Praj and IOC to explore production of 2G biofuels, ATJ fuels
Praj Industries Limited and Indian Oil Corporation Limited (IOC) have signed a memorandum of understanding (MoU) to explore opportunities to fast-track India’s transition to cleaner and greener sources of energy by exploring avenues such as the production of alcohol-to-jet (ATJ) fuels, first-generation (1G) and second-generation (2G) ethanol, compressed bio-gas (CBG) and related opportunities in the biofuels industry. Exploring these green energy horizons will be crucial for India to achieve carbon neutrality by 2070.
Indian Oil Corp. and Praj Industries will also collaborate to set up biofuel production facilities in India, including CBG, biodiesel and ethanol. The two companies will also cooperate in facilitating the sales and marketing of various co-products and intermediates produced from these facilities.
Identify partners for special purpose vehicle
The two companies will explore forming a 50-50 joint venture and identify partners to form special purpose vehicles (SPVs) under their proposed alliance. Biofuels will play a significant role in helping India fulfil its Nationally Determined Contributions (NDCs) as per COP 21, the Paris Summit.
“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. This development is in line with the ‘Panchamrit’ agenda unveiled by Honorable Prime Minister at the COP26 Glasgow Summit, to fight climate change and global warming,” said Shrikant Madhav Vaidya, Chairman of Indian Oil Corp.
Speaking on the occasion, Dr Pramod Chaudhari, founding chairman of 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. In a world threatened by climate change, the drive towards a low carbon economy is not an option; it is an obligation! Biofuels are playing a vital role in sustainable climate action.”
Currently, Praj Industries is executing India’s first second-generation ethanol plant for IndianOil at their Panipat facility. Praj Industries is also constructing a water and wastewater treatment plant for IndianOil’s Dumad petrochemical complex.