Praj Industries in pact with IOC to set up three 2G bio-ethanol plants
09 December 2016
Praj has entered into a binding agreement for cost-sharing with Indian Oil Corporation Limited on 7th December 2016 to set up one plant each at Panipat in Haryana and Dahej in Gujarat of second generation (2G) bio-ethanol plants with a capacity to produce 100 kilo litres of ethanol per day.
According to a memorandum of understanding signed earlier this year Indian Oil selected Praj as its technology partner for setting up multiple 2G bio-ethanol plants based on its indigenously developed technology.
Additionally, Bharat Petroleum Corporation Limited (BPCL) has also selected Praj, as technology partner for setting up one 2G bio-ethanol plant in Orissa with a 100 kilo litre ethanol capacity per day.
The projected timelines and capital outlay estimations are under finalisation.
These agreements were executed on the side-lines of recently concluded Petrotech 2016, held in New Delhi in the presence of group of union ministers.
Second generation bio-ethanol technology uses ligno-cellulosic biomass (agri-residue) as feedstock. Farming community is expected to be benefited from additional revenues from agri-waste. 2G bio-ethanol also helps reduce dependence on the imported crude oil, thereby saving foreign exchange. This technology will act as a socio-economic and environmental enabler.
Pramod Chaudhari, executive chairman, Praj Industries Ltd, said setting up 2G ethanol projects by the oil marketing companies was in line with the centre's vision of increased contribution of renewables in India's energy portfolio.