NTPC, IOC plan JV for biodiesel, lubricants

NEW DELHI: India’s largest energy firms NTPC and Indian Oil Corp ( IOC) will together explore the possibility of producing bio-diesel and manufacturing specialised lubricants for power plants.

Both the companies confirmed the development. “Projects are at an initial stage... We (NTPC and IOC) 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 IOC official who didn’t wish to be named said.
Currently, power companies import these lubricants.

The two companies are also considering to set 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. IOC 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 plans 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 IOC for industrial lubricants and other oils and most of these products are imported by IOC,” he said.

Bio-diesel project is in line with the government-proposed policy on bio-fuels. The government is considering to replace 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 tonne 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.