European biofuel alliance forged

, a bio-ethanol technology company, has signed a memorandum of understanding (MOU) with

for strategic cooperation on bio-ethanol projects in Europe.

The EU Bio-Fuels Directive has set a target of 5.75 per cent of transport energy to come from bio-fuels by 2010. Many EU countries are fast developing a fuel ethanol programme. France, Germany, Belgium, the Netherlands and others have announced either a policy or a grant for promotion of fuel ethanol.

As part of the new agreement, Praj will supply the process licence, process engineering, and equipment for the process plant, while Aker Kvaerner's European Process business will provide basic engineering, procurement and construction expertise.

"As the demand for fuel ethanol grows, technology for production of bio-ethanol becomes more critical. We are therefore delighted to be cooperating with Praj in Europe," said Ronald van der Vlist, Director of Business Development and Technology, with Aker Kvaerner's European Process business.