New Delhi, Dec 13: Aimed at entering the world's fastest growing ethanol market, Praj Industries Ltd today said it formed a joint venture with Brazilian engineering major Jaragua Eguipamentos Industriais Ltd in Brazil.
In the JV called Praj Jaragua Bioenergia SA, Praj will hold 54 per cent, while Jaragua will hold the remaining.
''The formation of Joint Venture in Brazil demonstrates Praj's commitment to Brazilian ethanol market. 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,'' Praj Industries Chairman Pramod Chaudhari said in a statement. He will be the Chairman of the JV.
At present, Brazil uses 17 billion litres of ethanol (both hydrous and anhydrous). With production slated to grow to 30 billion litres in 2010 from 19 billion litres, the opportunity for new capacities are huge.
A large part of Brazilian growth in ethanol production is driven by growth in Flex Fuel Vehicles (FFVs - operating on both 100 per cent hydrous ethanol and 100 per cent petrol/gasoline).
The JV will supply end-to-end solutions for sugarcane juice to ethanol production - right from transportation of cane, cane preparation to juice extraction (milling/diffuser), juice evaporation, fermentation, distillation, molecular sieve (MSDH) based dehydration plant upto wastewater concentration and treatment.
The solution will result in an energy and feedstock efficient plant. Praj will bring its worldwide experience in setting up energy efficient ethanol plants to the Brazilian market.
Brazil has a very different model for production of ethanol. A large part of its ethanol is produced directly from sugarcane juice unlike in other cane producing countries, added Mr Chaudhari.
Jaragua is an established engineering, procurement, construction and manufacturing (EPCM) company with more than 50 years of experience in Oil&Gas, Petrochemicals, Energy and Sugar business.
Based in Sorocaba, Jaragua is also expanding its manufacturing facilities in north-east of Brazil in the State of Alagoas.