Praj Industries (Praj) and Indian Oil Corporation (IndianOil) have inked an 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, 1G & 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.
In sync with the ambitious economic growth trajectory of the nation, the Indian Aviation sector is at the cusp of exponential growth. At the same time, it is also identified as one of the significant sources of Green House Gas (GHG) emissions. This MoU will boost ATJ fuel production capacity and its use in India which will in turn help curb emissions emanating from the airplanes as per IATA's (The International Air Transport Association) mandate.
As per the MoU, IndianOil and Praj will also collaborate to set up Biofuel production facilities, including CBG, Biodiesel 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. Praj and IndianOil would explore and jointly work towards forming a 50:50 Joint Venture and identify partners to form special purpose vehicles (SPVs) under the proposed alliance. Biofuels is an essential part of India's flourishing Bioeconomy and will play a significant role in sustainable climate actions to help India fulfil its Nationally Determined Contributions (NDCs) as per COP 21, Paris Summit.
Welcoming this collaboration, Shrikant Madhav Vaidya, Chairma, IndianOil, 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. This development is in line with the 'Panchamrit' agenda unveiled by Hon'ble Prime Minister at the COP26 Glasgow Summit, to fight climate change and global warming."
Speaking on the occasion, Dr 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. 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."
The synergy between India's largest Energy PSU and the leading company in Industrial Biotech shall boost the mainstream bio-economy and India's overall growth.
