Sojitz Corporation has announced a strategic investment in the holding entity of the GPSR-IOCL Biomethane Platform, a special purpose company jointly established by GPS Renewables Pvt. Ltd. (GPSR) and Indian Oil Corporation Ltd. (IOCL). This platform is dedicated to designing, constructing, operating, and maintaining biomethane plants across India.
Driving Biomethane Expansion through Strategic Collaboration
Through this investment, Sojitz makes its entry into biomethane production and sales in India, marking a key milestone in its green energy ambitions. Sojitz will collaborate with IOC GPS Renewables Pvt. Ltd. (IGRPL) — the joint venture between GPSR and IOCL — to build and operate 30 biomethane plants by FY 2026–2027, aiming to achieve a total annual production capacity of 160,000 tons. The combined project value exceeds USD 400 million, highlighting the scale and ambition of this clean energy venture.
Advisors and Deal Execution
EY facilitated the transaction as the exclusive M&A investment banker. Meanwhile, Cyril Amarchand Mangaldas, led by Partner Alok Sonkar, advised GPS Renewables on the deal structure and execution.
Biomethane: A Clean Energy Alternative
Biomethane, produced by purifying biogas, serves as a direct substitute for fossil fuels. It plays a crucial role in lowering greenhouse gas emissions and advancing the circular economy. The venture will use agricultural waste as feedstock. This will help tackle the pressing issue of air pollution caused by stubble burning.
Shared Vision for India’s Energy Independence
Mainak Chakraborty, CEO and Co-Founder of GPS Renewables, said, “Sojitz and GPSR group have a shared vision of improving India’s energy self-sufficiency. As the country’s energy demand continues to rapidly grow, it’s crucial for us to prioritize biofuels and find ways to reduce our dependence on fossil fuels. This collaboration with Sojitz is a step towards increasing the production of cleaner sources of energy while reducing air pollution caused by the open burning of agricultural waste.”
Sojitz’s Green Energy Push in India and Beyond
Sojitz has identified India as a key strategic market in its Green Transformation (GX) business roadmap. To accelerate this initiative, the company has established a dedicated GX organization focused on clean energy development. With this investment, Sojitz aims to support India’s biomethane ecosystem. Additionally, the company plans to explore expansion into new global markets. It will leverage GPSR’s proven technology and operational expertise.
Scalable Impact with Strategic Strengths
Sojitz, GPSR, and IOCL will jointly drive the expansion of biomethane infrastructure. They will combine their core strengths — GPSR’s deep technical know-how, IOCL’s extensive gas consumer network, and Sojitz’s international project development experience. As per the press release, the collaboration is set to power India’s clean energy transition. It also offers a scalable model for other emerging bioenergy markets.
