TEHRAN – Iran will establish Europe’s first ethanol refinery in Bosnia & Herzegovina, Managing Director of Mashal Khazar Darya (MKD) Esmaeil Shahmir reported on Sunday.

Corn, which due to shortage of water in Iran cannot be cultivated, gives off ethanol, a cheap fuel, he added.

He said the contract worth $150 million, adding that a plot of land will be allocated to the project for 50 years and the fuel will be exported to Austria, Germany, and Black Sea.

MKD is one of the environment and engineering (E&I) group of companies which has worked in Iran since 1998. Its field of work relies on auditing survey of field work of National Iranian Oil Company (NIOC) in Lavan, Kharg, Behregan, Sirri.