Assam’s Bamboo Ethanol Plant: Turning Bamboo to Fuel

The world is heading into a future where the demand for energy is climbing faster than ever. By 2040, the global population is expected to exceed 9 billion, and fuel consumption could rise by more than half. Growing dependence on conventional energy sources has raised real concerns about sustainability and the risk of a deepening energy crisis.

Illustration by The Geostrata

In the midst of unstable markets, changing tariffs, and uncertain supply chains, India, the world’s most populous and fast-growing nation, is taking steady steps to secure its energy needs and move closer to true Atmanirbharta, or self-reliance, in the energy sector.

A NEW MILESTONE

Prime Minister Narendra Modi recently inaugurated India’s first bamboo-based bioethanol plant in Golaghat, Assam. The project, worth ₹5,000 crore, has been developed by Assam Bio-Ethanol Private Limited, a joint venture of Numaligarh Refinery Limited with Finland’s Fortum and Chempolis OY.

The plant is notable because it turns bamboo, a non-food crop with high lignocellulose content, into ethanol.

The plant is the first of its kind in India to use bamboo biomass as its primary feedstock. What makes it even more remarkable is that it is also the world’s first second-generation bioethanol plant to utilise bamboo for fuel production. 

During his visit, the Prime Minister also laid the foundation stone for a new modern polypropylene unit at the Numaligarh Refinery, a project worth ₹7,230 crore, which will add another boost to Assam’s role in India’s energy future.

WHY ETHANOL MATTERS

Ethanol is becoming a crucial part of the clean energy discussion. Bioethanol, which is ethanol produced from renewable biological sources such as crops and agricultural waste, offers a practical and sustainable alternative to conventional fuels.

It is a clear, biodegradable liquid that burns cleanly into carbon dioxide and water. What makes it significant is the range of applications it supports.

Bioethanol is blended with petrol to reduce dependence on fossil fuels, it is used in chemical production, and it even provides the base for bio-based materials like bioplastics.

In India, where sugarcane processing produces ethanol as a byproduct, blending it with petrol has become a crucial strategy to cut carbon emissions and reduce the harmful pollutants that affect both climate and public health.

This synergy not only enhances resource efficiency in the agro-energy sector but also advances India’s strategy for a low-carbon, sustainable fuel landscape.

At present, close to 98 per cent of the fuel used in road transport still comes from fossil sources, while only about 2 per cent is supplied by biofuels like ethanol. This heavy reliance on fossil fuels raises concerns about energy security, drains foreign currency reserves due to imports, and worsens environmental pressures.

Ethanol provides a way forward. When produced and used responsibly, it is more sustainable and a strong step toward building a cleaner and more secure energy future for India.

But ethanol blending also requires engine upgrades, as E20 demands corrosion-resistant materials and adjusted combustion systems, prompting manufacturers to launch E20-ready vehicles across India.

Concerns are also raised for food security, since ethanol is produced from crops like sugarcane and maize, and expanding its use diverts farm produce into manufacturing more fuel.

THE SIGNIFICANCE OF ASSAM'S BAMBOO ETHANOL PLANT

Assam is now home to a landmark initiative that could redefine India’s energy and rural development landscape. The state, known as the country’s largest bamboo producer, contributes nearly a quarter of India’s total bamboo resources.

Prime Minister Modi highlighted the plant’s far-reaching impact, noting that it would benefit thousands of people and involve an annual investment of around ₹200 crore.

He emphasised that the project would strengthen both ‘Make in Assam’ and ‘Make in India’ while boosting the state’s manufacturing ecosystem.

The plant is designed to be much more than an energy project. It positions itself as a driver of rural empowerment and regional growth. Using indigenous bamboo varieties from the northeastern states, the plant processes nearly five lakh tonnes of bamboo annually to produce approximately 48,900 metric tonnes of ethanol.

These include cellulose-rich varieties like balco and tulda, which are native to the region. The facility relies on green bamboo, a lignocellulosic biomass, and has earned recognition as the world’s first zero-waste bioethanol plant to exclusively utilise this resource.

