New Delhi: Japan will fund up to 60 billion yen (about $408 million) in public and private funding for a biofuel project in India that will convert bamboo biomass into automobile fuel, according to the Nikkei Asia. The move marks Japan’s largest financial assistance in northeastern India and reflects its drive towards clean energy, reported Business Standard.
The financing will come from the Japan Bank for International Cooperation (JBIC) and private-sector lenders including Sumitomo Mitsui Banking Corporation. JBIC alone will contribute $244 million.
The project, led by India’s state-run Power Finance Corporation (PFC), is part of the Japan-India collaboration on sustainable energy. Funds will be channelled to Assam Bio Ethanol Private Limited (ABEPL), which is setting up a bamboo-based biofuel refinery in Assam’s Golaghat district.
The refinery, now nearing completion will produce ethanol to be blended with petrol in India. It will also generate acetic acid for adhesives and other products, and 19,000 tons of furfural, a raw material used in synthetic resins. Remaining biomass will be used to produce electricity, ensuring zero waste.
The project supports India’s E20 programme, which targets 20% ethanol blending in petrol to reduce fossil fuel imports.
Along with financing, Japan is also providing technical expertise. Japanese-made distillation equipment has been installed at the refinery, and talks are ongoing to introduce Japanese fermentation technology. Tokyo is also keen to promote bamboo-based industries in India to raise farmer incomes, as per the media report.
The announcement comes as PM Modi begins a two-day visit to Japan on Friday. Officials said Tokyo may commit more than $68 billion in investments across multiple sectors in India during the visit.
The trip also follows the US decision to impose steep 50% tariffs on Indian exports, which has prompted New Delhi to launch a global outreach programme covering 40 countries, including Japan, South Korea, Germany, France, the UK, and the UAE.
