Petronet LNG Limited (PLL) and Gruner Renewable Energy have entered into an equal joint venture to develop a portfolio of compressed biogas (CBG) plants across India with an investment of ₹1,200 crore.
The development marks a significant expansion of Petronet LNG's presence in the renewable gas segment. The company is already a major player in India's LNG and natural gas infrastructure ecosystem.
"This model is first of its kind in India wherein JV partner is undertaking sourcing of feedstock, Engineering, Procurement and Construction (EPC), operations and maintenance and offtake of organic manure thus integrating the CBG value chain," Gruner Renewable said in a statement.
The proposed partnership envisages the development of 10 CBG plants, each with a designed capacity of 18 tonnes per day, taking the planned aggregate capacity to around 180 tonnes per day.
"The proposed JV could represent a defining moment for India's CBG industry by bringing together greater structure, scale, technology and institutional strength. It also signals the possibility of a more organised and commercially sustainable CBG ecosystem, provided the projects are implemented successfully and supported by reliable feedstock, financing and offtake arrangements," the company said.
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CBG is increasingly being viewed as a complementary fuel to natural gas, especially for industrial, transport and commercial applications. The partnership could allow Petronet LNG to leverage its presence in gas infrastructure, energy markets and large-scale project development while building capabilities in a new renewable gas segment.
"The partnership could provide a stronger platform for evaluating and financing a larger portfolio of CBG projects, which require significant upfront investment and long-term execution," Gruner said.
The projects are expected to convert agricultural and other organic waste into renewable gas while creating potential economic opportunities across the agricultural, logistics, engineering and energy sectors.