GAIL, VERBIO come together to develop CBG projects running on agri-waste

The state owned GAIL India Ltd. and green energy major VERBIO India have entered into an MoU to jointly explore the development of Compressed Biogas (CBG) projects in India, utilizing agricultural residues.

The companies maintain that the new collaboration seeks to combine the expertise of both companies to promote sustainable energy solutions and boost agricultural waste utilization. The MoU was signed in the presence of GAIL’s Chairman and Managing Director, Sandeep Kumar Gupta and Claus Sauter, Founder and CEO of the VERBIO Group. The agreement was formalized by Sumit Kishore, Executive Director of Business Development and Exploration & Production at GAIL, and Ashish Kumar, Managing Director of VERBIO.

As part of the MoU, both parties aim to identify suitable locations for setting up greenfield agricultural residue-based CBG plants under a Joint Venture (JV) model. They plan to conduct feasibility studies on identified projects to assess viability.

Following positive study outcomes, both parties will seek investment approvals from their respective management teams to proceed with project funding and the formation of a JV company. Additionally, GAIL may consider acquiring equity in VERBIO’s existing CBG plant in Punjab as per the MoU’s provisions.

Sandeep Kumar Gupta, CMD of GAIL commented, “By harnessing agricultural residues for CBG production, we aim to contribute to the nation’s energy security and sustainability goals. This initiative will not only provide a renewable energy source but also support local farmers by utilising agricultural waste, enhancing their income and livelihood.”

Claus Sauter, Founder and CEO, VERBIO Group, said, “We are pleased to partner with GAIL to jointly deploy bioenergy as one of the most innovative solutions for stubble burning in India. This collaboration aligns with our vision of promoting CBG while supporting the farmers and rural economy in India.”

Sauter further held that with a strong partner as GAIL, VERBIO will be able to replicate the success of CBG proof of concept already implemented in Punjab, across India. He added that both GAIL and VERBIO are committed to fostering innovation in the biofuel sector, and this collaboration is a testament to that commitment. “By leveraging agricultural residues, we will not only generate clean energy but also contribute to reducing GHG emissions and have a positive environmental impact,” he concluded.

Last May, GAIL announced its plan to establish as many as 26 bio-CNG plants in the country over the next two to three years; either by GAIL alone or through joint ventures with raw material suppliers or biogas producers. In this regards, the government company also issued an Expression of Interest (EoI) inviting companies to form joint ventures for sourcing raw materials like paddy straw, municipal solid waste, and sugarcane press mud.