GAIL to explore opportunities in CBG business, set up 100 plants with CCSL

New Delhi: GAIL (India) Limited and CCSL (Carbon Clean Solutions Limited) have signed an MoU (memorandum of understanding) for exploring project development opportunities in the CBG (Compressed Biogas) value chain in India. The MoU aims at building a closer strategic partnership between the two companies by jointly working on CBG projects. GAIL and CCSL will explore various issues in the CBG value chain, such as inter alia feedstock arrangements, suitable technology for the most efficient and high-efficiency CBG production, gas off-take arrangements, exploration of various funding models, transportation, marketing and distribution of CBG. CCSL’s proven technology for CBG production with specific patents and know-how on waste conversion are a natural fit for GAIL’s vision to support the development of the CBG business in India, said GAIL in an official statement on Thursday.

Through the MoU, CCSL will initially build four CBG plants using their own funding, technology, and expertise. These plants will be based on 10-year CBG off-take agreements with GAIL (or its associated CGD companies) as the off-taker, in line with the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative of the government.

The MoU has been signed by GAIL’s Executive Director (Business Development) Santanu Roy and  CCSL’s CEO Aniruddha Sharma in the presence of senior officials. Upon completion of the initial plants, GAIL and CCSL will look to actively advance the partnership with the intention of developing up to 100 CBG plants in India.

Speaking on the occasion Santanu Roy said: “GAIL is excited to be part of this MoU which provides an opportunity to promote and be part of SATAT (Sustainable Alternative Towards Affordable Transportation) scheme of the Ministry of Petroleum & Natural Gas. There is a significant market potential for the production of CBG in India. The CBG projects will provide a boost to four pillars of India’s energy future – energy access, energy efficiency, energy sustainability and energy security.”

Aniruddha Sharma, on the other hand, said: “We are very excited to sign this MoU with GAIL, India has significant biomass resources and with our expertise, it’s a win-win situation for both the companies. As energy demand increases and the country looks to reduce its crude imports, it provides a great business opportunity. We are delighted to be part of the cleaner green fuel transition.”

With the support of the government for the clean energy transition, this partnership will play a crucial role in furthering technological advancements in the production of CBG from organic waste, which will be critical in this transition.

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