Indian Oil Corporation Limited (IndianOil) has signed an agreement with LanzaTech, a carbon recycling company, to construct the world’s first refinery off gas-to-bioethanol production facility in India.
The production facility, which will entail an investment of INR3.5bn ($55m), will be set up at IndianOil’s Panipat Refinery in Hayrana, India.
The basic engineering for the 40 million litres (35K MTA) per annum demonstration facility will commence later this year.
The new project will be integrated into existing site infrastructure and will be LanzaTech’s first project capturing refinery off-gases.
IndianOil said that the company selected the LanzaTech technology as it allows the beneficial reuse of carbon-rich off-gases for the production of ethanol.
The ethanol produced from the recycling of refinery off-gases is likely to reduce greenhouse gas emissions by over 70% compared to conventional gasoline.
LanzaTech CEO Jennifer Holmgren said: “India is leading a transformational shift which balances industrial growth with the needs of society and the environment.
“Changes in the energy paradigm pose a serious challenge for energy companies but IndianOil is taking the challenge as an opportunity. They are leading the next generation of refiners as they diversify India’s energy sources and explore alternative ways to meet the country’s energy needs, sustain economic growth and alleviate energy poverty.
“We are very proud to be working with IndianOil as it plans the first deployment of LanzaTech technology in one of its major refineries, demonstrating the broad applicability of emissions recycling across industrial sectors, beyond steel.”