With a processing capacity of 300,000 tonnes of bamboo each year, it can produce around 50,000 tonnes of fuel-grade ethanol.

The benefits extend beyond ethanol production. The plant generates a range of high-value co-products, including furfural, acetic acid, bio-coal, and green energy, making it a model of sustainability. Its socio-economic impact is profound, with over 50,000 people expected to benefit from the bamboo supply chain.

NRL Managing Director Bhaskar Jyoti Phukan pointed out that more than 30,000 tribal and rural farmers will gain from the initiative, with bamboo poles now fetching Rs 65 to 70 each.

The plant is also self-reliant in power, producing 25 MW of captive electricity, and operates as a zero-waste facility.

INDIA'S VISION FOR BIOENERGY

A decade ago, India was still finding its footing in renewable energy, especially in solar power. Today, the country stands among the top five in the world for solar energy capacity, a remarkable leap that reflects a growing commitment to clean energy and sustainable growth.

This shift is guided in large part by the National Policy on Biofuels, updated in 2018, which lays out a roadmap for India’s energy future.

Projects like the bamboo-based ethanol plant in Assam show how these policies are taking shape on the ground, turning ideas into real, pioneering initiatives.

The policy addresses some of India’s most pressing energy challenges. The country still relies heavily on imported crude oil, meeting nearly 85% of its needs from abroad.

To reduce this dependence, the policy set a target of blending 20% ethanol in petrol, known as E20. Originally planned for 2030, this goal was achieved in 2025, five years ahead of its target.

Over the past decade, ethanol blending has jumped from just 1.5% to 20%, saving the nation more than ₹1 lakh crore in foreign exchange. A sign of how quickly India’s clean energy drive is gaining momentum and a reflection of the country’s strong push for energy self-reliance. 

At the heart of the policy is the focus on Second-Generation biofuels, made from non-food materials, so that fuel production doesn’t compete with the nation’s food supply.

It encourages the development of new technologies that can turn agricultural and forestry residues into ethanol. Government programs like the Pradhan Mantri JI-VAN Yojana provide financial support for projects using feedstocks such as parali and bamboo.

These initiatives not only generate clean fuel but also help reduce pollution and make better use of resources that might otherwise go to waste.

But all of this is possible because of a significant policy change that unlocked opportunities for Indian farmers to cultivate bamboo.

It came in 2017, when the colonial-era law, the Indian Forest Act 1927, which classified bamboo as a tree and restricted its harvesting, transport, and commercial use, was amended to recognise it as a grass.

The British had originally imposed this law to control and monopolise the bamboo trade for their own industrial interests. The amendment freed farmers to harvest, trade, transport, and commercialise bamboo, leveraging the true strength.

THE DRIVE FOR ENERGY SELF-RELIANCE

India’s dependence on imported oil and gas has long been a vulnerability, leaving the economy exposed to global price swings and costing lakhs of crores of rupees every year. As the world’s third-largest primary energy consumer, the country relies on imports for nearly 85 per cent of its oil, while fossil fuels still dominate road transportation.

Cutting back on this reliance is not just a policy ambition; it is an urgent necessity for economic stability and national security. 

Furthermore, it aligns with India’s broader goals under the 2030 Agenda for Sustainable Development Goals, specifically SDG 7, which focuses on promoting affordable and clean energy.

Biofuels are emerging as a key tool in this effort. By turning renewable, indigenous resources like agricultural residues and bamboo into fuel, India can produce cleaner energy at home, reduce foreign currency outflow, and protect the economy from volatile global oil markets. 

PAVING THE WAY FORWARD

Assam’s bamboo ethanol project stands as a symbol of what India can achieve when sustainability, technology, and community empowerment come together. While celebrating this milestone, it remains crucial to address challenges like engine compatibility, food security concerns, and ensuring equitable benefits for local communities. 

The project sets a blueprint for other states, showing how they can advance the nation’s energy goals while promoting rural development. Milestones like this are paving the way for India to turn ambition into tangible progress, advancing toward a sustainable, self-reliant, and responsibly managed energy ecosystem.

---

BY JANHAVI THOMBRE

TEAM GEOSTRATA

info@thegeostrata.com