Ethanol Companies

On August 7, Sharesleuth.com, the investigative journalism venture launched earlier this year by billionaire bad boy Mark Cuban, claimed its first victim: Xethanol. Apparently, Xethanol was going around telling investors that its alternative fuel solution had the potential to become a game-changing innovation for the energy sector. Jumping on Wall Street's ethanol bandwagon, the company claimed that it was able to turn wood chips, corn stalks and paper sludge into cheap alternative fuel. However, Xethanol's claims turned out to be nothing more than an elaborate innovation hoax, proving that it's best to do your homework before investing in overheated, speculative markets such as the one for ethanol companies.

An extensive Sharesleuth.com investigation found no evidence that Xethanol had produced significant quantities of ethanol from any raw materials.

Praj Industries has closed 2.18% higher at BSE on the news that the company has decided to infuse investments worth Rs 1 billion in expansion including acquisition of a US-based engineering company, so as to enhance its business potential in USA.

The shares last traded at Rs 178.20 compared with their previous close of Rs 174.40. A total of 1,683,188 shares have changed hands at the bourses.

Praj Industries has been making inroads into USA and Europe by securing projects to be executed overseas.

After bagging two US contracts for ethanol projects in June, the company has been awarded a Rs 500-million contract by three US-based companies for supplying technology and engineering design work.

Praj Industries reported a 50% growth in Q1 June 2006 as net profit increased to Rs 84 million compared with Rs 56 million in Q1 June 2005.

The Petroleum and Natural Gas Minister Shri Murli Deora has directed Oil Marketing Companies (OMCs) for early implementation of the Ethanol Blended Petrol (EBP) Programme on a national scale. In this connection, the process of procurement of ethanol by the OMCs through national competitive bidding has commenced as OMCs have begun issuing public notice for procurement of indigenous anhydrous ethanol in different States.

With this the stage is set for taking up the national programme for blending 5% ethanol with petrol countrywide except North East, J&K, Lakshadweep and Andaman & Nicobar Islands, w.e.f. 1st November 2006. Earlier, the 5% ethanol blended programme (EBP) was started in nine sugarcane growing States and contiguous Union Territories (UTs) in 2003. This however did not make substantial headway for a number of reasons viz decline in sugarcane production, restrictions on interstate movement of ethanol and the backing out by suppliers, etc.

NEW DELHI: With the governments alternate fuel programme for doping petrol with ethanol set to go national from November 1, experts feel that the next stage will be to make alternate fuels and hybrid technology for automobiles commercially viable.

Buyers such as Indian Oil Corporation and other oil refiners may not mind the price though issues of taxation on ethanol, considered industrial alcohol in states, still exist. When it comes to biodiesel, currently being produced from non-edible oilseeds for blending with diesel, taxation is little better.