Gail, TruAlt Bioenergy Establish Rs 600 Cr Joint Venture To Enhance CBG Production
First phase includes six new plants, emphasis on rural employment, circular agriculture
Gail and TruAlt Bioenergy have formed a strategic partnership to enhance the compressed bio-gas (CBG) industry in India, with a projected investment of USD 72 million (approximately Rs 600 crore). Under the agreement, GAIL will take a 49 percent equity interest in Leafiniti Bioenergy (LBPL), a fully owned subsidiary of TruAlt Bioenergy, which has been running a 10.2 tonne per day (TPD) press-mud-based CBG facility in Karnataka since 2021.
The JV will establish several new CBG plants in a staged approach, starting with six units of 12 TPD each, primarily utilizing sugar mill by-products as feedstock. When operational, the plants will together create approximately 23,976 tonne of CBG each year, while providing 700 to 1,050 direct and indirect jobs, boosting rural employment and supporting local economies.
The facilities will produce considerable agricultural by-products of approximately 83,916 tonne of fermented organic manure and 403,596 tonne of liquid fermented organic manure each year intended to improve soil health and promote circular agriculture, with farmers as essential participants.
The initiative is expected to eliminate 17,000 tonne of fossil fuels and prevent around 8,000 tonne of methane emissions annually, aiding India in achieving its net-zero goal by 2070. Funding will be obtained via a mix of debt and equity, pending due diligence and regulatory clearances.
