Cogen, a major US maker of biofuels, announced the creation of a 1.6 gigawatt biofuel plant in India’s southeastern state of Andhra Pradesh, a step it hopes will help it become more competitive in the Indian biofuel market.
India is one of the largest markets for Cogen biofuel, accounting for more than half of global output.
“We have a tremendous amount of infrastructure to make sure that this plant will be in a good place to provide a high-quality biofuel product, and the government is very supportive of this,” Cogen CEO Scott McInerney told Reuters on Thursday.
Cogen is one major US player in the field, with other companies including General Electric, Chevron, BP, Sunoco, and Shell.
India has struggled with energy shortages in recent years.
Its economy relies heavily on fossil fuels and imports most of its power from neighbouring Pakistan.
The Cogen plant is expected to produce around 100,000 metric tons of ethanol per year, McInerson said.
India’s Prime Minister Narendra Modi also said on Thursday that the plant would be connected to the national grid, and Cogen would build an electricity grid connecting it to the grid.
The country has been struggling with a chronic power shortage in recent months, and this will allow it to tap into more domestic supplies.
Cote d’Ivoire’s power shortages have been blamed on the country’s dry season, which is typically followed by the hottest part of the year.
In January, Cote D’Ivera said that the country was running out of electricity in the summer months.
India, one of several countries in Africa and the Middle East that are suffering from dry seasons, is also a major market for Cote’s diesel power plant.
Cotec power plant in Niger Reuters