Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Japan's Sojitz Corporation has announced a USD 400 million investment in India's clean energy sector to develop 30 biomethane plants through a joint venture with GPS Renewables and Indian Oil Corporation Ltd. (IOCL). Operating under IOC GPS Renewables Pvt. Ltd. (IGRPL), the project aims to produce 160,000 tons of biomethane annually by FY 2026-27 using agricultural waste, addressing both energy needs and stubble burning. This move aligns with India's SATAT initiative and Sojitz's growth plans for India. The deal was structured by EY and advised legally by Cyril Amarchand Mangaldas, marking a major boost for India's bioenergy ecosystem.
Japan-based Sojitz Corporation made a significant foray into India's clean energy market by announcing an investment exceeding USD 400 million into a new biomethane production initiative. This ambitious platform has been established through a collaboration with GPS Renewables Pvt. Ltd., a Bengaluru-headquartered bioenergy company, and Indian Oil Corporation Ltd. (IOCL), one of India's largest energy companies. The effort is being executed under the joint venture IOC GPS Renewables Pvt. Ltd. (IGRPL), with plans to commission 30 biomethane plants throughout the country. Advertisement
The upcoming plants are projected to collectively produce approximately 160,000 tons of biomethane per annum, with full operational capacity expected to be reached by the fiscal years 2026-2027. These facilities will primarily use agricultural residues-such as crop stubble and other organic farm waste-as feedstock. This approach not only aligns with India's renewable energy goals but also offers a sustainable solution to the recurring issue of stubble burning, which has long plagued North India with hazardous air pollution.
Sojitz's investment aligns with its Medium-term Management Plan 2026, under which the Japanese conglomerate has designated India as a priority growth market. GPS Renewables, which is backed by Neev Fund, has already established a robust track record in deploying bioenergy technologies across India. The collaboration is expected to leverage GPS's technical expertise and IOCL's distribution capabilities to efficiently manage the end-to-end biomethane supply chain.
The financial structuring of the deal was managed by EY, acting as the exclusive M&A investment banker for GPS Renewables. The legal aspects were advised by leading Indian law firm Cyril Amarchand Mangaldas, with Partner Alok Sonkar leading the transaction counsel team.
The development comes against the backdrop of increasing global interest in India's bioenergy potential, particularly following the government's emphasis on compressed biogas (CBG) under initiatives like the Sustainable Alternative Towards Affordable Transportation (SATAT) programme. The Indian government has set an ambitious target of establishing 5,000 CBG plants, and partnerships such as this are seen as key accelerators towards that goal.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
