The Numaligarh Refinery in Assam is set to launch the country’s first bamboo-based ethanol project, which has been commissioned with an expenditure of around Rs 5,000 crore. The project is a joint venture between Numaligarh Refinery and Finland-based Chempolis Oy, with equal shareholding. The refinery will produce 49,000 metric tonnes of ethanol annually, consuming around 300,000 metric tonnes of bamboo every year, along with producing chemical by-products such as furfural and acetic acid.
The project is expected to bring a major transformation to Assam’s bamboo farmers and the state’s rural economy, with the refinery procuring bamboo worth around Rs 150-200 crore annually as raw material. The supply chain has been designed to benefit around 30,000 rural households, with all stakeholders, including bamboo farmers, receiving payments directly through electronic bank transfer.
The project has also opened doors of opportunity for farmers and unemployed youth across rural Assam, with the refinery authorities launching a special scheme for bamboo plantation. The plant will use dry bamboo as feedstock, with an annual requirement of 3 million tonnes, and will also produce 2G bio-ethanol and other by-products.
The inauguration of the project will be done by Prime Minister Narendra Modi, who will also lay the foundation stone for the Rs 7,200 crore Polypropylene Project to be set up at Numaligarh Refinery. The project is expected to generate 5 MW of green power and will have a positive impact on the environment.
The use of bamboo as a feedstock for ethanol production is a significant step towards reducing the country’s dependence on fossil fuels and promoting sustainable development. The project is also expected to save foreign exchange of around Rs 55 crore annually by reducing imports, while also saving around Rs 600 crore annually spent on fuel imports.
However, there are concerns about the profitability of the project, given the escalated expenditure from the initial estimate of Rs 2,000 crore to nearly Rs 5,000 crore. The success of the project will depend on various factors, including the efficiency of the supply chain, the price of ethanol, and the demand for the by-products.
Overall, the Numaligarh Refinery’s bamboo-based ethanol project is a significant step towards promoting sustainable development and reducing the country’s dependence on fossil fuels. The project has the potential to benefit thousands of rural households and promote economic growth in the region.