IOC, Praj Industries to partner in exploring opportunities for green transition

Indian Oil Corporation (IOC) and Praj Industries 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 and 2G Ethanol, Compressed Bio-Gas (CBG) and related opportunities in the bio-fuels industry. Exploring these green energy horizons will be crucial for India to achieve carbon neutrality by 2070.

As per the MoU, Indian Oil and Praj will also collaborate to set up bio-fuel 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 Indian Oil 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. Bio-fuels is an essential part of India’s bio-economy 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.

Commenting on the MoU, Shrikant Madhav Vaidya, Chairman of Indian Oil, 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.”

Dr Pramod Chaudhari, founder-Chairman, Praj Industries, said, “We are delighted to partner with Indian Oil 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.”

Praj has established itself as India’s leading bio-economy company with a strong focus on driving climate actions across the globe. It has four decades of experience in developing and deploying innovative solutions for the production of renewable transportation fuel as part of its Bio‐Mobility technology platform. The Bio-Mobility platform of low carbon transportation bio-fuels helps in sustainable decarbonisation in the transportation sector, the second-largest GHG emitter after industry. Currently, Praj is executing India’s first second-generation ethanol plant for Indian Oil at its Panipat facility.

Source: https://www.autocarpro.in/news