Praj Industries and Aker Kvaerner Form Biofuels JV

26 April 2007

Expanding their strategic alliance, Praj Industries Ltd., an Indian alcohol, fuel ethanol and beer company, and Aker Kvaerner will create a joint venture (JV) for the European biofuels market.

Praj will hold a 60% of the JV and Aker Kvaerner will hold 40%. The JV, which will be located in The Netherlands, will combine Aker Kvaerner’s execution capabilities and extensive European market knowledge with Praj’s biofuels expertise.

In 2006, Praj and Aker Kvaerner entered into an alliance for strategic cooperation on bioethanol projects in Europe. Based on market interest in the alliance and the fact that Europe will follow a binding guideline of 10% bio-fuels blending by 2020, thereby expanding the market opportunity for biofuel plants, the two companies have decided to extend their association by forming the JV.