GAIL (India) Ltd and US-based Petron Scientech Inc. have signed a memorandum of understanding (MoU) to explore setting up a 500 kilo ton per annum (KTA) bio-ethylene plant and its downstream units in India through a joint venture (JV).
Sumit Kishore, executive director (business development and exploration and production), GAIL and Yogi Sarin, chief executive, Petron signed the non-binding MoU on Wednesday, said a statement from GAIL.
“In line with the MoU, GAIL and Petron will jointly undertake feasibility studies to ascertain technical viability and financial prospects of the project. Both the parties endeavour to secure investment approval from their respective management for investment in the project and forming a JV company,” said the statement on Thursday.
“The MoU signifies a major step towards enhancing sustainable practices and advancing the bio-economy in India. The skills and strengths of both companies would create a synergy for achieving the objective of MoU,” said Singhal.
The public sector major focusses on natural gas transmission and distribution with gas transmission and distribution pipelines, processing and petrochemical plants, and has an interest in upstream oil and gas blocks and LNG regasification terminals in India. In line with the country’s net-zero target, the company has also diversified into cleaner fuels and renewable energy.
In June, GAIL announced that it had advanced its target of completely eliminating carbon emissions by five years to 2035. It plans to achieve this by adopting various approaches, including electrification of its processes and the use of renewable energy, battery energy storage systems, compressed biogas, green hydrogen and afforestation.
GAIL commissioned its first green hydrogen plant in Madhya Pradesh in May. The company had also said that apart from sourcing renewable power through open access, it was setting up around 20 megawatts of solar power facilities at its plant in Vijaipur, Madhya Pradesh.
For the first quarter of FY25, the company reported a 77.5% year-on-year increase in its consolidated net profit at ₹3,183 crore.
New Jersey-headquartered Petron Scientech has branches in Portugal and India as well as a technology and R&D hub in the UAE. It specializes in setting up biomass and grain processing biorefinery projects to produce ethanol, bio-ethylene, bio-chemicals and various bio-fuel projects.
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