Praj Industries has inked an MoU with Indian Oil Corporation for exploring opportunities in the Biofuels Industry.
As per the terms of MoU– ‘Indian Oil and Praj will also collaborate to set up new Bio-fuel production facilities, including CBG, Bio-diesel and Ethanol. The two companies would also work together to facilitate the sales and marketing of various co-products and intermediates produced from these facilities‘.
The press release by Praj on this MoU stated that both companies would jointly work towards forming a 50:50 Joint Venture. They would also identify partners to form special purpose vehicles (SPVs) under the proposed alliance.
Indian Oil and Praj MoU to Support Alternative Fuel in Indian Aviation Sector
Union Minister of Civil Aviation Jyotiraditya Scindia in a statement last month said that the Indian civil aviation sector is recovering well after the Covid crisis and may soon show positive growth signs. This expected growth will also add up to the Green House Gas (GHG) emissions by the aviation sector which already has a significant share in pollutant emissions.
State-owned IOCL (Indian Oil), one the major supplier of fuel to aviation sector in India through this MoU with Praj Industries, will look for opportunities to set up production facilities of Alcohol to Jet (ATJ) fuels, 1G & 2G Ethanol, Compressed Bio-Gas (CBG) among other bio-fuels.
If these attempts are successful it will positively push bio-fuel production capacity and its use in Indian aviation sector which will in turn help curb emissions from the airplanes as per IATA’s (The International Air Transport Association) mandate.
Expressing his views on the occasion Mr. Shrikant Madhav Vaidya, Chairman of IOCL said “Our alliance with Praj will augment the share of biofuels in India’s energy portfolio. Alcohol-to-Jet Fuel presents a great opportunity that must be leveraged to comply with the CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) guidelines to substantially reduce carbon emissions in the aviation sector“.
Commenting on the MoU signing Mr. Pramod Chaudhari, Founder Chairman, Praj Industries, said “We are delighted to partner with IndianOil to increase the share of biofuels in India’s transportation fuel mix. Objectives of this overarching MoU are strategic in nature and encompass socio-economic-environmental aspects related to the nation’s growth”.
Other Bio-Fuel Projects with Praj Industries
Praj Industries has seen good growth in Bio-Fuel sector in recent years with new collabrations and orders in this sector.
In September 2016 IOCL had signed an MoU with Praj Industries as its technology partner for setting up multiple 2nd Generation (2G) bio-ethanol plants based on indigenously developed technology.
In December 2016 the first project was awarded to Praj industries in this series as licensor and project consultant at IOCL 100 KLPD Ligno-Cellulosic 2G ethanol plant at Baholi in Panipat district of Haryana. The total estimated project cost is ₹ 766 crore.
Recently, in March 2021 Praj Industries bagged an order from Hindustan Petroleum Corporation Limited (HPCL) for setting up Compressed Biogas (CBG) project at Badaun in Uttar Pradesh. On completion plant will have capacity of 5250 MT of CBG annually.
In April 2021, Praj Industries won another order to expand the existing capacity by 600 KLPD of ethanol plant from Godavari Biorefineries Ltd (GBL) in Karnataka.