Praj Industries selected by British Petroleum and Dupont for bioethanol plant in UK

Praj Industries Ltd has announced that Aker Kvarener has been selected by British Petroleum (BP) British Foods Plc (ABF) and DuPont to execute the Front End Engineering and Design (FEED) for a planned new world-scale bioethanol plant in the UK. Aker Kvarener's joint venture partner, the Company will provide the technology and process package. BP and ABF subsidiary British Sugar Plc will own 45 percent of the new grass roots facility planned for BP's Saltend site, near Hull, with DuPont owning the remaining 10 percent. the world-scale wheat to ethanol plant will produce some 420 million litres of fuel ethanol a year. The contract value to Aker Kvarener is not disclosed.

Using bioethanol technology provided by the Company, the grass roots plant will seek to utilise locally grown wheat as feedstock to produce the fuel ethanol. The award of this project underlines the co-operation between Aker Kvaerner and the Company, which was recently reinforced by the formation of the BioEnergy Joint Venture (JV) - announced June 12, 2007

‘This is indeed a very good start for the Aker Kvaerner and Praj JV in Europe and this is a very distinguished opportunity for Praj to supply technology to one of the largest plants to be set up in the UK," said Pramod Chaudhari, Chairman of the Company.

Work on this preparatory phase of the project begins immediately and should be completed by the end of 2007. Subject to the necessary regulatory approvals construction on the plant Would commence next year, with commissioning and start-up scheduled for late 2009.

The award of the FEED scope follows the successful completion of the feasibility study for this complex, which was completed by Aker Kvaerner and the Company in December 2006.

Aker Kvarener has been a long term engineering partner for BP at the Hull site - the largest producer of acetic acid in Europe - and has executed a range of EPC project at this site and also at other BP site worldwide.

Aker Kvarener is also a long-standing engineering partner for DuPont globally. The Company is currently providing the process license to the British Sugar Wissington bioethanol plant in the UK.

Biofuels held to reduce overall emissions of greenhouse gases and are a sustainable alternative to fossil fuels bio ethanol can be blended in various preportions in petrol. Using bioethanol can reduce overall carbon dioxide emissions compared to a traditional petrol-only engine.

Source : Equity Bulls

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