GAIL and TruAlt Announce $72 Million Compressed Biogas Joint Venture

The companies aim to set up ten CBG plants with a production capacity of 33 kg


Natural gas company GAIL (India) and ethanol producer TruAlt Bioenergy have announced an investment of $72 million to set up Compressed BioGas (CBG) plants through a joint venture.

The term sheet signed by the two would ensure GAIL’s participation in TruAlt’s joint venture company, Leafiniti Bioenergy, the owner and operator of one of the country’s biggest CBG plants.

TruAlt’s and GAIL’s shareholding in the venture will be 51% and 49%, respectively. The investment, which will be funded through a combination of debt and equity, will be subject to requisite approvals.

“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,” said Rajeev Kumar Singhal, GAIL’s Director of business development.

In 2021, the company began its foray into ethanol and hydrogen generation during a bid to expand its renewables portfolio.

The joint venture is expected to annually process nearly 600 million kg of organic waste in the form of agricultural residue, sugarcane press mud, spent waste that is generated during ethanol production, and other decomposable waste to produce 33 kg of CBG.  It will also produce 20 kg of Solid Fermented Organic Manure (SOFM) and 30 kg of Liquid Fermented Organic Manure.

With each unit producing 100,000 kg of CBG daily, the companies expect the joint venture to create a robust ecosystem for the production of CBG from diverse waste and biomass sources.

“We have been spearheading the production of ethanol and various biofuels since 2012 to advocate for more sustainable energy practices. TruAlt Bioenergy has emerged as one of the largest contributors to India’s Ethanol Blended Program (EBP). Through this partnership, we aim to create a robust ecosystem for CBG in India, allowing for a smooth transition to economical and ecological sources of energy,” said Vijay Narahari, Founder and Managing Director.

Last year, the Ministry of New and Renewable Energy allotted physical targets to the biogas program implementing agencies (PIAs) for establishing small biogas projects under the Biogas Program Phase II for the fiscal year 2023-24.