 "Indian Oil inks MoU with Praj Industries for development of 2G ethanol")
Petroleum minister Dharmendra Pradhan had recently announced that public-sector undertakings are set to invest Rs 4,000 crore to produce blended fuels and another Rs 5,000 crore to set up nine plants that will produce second-generation ethanol produced from sources other than molasses, like biomass.
Indian Oil, like other Oil Marketing CPSEs, is blending biofuels in transportation fuels at the depot to bring down dependency on crude oil imports and to avail itrself of the resultant economic and environmental benefits. In order to enhance ethanol availability in the country for blending with petrol, Indian Oil is developing 2G ethanol production infrastructure using ligno-cellulosic biomasses as feedstock.
"It is a great honour for us to be chosen by Indian Oil to become their technology partner in multiple 2G bio-ethanol projects in India. We have prepared ourselves to execute 2G ethanol projects over Rs 3,000 crore in two-three years," said Pramod Chaudhari, executive chairman, Praj Industries.
Praj's 'Smart Bio-refinery' is capableof producing bio-ethanol and other co-products such as bio-CNG, power and a variety of bio chemicals .Such 2G ethanol plants are based on indigenous technologyand designs developed by Praj at their research centre in Pune. As per ministry estimates, the biofuel industry in the country would touch Rs 50,000 crore in terms of value by 2022, as demand for petrol and diesel is rising.