Integrated oil company IndianOil has signed a memorandum of understanding with the state government of Chattisgarh to commercially produce biodiesel in the state.
Subsequent to the memorandum of understanding (MoU), a joint venture (JV) is to be formed between IndianOil and the Chhattisgarh State Renewable Energy Development Authority (CREDA), with the parties holding a 74% and 26% stake, respectively.
The JV will facilitate plantation of biofuel crop Jatropha, production of biodiesel through suitable chemical processes, and blending and marketing the product through IndianOil’s network of retail stations across the state of Chattisgarh.
The company’s JV with CREDA will set up model demonstration plantations and hubs for distribution of agricultural inputs, deploy qualified and trained personnel at village level to provide guidance, as well as establish a modern research laboratory and training center in the state.
It is estimated by the company that during a period of four to five years, 300,000 tonnes of oil seeds will be produced every year, which will yield 300 tonnes of biodiesel per day for blending with diesel.