Boston, MA 10/10/2014 (wallstreetpr) – According to reports, Indian Oil Corporation and Celanese Corporation (NYSE:CE) signed a memorandum of understanding on October 1, 2014. The objective of this deal was to explore various possibilities available for joint investment and development of a fuel ethanol plant. As per the information, this plant will be built in India, but Celanese Corporation (NYSE:CE) will take care of all the technological development activities.
Insights of the announcement:
Both the organizations have decided to establish this plant at Paradip in Odisha State. The key feedstock i.e. petroleum coke for this plant will be supplied by Indian Oil subsidiaries located in and around that area. It’s not the only location that both the companies are looking forward to exploring for establishment of fuel ethanol plant. Once the initial work starts at this plant, then other locations will also be considered for expansion of fuel ethanol plants across the India. Both the companies will start the investigation work to find other potential sites in the near future.
The actual different in this process will be created by a refining process bi-product named converting petcoke. It is expected to add value to the complete initial investment which will be made by both the companies. As per the information, it’s added to gasoline blending component and various other petrochemical products for successful execution of the production process. Both the companies are expecting that addition of Ethanol in the production cycle of gasoline will further bolster its demand in coming time. The initiative taken by Celanese Corporation (NYSE:CE) and Indian Oil will benefit not only to both the companies, but also to the entire nation. It will enhance the economic development and growth significantly.
Indian Oil is actively working in marketing, refining, pipelines construction, gas, petrochemicals, production and exploration, and various R&D activities. It expects to increase the demand of gasoline in coming time, so as the expansion of its operations in other states as well in order to meet in increased demand.
