GAIL and TruAlt Bioenergy announce Rs 599 crore investment through biogas joint venture

Synergy for green energy: Natural gas company GAIL (India) has signed a term sheet with TruAlt Bioenergy Limited, with an investment exceeding $72 million (around Rs 599 crores).

As per a regulatory filing, GAIL has signed a pact with TruAlt's joint venture company Leafinti Bioenergy Limited, the largest producer of ethanol in India.

The investment in setting up the CBG plants will exceed over $72 million and will be funded through a combination of debt and equity. 

Specifics of the handshake

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The share of JV would be 51 per cent and 49 per cent respectively. The JV company will process over 600 million kgs of organic waste like agricultural residue, sugarcane press mud, spent wash (waste generated during ethanol production) and other decomposable waste per annum, to produce over 33 million kgs of CBG, nearly 20 million kgs of Solid Fermented Organic Manure (SFOM) and over 30 million kgs of Liquid Fermented Organic Manure (LFOM) per annum.

However, this will be subject to favourable outcome of due diligence and requisite approvals.

Each unit will have a capacity of 10,000 kgs per day (TPD) resulting in a daily production of 100,000 kgs of compressed bio natural gas (CBG). 

Production and Employment Gains

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A significant boost to the local and agrarian economies will result in employment opportunities for over 600 individuals while providing ecological benefits. 

The JV aims to create a robust ecosystem for the production of CBG from diverse waste and biomass sources alongside the growing potential of compressed natural gas (CNG).

Notably, TruAlt Bioenergy through its wholly owned subsidiary, Leafiniti Bioenergy Limited owns and operates the country’s second CBG plant that was established under the Sustainable Alternative Toward Affordable Transportation (SATAT) scheme in the year 2021. 

Company speak

Rajeev Kumar Singhal, Director (Business Development), GAIL said the signing of the Term Sheet is a step in the right direction considering the emphasis on cleaner and greener fuel and country's vision of Atmanirbhar Bharat.

Vijay Nirani, Founder and Managing Director, TruAlt Bioenergy said, " 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."

The government aims to achieve a 15 per cent gas share in the energy mix by 2030, emphasising a shift to a Gas-based economy. 
India targets 5,000 commercial CBG plants by 2023-24, producing 15 million metric tonnes (MMT), to replace other gaseous fuels and enhance energy sustainability.