New Delhi: State-run gas utility GAIL (India) and Apollo Tyres has signed up a contract for making power from steam.

According to the company release, GAIL will supply steam from its Vaghodia Compressor Station (near Vadodara) to Apollo Tyres that would produce power for it.

The contract was signed by GAIL Director, (Marketing), B C Tripathi, and Apollo Typres’ legal chief, Mahesh Sharma. The total length of the agreement is 15 years, and marketable supply would begin from July 2009. GAIL will make Rs 35 crore from selling unused steam to Apollo.

GAIL Chairman, U D Choubey stated that the project would also help fighting dangerous consequences of greenhouse gases.

Onkar S Kanwar, Apollo Tyres Chairman named the agreement as a novel step toward contributing to generate sparkling environment and reduce emissions.

The project, based on waste heat recovery system from GAIL's gas turbines exhaust, is conceived as a Clean Development Mechanism (CDM) project under Kyoto Protocol.

The project would allow Apollo Tyres produce 4 MW of power and facilitate the two companies save about 935 million kilocalories of energy in developing process steam, thus also nullifying constitution of 55000 tonnes of carbon dioxide annually.