Praj sets up JV with Aker Kvaerner

Ethanol technology leader Praj Industries has announced a joint venture with engineering and construction company Aker Kvaerner.

The newly formed venture, called BioCnergy Europa B.V., will provide customised biofuel solutions to customers in the European Union.

The two partners had entered into a strategic alliance last year to pitch for contracts involving the setting up of ethanol plants in Europe. Praj would offer the ethanol manufacturing technology and Aker Kvaerner will pool in its project management and engineering expertise.

BioCnergy will be headquartered at Zoetermeer, Netherlands, with Praj holding 60 per cent of the equity and the remaining held by Aker Kvaerner.

The company will provide technology, engineering services, equipment and systems, project management, construction and erection services.

Praj Chairman Pramod Chaudhari said the member countries of the EU have plans to increase the percentage of gasoline mix from the current 3 per cent to 7 per cent by the year 2020.

This translates into a sizeable business opportunity, and the joint venture would benefit from the proven strength of the partners, he said.

Aker Kvaerner's Wim van der Zande said the newly formed company would offer an entire spectrum of services as one supplier. "There is no player in the biofuels industry offering turnkey solutions," he added.