Engineers India Ltd (EIL) share price jumped nearly 4 percent on Friday, a day after it announced a strategic alliance with Finland-based biotechnology firm Chempolis Oy for green technologies.
“Engineers India Limited (EIL) and CHEMPOLIS OY, Finland have signed a strategic alliance for conversion of biomass to green fuels,” the company said in a regulatory filing post market hours on Thursday.
According to EIL, the agreement shall pave the way to pursue business development in the area of renewables i.e. cellulosic 2G ethanol technology. The firm has termed it an important milestone in expanding its wings into futuristic green technologies beyond a robust oil and gas portfolio. It added that it continues the journey towards building the nation’s future towards net-zero.
“In the changing global energy landscape, biomass-based fuels are promising alternative for supplementing fossil fuels towards a sustainable energy future. In addition to this, biomass can be utilized to produce value-added products such as phenolic resins that has the potential to substitute a lot of products obtained from fossil fuels. GoI has also set a target to achieve 20% blending of ethanol in gasoline by the year 2025,” the firm said.
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The two companies signed the collaboration agreement on November 24 at the EIL head office in New Delhi, according to the filing.
The market reacted positively to the development. At 1:52 pm, the EIL stock was trading 2.58 percent higher at Rs 73.55 apiece on the Bombay Stock Exchange (BSE). The shares jumped 2.51 percent to Rs 73.55 per share on the National Stock Exchange (NSE). Over the past year, the EIL stock has given investors a 1.16 percent return.
(Edited by : Ajay Vaishnav)
First Published: IST