Key facts
- Japan plans to co-invest in overseas biomass fuel projects with private companies.
- The government aims to reduce dependence on fossil fuels and bolster domestic energy security.
- Japan will provide up to 60 billion yen ($408 million) for a bamboo-based biofuel refinery in India.
- The refinery will produce bioethanol, acetic acid, and furfural, utilizing leftover biomass for electricity generation.
- The project supports India's E20 ethanol blending program and includes Japanese technical expertise.
Japan's government is set to co-invest in overseas biomass fuel projects alongside its private companies, aiming to diversify its energy sources and reduce reliance on fossil fuels. This initiative includes significant financial backing for a bamboo-to-bioethanol refinery in Assam, India.
The project, a collaboration between Japan and India on sustainable energy, will see Japan provide up to 60 billion yen (approximately $408 million) in public and private sector funding. The Japan Bank for International Cooperation (JBIC) will contribute $244 million, with private lenders like Sumitomo Mitsui Banking Corporation also participating.
Spearheaded by India's state-run Power Finance Corporation (PFC), the refinery, operated by Assam Bio Ethanol Private Limited (ABEPL), is nearing completion. It is designed to produce 49,000 metric tons of bioethanol annually for blending with petrol in India, supporting the country's E20 program. Additionally, it will produce 11,000 tons of acetic acid and 19,000 tons of furfural, with leftover biomass used for electricity generation.
Japan will also supply technical expertise, including distillation equipment, and is exploring the adoption of Japanese fermentation technology. This move represents Japan's largest financial assistance in northeastern India and aims to promote bamboo-based industries, thereby boosting farmer incomes.
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