Praj jumps 8 per cent on tech tie-up with US firm

Praj Industries has signed a Construction License Agreement (CLA) with Gevo, Inc, USA to commercialise the technology for the production of lsobutanol using sugary-based feedstocks, such as juice, syrup and molasses.

As per the agreement, Praj will be providing Engineering Procurement and Construction (EPC) services to third parties using a process design package developed by it. This package uses Gevo's proprietary lsobutanol biocatalyst on sugary-based feedstock. Isobutanol is a high energy renewable intermediate product having application across aviation and racing cars.

Praj has also signed a Memorandum of Understanding (MOU) with Gevo Inc. for commercialising Gevo’s renewable hydrocarbons products which includes its renewable alcohol-to-jet fuel (ATJ) and renewable isooctane derived from Isobutanol. This partnership will enable Praj to expand its customer base who are interested in licensing Gevo’s technology to produce Isobutanol utilizing the sugary-based feedstock. Gevo will also benefit from it by getting access to markets outside North America like India, Southeast Asia, Australia, South America and parts of Europe.

Along with the CLA, both these parties have entered into a new Joint Development Agreement (JDA). This includes the process of producing Isobutanol using agricultural residues such as bagasse, rice straw, wheat straw, corn stover, cotton stalk and empty fruit bunches. These are the second generation agricultural residues which are the lowest cost feedstocks and has an additional benefit of carrying a very low carbon footprint.

On Wednesday, the stock of Praj Industries jumped by 7.8 per cent to Rs. 148.65 in the morning trading session from its previous close of Rs. 137.85 per share.