GPS Renewables (GPSR), the world’s largest biogas engineering company, and Oil India Ltd (OIL), will form a joint venture to establish eight compressed biogas (CBG) plants across India.
Under this partnership, Oil India and GPSR will each hold a 50per cent stake in the proposed joint venture which will oversee the establishment and operation of the CBG plants. The joint venture will be responsible for managing the entire lifecycle of the CBG projects, from design to operation, under a DBFOOT (Design, Build, Finance, Own, Operate, and Transfer) model, the company said in a statement.
Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, “There has been a strong interest from leading oil companies towards biofuels like CBG to enhance energy security and support India’s net-zero goals. Our current partnership with Oil India is yet another step towards increasing the adoption of biofuels in India. OIL India and GPSR have a shared vision of building a nationwide network of CBG plants that will significantly reduce our dependence on fossil fuels and reduce greenhouse gas emissions. We look forward to strengthening this partnership to increase production capacity and meet the country’s growing demand for sustainable energy sources.”
GPS Renewables recently raised ₹100 crore ($12 million) of mezzanine financing from InCred Opportunities Fund and Spark Capital. The current funding is part of a larger $100 million round that GPSR , and is currently raising, including $25 million at ARYA level and further $50 million at step down subsidiaries. The funds will be used to develop the CBG projects under the Joint Ventures with Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation Ltd (BPCL) as a part of GPS Renewables’ ARYA vertical.