GAIL (India) Limited and TruAlt Bioenergy Limited, producer of ethanol, have signed a term sheet for GAIL’s equity participation in TruAlt’s joint venture (JV) 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.
The JV company will process over 600 million kilograms 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 kilograms of CBG, nearly 20 million kilograms of Solid Fermented Organic Manure (SFOM) and over 30 million kilograms of Liquid Fermented Organic Manure (LFOM) per annum.
Each unit will have a capacity of 10,000 tons per day (TPD) resulting in a daily production of 1,00,000 kilograms of CBG. The JV aims to create a robust ecosystem for the production of CBG from diverse waste and biomass sources alongside the growing potential CNG. As per the press release, TruAlt Bioenergy through its wholly owned subsidiary, Leafiniti Bioenergy Limited owns and operates India’s second CBG plant that was established under the Sustainable Alternative Toward Affordable Transportation (SATAT) scheme in the year 2021.
Rajeev Kumar Singhal, 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”.
Vijay Nirani, Founder and Managing Director, TruAlt Bioenergy added, “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 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 the partnership we aim to create a robust ecosystem for CBG in India allowing for a smooth transition to economical and ecological sources of energy”.
Subhransu Sekhar Biswal, Director, Leafinti Bioenergy said, “This is indeed an important milestone for us and will revolutionize the bioenergy landscape. Other than Biogas the plants will also yield fermented organic manure which can be used for organic farming and contribute to sustainable agriculture practices. This venture is expected to employ over 600 people”.
