Oil India, GPS Renewables To Form JV To Set Up Compressed Biogas Plants
Oil India, GPS Renewables To Form JV To Set Up Compressed Biogas Plants
Biogas engineering company GPS Renewables (GPSR) and OIL India Limited (OIL), will form a joint venture to establish eight Compressed Biogas (CBG) Plants across India.
Under this partnership, OIL India and GPSR will each hold a 50% stake in the proposed joint venture which will oversee the establishment and operation of the CBG plants. The joint venture will be responsible for managing the entire lifecycle of the CBG projects, from design to operation, under a DBFOOT (Design, Build, Finance, Own, Operate, and Transfer) model. This approach ensures long-term project sustainability and improves operational efficiency.
Commenting on the MoU, Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, “There has been a strong interest from leading Indian oil companies towards biofuels like CBG to enhance energy security and support India’s net-zero goals. Our current partnership with OIL India is yet another step towards increasing the adoption of biofuels in India. OIL India and GPSR have a shared vision of building a nationwide network of CBG plants that will significantly reduce our dependence on fossil fuels and reduce greenhouse gas emissions. We look forward to strengthening this partnership to increase production capacity and meet the country’s growing demand for sustainable energy sources.”
GPS Renewables recently raised INR 100 crore (USD 12 Million) of mezzanine financing from InCred Opportunities Fund and Spark Capital. The current funding is part of a larger USD 100 Million round that GPSR , and is currently raising, including USD 25 Million at ARYA level and further USD 50 Million at step down subsidiaries.The funds will be used to develop the CBG (Compressed Biogas) projects under the Joint Ventures with Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation Limited (BPCL) as a part of GPS Renewables’ ARYA vertical.
GPS Renewables has previously raised USD 50 million (INR 411.50 crore) through debt financing from several leading financial institutions, including Punjab National Bank, HDFC, Yes Bank, HSBC, Kotak Mahindra Bank, ICICI Bank, and others. Additionally, the company had secured USD 20 million in equity funding from Neev Fund II by SBICap Ventures, Hivos-Triodos Fund, and Caspian Impact Investments.
