IGL, CEID agree for ‘JV’ to develop CBG & biofuel projects

The Indraprastha Gas Ltd (IGL) has signed a joint venture agreement with Punjab based CEID Consultants & Engineering Pvt Ltd to develop biofuel and compressed biogas (CBG) facilities across India. The partnership, disclosed through a regulatory filing, marks a strategic move by IGL to expand its footprint in the clean-energy sector.

Under the agreement, both IGL and CEID will hold an equal 50% stake in the new entity. The JV’s board will initially include four members—two nominated by IGL and two by CEID—ensuring balanced representation as the venture begins planning and execution of biofuel projects. The companies clarified that the agreement does not qualify as a related-party transaction and includes no special rights beyond equal ownership.

The collaboration is aimed at designing, constructing, and operating biofuel assets at a time when India is accelerating its transition towards low-carbon energy systems. CBG, produced from organic waste, is emerging as a key component of the country’s clean mobility and waste-to-energy initiatives.

Early 2024, IGL has already inked agreements with two technology collaborators with plans to build 19 CBG plants across four states of India – Delhi, Haryana, Rajasthan and Uttar Pradesh. IGL’s collaborative efforts aim to yield 0.45 MMSCMD (million metric standard cubic meters per day) of biogas from waste, amounting to roughly 5 percent of IGL’s daily requirements.

The announcement comes as IGL continues to diversify its portfolio. In the second quarter, the city gas distributor posted a 4.5% sequential rise in net profit to Rs 372 crore, driven by stable sales volumes. However, operating margins saw some pressure due to higher input costs.

The joint venture is expected to strengthen IGL’s long-term strategy of building sustainable energy infrastructure while tapping into the growing market for biofuels in India.