Praj Industries and US-based renewable fuels company Gevo have signed a Development and Commercialization Agreement for Bio-Isobutanol (Bio-IBA) technology in India, with an initial focus on its use in diesel blending.
Under the agreement, Praj Industries will hold exclusive rights to deploy Gevo’s Bio-IBA technology in India and lead its commercialization in the country. The companies said the partnership is aimed at developing commercial opportunities for Bio-IBA, particularly for applications that could reduce the carbon intensity of diesel.
The agreement builds on more than a decade of collaboration between the two companies to adapt and develop Bio-IBA technology for Indian feedstocks and market requirements. Praj will contribute its expertise in engineering, project execution, scale-up and market development, while Gevo will provide its Bio-IBA technology.
India’s first commercial Bio-IBA demonstration plant
Separately, Praj is currently establishing what it describes as India’s first commercial Bio-IBA demonstration plant for a leading oil marketing company (OMC).
Praj is responsible for the plant’s design, engineering, supply and erection, using Gevo’s licensed Bio-IBA technology. The demonstration facility is expected to help validate production processes, supply-chain requirements and market-development pathways for future commercial deployment of Bio-IBA in India.
Industry activity around the fuel is also expanding beyond the project itself. According to Praj, fuel producers, vehicle and equipment manufacturers, research institutions and end users are working on technology validation, application development, regulatory assessment and supply-chain preparedness for Bio-IBA-based diesel blending.
Large diesel market creates potential demand
The companies are positioning Bio-IBA against India’s large diesel consumption base.
According to the Petroleum Planning & Analysis Cell (PPAC), India consumed approximately 94.7 million tonnes of high-speed diesel in FY2025-26. This consumption base represents a significant potential market for lower-carbon fuel solutions.
Bio-IBA could potentially be used across several diesel-consuming sectors, including transportation, agriculture, mining, construction and industrial operations.
The technology also has applications beyond diesel. Praj said Bio-IBA can serve as a platform molecule for producing Sustainable Aviation Fuel (SAF) and other renewable chemicals, giving the technology potential relevance across multiple segments of the emerging bioeconomy.
Praj and Gevo expand focus on renewable fuels
Gevo CEO Paul Bloom said the agreement creates a framework for expanding Bio-IBA opportunities in India, particularly in diesel applications, while supporting broader decarbonization objectives.
Praj Industries Founder Chairman Dr. Pramod Chaudhari said the agreement provides a foundation for bringing Bio-IBA to the Indian market and described it as a potential renewable fuel solution for the country’s diesel economy.
For Praj, the agreement adds another technology pathway to its existing portfolio across bioenergy and energy-transition solutions. The company has also been active in areas including ethanol, advanced biofuels, SAF, hydrogen and carbon capture.
Bioenergy Business Analysis
The latest agreement shifts the Praj-Gevo relationship further towards commercial deployment of Bio-IBA in India. For Praj, exclusive rights to deploy the technology give the company a defined role in engineering and commercial development of Bio-IBA projects in the Indian market.
For Gevo, the partnership provides access to Praj’s established engineering and biofuel-industry capabilities in India.
The demonstration plant will be an important next step in determining how the technology performs under Indian operating and feedstock conditions and how quickly it can progress from demonstration towards commercial-scale deployment.
The development also adds another technology pathway to India’s expanding advanced-biofuels ecosystem, linking renewable feedstocks with potential applications in diesel, aviation fuels and renewable chemicals. The agreement moves Bio-IBA beyond technology development toward commercial demonstration in India.
With the first commercial demonstration plant under development and exclusive commercialization rights assigned to Praj, the partnership creates a pathway for testing the technology against India’s feedstock, infrastructure, regulatory and diesel-market requirements before wider deployment.
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