The Hindu Business Line : Praj Ind reiterates presence in Europe

Praj Industries appears to be strengthening its presence in the European market. BioCnergy Europa B.V., which is the company’s 60 per cent joint venture with Netherlands-based Aker Kvaerner, has recently won a contract for the supply of key equipment to Vivergo Fuels, a leading supplier of renewable fuels in the UK. T

he contract value for Praj has been pegged at about Rs 120 crore. The plant will be designed to produce approximately 400 million litres of fuel ethanol a year from wheat sourced from within the Europe.

Gaining presence in EU

This order win assumes significance on two counts. For one, it points at the strengthening demand scenario in the bio-ethanol market in the European Union. This inspires some confidence in light of the food against fuel argument gaining ground as in recent times.

This order win clearly suggests otherwise, putting to rest apprehensions among investors about weakening demand for Praj’s products in the region. Second, the order win also inspires confidence in BioCnergy’s ability to gain a foothold in this growing market. Taking into account the latest order win, the joint venture company has, since its inception last year, won four bio ethanol plant contracts.

Traction mode

This order also reiterates the fact that the company’s management continues to see value in the European market. The management had recently indicated that, despite all the “food for fuel” controversy, big projects in this space were likely to continue.

The company nevertheless also plans to simultaneously focus on technology, which uses alternative feedstock such as sugar beet and sweet sorghum in European countries, for production of ethanol.

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