Japanese general trading company Sojitz is entering biomethane production and sales in India.
It has invested in a holding structure comprising IOC GPS Renewables Ltd (IGRPL), which was jointly established by GPS Renewables Private and the state-owned Indian Oil Corporation. IGRPL will work on the development and operation of a biomethane business using feedstock such as agricultural waste.
Through this business vehicle, it plans to have 30 biomethane plants operational in India by 2027, producing and selling 160,000 tonnes of biomethane annually.
These projects have a total outlay of over $400m, according to a statement.
Sojitz and partners up will contribute to improving energy self-sufficiency in India, where energy demand is expected to continue growing, while also helping to reduce air pollution caused by the burning of agricultural waste.
Biogas is generated through anaerobic digestion where bacteria break down agricultural waste in an oxygen-free environment. By purifying the produced biogas, biomethane is produced which can replace fossil fuel.
India is the third largest energy consumer in the world behind China and the US.
With continued economic growth, India’s energy consumption is forecast to match the primary energy consumption levels of the US by 2040.
At present, India is reliant on fossil fuels such as coal and oil for approximately 70% of its energy consumption, and the country faces issues such as ensuring energy security and addressing air pollution.
The Indian government is promoting biomethane and other biofuels produced domestically from agricultural waste, along with other new technologies, such as green hydrogen.
