The new 2G Cellulosic ethanol demo plant, with a capacity to process around 100 dry tons of biomass per day, is expected to process a wide variety of biomasses, such as agricultural wastes, including corn stover, cobs and bagasse.

In addition, the ethanol demo plant is expected to develop the complete value chain including biomass handling and biomass composition and its impact on the operations, the company said.

Praj will collaborate with its long term client Viraj Alcohols & Allied Industries (VAAIL), which will provide land and allied services for the project.

Commenting on the project, Praj Industries executive chairman Pramod Chaudhari said the ground breaking of 2G Cellulosic ethanol plant is a major step in the field of biotechnology and towards a more sustainable world.

VAAIL chairman Mansinghrao Naik said, "Viraj has more than a decade’s experience in operating ethanol plants based on both, molasses as well as grains.

"Praj has supplied both these plant. It gives me great pride to be associated with Praj as it will give us the opportunity of participating in a path-breaking project."