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Praj Industries gains on MoU with India Oil Corp

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Praj Industries rose 1.81% to Rs 359.95 after the company said that it has inked an MoU with Indian Oil Corporation for exploring avenues in the Biofuels industry.

The avenues include the production of Alcohol to Jet (ATJ) fuels, 1G & 2G Ethanol, Compressed Bio-Gas (CBG) and related opportunities.

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.

Shrikant Madhav Vaidya, Chairman of 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.

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.

Praj Industries is an industrial biotech company. The company's diverse portfolio comprises bio‐energy solutions, critical process equipment & skids, breweries, zero liquid discharge systems and high purity water systems.

The company's consolidated net profit surged to Rs 33.33 crore in Q2 FY22 from Rs 11.39 crore in Q2 FY21. Sales rose 104.58% to Rs 532.41 crore in the quarter ended September 2021 as against Rs 260.24 crore during the previous quarter ended September 2020.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, November 09 2021. 12:01 IST