GNFC first to adopt natural gas as feedstock

Gujarat Narmada Valley Fertilisers (GNFC) is set to be the first Indian company to convert its Ammonia Feed Stock from Low Sulphur Hay Stock (LSHS) to natural gas.

Currently, there are four plants in India that use LSHS as their feedstock and GNFC would be the first to adopt the natural gas feedstock. The company is also planning a Nitrous Oxide (N2O) Abatement project under a clean development mechanism as well as capacity expansion of its methanol plants.

With a directive from the government, the company is planning to invite global tenders for the feedstock conversion to natural gas and expects the conversion to come through in another three years. For its N2O Abatement project, which is the initiative arising out of the kyoto protocol to reduce emission of greenhouse gases, the company will get its first emission inspection in October and six months after that.

"The N2O project has two-fold benefits for the company. Not only will this reduce the emission of greenhouse gases, we will also be able to acquire a carbon certificate for every ton of N2O reduction by the company," R P Vyas, executive director (operational projects), GNFC, told Business Standard.

The company hopes to acquire a few thousand certificates with its commencement next year which would net an approximate revenue of Rs 18 crore, according to Vyas.

GNFC is also ramping both its methanol plants at an investment of Rs 140 crore. The first phase of the plant expansion would be starting from April, 2007 while the second phase is scheduled for April 2008, added Vyas.

The company is in collaboration with Central Salt & Marine Chemicals Research Institute, Bhavnagar (CSMCRI), which has developed a process to convert the waste lime produced in the Ammonium Nitrophosphate Plant to value added Calcium Carbonate.

A Precipitated Calcium Carbonate Plant with a capacity of 100 MTPD is being set up and slated to be commissioned by October 2007.

At its 30th annual general meeting, the company declared a sales turnover of Rs 2,281.33 crore and its highest-ever dividend payment at 42.5 per cent.