Numaligarh biorefinery launch marks revival of bamboo sourcing in Assam

Guwahati, Sept 14: As Prime Minister Narendra Modi unveils India’s first biorefinery at Numaligarh on Sunday, it will mark the revival of the organized sourcing of bamboo since the collapse of the paper mills in the State, placing the world’s fastest growing grass – which is in abundance in the region – at the heart of a new industrial value chain.

The first project in India for producing ethanol from ligno-cellulosic bio-mass by using the 3rd generation technology of Chempolis, Assam Bio Ethanol Private Limited (ABEPL) – a joint venture company between Numaligarh Refinery Limited (NRL) and two Finnish companies Fortum BV and Chempolis Oy – has established a comprehensive supply chain to procure 5 lakh metric tons of green bamboo annually. The system will source bamboo from farmers across the Northeast through a network of decentralized collection centres.

“The procurement system is designed to provide a steady supply of bamboo while offering economic benefits to local communities. ABEPL has established collection centres at strategic locations throughout its sourcing zone. Farmers will deliver their harvested bamboo poles to these centres, where the bamboo is processed into chips of a standard size,” official said.

The company will source bamboo directly from individual farmers and farmer groups. A digital supply chain platform has been developed to enable local farmers to register with ABEPL. The company will also invest in bamboo cultivation.

Initially, ABEPL will source bamboo from 18 districts in Assam and several districts in Arunachal Pradesh, Nagaland, and Meghalaya.

To ensure a sustainable and long-term supply, ABEPL, in partnership with Assam’s forest department, has established three high-tech nurseries. These nurseries provide high-quality bamboo saplings, including tissue-cultured varieties, to farmers to boost plantation activities.

The Numaligarh bio-refinery will require 5 lakh metric tons of green bamboo annually, which is equivalent to 3 lakh dry metric tons. This translates to a requirement of approximately 1,200 tons of bamboo chips per day, or about 2 crore bamboo poles per year.

The bamboo will be processed using Chempolis’ fractionation technology to yield 48,900 MT of ethanol, 18,600 MT furfural, 11,600 MT of acetic acid, and 31,680 MT of liquid CO2 besides 20 MW green power as well.

Bamboo availability in Northeast in more than 55 million tons, which is 66 per cent of total bamboo resource of India. Bamboo cover represents 16.7 per cent of total forest area of the country and 3.4 per cent of the total geographical area of India, while the northeastern region contributes 28 per cent in terms of area. Despite having the largest area under bamboo in the world, India contributes to only 4 per cent share of the global market; Japan, China, Malaysia contributes 80 per cent of the world’s bamboo market.

The Rs 5,000-crore biorefinery project is expected to create a stable, annual market for green bamboo, with an estimated value of Rs 200 crore per year.

“The closure of paper mills in Assam had left many bamboo farmers with no market for their crops. The ABEPL project revitalizes the commercial viability of these plantations,” officials said. Around 300 farmers have registered still date.

While there is no decision yet on the price determination formula for procuring bamboo, farmer groups are of the view that sugarcane (also used to produce ethanol) procurement model should be applied, particularly considering that private entities will be keen on replicating the bio refinery model following the technological success at NRL.

India’s sugar cane procurement model revolves around the Fair and Remunerative Price (FRP) fixed by the Central government, ensuring a minimum payment to farmers, with some States also announcing a higher State Advised Price (SAP). Mills are assigned command areas from which they must buy sugarcane. Farmers receive a Mill Supply Ticket based on a calendar, which details when they can supply their cane to the mill gate or supply centres. The price paid is linked to the sugar recovery rate of the cane, rewarding farmers for higher-quality cane.