The US-based Biochem on Thursday signed a MoU with the state government to invest Rs3,000 crore in Gujarat, including Rs2,000 crore for a biofuel refinery.
As per MoU, Biochem will establish a biofuel refinery near Dahej PCPIR for producing fuel ethanol using raw materials such as corn.
"The refinery is expected to come up with an investment of close to Rs2,000 crore and is expected to create 2,000 new jobs in the region by the year 2021," the government said in a statement.
The US-based company has sought 50-acre land, as well as advanced biofuel and biomass power project incentives and tax breaks for the refinery, according to an official. As per the MoU, Biochem will also set up an Ethanol to Ethylene plant close to IOC's refinery in Koyali, Vadodara, with an investment of Rs1,000 crore.
The statement said that the proposed refinery would have the capacity to process 10 lakh tonne corn, and an additional three lakh tonne of biomass annually to produce protein biofuel ethanol, protein feed for animals, edible corn oil or bio-diesel, and bio jet fuel. The biofuels produced are planned to be sold to a fuel refinery in Vadodara.
"India requires a large amount of biofuels and this project will help in reducing import dependence. The refinery will also help farmers who can sell cash crops," said MK Das, principal secretary, industries & mines department. According to Biochem, demand for ethanol for blending is pegged at 7.5 billion litre, while the total supply is estimated at 3 billion litre.