Southern Online establishes Biodiesel plant with capacity of 10,000 Mt

Southern Online Bio Technologies Ltd has announced that the Company has established the Biodiesel production unit with an annual production capacity of 10,000 Mt of Biodiesel. The Unit is located, at Sursey No. 6 & 7, Samsthan Narayanpur, Nalgonda District, Andhra Pradesh. The Company had raised for the project through Composite Issue in October, 2005. The Company shares are listed at Bombay, Hyderabad and Bangalore Stock Exchanges.

The Company has entered into an Agreement with Lurgi Lift Sciences, Germany and their Engineering partner Chemical Construction International Pvt. Ltd., New Delhi in October 2005 for Technology for the Manufacture of Biodiesel from various kinds of oils like Jatropha oil, Pongamia oil, Rape seed oil, Tallow, Fish Oil, etc.

The implementation of the project is keenly observed by the GTZ & BMZ (German Technology Cooperation) as they have provided the Company grant Rs 2.00 Cr under Pvt Public Partnership in which the Company, LURGI AG-Germany and GTZ are the partners. The grant has been routed through nodal agency viz ICRISAT. During the last Financial Year two official German delegations one led by Mrs. Karin Kortman, Parliamentary State Secretary, Federal Republic of Germany and another delegation led by Mr. Jochen Borchert, Member of Parliament, Federal Republic of Germany any visited its bio diesel unit on May 03, 2006 and February 15, 2007 respectively. Both have expressed their satisfaction in the progress achieved by the Company in the implementation of the project and also the progress of the ICRISAT activities.

The Company has set up a small unit to test the various feed-stocks to use in the main unit to avoid the large quantity raw material wastage in the main unit. And at the same time all the trail runs of the below said parties satisfaction will help the Company in getting the long term purchase agreements for Biodiesel, once the main unit is ready for the commercialization.

All the main equipments like Seed handling and oil mill equipments, Feed Preparation and also all systems like water handling systems, condensation systems, DG power, etc were set up as per schedule and the trial runs commenced in the fourth quarter of 2006. However, due to unforeseen, circumstances the Plant operations have been witnessing several teething problems. Lurgi and CCI are working on solving all the problems and is confident that we will be able start commercial production during April-May 2007.

The Biodiesel produced by the Company during the trail runs meets with BIS specifications and, also the standards prescribed under International scales like ASTM / EN. Since June 05, 2006 APSRTC has been running 30 more buses on biodiesel supplied by the Company. Similarly Hindustan Coca-Cola Beverages Pyt Ltd, Hyderabad and ABT Parcel Services, one of the biggest transport agency in South India have tested its product and have expressed their satisfaction towards the product performance. Long-term purchase agreements with these entities are expected to be signed in the first quarter of this Financial Year.

Source : Equity Bulls

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