Usher Eco, a subsidiary of Usher Agro, was granted a US$28 million loan to develop the world’s first commercial scale silica extraction plant for producing “green” high quality precipitated silica from rice husk ash. This ash is generated by burning rice husk (outer cover of the paddy) in the boiler of a rice husk fired biomass power plant, in a closed system. Furthermore Usher Eco will use the financing to expand its rice husk based waste-to-energy facility from 16 MW to 34 MW.
The “green” silica extraction process is the result of close collaboration between the open innovation team of Goodyear Tire and Rubber Company, the Indian Institute of Science Bangalore and Usher Eco. The produced silica will be used by Goodyear to replace carbon black and traditional silica in high performance tires. Compared to carbon black and traditional silica “green” silica reduces rolling resistance. Lower rolling resistance, in turn, results in savings to the end-user as it improves a vehicle’s fuel economy.
“At Usher we have a vision of Zero Discharge and extraction of silica from rice husk ash is one more step in this direction. We call this silica “green” as it reduces the carbon foot print and is also in line with the vision of our honourable prime minister Zero Effect and Zero Defect policy for manufacturing sector” says Dr. V. K. Chaturvedi, Managing Director of Usher Eco.
This landmark transaction is a first and innovative step towards large scale access to “green” silica and contributes to co-generation in the energy-deprived state of Uttar Pradesh in India.
“A core focus of FMO is to support agribusiness development in a sustainable and responsible manner”, said Suzanne Gaboury, FMO Director of Agribusiness. “This unique project incorporates these goals through the implementation of sustainable environmental, social and governance practices while creating a viable long-term and green business.” “We are proud to be a part of this transaction which we see as an example for similar businesses in the future.”
The Dutch development bank FMO and the German development finance institution DEG- Deutsche Investitions-und Entwicklungsgesellschaft mbH- provided the funding for the project. Furthermore FMO has subscribed to non-convertible debentures of the Indian rupee equivalent of USD 7.5 million issued by Usher Agro Limited, the parent company of Usher Eco. Alpen Capital India acted as financial advisor for both Usher Eco and Usher Agro.