Ispat Energy plans to produce bio-CNG

by Dave

The Hindu Business Line :

Ispat Energy Ltd, a subsidiary of Ispat Industries Ltd, has plans to invest about Rs 1,000 crore in the current fiscal for producing bio-CNG from pressmud, a byproduct of sugarcane processing.

Biogas is extracted from pressmud, and it is further chemically treated to produce bio-CNG. The gas produced can be used as a fuel for transportation and industrial applications.

Mr Shishir Tamotia, CEO, Ispat Energy, told Business Line that the company intends to work with 20 sugar mills in Maharashtra and Uttar Pradesh for producing bio-CNG. It has decided to invest Rs 35 crore in a bio-CNG facility for Warna Sugar Ltd, Maharashtra, he said.

Mr Tamotia declined to share the details of the fund raising plan. Ispat Energy has signed a BOOT (build-own-operate-transfer) agreement with Warna for setting up the 11,000 cubic metres a day bio-CNG plant, which will be online by October 2009.

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