New Delhi: Petronet LNG and Gruner Renewable Energy have joined hands to set up 10 compressed biogas (CBG) plants across India, with a proposed investment of around Rs 1,200 crore.
The two companies will hold equal stakes in the joint venture. Each plant is planned to have a production capacity of 18 metric tonnes per day, taking the combined capacity to 180 tonnes per day.
The partnership will cover the entire CBG business, from arranging agricultural and organic waste to building and operating the plants. It will also include the sale of organic manure produced during the biogas manufacturing process.
For Petronet LNG, the venture marks a move beyond its established liquefied natural gas business into renewable gas production. Gruner Renewable Energy will bring its experience in CBG technology, feedstock mobilisation, engineering and plant operations.
The proposed investment works out to an average of Rs 120 crore per plant, although actual costs may differ depending on location, technology and feedstock requirements.
The companies have not yet disclosed where the plants will be located, when construction will begin or how the investment will be financed.
CBG is produced by processing organic waste, including agricultural residues and animal waste. The fuel can be used in applications similar to conventional natural gas, while the process also generates organic manure for agricultural use.
Securing a steady supply of waste and keeping collection and transportation costs under control will be important for the projects. The plants will also need reliable buyers for the gas and manure to sustain commercial operations.
The proposed 10-plant network gives the partners a larger platform to enter India's renewable gas market. Its eventual contribution will depend on how quickly the facilities are developed and brought into regular production.
