Reliance, DBS Bank partner to bolster biogas production in India
Reliance Industries Limited (RIL) and DBS Bank India have joined forces to establish a tailored financing program for the compressed biogas (CBG) project initiated by RIL. According to the official statement of the companies, this collaboration aims to facilitate the ecosystem development for vendor partners involved in aggregating agri-residue as inputs for Reliance’s compressed biogas production plants across India.
During Reliance’s 46th annual general meeting (AGM), Chairman Mukesh Ambani outlined the company’s goal of setting up 100 compressed biogas (CBG) plants in the next five years. These plants will consume 5.5 million tonnes of agro-residue and organic waste, contributing to the mitigation of nearly 2 million tonnes of carbon emissions and the production of 2.5 million tonnes of organic manure annually.
Reliance Industries Limited is in the process of establishing state-of-the-art biogas facilities in multiple locations in Uttar Pradesh, utilizing surplus agro residue and organic waste. These facilities will be connected to a network of biogas dispensing stations operated by Reliance Jio BP.
Rajat Verma, Managing Director and Head of Institutional Banking, DBS Bank India, said that bold initiatives like the compressed biogas plants, spearheaded by Reliance Industries, are an important step forward to reduce dependence on fossil fuels. He added, “Transition financing plays a crucial role in enabling businesses to identify and scale new technologies that can accelerate the path to decarbonisation. DBS Bank India is proud to partner with Reliance Industries to empower the journey to a sustainable future through innovative, responsible banking solutions.”
The financing structure, as outlined by the bank, is designed to ensure that logistics are optimized for competitiveness and achieve an enhanced commercial scale for this new initiative.
A flagship CBG production facility has already been set up in Barabanki, Uttar Pradesh, with the expectation of reducing CO2 emissions by 40,000 tonnes annually, as stated by the company.
“In addition to the mitigating effect on carbon emissions, the Reliance CBG plants will also contribute towards the production of Fermented Organic Manure (FOM) which will enhance soil fertility and reduce consumption of chemical fertilizers over a period,” said Harindra K Tripathi, Head Bio-energy Business, Reliance Industries Limited.
