New Delhi, Jan 18 (Agencies): State-owned Indian Oil Corp (IOC) on Tuesday said it has signed an agreement with LanzaTech, a leading clean energy technology company, for production of fuel grade ethanol.

A Memorandum of Understanding (MoU) was signed "for collaboration in a technology demonstration that will enable IOC to produce fuel grade ethanol," the company said in a press statement here.

The MOU was signed by Sharat Meshram, Executive Director (Petrochemicals), IOC and Prabhakar Nair, Vice-President (Business Development), Asia Pacific, LanzaTech.

"As a part of the collaboration, IOC will evaluate LanzaTech's proprietary gas fermentation technology in one of its refineries to produce fuel grade ethanol," it said.

Bansal said IOC is looking at innovative options in augmenting its energy resources to meet the growing demand of the Indian economy and LanzaTech technology is likely to support its efforts by harnessing fuel grade ethanol from waste gas stream for partly meeting the requirements for petrol blends in the future.

"We are determined to explore sustainable options in bio- fuels and the ethanol blending efforts will have to be supplemented by technology solutions as well," he said.

LanzaTech is already collaborating on several international projects in the steel, coal and chemicals sectors and has expanded its portfolio to the production of low cost fuel ethanol from non-food renewable resources to include production of 2,3-Butanediol (2,3-BD), a key building block used to make polymers, plastics and hydrocarbon fuels.