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Praj Industries and Aker Kvaerner forge a bio-ethanol alliance in Europe


7 March 2006 - Praj Industries Limited (Praj), global leader in bio-ethanol technology has signed a memorandum of understanding (MOU) with Aker Kvaerner for strategic cooperation on bio-ethanol projects in Europe. The use of this renewable fuel, derived from plants or biomass, provides a significant reduction in overall CO² emissions compared to a traditional petrol only engine.

The European Union (EU) Bio-Fuels Directive has set a target of 5.75 per cent energy content inclusion of bio-fuels in the transportation fuel mix by 2010. Many EU countries are fast developing a fuel ethanol programme. France, Germany, Belgium, the Netherlands and others have announced either a policy or a grant for promotion of fuel ethanol.

In their new cooperation, Aker Kvaerner and Praj will unite their respective expertise to jointly pursue business opportunities. Praj will supply the process licence, process engineering, and critical and proprietary equipment for the process plant, while Aker Kvaerner’s European Process business will provide basic engineering, procurement and construction expertise.

“As the demand for fuel ethanol grows, technology for production of bio-ethanol becomes more critical. We are therefore delighted to be cooperating with Praj in Europe. We see this as a synergistic alliance which will offer value to European customers in this important and expanding market segment,” said Ronald van der Vlist, Director of Business Development and Technology, with Aker Kvaerner’s European Process business.

Praj, based in Pune, specializes in technology, design, engineering, manufacture and supply of equipment for distillery plants, ethanol plants, brewery plants and related effluent treatment plants and is the owner of information related to various processes for the same.

“Praj has found acceptance for its technology in global markets. This alliance will further position Praj very favourably in Europe, as Aker Kvaerner is well respected for its engineering, procurement and construction capability worldwide,” said Pramod Chaudhari, Chairman, Praj Industries Limited.

Praj also has plans to set up an operating base in the EU shortly to augment its marketing efforts.

As bio-ethanol is a renewable fuel derived from plants (such as cereals, sugar beet etc.) or biomass (such as wood waste), the primary environmental benefit is the reduction of CO² emissions. The use of bio-ethanol can lead to up to a 70 per cent reduction in overall CO² emissions compared to a traditional petrol only engine. Bio-ethanol used as part of the fuel, by blending with petrol, for a motor vehicle is called fuel-ethanol. Bio-ethanol can be blended in various proportions in petrol.


AKER KVÆRNER ASA, through its subsidiaries and affiliates (“Aker Kvaerner”), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner comprises several industries, including Oil & Gas, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. The Aker Kvaerner group is organised into two principal business streams, namely Oil & Gas and E&C, each consisting of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities.

The parent company in the group is Aker Kværner ASA. Aker Kvaerner has aggregated annual revenues of approximately NOK 41.5 billion and employs approximately 20 000 people in more than 30 countries.

Aker Kvaerner is part of the Aker Group (, a leading multi-industry powerhouse with more than 40 000 employees and NOK 60 billion revenues. Aker owns 50.01 per cent of Aker Kvaerner, and the group is also a major European shipbuilder and a significant participant in the fisheries industry.

AK Process is a trading name of Aker Kvaerner Netherlands B.V., the legal entity cooperating in the MOU, and a wholly owned subsidiary of AKER KVAERNER ASA. AK Process serves the chemicals and polymers, refining and onshore oil & gas industries. It provides the full life cycle of a project from concept studies, through to design, engineering, project management, delivery of process technologies, procurement, construction and maintenance services. As a pure project execution/EPC specialist, AK Process can provide customers with strategic ’one-off’ services or full turnkey solutions under a single project management control. It works with its customers in the development of major technological innovations, having participated in the conceptualisation and implementation of ideas, which are the foundation for world-class production facilities.

Praj Industries Ltd is a global Indian company that offers innovative solutions to significantly add value in alcohol and brewery technology and related wastewater treatment systems for customers in India and around the world. Praj is a Knowledge-based company with expertise and experience in bio-processes and engineering. It delivers know how, license, engineering design, plant & equipment, project management, commissioning and customer care and turnkey projects. Led by an accomplished and caring leadership, Praj is a socially responsible corporate citizen.

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