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The Hindu
01-05-2025
- Business
- The Hindu
Sojitz Corporation of Japan forays into India's clean energy sector; to invest $400 mn in 30 biomethane plants
Sojitz, a Japanese trading firm, in collaboration with IOC GPS Renewables Pvt. Ltd. (IGRPL), a joint venture between Bengaluru-based GPS Renewables and Indian Oil Corporation, will develop and operate biomethane production facilities in India using agricultural waste as feedstock. Under the partnership, IGRPL would establish 30 biomethane plants by FY2026-FY2027 with a production capacity of 1,60,000 tonne of biomethane annually, with a total outlay of over $400 million, said a communique. Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, 'Sojitz and GPSR group have a shared vision of improving India's energy self-sufficiency. As the country's energy demand continues to rapidly grow, it's crucial for us to prioritise biofuels and find ways to reduce our dependence on fossil fuels.'' The collaboration with Sojitz was a step towards increasing the production of cleaner sources of energy while reducing air pollution caused by the open burning of agricultural waste, he added. Biomethane is produced by purifying biogas and it can be a direct replacement for fossil fuel, significantly reducing greenhouse gas emissions and promoting circular economy. According to the statement, Sojitz consideres India as one of the key strategic markets and it has plans to play an active role in its transition to renewable energy. Green transformation (GX) business is a priority for Sojitz, and to advance this initiative further, a dedicated organization has been set up to drive their GX initiatives. Through this investment, Sojitz and GPSR would work to drive India's clean energy goals by accelerating the expansion of biomethane production and operation across the country. The companies would leverage GPSR's expertise in biomethane production processes, technology expertise, indepth experience in design, construction, operation, and maintenance of biomethane plants. Additionally, IOCL's expansive network with gas consumers would play a crucial role in scaling distribution. Sojitz would also assess possibilities for biomethane production beyond India and explore opportunities in the broader bioenergy sector, the partner companies said.
Time of India
28-04-2025
- Business
- Time of India
Indian Oil GPS Renewables to invest Rs 1,200 crore in biogas projects across states
New Delhi: Indian Oil GPS Renewables (IGRPL) has drawn up plans to invest around Rs 1,200 crore to set up ten Compressed Biogas (CBG) projects across Uttar Pradesh, Haryana, Chhattisgarh and Andhra Pradesh. The plants will be commissioned within a year, marking a significant milestone in India's efforts to give a fillip to the biofuel industry . Based on the technology and the feedstock type that is being currently contemplated, setting up each of these plants of 15 tonne per day (TPD) capacity would require an expenditure of around Rs 120 crore, IGRPL Chief Executive Officer (CEO) Devendra Singh Sehgal said in an interview. "So, we would invest around Rs 1,200 crore in setting up the ten plants by March 2026. These will be based on 30 per cent equity and 70 per cent debt funding," he said. IGRPL is a joint venture between Indian Oil Corporation (IOC) and GPS Renewables , set up in June 2024 with the specific mandate to install and commission CBG projects. In order to fund the equity portion of the planned Rs 1,200 crore investment, the two JV partners plan to bring in 15 per cent equity each. Sehgal said in order to secure a loan to the extent of 70 percent of the cost, the company's talks with the banks are in an advanced stage. "Many banks have been forthcoming and we have zeroed down on a particular bank and the Techno-Economic Viability (TEV) report is currently under preparation which will be provided to the Bank to complete approval process at its end," he said. IOC has an ambition to achieve Net Zero target by 2046 and it is trying to align with experienced players in this area, and GPS Renewables operates the world's largest biogas engineering setup. Of the ten CBG projects being set up by IGRPL, four are coming up in Haryana, four in Uttar Pradesh, and one each at Chhattisgarh and Andhra Pradesh. These plants will be based on rice straw feedstock and each of them will have a capacity of 15 Tonne per Day (TPD) of biogas production along with other byproducts. "We have already awarded Lump Sum Turn Key (LSTK) contracts for nine projects and the sites are in our possession at majority of the locations. Also, at most of the locations, construction work is going to start this month itself. Various other tie-ups, like securing biomass, gas offtake etc are also done, Sehgal said, adding that both basic and detailed engineering have advanced sufficiently to enable the start of construction work and sustain it. The combined production capacity of the ten plants would be around 52,500 Tonnes per Annum, and each of them will produce 15 Tonnes of biogas per day and byproducts like fuel pellets, fermented organic manure etc. IGRPL will also start discussions with fertiliser companies like Kribhco, Iffco, HURL etc for lifting of fertilizer related byproduct. "For the offtake of CBG, we are entering into tripartite agreements with CGD entities and GAIL. We have already initiated dialogue with HPCL and GAIL for offtake from our Jind project where we have already concluded the TPA. The tie-up is for offtake of complete quantity on the best effort basis," Sehgal said. IOGRPL plans to sign similar TPAs for all the projects over time. The other options available for ensuring assured offtake include direct pipeline injection or through cascades to CGD RO locations.
