GAIL, Carbon Clean Solutions ink MoU for Compressed Biogas projects in India

GAIL (India) Limited and Carbon Clean Solutions Limited (CCSL) announced that they have signed a Memorandum of Understanding (MoU) for exploring project development opportunities in Compressed Biogas (CBG) value chain in India. 

According to the GAIL press statement, 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 were a natural fit for GAIL’s vision to support the development of the CBG business in India. 

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 Sustainable Alternative Towards Affordable Transportation (SATAT) initiative of the Government of India. 

Santanu Roy, Executive Director (Business Development) signed the MoU on the behalf of GAIL, while Aniruddha Sharma, CEO CCSL inked the MoU on the behalf of CCSL. Upon completion of the initial plants, GAIL and CCSL will look to actively advance the partnership with the intention of developing upto 100 CBG plants in India. 

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

Aniruddha Sharma, CEO of CCSL, 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 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 a part of the cleaner green fuel transition.” 

“With the Government of India’s support for the clean energy transition, this partnership will play a crucial role in furthering technological advancements in production of CBG from organic waste, which will be critical in this transition,” GAIL added.

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