IRM Energy, GAIL and IAV Biogas Unite to Boost CBG in Tamil Nadu

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Image source: Press release
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In a significant move toward advancing clean and sustainable energy solutions, IRM Energy Limited signed a Tripartite Agreement (TPA) with IAV Biogas Pvt. Ltd. and GAIL (India) Limited on 17th April 2025. The agreement, part of the CBG-CGD Synchronization Scheme, enables the offtake of Compressed Bio-Gas (CBG) in the Namakkal and Tiruchirappalli Geographical Areas (GAs) of Tamil Nadu.

Driving India’s Green Energy Vision

This landmark agreement marks a critical step in integrating CBG into the City Gas Distribution (CGD) network. It directly supports the Government of India’s vision to enhance energy security. It also accelerates waste-to-energy solutions and promotes rural development through sustainable innovation.

A Unified Step Toward Sustainability

M.K. Sharma, CEO of IRM Energy Limited, said, “This agreement is a step forward towards integration of sustainable practices in energy distribution. We are proud to collaborate with GAIL and IAV Biogas Pvt. Ltd. in bringing cleaner fuel solutions to the forefront. This step not only aligns with our strategic vision but also contributes to India’s mission of becoming a greener and more self-reliant energy nation”.

Aligning with National Climate Goals

The CBG-CGD Synchronization Scheme, launched by the Ministry of Petroleum & Natural Gas (MoPNG), aims to blend CBG with natural gas across the CGD network. This initiative aligns closely with India’s Net-Zero and climate action commitments. Moreover, by utilizing agricultural residues and organic waste for biogas production, it supports the SATAT scheme. The scheme promotes sustainable alternatives for affordable transportation. It also helps CGD companies meet their mandatory blending obligations.

Agreement Details: CBG Offtake and Distribution

Under the agreement, IRM Energy Limited will offtake up to 3,000 SCMD (Standard Cubic Meters per Day) of CBG from IAV Biogas Pvt. Ltd. This CBG will be distributed through IRM’s CGD network in the Namakkal and Tiruchirappalli districts.

Collaborative Innovation for a Low-Carbon Future

Senior officials from all three organizations attended the signing ceremony, underlining their shared commitment to India’s low-carbon transition. As per the press release, the collaboration drives the clean energy agenda. It also underscores the power of public-private partnerships in fostering innovation, environmental responsibility, and inclusive growth.