Delhi/Bengaluru, 2 January 2024: GAIL (India) Limited, the country’s leading natural gas company, and TruAlt Bioenergy Limited, the largest ethanol producer in India, have announced a significant investment of over $72 million through a joint venture (JV) to establish 10 Compressed Bio Gas (CBG) plants. The JV, named Leafinti Bioenergy Limited, will be majority-owned by TruAlt Bioenergy with a 51% stake, while GAIL India will hold 49%.
Equity Participation and Funding
GAIL’s equity participation in Leafinti Bioenergy Limited is part of a Term Sheet signed between the two companies. The investment for setting up the CBG plants will be funded through a combination of debt and equity, subject to a favorable outcome of due diligence and requisite approvals.
GAIL & TruAlt Bioenergy JV CBG Production and Operations
The JV aims to process over 600 million kilograms of organic waste annually, including agricultural residue, sugarcane press mud, spent wash (waste generated during ethanol production), and other decomposable waste. This process will result in the production of over 33 million kilograms of CBG, nearly 20 million kilograms of Solid Fermented Organic Manure (SFOM), and over 30 million kilograms of Liquid Fermented Organic Manure (LFOM) per year.
Each plant in the JV will have a daily capacity of 10,000 kilograms, leading to a total daily production of 100,000 kilograms of CBG. This initiative is expected to provide a significant boost to local and agrarian economies, creating employment opportunities for over 600 individuals.
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Vision and Ecosystem
The JV’s vision is to create a robust ecosystem for CBG production from diverse waste and biomass sources, aligning with the growing potential of Compressed Natural Gas (CNG). TruAlt Bioenergy, through its subsidiary Leafiniti Bioenergy Limited, currently owns and operates India’s second CBG plant established under the Sustainable Alternative Toward Affordable Transportation (SATAT) scheme in 2021.
Quotes from Officials
Speaking on the occasion, Shri Rajeev Kumar Singhal, Director (Business Development) at GAIL, stated, “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.”
Vijay Nirani, Founder and Managing Director of TruAlt Bioenergy, emphasized the importance of the partnership, saying, “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.”
Subhransu Sekhar Biswal, Director of Leafinti Bioenergy, added, “This is indeed an important milestone for us and will revolutionize the bioenergy landscape. In addition to Biogas, the plants will also yield fermented organic manure, contributing to sustainable agriculture practices and expected to employ over 600 people.”
Emergence of CBG in India
As India advances in CBG production, the government aims to achieve a 15% gas share in the energy mix by 2030, emphasizing a shift to a Gas-based economy. The target is to establish 5,000 commercial CBG plants by 2023-24, producing 15 million metric tonnes (MMT) to replace other gaseous fuels and enhance energy sustainability. This comprehensive approach reflects India’s commitment to renewable energy, environmental responsibility, and economic growth.
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