OREANDA-NEWS. Bilateral negotiations between OJSC PAVA and BIOCNERGY EUROPA B.V, a joint venture between Praj Industries, the leading biofuels solution provider and Aker Kvaerner, global provider of engineering and construction services, were held last weekend in Barnaul. The object of discussion was the pre-engineering study of the project for the advanced grain processing plant for the production of bioethanol, vital wheat gluten, wheat germ oil, yeast feed concentrate and carbon dioxide in Rebrikha village, Altai Region. Following negotiations, the companies signed contract. According to this contract the Aker Kvaerner and Praj JV will prepare pre-engineering study for the whole project.

Thus, by early September this year, BIOCNERGY EUROPA B.V will provide a detailed pre-engineering study of the project for the advanced grain processing plant. This study will prove viability and possibility of carrying out the investment project; it will offer the most effective organisational, technical and economic solutions for the operation and upgrading of existing production facilities. Pre-engineering study will also provide detailed production scheme and will determine the timing of the project implementation.

"Pre-engineering study is the first step in project implementation," said Director of International Business Development and Director of IR of OJSC PAVA, Galina Balaenkova. It will help us to determine possible strengths, weaknesses, threats and opportunities of the new project. Moreover it will help us to decide on the production program as well as to figure out capital and operating costs. That way we will be able to calculate amount of investment needed for the implementation of the project."

According to the Chairman of the Board of Directors of OJSC PAVA, Andrei Igoshin, "the choice of BIOCNERGY EUROPA B.V has not been taken at random. BioCnergy was build upon the individual strengths of its founding partners. For instance the Pune-based PRAJ Industries is a global leader in setting up alcohol and ethanol plants. AKER KV?RNER ASA, is a leading global provider of engineering and construction services, technology products and integrated solutions. BioCnergy operates exclusively for the biofuels industry and can offer us turnkey solutions. This Company offers us value added services, which will make our new projects more competitive."

According to the Business Development Director of Praj Industries Ltd., Sunil ROHOM, PAVA works very actively and dynamically. With such approach to the business, the Company has all potential for the successful implementation of project.