Government-owned Bharat Petroleum Corporation Limited (BPCL), a Fortune Global 500 company and a Maharatna Public Sector Undertaking (PSU), has announced the successful commissioning of its second-generation (2G) bioethanol refinery at Bargarh. The facility produces 100 kilolitres per day (100 KL/day) of fuel-grade bioethanol from rice straw using advanced lignocellulosic technology, including pre-treatment and fermentation.
Designed as a Zero Liquid Discharge (ZLD) plant with solid-liquid separation, it ensures efficient resource use and environmental stewardship. It supports India’s E20 Ethanol Blending Programme and the National Biofuels Policy, helping reduce emissions and foster a circular economy. The project was delivered safely with approximately 20 million LTA-free man-hours, reflecting strong teamwork and engineering excellence.
The company said in a social media post on ‘X’, “The commissioning of its 2G bioethanol refinery at Bargarh will strengthen India’s efforts to accelerate the adoption of clean fuels and reduce dependence on fossil fuels. The facility has a production capacity of 100 KL/day of fuel-grade bioethanol, produced from rice straw using advanced lignocellulosic technology. The process involves pre-treatment and fermentation of agricultural residues, enabling the conversion of non-food biomass into sustainable fuel.”
Bharat Petroleum’s refineries at Mumbai, Kochi, and Bina have a combined refining capacity of around 35.3 MMTPA. Its marketing infrastructure includes a network of installations, depots, fuel stations, aviation service stations, and LPG distributors. Its distribution network comprises over 23,500 fuel stations, more than 6,200 LPG distributorships, over 500 lube distributorships, 80 POL storage locations, 54 LPG bottling plants, 79 aviation service stations, five lube blending plants, and five cross-country pipelines.
Zero liquid discharge
Bharat Petroleum Corporation Limited (BPCL) said that the refinery is designed as a Zero Liquid Discharge (ZLD) plant, incorporating solid–liquid separation systems to optimise water use and minimise environmental impact, in line with stricter sustainability norms. The project aligns with the government’s E20 ethanol-blending programme, which targets 20 percent ethanol blending in petrol, and supports the National Policy on Biofuels, aimed at boosting domestic biofuel production. It also helps reduce stubble burning by providing an alternative use for crop residues, particularly in agricultural states.
Additionally, the plant is likely to support rural incomes by creating demand for agricultural waste and generating local employment across the value chain, from biomass collection to plant operations. The commissioning comes as oil marketing companies increasingly invest in biofuels, compressed biogas, and other renewable energy solutions to diversify their portfolios and meet India’s long-term decarbonisation goals.
BPCL JV secures green hydrogen contract
Separately, BPCL has marked a significant milestone in India’s clean energy transition, with NeuEN Green Energy Pvt. Ltd. (NeuEN) securing a contract to supply 10,000 tonnes per annum (10 KTPA) of green hydrogen to Numaligarh Refinery Ltd. (NRL). NeuEN Green Energy Pvt. Ltd., a 50:50 joint venture between BPCL and Sembcorp Green Hydrogen India Private Limited, a wholly owned subsidiary of Sembcorp Industries, represents BPCL’s strategic foray into renewable energy and large-scale green hydrogen development.
The award reinforces BPCL’s commitment to accelerating the greening of India’s refining and industrial ecosystem by integrating green hydrogen into core operations, aligned with national energy transition priorities and long-term decarbonisation goals. Notably, the project has achieved the most competitive rate discovered to date, marking a significant milestone in the commercial viability of green hydrogen in India.
Under the contract, the joint venture will develop a 10 KTPA green hydrogen production facility at NRL’s refinery in Assam, supported by a long-term offtake arrangement. The project is expected to begin commercial operations in 2028 and will integrate renewable energy with advanced storage solutions to enable reliable, round-the-clock operations, supporting refinery decarbonisation.
Commenting on the development, Sanjay Khanna, Chairman & Managing Director, BPCL, said: “This project marks a significant milestone in BPCL’s journey towards building a future-ready and resilient energy portfolio. Through NeuEN, we are strengthening our presence across the green hydrogen value chain and progressing towards becoming a supplier of clean energy solutions. Securing this project through a competitive bidding process reflects both the evolving maturity of the green hydrogen sector and our focus on developing scalable, market-aligned solutions. As we move forward, our emphasis will remain on building robust execution capabilities and contributing meaningfully to industrial decarbonisation and India’s long-term energy security.”
Competitive tariff
The competitively discovered tariff sets a new global benchmark for commercially contracted green hydrogen pricing, underscoring the increasing cost competitiveness and scalability of green hydrogen in India. The project will feature a hybrid renewable-powered configuration integrated with advanced energy storage solutions to ensure reliable, round-the-clock electrolyser operations. This initiative further enhances Northeast India’s contribution to national energy security while advancing the country’s clean hydrogen ambitions.
Vipul Tuli, President & CEO, Renewables, West, and CEO, Hydrogen Business, Sembcorp Industries, added: “This award marks a significant step forward in advancing India’s green hydrogen ambitions and aligns closely with Sembcorp’s strategy to enable a lower-carbon energy future. The landmark tariff achieved demonstrates the importance of well-structured long-term offtake contracts. We are pleased to support Numaligarh Refinery Ltd. in its decarbonisation goals and, together with Bharat Petroleum Corporation Limited (BPCL), deliver a project of national importance.”
Shelly Abraham, Chairman, NeuEN, said: “By combining BPCL’s strong domestic market presence and infrastructure capabilities with Sembcorp’s global experience in renewable energy, we are enabling the integration of low-carbon solutions into refining operations and supporting long-term industrial decarbonisation.”
By leveraging BPCL’s deep sectoral expertise and domestic market strength alongside Sembcorp’s global renewable and infrastructure capabilities, the joint venture is positioned as a key enabler of India’s low-carbon energy transition. This development underscores BPCL’s commitment to sustainable growth, national green hydrogen initiatives, and its leadership in advancing India’s transition toward a cleaner and greener energy future.
JV Partners
NeuEN Green Energy Private Limited is a 50:50 joint venture between Bharat Petroleum Corporation Limited (BPCL) and Sembcorp Green Hydrogen India Private Limited, a wholly owned subsidiary of Sembcorp Industries, a global leader in renewable energy listed on the Singapore Exchange (SGX). Established to accelerate India’s transition to a low-carbon economy, NeuEN delivers purpose-driven, scalable clean energy solutions across the power, hydrogen, and ammonia value chains.
Sembcorp Industries (Sembcorp) is a leading energy and urban solutions provider, driven by its purpose to support the energy transition. Headquartered in Singapore, Sembcorp delivers sustainable solutions for energy transition and urban development by leveraging its sector expertise and global track record. The company has a balanced energy portfolio of 28.6 GW, including 20.5 GW of gross renewable energy capacity, across 11 countries.
Its urban development projects span more than 15,700 hectares across Asia and have generated over 466,000 employment opportunities, attracting close to US$62 billion in investment capital. In India, Sembcorp is a leading independent renewable energy producer, with generation assets across 13 states and a balanced portfolio of over 7.6 GW comprising wind, solar, and energy storage assets.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
