SIAL SBEC Bio-Energy was established to implement and manage the co-generation of power for SBEC Sugar Limited. Bagasse (left over extract of sugarcane) produced by SBEC during sugar production is supplied to the company which generates power from it. The project has been implemented in financial collaboration with Air Liquide of France, a world leader in industrial gases and SIDEC, France which is a leading player in power generation in France.

The technology for bagasse-based co-generation for the export of power is well known and commercially practiced in several countries; notably the United States, Mauritius and Dominican Republic. The gestation period of such projects is less that that of conventional thermal or hydro power projects.

At present, the company generates 12 MW of power, of which SBEC utilises 2 MW. The remaining 10 MW is supplied to the Uttar Pradesh Power Corporation Limited grid. The plan is to increase this to 40MW.

The plant features technologically intensive effluent treatment and disposal system, conforming to the most stringent environmental norms.