Praj partners to develop second generation ethanol plants

By Praj Industries | December 08, 2016

Praj Industries Ltd. entered into a binding agreement for cost sharing with Indian Oil Corp. Ltd. on Dec. 7 to set up one plant each at Panipat, Haryana and Dahej, Gujarat. These second generation (2G) bioethanol plants will have capacity to produce 100,000 liters of ethanol per day.

This is a progress milestone as per MoU signed earlier this year wherein IOCL selected Praj as its technology partner for setting up multiple 2G bioethanol plants based on its indigenously developed technology.

Additionally, now Bharat Petroleum Corp. Ltd. has also selected Praj, as technology partner for setting up one 2G bioethanol plant in the state of Orissa having the capacity of 100,000 liters of ethanol per day. Both parties entered into MoU to this effect on Dec. 7.

Project timelines and capital outlay estimations are under finalization.

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 bioethanol technology uses lignocellulosic biomass (agri-residue) as feedstock. Farming community is expected to be benefited from additional revenues from agri-waste. 2G bioethanol also helps reduce dependency on the imported crude oil, thereby saving foreign exchange. This technology will act as a socio-economic and environmental enabler.

Speaking on the occasion, Pramod Chaudhari, executive chairman of Praj said, “We are pleased with the progress of setting up of 2G ethanol projects by the OMCs. Praj is equally committed to partner with OMCs in their achievement of completing project targets. This is in line with Govt. of India’s vision of increased contribution of renewables in India’s energy portfolio.”