Praj Industries in strategic alliance with Gevo for producing renewable isobutanol.

Pune-based process solutions company Praj Industries has signed a memorandum of understanding (MoU) to become a Gevo licensee for producing renewable isobutanol at sugar based ethanol plants.

Under the MoU, Praj will undertake to license up to 250 million gallons of isobutanol capacity for sugar-based ethanol plants over the next ten years.

'Praj has conducted significant diligence on Gevo's corn starch-based isobutanol technology. Isobutanol has a substantial market opportunity given that isobutanol is a high performance biofuel that can solve many of the issues of first generation biofuels. It is also a step closer to a true bio refinery model wherein a number of specialty chemicals and bio-products can be produced using isobutanol as a feedstock. We look forward to creating a new opportunity for first generation sugar-based ethanol plant owners, as well as accelerating the use of 2nd generation cellulosic feedstocks to produce isobutanol to make an Advanced Biofuel,' said Pramod Chaudhari, executive chairman, Praj Industries.

Gevo will market the isobutanol produced by Praj's sub-licensees. Praj will also contribute process engineering and equipment services to expand isobutanol capacity at Gevo's plant in Luverne, Minnesota, as well as to improve yields and optimize energy consumption at the facility.

'This new strategic alliance demonstrates the flexibility of Gevo's GIFT technology to convert a wide range of sugar sources into isobutanol. It also continues to validate the interest in licensing our intellectual property portfolio as we look to transition our business to focus more on a licensing model,' said Patrick Gruber, CEO, Gevo.

Isobutanol is a naturally occurring four carbon alcohol and is an important platform chemical with broad applications in large chemicals and fuels markets, used for blending with gasoline.

BS