01 June 2007 13:21 [Source: ICIS news]
MUMBAI (ICIS news)--India’s Emami Biotech is constructing a 100,000 tonne/year biodiesel plant at Haldia, West Bengal, a source close to developments said on Friday.
The plant was expected to be commissioned in December and would be reflected in Emami's earnings in the fiscal year ending 31 March 2008, he said.
The company planned to export most of the produce from its biodiesel plant to the European Union and the US.
Emami has acquired 25 acres of land from the Haldia Development Authority for the project.
The project was estimated to cost Indian rupees (Rs)1.5bn ($37.1m/€27.6m), part of which has been financed by a loan from ICICI bank.
Initially, Emami will import the feedstock, crude palm oil, and other ingredients from Malaysia and Indonesia, but at a heavy import duty, the source said.
“To make it more economical, the eventual plan is to switch the feedstock to jathropa,” he added.
The company is in process of tying up with state governments of West Bengal, Orissa, Chattisgarh, Madhya Pradesh and Andhra Pradesh for cultivating jathropa.
Emami is also mulling over in-house cultivation of jathropa on about 20,000 acres of land. However, no progress had been made in that direction, the source said.
The company will sell glycerin, a by-product of biodiesel production, in the domestic market, he added.
DeSmet Engineering, a subsidiary of Italian-Belgian joint enterprise Desmet Ballestra, is providing technical assistance to build the plant.
($1 = Rs40.52/€1 = Rs54.43)
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