Praj Industries and Automotive Research Association of India (ARAI) have signed a memorandum of understanding (MoU) to jointly drive application development of advanced biofuels that will find usage in industry and transportation.
Bio-based feedstock such as Agri residue, molasses, cane syrup, etc. is derived from the processing of biofuels. As it is available in both gaseous as well as liquid form, it complements fossil fuels such as gasoline, diesel and aviation fuels, which are used as a fuel for transportation. Through reduced carbon footprint and improved tailpipe emissions, biofuels contribute to making the environment cleaner. It will also help curtail health hazards attributable to air pollution in the transportation sector.
Praj and ARAI will bring in technologies to spread the use of biofuels in a variety of applications, including usage in internal combustion engines (ICE) in the transportation sector. Praj will utilise its expertise in developing and deploying biofuel technology solutions through its technology, engineering, manufacturing, project management, operations (TEMPO) business model. Meanwhile, ARAI has a vast experience in the field of alternative fuels, green and sustainable mobility.
ARAI is working closely with OHi, energy vertical of Niti Aayog, Ministry of Petroleum and Natural Gas (MoPNG) and Ministry of Road Transport and Highways (MoRTH) for the development of regulations and demonstration of technical competence in various alternate fuels spectra like CNG, LPG, and LNG, HCNG, dual fuel technology, bio-CNG, hydrogen, ethanol, DME and methanol.
The transportation sector is the single largest consumer of imported crude oil and natural gas for petroleum products and is also the third-largest source of greenhouse gases (GHG) emissions. In a way, this collaboration will contribute to redefining the transportation fuel mix in India.
On Thursday, during the early morning session, the stock of Praj Industries was up by 1.2 per cent at Rs 63.45 from its previous close of Rs 62.70 on BSE.