Interview: Praj Industries Limited on Bioenergy, Advanced Biofuels, and India’s Net-Zero Pathway

ChemAnalyst Talks with Mr. Atul Mulay, President and Global SBU Head – Bio Energy at Praj Industries Limited

Praj Industries Limited, a Pune-based global leader in bio-based technologies and engineering, brings over 40 years of expertise in delivering sustainable solutions across bioenergy, renewable fuels, and industrial systems. With a presence in more than 100 countries, 1000+ global references, and a workforce of over 1800 professionals, the company continues to drive innovation through its advanced R&D capabilities, particularly in second-generation ethanol and integrated biorefineries.

ChemAnalyst spoke with Atul Mulay, President and Global SBU Head – Bio Energy at Praj Industries Limited, to understand India’s evolving bioenergy landscape. Mulay emphasized the need for scalable, feedstock-flexible technologies and highlighted the role of ethanol blending, advanced biofuels, and renewable chemicals in achieving decarbonization goals. He noted that integrated biorefineries—producing both fuels and high-value chemicals—will be key to improving economic resilience and reducing fossil fuel dependence. Looking ahead, he underscored the importance of policy support, infrastructure readiness, and innovation in positioning India as a strong player in the global bioeconomy.

Complete Interview with Mr. Atul Mulay

Q: Please provide an overview of your professional journey and leadership experience, and how your tenure at Praj Industries Ltd. has influenced the company’s strategic evolution in bioenergy, biofuels, and renewable chemicals.

Mr. Atul Mulay: My professional journey has evolved alongside India’s bioenergy and energy transition agenda. Over the years, I have worked across technology development, project execution, and strategic growth in ethanol, advanced biofuels, and integrated biorefinery platforms.

At Praj Industries, my role has focuses on strengthening technology depth, execution capability, and long-term relevance in bioenergy and renewable chemicals. The company’s evolution mirrors India’s policy-led push toward ethanol blending, advanced biofuels, and sustainable alternatives to fossil-based fuels and materials. This journey has reinforced the importance of scalable technologies, feedstock flexibility, and integration across fuels and chemicals to build a resilient bioeconomy.

Q: From Praj’s perspective, what are the most critical bio-based pathways—across ethanol, biofuels, and renewable chemicals—for India to achieve its 2030 decarbonization targets and 2070 net-zero ambitions?

Mr. Atul Mulay: India’s decarbonization pathway will require multiple bio-based routes operating in parallel. Ethanol blending under the Ethanol Blended Petrol (EBP) Programme provides immediate emissions reduction and import substitution benefits.

Over the medium to long term, 2G biofuels based on agricultural residues, Sustainable Aviation Fuel (SAF), compressed biogas (CBG), isobutanol (for blending in diesel) and bio-based chemicals like bioplastic, biobitumen etc. will be essential to meet deeper decarbonization goals. Integrated biorefineries that co-produce fuels and higher-value chemicals improve economic resilience while displacing fossil-derived feedstocks in sectors such as packaging, construction, textiles, and mobility.

In essence, Praj sees the pathway not as a single fuel solution, but as an integrated bio-economy ecosystem—leveraging feedstock flexibility, technology depth, and product diversification—to support India’s 2030 decarbonization goals and its long-term net-zero ambition.

Q: As India moves toward EBP-20 and evaluates higher blends beyond 20%, what technological, feedstock, and infrastructure challenges must be addressed to enable E25–E30 adoption at scale?

Mr. Atul Mulay: Moving beyond E20 requires coordinated progress across technology readiness, feedstock availability, and infrastructure preparedness. Engine compatibility and long-term durability testing for higher blends and progressive introduction of flex-fuel vehicles are critical from an automotive perspective.

On the supply side, sustained feedstock availability will depend on diversification across sugarcane-based feedstocks, damaged food grains, and agricultural residues. Infrastructure challenges include storage compatibility, segregation in logistics, and retail-level readiness.

Clear blend progression timelines and stable pricing visibility will be essential to unlock investments across the value chain to support ethanol industry growth.

Q: Beyond transportation fuels, how viable are static applications such as ethanol-based gensets, telecom towers, and data centers in reducing diesel dependence, and what policy or ecosystem support is required to scale these uses?

Mr. Atul Mulay: Static applications such as gensets, telecom towers, and data centers offer a practical opportunity to reduce diesel dependence, particularly in distributed and backup power scenarios. Ethanol-based gensets are already technically feasible and align with India’s objectives of reducing emissions and fossil fuel imports.

Scaling these applications will require policy recognition of ethanol as a clean fuel for stationary use, standardization of engine platforms, and collaboration between fuel suppliers, equipment manufacturers, and large energy consumers.

With India already producing ethanol for EBP, allocating a defined tranche toward static applications could provide an additional decarbonization lever without major infrastructure disruption, particularly in diesel-intensive distributed energy segments.

Q: How do you see isobutanol (IBA) contributing to the decarbonization of India’s diesel-heavy economy, particularly in hard-to-abate and distributed energy segments?

Mr. Atul Mulay: Isobutanol is a promising advanced biofuel with favorable fuel properties, with strong compatibility with existing liquid fuel infrastructure. It makes it suitable for applications requiring performance stability and logistical ease.

In India’s diesel-intensive sectors—such as agriculture, construction, mining, logistics, and backup power—rapid electrification remains challenging. Isobutanol can be integrated into advanced fuel formulations, enabling emissions reduction while utilizing existing engines and distribution systems.

