The Engineers India Ltd (EIL) share price jumped nearly 4% on Friday, a day after announcing a strategic alliance with Finnish biotech company Chempolis Oy for green technologies.
“Engineers India Limited (EIL) and CHEMPOLIS OY, Finland have signed a strategic alliance for the conversion of biomass to green fuels,” the company said Thursday in an after-hours regulatory filing.
According to EIL, the agreement will pave the way for further commercial development in the field of renewable energies, namely cellulosic technology of 2G ethanol. The company called it a milestone in expanding its wings in futuristic green tech beyond a strong oil and gas portfolio. He added that he was pursuing the path towards building the future of the nation towards a net zero.
“In the changing global energy landscape, biomass-based fuels are a promising alternative to complement fossil fuels towards a sustainable energy future. In addition to this, biomass can be used to produce value added products such as phenolic resins which have the potential to replace many products obtained from fossil fuels. The GoI has also set a target of achieving 20% ethanol blending in gasoline by 2025, ”the company said.
The two companies signed the collaboration agreement on Nov. 24 at EIL’s headquarters in New Delhi, according to the filing.
The market reacted positively to the developments. At 13:52, EIL stock was trading 2.58% higher at Rs 73.55 a coin on the Bombay Stock Exchange (BSE). Shares jumped 2.51 percent to Rs 73.55 per share on the Nation Stock Exchange (NSE). Over the past year, EIL stock has offered investors a return of 1.16%.
(Edited by : Ajay Vaishnav)