Praj sets up a demo ethanol plant with Rs 150 cr investment

Project is estimated at about Rs 145-150 crore

Praj Industries (Praj), a biofuels technology developer and manufacturer of equipment for breweries and distilleries said it has emerged as the first company in South Asia to set up an integrated second generation (2G) cellulosic ethanol demo plant with an estimated project cost of US$ 25 million (Rs  145-150 crore).

The plant will come up in Shirala in Sangli District in Maharashtra. The ethanol demo plant will operate on bio-mass with a capacity of 100 dry tonne of biomass per day, which includes agricultural waste such as corn stover, cobs and bagasse.

The demo plant will enable Praj to consolidate its 6 years of R&D efforts, starting with laboratory trials to pilot scale trials. The same plant will also enable the company to develop various biochemicals and bio-products.

This new facility will try to demonstrate various technical parameters including optimisation of water and energy integration and its impact on the capex and opex of the company.

The plant will also develop the entire value chain including biomass handling and biomass composition and its impact on the operations.

For this project, it will associate with Viraj Alcohols & Allied Industries Limited (VAAIL), an existing ethanol producer. VAAIL will provide the land and allied services for the completion of the project.

“Ground breaking of 2G cellulosic ethanol plant is a giant leap in biotechnology and towards a more sustainable world. The greenhouse gas savings from cellulosic ethanol is greater than those from 1st generation crop-based biofuels as well as fossil-based fuel and hence this project will play a vital role in reducing carbon footprints. The project site at Shirala gives us a locational advantage in terms of sourcing of biomass, utilities and manpower. We are delighted to work with VAAIL who has been our long term client.” Pramod Chaudhari, executive chairman, Praj Industries, said.

Viraj has more than a decade’s experience in operating ethanol plants based on both, molasses as well as grains.