In a significant move towards sustainable energy, GAIL (India) Limited, a major player in the natural gas sector, has entered into a Term Sheet with truAlt Bioenergy Limited, India’s largest ethanol producer. The collaboration involves GAIL’s equity participation in Leafinti Bioenergy Limited, a joint venture with TruAlt, which owns and operates India’s second Compressed Bio Gas (CBG) plant. They will set up CBG plants with an investment of more than USD 72 million and will be funded through a combination of debt and equity.
As outlined in a joint statement released on Wednesday, the joint venture will be structured with a 51 per cent ownership by TruAlt Bioenergy, with Gail India holding the remaining equity stake.
The proposed plants under the joint venture are expected to process over 600 million kilogrammes of organic waste like agricultural residue, sugarcane press mud, and spent wash — waste generated during ethanol production– to produce over 33 million kg of CBG, nearly 20 million kg of solid fermented organic manure and over 30 million kg of liquid fermented organic manure per annum, the companies said.
The joint venture aims to bolster the local economy, creating job opportunities for more than 600 individuals. Each plant will have a capacity of 10,000 kg per day, resulting in a daily production of 100,000 kg of CBG.
Rajeev Kumar Singhal, GAIL’s Director of Business Development, emphasized CBG as a viable alternative to imported fossil natural gas.
On the establishment of the partnership, Vijay Nirani, Founder and Managing Director, TruAlt Bioenergy said “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.”
