India’s state-owned gas distributor GAIL is looking to explore opportunities in the compressed biogas (CBG) sector as a part of a push to embrace cleaner energy and to expand the business beyond natural gas. The move is also viewed as part of the government’s target to raise the share of gas in India’s energy mix to 15% by 2030 from the current level of 6%.
GAIL and Carbon Clean Solutions Ltd (CCSL) have agreed to explore project development opportunities in the CBG value chain in the country. The agreement also covers production technologies, feedstock arrangement, gas offtake arrangements, as well as CBG transportation, marketing, and distribution.
CCSL will also use its own funding, technology, and expertise to construct four CBG plants based on ten-year offtake agreements with GAIL or its affiliates. Upon the completion of these plants, both companies will deepen ties to develop up to 100 CBG plants in India, an official with GAIL said.
India meets 80% of its crude oil from imports and is stepping up efforts to use cleaner forms of energy and ease its reliance on imported fuels. The petroleum ministry said the government planned to include CBG under priority sector lending so CBG projects can secure funding more easily.
