Punj Lloyd - First Bio Ethanol Plant In UK

Punj Lloyd Group To Construct UK's First World Scale Bio-Ethanol Plant

Punj Lloyd Ltd has informed BSE that Simon Carves Ltd, a subsidiary of the Company, a global EPC services provider in energy and infrastructure domains, has been engaged by the Ensus Group to design and construct the world's largest wheat based bio-ethanol production facilities. The plant will be the first world scale facility to be built in UK and marks a major step in meeting the EU bio-fuel obligations. The full production from the plant is likely to commence in early 2009, with the construction work starting in the second quarter of this year.

The facility will be built at the Wilton International site in Teesside, an integrated petrochemical complex in the North East of England. The project will employ approximately 800 people during the construction phase and approximately 100 people once the plant is fully operational. This facility, will substantially underpin UK's entire target of bio-fuels, once the plant is fully operational.

Working with world's leading technology providers, this prestigious contract with Ensus comes close on heels to Simon Carves recent LOI to build 300 ktpa LDPE plant in Saudi Arabia.

Ensus Ltd is owned by the global private equity firm 'The Carlyle Group' and energy focused 'Riverstone Holdings'. The investment will be the first of a series of world scale facilities planned for construction by Ensus throughout Europe.

The production of bio-ethanol from the plant will contribute significantly to the EU's strategy to scale-back dependency on fossil fuels and reduce greenhouse gas emissions. The EU Council of Ministers recently endorsed a 10% binding minimum target to be achieved by all Member States for the share of bio-fuels in overall EU transport fuels by 2020.

Commenting upon the win, Mr Atul Punj, Chairman, of the Company, said, "A World scale bio- ethanol plant being designed and constructed by Punj Lloyd group reinforces our credentials within the region and also with world's leading players. With blending of bio ethanol in retail petroleum products becoming mandatory, many more bio-ethanol fuel production plants will be setup in Europe and in many parts of South Asia specially India. Simon Carves’ successful track record and reputation in engineering, procurement and construction of bio-ethanol production plants worldwide will help Punj Lloyd Group in gaining many such contracts in these regions".

Source : Bombay Stock Exchange