13 December 2007 14:17 [Source: ICIS news]
MUMBAI (ICIS news)--India’s Praj Industries has entered into a joint venture with Brazilian (EPCM) engineering, procurement, construction and manufacturing firm Jaragua Eguipamentos Industriais, it said on Thursday.
"The joint venture will provide Praj an entry into the fastest growing ethanol market," the biofuel and ethanol manufacturer said in a statement.
Praj will hold a 54% stake in the venture, Praj Jaragua Bioenergia, while the remaining 46% would be held by Jaragua, it added.
"We are in Brazil for the long haul and will work closely with Brazilian customers to enhance performance of ethanol plants and their return on investments," said Praj Industries chairman Pramod Chaudhari.
The Sao Paolo-based venture will supply end-to-end solutions for sugarcane juice-to-ethanol production, resulting in an energy and feedstock efficient plants, the firm said.
Backed by vast synergistic resources, the joint venture will reduce the delivery time considerably and enable plants to be set up faster, Praj added.
Domestic demand for ethanol in Brazil currently stands at 17bn litres/year, and production in the country is slated to grow from 19bn litres/year to 30bn litres/year in 2010, it said.
"A large part of its [Brazil’s] ethanol is produced directly from sugarcane juice. However, the technology paradigm is shifting, given that Brazil will produce more and more ethanol than sugar", Chaudhari said.
Energy and feedstock yields are becoming more critical, so is the fact that wastewater management is assuming greater importance, he added.
Praj had set up an office at Sao Paolo in Brazil earlier this year to pursue business leads, assess opportunity in the country and understand business models for future operations.
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