VayuGrid signs MoU with Ethiopia to create biofuel cluster

Indian biorefinery supply chain company VayuGrid has signed a memorandum of understanding (MoU) with the government of Ethiopia to create a biofuel cluster in the country. The agreement is part of Ethopia’s plan to develop a biofuel park to reduce the country’s dependence on imported crude. Ethopia spends 87% of its cash on crude oil imports.
According to the MoU, a local partner will provide land and labor, while investors will provide the capital. VayuGrid’s intellectual property will be used and downstream contracts will create a cluster of 1 million acres (404,700 hectares) of VayuGrid’s VayuSap high-yield Pongamia tree plantations, starting with 2,000 acres. VayuGrid’s Internal Protocol (IP) in Pongamia includes plant technology that ensures high-yield, and its customized practices to ensure economic returns.
Biofuel investment opportunity for a cluster will cost US$2.5 million, according to VayuGrid. The company regards Ethiopia a strategic choice because of its large unproductive land area that can supply a green energy base, which will last for the next 60 years. (November 19, 2012)