Strategically, isobutanol can also serve as a precursor to sustainable aviation fuels and renewable hydrocarbons, supporting an integrated biorefinery approach. With appropriate policy support and industry validation, it can contribute meaningfully to decarbonizing hard-to-abate and distributed energy segments without disrupting operational continuity.

Q: What are the key drivers shaping ethanol pricing in India and globally—feedstock costs, blending mandates, export policies, or processing economics—and how do regional markets differ in price behavior and contract structures?

Mr. Atul Mulay: Ethanol pricing is influenced by feedstock costs, blending mandates, policy frameworks, and processing economics. In India, administered pricing mechanisms linked to feedstock categories have provided stability and visibility for investments.

Globally, ethanol markets are more exposed to commodity price cycles, energy prices, and trade policies. Regional differences also exist in contract structures, with long-term offtake agreements in some markets and spot-linked pricing in others.

Q: With rising domestic blending targets under EBP-20+, how will India’s growing ethanol demand interact with export potential, and is the country likely to emerge as a regional price-maker over time?

Mr. Atul Mulay : India’s ethanol ecosystem is primarily oriented toward meeting domestic blending requirements with EBP 20 and beyond absorbing most of the production. As blending targets increase, domestic demand will remain the priority.

India could emerge as a meaningful Ethanol exporter on an opportunistic basis, depending on feedstock diversifications, increased efficiencies, regional demand-supply dynamics and policy conditions. Over time, as scale, efficiency, and integration improve, India could play a larger role in regional biofuel markets, particularly within Asia.

Q: Considering volatility in crude oil and carbon markets, how competitive are biofuels such as EBP-20+, Sustainable Aviation Fuel (SAF), and Compressed Biogas (CBG) versus conventional fuels in terms of production cost and market pricing?

Mr. Atul Mulay: Biofuels are increasingly competitive when lifecycle emissions, energy security, and policy frameworks are taken into account. Ethanol blending has demonstrated cost and emissions benefits in the Indian context.

SAF currently requires policy and regulatory support. Both SAF and CBG are progressing along the curve as technologies mature and deployment expands. Volatility in crude oil and carbon markets amid the global geopolitical situation underscores the strategic importance of biofuels as part of a diversified energy mix.

Q: What role does Praj’s technology portfolio play in accelerating SAF commercialization in India and globally, and how do you assess demand visibility and project momentum over the next five to ten years?

Mr. Atul Mulay: Praj’s technology portfolio plays a catalytic role in SAF commercialization by strengthening the upstream alcohol production ecosystem and enabling integration with alcohol-to-jet (ATJ) conversion pathways. Our capabilities in feedstock-flexible fermentation, process integration, and modular project execution help de-risk SAF projects by ensuring reliable, scalable alcohol supply and efficient plant integration. Demonstrated integrated isobutanol-to-jet  and ethanol-to-jet pathways further help validate technical readiness and support early commercial deployment.

On demand visibility, global momentum is clearly building. Regulatory mandates in regions such as the EU, airline net-zero commitments, and corporate decarbonization goals are creating structural demand signals for SAF. However, supply ramp-up is expected to be phased, as projects depend on policy stability, feedstock logistics, and access to capital. Over the next five to ten years, we expect steady but measured growth, with early commercial plants paving the way for broader scale-up as ecosystems mature.

Q: How important is co-product valorization—such as DDGS, bio-chemicals, CO2 utilization, and lignin derivatives—in improving project IRRs and long-term resilience of integrated biorefineries?

Mr. Atul Mulay: Co-product valorization is a critical lever for improving the economics and resilience of biorefineries. Outputs such as DDGS, rice proteins, Distillers corn oil (DCO), bio-based chemicals, captured CO2, and lignin-derived products diversify revenue streams and enhance project viability. Integrated biorefineries that maximize biomass utilization are better positioned to manage market volatility and long-term policy evolution.

Q: Renewable chemicals such as bioplastics, biobitumen, and biostyrene are gaining attention globally. How do these products change the economics of biorefineries compared to fuel-only models?

Mr. Atul Mulay: Renewable chemicals fundamentally improve biorefinery economics compared to fuel-only models. They typically offer higher value realization, reduced exposure to fuel price cycles, and stronger alignment with sustainability-driven demand from end-use industries. By integrating renewable chemicals alongside fuels, biorefineries diversify revenue streams, improve overall return on capital, and reduce earnings volatility. This hybrid model enhances economic resilience while aligning with growing industrial demand for low-carbon materials beyond transportation fuels.

Products such as bioplastics, biobitumen, and bio-based intermediates enable participation in the broader materials transition, complementing fuel production.

Q: Which bio-based and renewable chemicals do you see achieving commercial scale first in India, and what end-use sectors are likely to drive early demand growth?

Mr. Atul Mulay: Bio-based chemicals linked to established demand sectors—such as packaging, construction, textiles, and mobility—are likely to achieve scale first in India. Bioplastics and polymer intermediates are expected to see early adoption.

Policy support, corporate sustainability commitments, and increasing consumer awareness will further support market development.

Q: Looking ahead to 2035, how do you visualize India’s evolving energy and materials mix, and what strategic role will integrated biorefineries play in reducing crude oil import dependence beyond fuels alone?

Mr. Atul Mulay: By 2035, India’s energy and materials mix is expected to be more diversified, with bioenergy and bio-based materials playing a structural role alongside electrification and renewables. Integrated biorefineries will extend beyond fuels to supply chemicals, materials, energy, and carbon-derived products. This evolution will contribute to reduced crude oil import dependence, stronger domestic value chains, and India’s positioning in the global bioeconomy.