Premier Green Innovations Pvt Ltd (PGI) and technology developer Entity-1 have signed a three-year, Rs 500 crore agreement to build a refinery network that converts agricultural and industrial residues into hydrogen, methanol, and ethyl acetate.
The initiative combines PGI’s waste-management footprint with Entity-1’s Modular Enzymatic Catalytic Conversion (MECC) reactors, aiming to address India’s mounting biomass surplus while supporting decarbonization targets.
India produces an estimated 350–400 million tones of agricultural residue annually, much of which is burned in the open, adding to particulate emissions and lost energy potential. Urban centers face a parallel challenge: industrial slurries and food-processing effluents frequently overwhelm treatment infrastructure. PGI and Entity-1 argue that channeling this feedstock into low-carbon fuels could offset reliance on imported methanol—currently priced at roughly Rs 28–32 per liter—and bolster domestic hydrogen supply as the government pursues its National Green Hydrogen Mission.
The partners’ first MECC unit has been installed at PGI’s Kangra site in Himachal Pradesh, with trial production scheduled to begin this week. The reactors use catalytic pathways to break down biomass into syngas and intermediates, which can then be upgraded into hydrogen, methanol, bio-methane, acetic acid, and ethyl acetate.
Each module integrates on-site purification for high-purity hydrogen and pipeline-ready bio-methane, allowing deployment close to feedstock sources. PGI says the design shortens construction timelines compared with conventional bio-refineries and supports distributed production in rural districts.
PGI projects methanol from the system will cost about Rs 22 per liter, positioning it below current import prices and making it viable for chemical and mobility markets. Hydrogen yields, while not yet disclosed, are expected to feed blending pilots in refineries and supply small-scale fuel-cell applications. Revenue streams could include chemical sales, gas offtake agreements, carbon credits, and licensing of MECC intellectual property.
By diverting approximately 100 tones of waste feedstock per day at full scale, each site could reduce methane emissions from open decomposition or burning while generating local employment in collection, plant construction, and operations. The alliance plans to develop multiple hubs co-located with rail or road logistics to lower transport costs for both feedstock and finished products.
Positioning Within India’s Energy Transition
Hydrogen demand in India is forecast to reach 12 million tones by 2030, with green and low-carbon sources projected to supply up to 5 million tones. Waste-to-hydrogen pathways such as PGI-Entity-1’s could complement electrolytic production, particularly where renewable power availability is limited or feedstock management is a policy priority.
For methanol, domestic capacity remains under 2 million tonnes a year against consumption exceeding 3 million tonnes, leaving space for new entrants using non-fossil inputs. Ethyl acetate, widely used in coatings and packaging, represents another downstream market with double-digit annual growth.
Following pilot validation, the partners intend to ramp to commercial operation by 2026, contingent on financing and offtake agreements.
Stay updated on the latest in energy! Follow us on LinkedIn, Facebook, and X for real-time news and insights. Don’t miss out on exclusive interviews and webinars—subscribe to our YouTube channel today! Join our community and be part of the conversation shaping the future of energy.
