NTPC, IndianOil plans JV for biodiesel lubes
Kolkata   19-Mar-2010
India’s largest energy firms NTPC and IndianOil will together explore the possibility of producing biodiesel and manufacturing specialised lubricants for power plains. Both the companies confirmed the development. “Projects are at an initial stage. We (NTPC and IndianOil) are in the process of identifying research projects for developing high performance energy efficient lubricants,” an official in NTPC said requesting anonymity. “High-end lubes are in demand, especially when the country is expected to generate over 78,000 MW additional power in the 11th Plan and another 100,000 MW in the 12th plan,” an IndianOil official who didn’t wish to be named said. Currently, power companies import these lubricants. The two companies are also considering setting up a bio-diesel plant. “The two companies will undertake research & development on an integrated bio-diesel unit for developing new innovative technology,” the official said. IndianOil and NTPC are yet to formalise details of the projects. “Both firms will soon set up a joint group and work out details, he said. Companies also plan to develop suitable technology to use biomass for power generation. “These projects aim at building strong partnerships on environmental-friendly technologies,” the NTPC official said. “It also makes business sense for NTPC as it is one of the largest customers for IndianOil for industrial lubricants and other oils and most of these products are imported by IndianOil,” he said. Bio-diesel project is in line with the government-proposed policy on bio-fuels. The government is considering replacing 10% of petroleum product’s requirement in the country through bio-fuels. India imports over 80% of its crude oil requirements worth over Rs 345,815 Cr. in 2008-09. As per a projection in the Integrated Energy Policy (IEP), country can tap its bio-diesel potential of 20 million tonnes of oil equivalent (Mtoe) every year. This potential can be tapped through plantation of 20 million hectares of wasteland or 7 million hectares of intensive cultivation.