In India, GAIL (India) Ltd, the country’s leading natural gas company, and TruAlt Bioenergy Ltd, the country's largest ethanol producer, have signed a Term Sheet for GAIL’s equity participation in TruAlt’s joint venture company Leafinti Bioenergy Ltd which owns and operates India’s second Compressed BioGas (CBG) plant.
India is advancing in compressed biogas (CBG) production, offering solutions for reduced gas imports, lower emissions, and effective waste management. The government aims to achieve a 15 percent gas share in the energy mix by 2030, emphasizing a shift to a gas-based economy.
The country targets 5,000 commercial CBG plants by 2023-24, producing 15 million tonnes of CBG to replace other gaseous fuels and enhance energy sustainability.
TruAlt Bioenergy through its wholly owned subsidiary, Leafiniti Bioenergy owns and operates India’s 2nd CBG plant that was established under the Sustainable Alternative Toward Affordable Transportation (SATAT) scheme in the year 2021.
TruAlt Bioenergy and GAIL India shareholding in the proposed joint venture (JV) would be 51 percent and 49 percent respectively. The investment in setting up the CBG plants will exceed US$72 million and will be funded through a combination of debt and equity.
The proposed JV is subject to favourable outcomes of due diligence and requisite approvals.
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, said Shri Rajeev Kumar Singhal, Director of Business Development at GAIL.
Roll out ten CBG production units
The proposed JV company aims to process over 600,000 tonnes of organic waste such as agricultural residue, sugarcane press mud, spent wash from ethanol production, and other decomposable waste per annum, to produce over 33,000 tonnes of CBG, nearly 20,000 tonnes of Solid Fermented Organic Manure (SFOM) and over 30,000 tonnes of Liquid Fermented Organic Manure (LFOM) per annum.
Each unit will have a capacity of 10 tonnes per day (TPD) resulting in a daily production of 100 tonnes of CBG.
We have been spearheading the production of ethanol and various other biofuels since 2012, to advocate for more sustainable energy practices. With the immense support of the Government of India to create a biofuel-based economy, TruAlt Bioenergy has emerged as one of the leading dedicated Bioenergy companies and also one of the largest contributors to India’s landmark Ethanol Blended Petrol (EBP) program. Through this partnership, we aim to create a robust ecosystem for CBG in India allowing for a smooth transition to economical and ecological sources of energy, said Shri Vijay Nirani, Founder and Managing Director, TruAlt Bioenergy.
A significant boost to the local and agrarian economies will result in employment opportunities for over 600 individuals while simultaneously providing immense ecological benefits.
The JV aims to create a robust ecosystem for the production of CBG from diverse waste and biomass sources.
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, said Shri Subhransu Sekhar Biswal, Director of Leafinti Bioenergy.