With a view to give boost to agriculture sector, reduce environmental pollution and conserve foreign exchange by minimising import of fossil fuels, Government of India announced the Ethanol Blending Program to initiate the use of Ethanol bended Gasoline as an automotive fuel across the country.

Government of Bihar invited bids from Companies to revive the closed sugar mills in Bihar. Many Companies along with HPCL expressed the interest & bided to acquire the closed sugar mills. HPCL was successful bidder for acquiring two Sugar Mills namely Sugauli & Lauriya in the East & West Champaran District of Bihar. As a true pioneer, HPCL is the first PSU to step toward the production of green fuel.

HPCL Biofuels Limited, a wholly owned subsidiary company of HPCL came into existence in the October 2009, the first among all Public Sector entities to get into production of Ethanol.

Both the mills are identical and have a 3500 TCD crushing capacity coupled with a 60 KLPD distillery and 20 MW cogen plants. The distilleries have the capacity to use both molasses as well as sugar cane juice as the raw material for manufacture of ethanol. The cogen plants are designed to run on molasses and can also use other biomass as the fuel. The plants are connected to the power grid of Bihar to export surplus power generated by them during the season.