The MC² Foundation, a national innovation organisation, has announced the launch of the Grand Butanol Challenge to promote indigenous bio-butanol production, foster a strong innovation ecosystem for biofuels, and boost India's energy security and clean energy technology, while contributing to the country's Net Zero goals. This initiative was announced in Bengaluru on 17 July, and provides a total of up to ₹12.5 crore for startups, researchers and innovators working on advanced technologies for butanol production through a mix of prize money and grant funding.

MoPNG is implementing the programme with the assistance of seven major public sector energy companies—Hindustan Petroleum Corporation Limited (HPCL), Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), GAIL (India) Limited, Oil India Limited and Petronet LNG Limited. The initiative will be used to support the transfer of innovation from the research stage towards commercialization, by funding projects, offering pilot opportunities and providing industrial support for the most promising innovation.

A package of funding for the commercialisation of advanced biofuel technologies.A package of funding to support commercialisation of advanced biofuel technologies.

The Grand Butanol Challenge offers ₹5 crore of prize money and a grant of up to ₹7.5 crore. It invites applications from innovators who are developing technologies at Technology Readiness Levels (TRL) 4-7 that could be suitable for pilot-scale testing and commercialization.

The competition is focused on three key technology areas: fermentation processes for the production of n-Butanol and Iso-Butanol, catalytic production routes, and other novel routes to butanol production. Also, the programme promotes technologies that use microbial production with non-food feedstocks, low-energy separation methods, bio-derived fuels cetane improvers and field-deployable fuel quality-control equipment.

The challenge will be open for applications until 15 August 2026.

C-CAMP to Lead Implementation and Mentorship

The MC² Foundation has signed an implementing and mentoring contract with Centre for Cellular and Molecular Platforms (C-CAMP) for the programme. The partnership will focus on how to utilise India's biotechnology innovation ecosystem to further develop the technologies and for startups and researchers to gain expert guidance and to prepare solutions for commercialisation.

The Centre for High Technology (CHT) is the technology partner and the Department of Science and Technology (DST) and the Department of Biotechnology (DBT) will be the knowledge partners for the initiative.

The partnership will help to build a strong industry-academic-technology and entrepreneurship nexus in order to promote the growth of indigenous clean energy technology, the organisers said.

Platform Designed to Connect Industry and Innovation

Speaking at the launch, Shri Sandeep Maheshwari, Director and CEO of MC² Foundation and Executive Director – Corporate Strategy and Business Development at HPCL, highlighted the need for stronger collaboration across India’s innovation ecosystem.

“India possesses world-class research infrastructure, exceptional scientific talent and one of the largest energy industries globally. What has been missing is an integrated platform that connects these strengths with startups and entrepreneurs. MC Square Plus has been established to fill that gap by bringing together industry, academia, R&D laboratories and innovators. Our vision is to create a nationwide collaborative ecosystem that accelerates indigenous technologies, enhances energy security and supports India’s journey towards a cleaner, more resilient energy future.”

The MC² Foundation said it was established to catalyse deep-tech innovation across India’s energy and industrial sectors by enabling indigenous ventures to access grant funding, pilot deployment opportunities and potential pathways to market through collaboration with public sector energy companies.

Biofuels Seen as Strategic for India’s Energy Transition

During the launch event, Dr. Taslimarif Saiyed, Director and CEO of C-CAMP, emphasised the growing importance of biofuels in India’s transition towards cleaner sources of energy.

“Biofuels are a powerful opportunity at the intersection of biotechnology, sustainability, and energy security.”

He also highlighted the potential of next-generation fermentation technologies to contribute to the future development of the sector.

The event also featured a keynote address by Dr. Madhukar Onkarnath Garg, who discussed the evolution of biofuels, technology advancements, commercialisation challenges and future opportunities for the industry. He underlined the strategic role that biofuels could play in strengthening India’s energy security while supporting the country’s long-term Net Zero commitments.

With financial support, technical mentorship and participation from major public sector energy companies, the Grand Butanol Challenge aims to accelerate the development and commercialisation of indigenous butanol technologies, contributing to the expansion of India’s sustainable biofuel ecosystem.