Gruner Renewable to build Asia’s largest CBG plant in Gujarat for Rs 2.2 billion

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Gruner Renewable to build Asia’s largest CBG plant in Gujarat for Rs 2.2 billion

Gruner Renewable to build Asia’s largest CBG plant in Gujarat for Rs 2.2 billion

Industry News
Jun 17,24

Gujarat is currently seeing a significant interest in the green energy space, with major Indian business conglomerates announcing several new renewable energy projects in the state.

Gruner Renewable to build Asia’s largest CBG plant in Gujarat for Rs 2.2 billion

Gruner Renewable Energy, with an unnamed firm, is all set to establish Asia's largest Compressed Biogas (CBG) plant in Navsari, Gujarat. This will mark a significant step towards a cleaner and greener future for India and in line with the government’s efforts to increase dependency on renewable energy solutions. The estimated cost of this plant at Navsari is approximately Rs 2.2 billion.

The flagship CBG plant in Navsari is expected to produce 44 tons of biogas per day (TPD) using cost-effective feedstocks such as paddy, pressmud, canetrash and OF MSW. This equates to an annual production of over 16,000 tons of biogas. The plant aims to contribute to PM Narendra Modi's vision for India's energy independence and sustainability goals.

Gujarat is currently experiencing a surge of interest in the green energy sector, with major Indian business entities announcing new renewable energy projects in the state. In 2018, Gujarat pioneered the nation's first hybrid policy, resulting in an installed capacity of 1,373 MW. Beyond wind and solar energy, the state has diversified its renewable energy portfolio.

Utkarsh Gupta, Founder & CEO, Gruner Renewable Energy said, “Since our inception in 2023, Gruner has been committed to mitigating climate risks by converting waste into biogas, thereby promoting environmental sustainability. As India works towards decreasing reliance on fossil fuels, opening of plants like Navsari is going to play a critical role in meeting our goals of championing sustainable energy solutions. In addition to generating employment opportunities within the biofuel sector, the establishment of CBG plants will significantly reduce our country's crude oil import bill.”

The Navsari CBG plant is a crucial step in India's CBG-based rural economy master plan. The local population will directly or indirectly benefit by the opening of this plant with work opportunities created for stakeholders like farmers, suppliers, labourers and youth among others.

Gruner has strategically planned this facility, from selecting high-yielding and cost-effective feedstocks like pressmud, paddy, OF MSW and canetrash to its optimal location. These choices will ensure high-quality biofuel production while simplifying the feedstock supply chain, improving availability, and eliminating pretreatment costs. Additionally, by converting industrial waste products into CBG, the new plant will address disposal challenges and help to reduce environmental pollution.

While speaking at the inaugural ceremony of India Energy Week (IEW) earlier this year, PM Modi stated that India’s energy sector will see an investment of over $67 billion over the next five years. He also unveiled plans for the establishment of 5,000 CBG plants across India.

Based on Indian Oil Corporation Ltd. (IOCL’s) white paper on CBG, the estimated CBG potential from various sources in India is nearly 62 million metric tons (MMT) with bio manure generation capacity of 370 MMT.

According to data from the Petroleum Planning and Analysis Cell, India's gas production stands at 29,769 million metric standard cubic meters (mmscm) against a consumption of 55,256 mmscm. This results in a shortfall of 25,488 mmscm, or 46.12% of total consumption, currently met through imports.

“CBG has the potential to bridge this gap, and Gruner Renewable Energy recognized this critical need early on, understanding the importance of CBG in the growth of India's renewable energy sector. We expect that the push for renewable energy will further strengthen under the term of the new government”, concluded Gupta.