Pune-based bio-engineering firm, Praj Industries, and US-headquartered Gevo have signed a Development & Commercialisation Agreement to advanced bio-isobutanol (bio-IBA) technology for diesel blending in India, extending a partnership between the 2 companies that spans more than a decade.
Under the agreement, Praj will lead commercialization of the technology in India with exclusive rights to deploy it in the country, with the initial focus on diesel-blending applications targeted at lowering the carbon intensity of one of the world’s most extensively used transportation and industrial fuels.
The companies said the deal builds on years of joint work to adapt bio-IBA technology for Indian feedstocks and market requirements, integrating Praj’s experience with India’s sugar- and starch-based feedstocks, engineering and venture execution with Gevo’s bio-IBA technology.
Separately, Praj is recently building India’s first commercial bio-IBA demonstration plant for an unnamed oil marketing company, designing, engineering, supplying and erecting the facility based on Gevo’s licensed technology. The companies said the demonstration plant is predicted to support validate manufacturing, supply-chain and market-development pathways ahead of wider commercialisation in India.
Bio-IBA could potentially cut the carbon footprint of diesel used across transportation, agriculture, mining, construction and industrial operations, the companies stated, adding that India’s large diesel market and renewable feedstock base position bio-IBA as a possible component of the country’s shift toward lower-carbon fuels. Beyond diesel, bio-IBA also serves as a platform molecule for producing sustainable aviation fuel (SAF) and other renewable chemicals.
Mr. Paul Bloom, Chief Executive Officer of Gevo, stated Gevo’s renewable isobutanol technology and commercialisation experience, paired with Praj’s engineering and market-development strengths, might help unlock new opportunities for bio-IBA, mainly in diesel applications.
Dr. Pramod Chaudhari, Founder Chairman of Praj Industries, said the collaboration with Gevo has evolved over the years through technology development, application innovation and market-building, and that the new agreement establishes “a sturdy foundation” for bringing Bio-IBA to the Indian marketplace as a complement to the nation’s wider energy transition goals.
As per the Petroleum Planning & Analysis Cell, India consumed about 94.7-million tons of high-speed diesel in FY2025-26, underscoring the scale of opportunity for low-carbon diesel alternatives.
