India’s 1st API, Green Hydrogen &2G ethanol plant to be set up in Solan

India's first integrated manufacturing facility for Active Pharmaceutical Ingredients (API), Green Hydrogen, and 2G Ethanol will be set up in the Baddi-Barotiwala-Nalagarh area in the Solan district of Himachal Pradesh.

A  memorandum of commitment was signed in Shimla on 5th March 2025 between the Himachal Pradesh government and M/s Spray Engineering Devices Limited. The project is being executed by M/s Spray Engineering Devices Limited.

The agreement was signed in the presence of the Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu. The Chief Minister said that the government has set a target to be the first green energy state of the country by March 2026.

The total investment in the integrated API, green hydrogen, and 2G Ethanol plant is Rs 1400 crore. The project is expected to create 1000 jobs directly.

Green Hydrogen to power the API plant 

The project envisages the establishment of an Active Pharmaceutical Ingredients (API) plant. Active Pharmaceutical Ingredient (API) is the active component of a finished drug product (tablet, capsule, cream, injectable).

The API produces the intended effects of a drug. For example, Peptide ApIs are used as therapeutics for illnesses such as diabetes, cancer, cardiovascular diseases.

The Plant will be powered by a green hydrogen plant. Initially, a 30 MW green hydrogen plant will be set up, which will later be expanded to a 50 MW capacity.

Green hydrogen is produced by splitting water into hydrogen and oxygen molecules through electrolysis. The energy needed for electrolysis is produced through a renewable source of energy like water, sun, wind, etc.

2nd Generation ethanol or 2G Ethanol 

The government of India has set a target to provide 20 percent ethanol blended petrol all over the country by 2025-26 ethanol supply year.

Initially, the government allowed the use of ethanol derived from sugarcane molasses. This was called 1st generational ethanol.

Later, the government allowed the use of agri-residues like rice & wheat straw, cane trash, corn cobs & stover, cotton stalk, bagasse, Empty Fruit bunches (EFB), etc. for the production of ethanol. This was called 2nd generation ethanol.

To encourage the companies to set up 2G ethanol biorefineries, the central government has launched the Pradhan Mantri JI-VAN (Jaiv Indhan - Vatavaran Anukool Fasal Awashesh Nivaran) Yojana.

About  Pradhan Mantri JI-VAN Yojana

• It was launched by the government of India in 2019.
• The government later extended the scheme till 2028-29.
• Under the scheme, the government provides financial support to companies setting up second-generation (2G) ethanol plants.
• The first 2G Ethanol Project set up by Indian Oil Corporation Limited at Panipat, Haryana, was inaugurated by Prime Minister Narendra Modi on 10th August 2022.

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