GAIL (India) Ltd, the state-owned gas utility, has announced a partnership with U.S.-based biofuel producer Petron Scientech Inc. to explore the development of a 500-kiloton-per-year bio-ethylene plant in India. This initiative marks a significant step towards expanding India’s bio-economy and promoting sustainable industrial practices.
The two companies have signed a memorandum of understanding (MoU) to assess the feasibility of establishing the plant, which will utilize bioethanol as its primary feedstock. The proposed project would operate under a 50:50 joint venture between GAIL and Petron, combining the expertise of India’s largest natural gas transporter and marketer with Petron’s experience in biorefinery projects and bio-ethylene production.
According to the statement from GAIL, the MoU outlines plans for both companies to conduct comprehensive feasibility studies. These studies will focus on the technical and financial aspects of the project, aiming to determine its viability. Following these assessments, both GAIL and Petron intend to seek investment approval from their respective management teams, with the goal of forming a joint venture company to bring the project to fruition.
The MoU was formalized by Sumit Kishore, GAIL’s Executive Director of Business Development and Exploration & Production, and Yogi Sarin, CEO of Petron, in the presence of Rajeev Kumar Singhal, GAIL’s Director of Business Development.
“We are excited to forge this strategic partnership with Petron, a leader in bio-ethanol to bio-ethylene technology,” said Singhal. “This MoU is a significant milestone in our efforts to promote sustainable practices and advance the bio-economy in India. By leveraging the strengths of both the companies, we are confident that this collaboration will not only drive technological innovation but also contribute to economic growth and environmental sustainability in the country.”
The partnership between GAIL and Petron is poised to play a crucial role in the development of India’s bio-based industries, aligning with global trends towards greener and more sustainable industrial practices.
