Green Fuels has signed a memorandum of understanding with Aris Bioenergy committing the two companies to a biodiesel refining joint venture in India.
Under the agreement, the world’s leading distributed-scale biodiesel and advanced biofuels company and Aris have formed a company that will leverage Aris’s experience in used cooking oil collection in the Mumbai metropolitan area.
This feedstock will be transformed into biodiesel in a Green Fuels FuelMatic GSX20 biorefinery to be located in an industrial zone midway between Mumbai and Pune.
The joint venture is currently engaged in the tendering process to supply the offtake from this and future plants to India’s three state-operated oil marketing companies.
Aris’s CMD Umesh Waghdhare said: “We are delighted to be partnering with Green Fuels, whose state-of-the-art bio-refining tech will enable us to take advantage of very favourable market conditions where timely government action, in the form of a 5% blend mandate, a ban on the export of waste cooking oil and offtake price guarantees from the OMCs, has at a stroke, created demand for biodiesel.
“Current national production capacity meets just 8% of demand, so there is considerable scope for expansion across India.”
James Hygate, Green Fuels CEO, added: “Green Fuels views India, which is leading the world in incentivising biofuels production, as pivotal in its worldwide refining capacity-building programme. We are proud to be exporting the post-COVID green recovery to India, and perhaps most important, building a business that will install 20 similar plants across the country and save a million tonnes of CO2 by 2025.”
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