Gujarat Oleo in talks with European oil firms

To export bio-diesel to Belgium, Germany

Ankleshwar-based, Gujarat Oleo Chemicals Ltd, a leading bio-diesel producer in the country, is in talks with oil majors in Belgium and Germany for export of bio-diesel.

Talking to Business Standard, Santosh Pathak, chairman of GOCL, said, "We are in advanced talks with two oil companies in Europe for securing supply orders for bio-diesel and the deal might be struck soon".

According to the company, the mixing of bio-diesel with conventional diesel will be mandatory in Europe by January 2007 and the company is expecting to secure a favourable supply order before Diwali.

If the deal works out then the company plans to supply its first consignment of 5,000 tonnes and 3000 tonnes of bio-diesel to Germany and Belgium-based oil companies respectively.

The company will supply bio-diesel at US$720 per 1,000 litres free of board (FOB) at Kandla port and at US$ 820 per 1,000 litres at cost and freight included (CIF) at Rotterdam port.

The company has a production capacity of 10 tonnes per day at its Ankleshwar facility, which it will increase to 50 tonnes per day to execute the bio-diesel order.

The company is also planning to set up a 50-tonne bio-diesel production facility each at Andhra Pradesh and Chhattisgarh.

"The diesel price per litre is 1.2 Euros while we would be supplying bio-diesel at 0.70 Euros which comes at a time when the European countries are aiming at cost cutting on oil as well as protecting the environment."