Pune-based Praj Industries, a global process solutions company for bio-ethanol, alcohol and brewery, has said that it will set up a second-generation cellulosic ethanol demonstration plant at Shirala in Sangli district of Maharashtra. According to company representatives, it will have Viraj Alcohols & Allied Industries Limited (VAAIL) as its partner for the USD 25 million (Rs 145-150 crore) project. VAAIL is an existing ethanol producer and a long-term client of Praj. VAAIL will provide the land and allied services for the smooth operation of the project.

The plant will operate on a different variety of bio-mass with a capacity of 100 dry tonnes of bio-mass per day, which includes agricultural wastes such as corn stover, cobs and bagasse. The plant will enable Praj to consolidate its six years of research and development efforts, starting with laboratory trials to pilot scale trials, the company said. It will also enable the company to develop various bio-chemicals and bio-products. The demo plant will seek to demonstrate various technical parameters, including optimisation of water and energy integration and its impact on capital expenditure and operational expenses.

Praj Industries' executive chairman, Pramod Chaudhari, said, "The ground breaking of our 2G cellulosic ethanol plant is a giant leap in bio-technology and help us move towards a more sustainable world. The greenhouse gas saving from cellulosic ethanol is greater than those from first-generation crop-based bio-fuels as well as fossil-based fuel," adding, "The project site at Shirala gives us a locational advantage in terms of sourcing of bio-mass, utilities and manpower. We are delighted to work with VAAIL who has been our long-term client." Praj Industries also provides solutions for water, wastewater and critical process equipment.