Indian VayuGrid to enter biomass, biogas, biofuel JV in Djibouti

Jul 25, 2011 - Indian VayuGrid last week said it had agreed to form a joint venture with Djibouti's government and local partner Somatex-Multiplex for biomass, biogas and biofuel production in the country.

The long-term partnership, to be formed under public private partnership (PPP) model, will enable local capacity in processing, creation of Pongamia-based downstream applications of biofuel (SVO) straight vegetable oil and biodiesel for energy production and transportation, the company said.

Under the agreement, VayuGrid will provide its VayuSap intellectual property and business model for the supply, growing and marketing of Pongamia, a non-edible tree whose seeds are used to produce biodiesel.

The first phase of the partnership envisages VayuGrid to deliver 500,000 VayuSap, or Pongamia saplings, for USD 625,000 (EUR 435,500) to produce second generation biofuels and bioenergy for 1,000 ha (2,471 acres) of land.

(USD 1 = EUR 0.697)

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