October 5, 2007
 

India's Praj Industries to build biofuel plant in Philippines

A leading biofuel company in India plans to invest at least 1.1 billion pesos (US$24.4 million) to establish an ethanol processing plant in the Philippines, the agriculture department said Friday (Oct 5).

Praj Industries Ltd. signed the agreement Thursday with key Philippine agriculture officials, who accompanied President Gloria Macapagal Arroyo on her two-day state visit to India, Agriculture Secretary Arthur Yap said in a statement.

The company will also help establish new farming technologies for crops such as sweet sorghum that could be used as a feedstock for ethanol and biodiesel production, Yap said.

"Praj will be propagating sweet sorghum technology to our farmers. Aside from sweet sorghum, they would like to develop bioethanol fuel from corn, sugarcane, sorghum and cassava," he said.

Under the agreement, the agriculture department will identify lands that are available for feedstock development and assist farmers in cultivating crops for biofuel production.

The Philippines approved legislation this year requiring the blending of ethanol in gasoline and biodiesel in diesel products.

Oil companies are required to sell gasoline blended with 5 percent ethanol by 2009, with the level rising to 10 percent by 2011. For diesel products, oil companies have to sell diesel products with 1 percent biodiesel content by 2009.