Biomass Company PRESPL Raises ₹360 Million Equity from Shell
The company had a Series-B investment from Neev Fund in April 2019
Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), an Indian biomass-based energy company, has raised private equity investment from Shell. “With this follow-on fund investment by Shell, the ‘Series-B’ round of PRESPL stands fully subscribed and closed,” states the company statement.
responsAbility was the first to invest in the company’s Series-A funding on September 2013, followed by a Series-B investment from Neev Fund in April 2019.
Lt. Col. Rohit Dev, the chief operating officer, confirmed with Mercom that PRESPL has raised ₹360 million (~$5 million) from Shell.
Intellecap served as the exclusive investment banker for these investments in ‘Series-A & B.’
In March 2019, Mercom reported that PRESPL was targeting to raise up to $10 million (~₹717.6 million) in Series B funding.
Further, Col. Dev said, “There’s a window of opportunity for biomass for the next five years in India. During this period, there’ll be a lot of changes in terms of the growth of the industry. We’ll see a lot of technological transfers, foreign investments, and partnerships in the sector. Every ministry will be pulling biomass towards them.”
When asked about Shell’s entry into PRESPL, he said, “The partnership is not about the future of the two companies, but it’s more about the future of the biomass industry in the country.”
PRESPL has also partnered with biofuel manufacturing companies such as Bioethanol, Bio-CNG, and Drop-in Fuels.
Lt. Col. Monish Ahuja (Retd), managing director, PRESPL said, “The investment from Shell will be utilized for business expansion in the bio-energy sector and biomass supply chain management space in India; aiming to emerge as the strongest player in India to tackle the issues of climate change through biomass waste.”
Meanwhile, Nitin Prasad, chairman, Shell India said, “These partnerships help deliver the solutions society will need to meet energy demand while reducing carbon emissions. PRESPL’s biomass collection expertise supports rural development and contributes to sustainable economic development. Shell is keen to play an active role in the energy transition in India, supporting economic growth with clean energy solutions.”
Mercom previously reported that the central government’s cabinet, headed by Prime Minister Narendra Modi, approved the National Policy on Biofuels – 2018. A program to support the promotion of biomass-based cogeneration in sugar mills and other industries was also recently announced by the Ministry of New and Renewable Energy’s biomass power division.
In December 2018, Ministry of New and Renewable Energy (MNRE) amended two clauses in the policy to support the promotion of biomass-based cogeneration projects in sugar mills and other industries in the country up to March 2020.
Anjana is a news editor at Mercom India. Before joining Mercom, she held roles of senior editor, district correspondent, and sub-editor for The Times of India, Biospectrum and The Sunday Guardian. Before that, she worked at the Deccan Herald and the Asianlite as chief sub-editor and news editor. She has also contributed to The Quint, Hindustan Times, The New Indian Express, Reader’s Digest (UK edition), IndiaSe (Singapore-based magazine) and Asiaville. Anjana holds a Master’s degree in Geography from North Bengal University, and a diploma in mass communication and journalism from Guru Ghasidas University, Bhopal.