by Adarniya @narendramodi ji on September 14, marking a new dawn in Assam's industrial journey.A few hours to go. pic.twitter.com/FTIcRGFAJq— Himanta Biswa Sarma (@himantabiswa) September 12, 2025 The refinery will source bamboo directly from around 3,000 farmers across Assam. The north eastern states have abundant supply of bamboo, a fast-growing grass plant. India’s northeastern region is home to over 66% of the country’s bamboo forests. After the closure of paper mills in the region, there is no large-scale use of bamboo, and therefore there will be no shortage of raw material for the bio refinery. The biorefinery has already demonstrated its technical prowess by successfully producing 99.7% pure bamboo ethanol. This achievement underscores the plant’s readiness for commercial operations and its potential to utilize Assam’s abundant bamboo resources.   This initiative not only boosts local economies by creating jobs and supporting bamboo farmers but also aligns with India’s commitments to reduce carbon emissions and achieve net-zero goals. Understanding 1G, 2G, 3G and 4G Ethanol: Key Differences and Why Bamboo Falls Under 2G Ethanol or ethyl alcohol( C₂H₅OH) is a clear colourless liquid, biodegradable, low in toxins, and causes little environmental pollution if spilled. It is a high-octane energy source and has replaced lead as an octane enhancer in petrol. The ethanol to be produced in the Numaligarh plant will be 2G ethanol. Notably, commercially produced ethanol is classified into generations, 1G, 2G, and 3G, based on the source of raw materials and the production processes involved. These categories reflect advancements in technology to address sustainability challenges, such as food security and resource efficiency. First-Generation (1G) Ethanol 1G ethanol is produced from edible crops rich in sugars or starches, such as sugarcane, corn, sugar beet, or grains like wheat and rice. The process is relatively straightforward, the feedstock is crushed or milled to extract sugars, which are then fermented using yeast to produce ethanol. This method has been in commercial use for decades and forms the backbone of India’s current ethanol blending program, primarily sourced from sugarcane molasses. However, 1G ethanol faces criticism due to the “food vs. fuel” dilemma. Diverting food crops for biofuel production can drive up food prices, strain agricultural land, and compete with human and animal feed needs. Additionally, it relies on fertile arable land and water-intensive crops, limiting scalability in densely populated countries like India. Second-Generation (2G) Ethanol 2G ethanol addresses the limitations of 1G ethanol by using non-edible lignocellulosic biomass as feedstock. This includes agricultural residues like