MC² Foundation Launches ₹12.5-Crore Grand Butanol Challenge

MC² Foundation, India’s energy innovation platform, launched the Grand Butanol Challenge in Bengaluru on 17 July a national innovation programme offering up to ₹12.5 crore in prize and grant funding to accelerate indigenous production of bio-butanol.

MC² Foundation operates under the aegis of the Ministry of Petroleum and Natural Gas (MoPNG) and is supported by seven of India’s largest energy majors 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 Foundation was established to catalyse deep-tech innovation in India’s energy and industrial sectors, giving indigenous ventures access to grant funding, pilot deployment and a route to market through the PSUs.

For the Challenge, MC²+ has partnered with the Centre for Cellular and Molecular Platforms (C-CAMP) as implementation and mentorship partner, tapping into India’s wider biotech innovation ecosystem.

The Grand Butanol Challenge combines a prize pool of up to ₹5 crore and a grant pool of up to ₹7.5 crore, inviting applications across three problem statements: fermentation-based production of n-Butanol and Iso-Butanol, catalytic production of the same, and other innovative production pathways. It targets technologies at Technology Readiness Level (TRL) 4–7, including microbial production from non-food feedstocks, low-energy separation, bio-derived cetane improvers and field-deployable quality-control hardware. The programme is led by MoPNG, with CHT as technology partner and the Department of Science and Technology (DST) and Department of Biotechnology (DBT) as knowledge partners. Applications close 15 August 2026.

“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,” said Shri Sandeep Maheshwari, Director & CEO, MC² Foundation.

Also speaking at the launch, Dr. Taslimarif Saiyed, Director-CEO, C-CAMP, called biofuels “a powerful opportunity at the intersection of biotechnology, sustainability, and energy security,” pointing to the promise of next-generation fermentation technologies for the sector.

Delivering the keynote address at the launch, Dr. Madhukar Onkarnath Garg spoke on the evolution of biofuels, the technology and commercialisation challenges facing the sector, and the way forward, drawing on his own work in biofuel production technologies and underlining the strategic importance of biofuels to India’s energy security and Net Zero commitments.