IOC partners with NREL to develop advanced biofuels

State-owned Indian Oil Corporation (IOC) has entered a partnership with the US National Renewable Energy Laboratory (NREL) for a pilot project to produce cellulosic ethanol from agricultural and wood wastes.

IOC will invest $4 million (€2.92 million) for the pilot, while NREL has also signed an agreement with the Ministry of New and Renewable Energy regarding the production and distribution of second-generation biofuels and new technologies for first generation biofuels. The effort will focus on sugarcane, sweet sorghum, and cassava.

Since November 2006 India has had a 5% ethanol mandate requiring the blending of 476 million gallons of ethanol into the Indian fuel supply, but oil companies to date have only procured 370 million gallons.