Aker Kvaerner biofuels joint venture

Praj Industries and Aker Kvaerner are to create a joint venture (JV), for the European biofuels market in which Praj will hold a 60 per cent share and Aker Kvaerner will hold 40 per cent.

The companies said the JV would offer European customers access to the complete scope of services required for license, plant design and construction for the production of biofuels, with seamless integration and application of the Praj technology.

Praj, a global leader in bio-ethanol technology for over two decades, has been active in European markets for bio-ethanol technology solutions. In 2006, Praj and Aker Kvaerner entered into an alliance for strategic cooperation on bio-ethanol projects in Europe.

Based on market interest in the alliance and the fact that Europe will follow a binding guideline of 10 per cent biofuels blending by 2020, expanding the market opportunity for biofuel plants, the two companies decided to extend their association by forming a JV.