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Sasol inaugurates C3 expansion Praj to partner IOCL & BPCL
project to set up 2G bio-ethanol
plants
Petrochemicals group Sasol inaugurated its C3
expansion project, which enables it to expand Praj Industries Ltd to partner with Indian Oil
SecundaChemicals Operations polypropylene production Corporation Limited (IOCL) and Bharat Petroleum
Corporation Limited (BPCL) to set up second
by 103 000 tpa to generation (2G) bio-
just over 625 000 ethanolplants in the
tpa. The investment country. According to
outlay is estimated reports the company
R1.1 billion in the signed agreements
project that includes to this effect with
extracting fuel-based IOCL and BPCL on the
propylene molecules side-lines of recently
and converting these to higher-value polypropylene by concluded Petrotech 2016 conference in New Delhi.
replacing certain parts for the plants. The R1.1-billion, With IOCL, Praj has entered into a binding agreement
Secunda-based project was lauded as a major capital for cost sharing to set up one 2G bio-ethanol plant
investment in tough economic times by DeputyFinance each at Panipat (Haryana) and Dahej (Gujarat). These
Minister Mcebisi Jonas. He highlighted that not only did plants will have capacity to produce 100 kilo litres of
the investment prove that businesses were still interested ethanol per day. This is a progress milestone as per
in investing in South Africa, but it would also narrow MoU signed earlier this year wherein IOCL selected
the inequality gap. “The reality is that our success as Praj as its technology partner for setting up multiple
an economy will depend on the extent to which we can 2G bio-ethanol plants based on its indigenously
leverage the economy from capital. Without investment developed technology. Similarly, BPCL has selected
there is no growth,” he said. Jonas encouraged South Praj as technology partner for setting up one 2G bio-
African businesses to be introspective with regard to the ethanol plant in Orissa having the capacity of 100 kilo
country’s growth. He called on businesses, such as Sasol, litres of ethanol per day. Project timelines and capital
to continue using their knowledge and resources in skills outlay estimations are under finalisation. Second
development. Sasol joint president and CEO Stephen generation bio-ethanol technology uses (agri-residue)
Cornell said the C3 expansion project investment further as feedstock. Farming community is expected to be
entrenched Sasol as a global chemicals player. The project benefited from additional revenues from agri-waste.
started in 2013 and achieved overall beneficial operation Second generation bio-ethanol also helps reduce
in February. The project aims to debottleneck Sasol’s dependency on the imported crude oil, thereby
downstream polypropylene plants to improve overall saving foreign exchange. This technology will act as
efficiency. The project includes extracting fuel-based a socio-economic and environmental enabler. “We are
propylene molecules and converting these to higher-value pleased with the progress of setting up of 2G ethanol
polypropylene by replacing certain parts for the plants. projects by the OMCs. Praj is equally committed to
The C3 expansion project will reduce the percentage partner with OMCs in their achievement of completing
of propylene not used in the production of higher-value project targets. This is in line with Government of
chemicals. Normally, the propylene that is not converted India’s vision of increased contribution of renewables
or sold for further processing into chemicals, is flared in India’s energy portfolio,” said Pramod Chaudhari,
or processed into fuel. The project is set to increase executive chairman,Praj Industries Ltd.
the potential foreign currency earned for South Africa,
through additional exports sales, by $1.7-billion. Sasol has
been manufacturing polypropylene since 1990.
• December 2016 • Plastics News 38
