Thermax bags Rs 500 crore deal to set-up 5 bio-CNG plants
Thermax, a global provider of biomass-based green energy solutions, has secured a significant ₹500 crore order to establish five bio-CNG plants for a prominent conglomerate. Alongside this, the company has unveiled ambitious plans to substantially increase its research and development (R&D) expenditure over the next two years.
Ashish Bhandari, the CEO and managing director of Thermax, emphasized that this heightened focus on R&D is driven by the quest to find sustainable solutions for climate change. Despite acknowledging the inherent risks in these ventures, Bhandari expressed confidence in the company’s capability to take necessary risks for future success.
The bio-CNG plants, to be situated in Rajasthan, Madhya Pradesh, Maharashtra, and Uttar Pradesh, will have a collective capacity to produce 110 tonnes of bio-CNG per day. Utilizing local feedstock exceeding 1,000 TPD, including rice straw, Napier grass, cane trash, and soya trash, these plants will contribute to the company’s commitment to promoting sustainable solutions. The generated bio-CNG will be utilized both commercially and for captive use by the client, although specific details about the conglomerate were not disclosed during the announcement at the inaugural “Thermax Fest.”
As part of its broader initiative in the biochemicals and bioenergy sector, Thermax is positioning itself as a key player in biomass-based green energy solutions, ensuring fuel flexibility through investments in a biomass-sourcing supply chain for captive consumption.
Another facet of its clean energy strategy involves the installation of 1 GW of hybrid renewable energy solutions by FY2027, encompassing intra-state and inter-state projects. Currently managing 140 MWp operationally, with an additional 145 MWp under construction, over 300 MW in development, and 400 MW in the pipeline, Thermax has invested Rs 300 crore in the renewables business over the past 18 months.
Thermax CEO Ashish Bhandari acknowledged the need to expedite the earlier announced plan to invest $100 million in the renewable business to achieve the 1 GW capacity, leading to an increase in capital expenditure beyond the initially budgeted amount. Thermax also aims to develop gasification plants with carbon capture capabilities, specifically designed for processing coal ranging from 100 to 500 TPD.
