Transforming the Energy Landscape: GAIL and TruAlt Bioenergy Join Forces in USD 72 Million CBG Joint Venture
Eclipsing expectations, the story unfolds as GAIL (India) Limited, the country’s leading natural gas company and TruAlt Bioenergy Limited, the largest producer of ethanol in India, signed a Term Sheet for GAIL’s equity participation in TruAlt’s joint venture company Leafiniti Bioenergy Limited which operates and owns India’s second Compressed Bio Gas (CBG) plant.
Table of Contents
Ahead of this occasion, Shri Rajeev Kumar Singhal, Director (Business Development), GAIL said, “CBG has emerged as a viable alternative to imported fossil natural gas. The signing of the Term Sheet is a step in the right direction considering the emphasis on cleaner and greener fuel and the country’s vision of Atmanirbhar Bharat.”
As per the sources, TruAlt Bioenergy and GAIL India's shareholding in the JV will be 51% and 49% respectively. It is anticipated that the investment in the establishment of CBG plants would exceed about $72 million, funded by the involvement of debt and equity. No wonder, it is dependent on the positive results via comprehensive investigation and approvals.
Following this, it is in its vision that the JV Company will be processing more than 600 million kgs of organic waste, such as agriculture residue, sugarcane process mud and spent wash (waste generated during ethanol production) alongwith the decomposable waste per annum, to produce around 33 million Kgs of CBG, nearly 20 million kgs of solid Fermented organic manure (SFOM) alongwith the 30 million kgs of Liquid Fermented Organic Manure (LFOM) per annum. Furthermore, each unit will have a capacity of as much as 10,000 Kgs per day (TPD) giving the production of 100,000 kgs of CBG.
By creating a strong and sustainable system for producing CBG from various waste and biomass sources, as well as harnessing the potential of CNG, not only will it provide employment opportunities for 600 individuals, but it will also contribute to the betterment of our local and agrarian economies. Simultaneously, they have chosen to make a significant impact on the environment, while promoting ecological benefits.
Shri Subhransu Sekhar Biswal, Director, of Leafinti Bioenergy explained, “This is indeed an important milestone for us and will revolutionize the bioenergy landscape. Other than Biogas the plants will also yield fermented organic manure which can be used for organic farming and contribute to sustainable agriculture practices. This venture is expected to employ over 600 people”.
The advent of CBG
India's dedication to renewable energy, environmental responsibility, and economic growth is truly inspiring. With significant progress being made in the production of Compressed Biogas (CBG), India is paving the way towards reduced gas imports, lower emissions, and effective waste management. By shifting to a gas-based economy and setting up 5,000 commercial CBG plants by 2023-24, producing 15 million metric tonnes (MMT), India is demonstrating its unwavering commitment to enhancing energy sustainability. With the government's objective of achieving a 15% share of gas in the energy mix by 2030, India's comprehensive approach is truly remarkable and an inspiration to us all.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.