Bamboo Refinery in Assam Attracts Investors

Assam, a state in northeastern India, is home to the country’s first bamboo-based bio-refinery, a joint venture between Numaligarh Refinery Ltd (NRL), Fortum, and Chempolis. The refinery, which plans to start producing ethanol from bamboo in March 2024, has generated interest among private investors from various sectors, such as tea estates, cotton traders, coal-based power plants, and sugar mills. The refinery aims to capitalize on India’s growing demand for energy and its transition to eco-friendly alternatives like biofuels.

Ethanol from Bamboo: A Sustainable Solution

Ethanol is a renewable fuel that can be blended with gasoline to reduce greenhouse gas emissions and dependence on fossil fuels. India, ranking as the third-largest global consumer and importer of oil, is actively pursuing a reduction in crude oil consumption by increasing the blending of ethanol with gasoline to 20% by 2025. However, the country faces shortages of food sources of ethanol, such as sugar, maize, and rice, which can affect food security and prices. Therefore, the country is trying to promote the production of ethanol from non-food biomass, such as bamboo, which is abundant in Assam and other northeastern states.

Bamboo is a fast-growing grass that can be harvested every year without replanting. It has a high cellulose content and low lignin content, which makes it suitable for conversion into ethanol. Bamboo also has multiple uses and benefits for the local economy and environment. It can provide income and employment opportunities for farmers and entrepreneurs, as well as raw materials for various industries, such as paper, furniture, handicrafts, and construction. Bamboo can also prevent soil erosion, conserve water resources, sequester carbon dioxide, and enhance biodiversity.

According to the National Bamboo Mission (NBM), India has about 13.96 million hectares of bamboo forest area, which accounts for about 20% of the world’s bamboo resources. The annual production of bamboo in India is about 4.6 million tonnes; about 1.9 million tonnes is used by the pulp industries. The annual yield of bamboo per hectare varies between 0.2 and 0.4 tonnes with an average of 0.33 tonnes per hectare, depending upon the intensity of stocking and biotic interferences.

Assam Bio Refinery: A Joint Venture with Multiple Benefits

The Assam Bio Refinery is being built with an investment of Rs 4,200 crore at Numaligarh in Golaghat district of Assam. The refinery will have a capacity to produce 62 million liters of ethanol per year from 500,000 metric tons of bamboo. The refinery will also produce other value-added products, such as furfural, acetic acid, bio-coal, and bio-CNG. The refinery will use a proprietary technology developed by Chempolis, a Finnish company that specializes in biorefining solutions. The technology is based on formicobio™ process, which uses formic acid as a catalyst to fractionate biomass into cellulose, hemicellulose, and lignin fractions. The cellulose fraction is then hydrolyzed and fermented into ethanol, while the hemicellulose fraction is converted into furfural and acetic acid. The lignin fraction is used to generate steam and electricity for the refinery operations.

The Assam Bio Refinery will have multiple benefits for the stakeholders involved. For NRL, the refinery will help diversify its product portfolio and enhance its profitability. For Fortum, a leading clean-energy company from Finland, the refinery will provide an opportunity to expand its presence in the Indian market and contribute to its vision of creating a cleaner world. For Chempolis, the refinery will showcase its technology and expertise in biorefining solutions. For the Assam government, the refinery will boost the state’s economy and development by creating jobs, generating revenue, promoting bamboo cultivation and processing, and reducing carbon footprint. For the farmers and entrepreneurs in Assam and neighboring states, the refinery will offer a steady market and price for bamboo supply and create opportunities for setting up bamboo chipping units.

The Assam Bio Refinery is expected to commence operations in March 2024. The refinery has already signed agreements with various agencies for sourcing bamboo from different regions of Assam and other northeastern states. The refinery has also launched a digital bamboo supply chain platform to facilitate online registration, verification, tracking, payment, and feedback of bamboo suppliers. The refinery has also obtained environmental clearance from the Ministry of Environment, Forests and Climate Change (MoEFCC) and complied with all the conditions stipulated by the ministry.

The Assam Bio Refinery is a green and profitable venture that will produce ethanol from bamboo using an innovative technology. The refinery will attract investors from various sectors and reduce India’s carbon footprint using bamboo.

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