LanzaTech and SED partner to build an advanced bagasse-based ethanol facility in India, supporting circular economy and rural sustainability initiatives.
LanzaTech Global, Inc. has secured a significant contract from Spray Engineering Devices Ltd. (SED), a prominent Indian company specializing in sustainable energy and process solutions, to develop a next-generation ethanol production facility in India. The project will utilize sugarcane bagasse—an abundant agricultural residue—as its primary feedstock to produce sustainable ethanol and downstream chemicals, marking an important step forward in India’s transition to advanced biofuels.
The planned facility will be located in the state of Uttar Pradesh and is designed to process up to 300 metric tons of sugarcane bagasse per day. This project forms a central pillar of SED’s ambitious “Smart Village” initiative, an integrated framework that aims to unlock the full economic potential of renewable energy and carbon resources at a local level. By combining low-cost renewable power with innovative carbon utilization technologies, the Smart Village concept envisions a future where carbon is increasingly directed toward the production of high-value outputs such as green chemicals, polymers, sustainable aviation fuels, e-fuels, and other advanced materials.
In addition to ethanol, the facility is expected to generate nutrient-rich biochar, accounting for approximately 5–10% of total output. This biochar can be returned to nearby agricultural lands, improving soil fertility, enhancing water retention, and supporting long-term soil health. Such nutrient recycling is expected to bring tangible benefits to local farming communities while strengthening rural economies.
Commenting on the broader vision behind the project, SED Founder Mr. Vivek Verma emphasized that modern agriculture is entering a transformative phase driven by renewable solar power and green hydrogen. He highlighted India’s natural advantages, including year-round solar availability, fertile agricultural land, and rapidly growing energy demand, which together position the country as a global leader in low-cost renewable energy. As technologies related to solar, wind, batteries, and energy storage continue to mature, electricity costs are projected to fall sharply. However, Mr. Verma stressed that local biomass processing and nutrient recycling are critical to maintaining soil health and ensuring sustainable rural development. By converting non-food agricultural residues and animal waste into valuable carbon feedstocks, India can simultaneously decarbonize agriculture and establish a resilient, circular hydrocarbon economy.
LanzaTech’s proprietary technology plays a central role in this effort. The company provides industrial-scale bioreactor systems that function similarly to a brewery, but instead of fermenting sugars with yeast, specialized microbes convert carbon-rich gases—including carbon dioxide combined with green hydrogen—into ethanol. This ethanol serves as a versatile building block for a wide range of consumer products and fuels, including sustainable aviation fuel, renewable diesel, and other low-carbon alternatives.
By leveraging existing agricultural supply chains, the new facility will help divert bagasse and other biomass waste away from open burning, reducing air pollution and greenhouse gas emissions. At the same time, it will enable local production of fuels, chemicals, and raw materials, reinforcing circular economy principles and enhancing energy security for sugarcane-growing regions. The plant is expected to become operational within the next two years.
Notably, this project represents one of the first private-sector initiatives to develop an ethanol facility based on sugar industry by-product bagasse under India’s PM JI-VAN Yojana. This government program is designed to promote the production of advanced bioethanol from agricultural residues and industrial waste, supporting India’s broader energy transition goals.
LanzaTech CEO Dr. Jennifer Holmgren noted that the partnership with SED expands the company’s presence in India and establishes a clear pathway for commercial-scale deployment of agricultural residues as a key ethanol feedstock. She added that waste-based production aligns closely with the Government of India’s “Make in India” initiative by strengthening domestic manufacturing and regional value chains.
LanzaTech already has an established footprint in India, with its technology deployed at Indian Oil Corporation’s Panipat refinery, which represents the sixth commercial-scale LanzaTech facility globally. In addition, a 10-ton-per-day ethanol production unit being developed by NTPC using waste CO2 and green hydrogen is nearing completion at NTPC’s Pudimadaka site in Andhra Pradesh, further underscoring the growing momentum for carbon recycling technologies in the country.
