GAIL and TruAlt Bioenergy announce USD 72 Million investment through CBG Joint Venture
JV to set up 10 plants aiming at over 33 Million kgs production
Delhi: GAIL (India) Limited, the country’s leading natural gas company, and truAlt Bioenergy Limited, the largest producer of ethanol in India, have signed a Term Sheet for GAIL’s equity participation in TruAlt’s joint venture company Leafinti Bioenergy Limited which owns and operates India’s second Compressed Bio Gas (CBG) plant. TruAlt Bioenergy and GAIL India shareholding in the JV would be 51 % and 49% respectively.
The Investment in setting up the CBG plants will exceed over $72 million and will be funded through a combination of debt and equity. However, this will be subject to favourable outcome of due diligence and requisite approvals. 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.
Each unit will have a capacity of 10,000 kgs per day (TPD) resulting in a daily production of 100,000 kgs of CBG. A significant boost to the local and agrarian economies will result in employment opportunities to 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 alongside the growing potential CNG. TruAlt Bioenergy through its wholly owned subsidiary, Leafiniti Bioenergy Limited owns and operates India’s 2nd CBG plant that was established under the Sustainable Alternative Toward Affordable Transportation (SATAT) scheme in the year 2021.
Speaking on the occasion, Shri Rajeev Kumar Singha!, 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 country’s vision of Atmanirbhar Bharat.”