World's first bamboo based bio-ethanol plant in Assam to become fully operational in March

Can bamboo be used as a food stock to produce bio-ethanol, an environment-friendly fuel? Yes. Research and trial production has already provided a positive outcome.

In the next couple of weeks, world's first 2G bamboo-based bio-ethanol plant, set up here at Numaligarh in eastern Assam's Golaghat district, will start full commercial production of 2G ethanol, which is derived from non-food farm waste or residue.

"In the trial production, fuel grade ethanol with 99.7 per cent purity was produced on September 3, 2025. The first consignment was supplied to Numaligarh Refinery Limited (NRL) on September 9, 2025. We are now all set to start operation with full capacity in the next two-weeks," a senior official of Assam Bio Ethanol Private Limited (ABEPL), told DH. The plant was inaugurated by Prime Minister Narendra Modi on September 14 last year.

The ABEPL is a joint venture company of NRL, a Navaratna public sector undertaking and Finland-based Chempolis and Fortum.

The official said the plant was set up based on research by the Finland-based firms.

"The production of bio-ethanol will add to our government's efforts to reduce crude oil imports by Rs. 230 crores annually and thereby add to the target of energy security. The plant has been set up here as the Northeastern region has huge reserve of bamboo," he said.

Set up with investment of Rs. 4,930 crores in 43 acres, the plant has set a target to produce 50 kilo tones of biofuel per annum (KTPA). The plant may require 500 KTPA green bamboo as feedstock. It has set a target to produce 19,000 tons of furfural per annum, 11,000 tons of acrtic acid and 25MW green power.

The official said 1G ethanol is produced from food crops using simple fermentation. The 2G ethanol, although is costlier, ensures food security and is more sustainable. The plant will be carbon neutral, he said. The plant has been set up at Numaligarh, 260km east of Guwahati given the high production of bamboo in the Northeast. "The seven states of Assam, Meghalaya, Tripura, Nagaland, Manipur, Mizoram and Arunachal Pradesh has 178.61 million metric tons of bamboo inventory."

Boost to farmers/entrepreneurs:

The ABEPL has already registered 4,200 bamboo farmers across Assam, Meghalaya, Nagaland and Arunachal Pradesh. It seeks to involve 30,000 farmers within 300km radius of the plant to have 12,500 hectares of bamboo cultivation in three years. "We have already supplied one lakh bamboo saplings free of cost. Owners of the tea gardens have largely come forward to cultivate bamboo as per government norms. Besides, the farmers can use the barren and discarded land for cultivation of bamboo and supply to us. Our targets is to distribute six lakh saplings. This will create a lot of livelihood opportunities as well as support entrepreneurship through ancillary units," the official said.