Trualt, Sumitomo Corp collaborate for bolster CBG infrastructure

Bengaluru headquartered biofuel major TruAlt Bioenergy Ltd (TBL) has announced a major strategic partnership with Japan-based Sumitomo Corporation to accelerate the development of compressed biogas (CBG) infrastructure in India. The collaboration marks a key milestone in strengthening the country’s clean energy transition and advancing circular bioeconomy initiatives.

Under the agreement, TruAlt has entered into a Joint Venture Agreement (JVA) with Sumitomo Corporation and Trualt Gas Private Limited (TGPL), along with a Share Purchase Agreement (SPA) involving Nirani Holdings Private Limited.

As part of the ownership restructuring, TruAlt will retain a 51% stake in TGPL, while Sumitomo Corporation will acquire the remaining 49% stake from Nirani Holdings at Rs 24 per share. TGPL’s board will include five directors—three nominated by TruAlt and two by Sumitomo.

The joint venture plans to initially develop four commercial CBG production facilities, alongside biogas plants that will generate value-added by-products such as fermented organic manure, biogenic CO₂, and carbon credits. The partnership is expected to significantly expand CBG availability, reduce carbon emissions, and promote circular economy practices aligned with India’s renewable energy policies. TruAlt’s integrated bioenergy expertise combined with Sumitomo’s global industrial presence is seen as a strong foundation to scale the initiative.

The development comes on the heels of TruAlt highly successful IPO, which was oversubscribed 75.02 times and raised approximately Rs 750 crore through the allotment of over 1.51 crore shares at Rs 496 each. The company is also exploring major expansion plans, including a proposed Rs 2,250-crore Ethanol-to-Sustainable Aviation Fuel (SAF) plant in Andhra Pradesh and potential collaboration with GAIL to invest in its subsidiary, Leafiniti Bioenergy.

With three ethanol units recently made fully operational, TruAlt expects enhanced capacity utilisation in the coming months. The new partnership with Sumitomo positions the company to play a pivotal role in advancing India’s CBG production ecosystem and contributing to long-term environmental sustainability.