State-run gas utility Gail (India) and Carbon Clean Solutions Limited (CCSL) will explore project development opportunities in the compressed biogas (CBG) value chain in India under a new agreement.

The two companies have signed a Memorandum of Understanding (MoU), which furthers an existing strategic partnership, and will work collaboratively on forthcoming CBG projects.

Gail and CCSL will tackle various issues within 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 patented and proven CBG production technology and waste conversion expertise will aid Gail in supporting the development of CBG in India.

Through the MoU, CCSL will initially build four CBG plants using its own funding, technology, and expertise.

These plants will be based on 10-year CBG off-take agreements with Gail (or its associated CGD companies) 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 of CCSL, signed the MoU on the behalf of CCSL.

Upon completion of the initial plants, Gail and CCSL will actively look to advance the partnership, aiming to develop up to 100 CBG plants in India.

Roy said, “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.”

Sharma added, “As energy demand increases and the country looks to reduce its crude imports there is a great business opportunity for CCSL. We are delighted to be a part of the cleaner green fuel transition.”