The Indian Oil Corporation Limited and Praj Industries have signed a memorandum of understanding (MoU) for boosting the production capacity of Alcohol to Jet (ATJ) fuel production capacity in India. According to an ET report, the MoU will oversee these companies collaborating and engaging in the set-up of Biofuel production facilities.
"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," said Praj.
"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," Praj added.
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 the Prime Minister at the COP26 Glasgow Summit, to fight climate change and global warming."
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. Biofuels are playing a vital role in sustainable climate action.”