Reliance Industries Ltd and Adani New Industries Ltd plan to set up two compressed biogas (CBG) plants each. Led by billionaires Mukesh Ambani and Gautam Adani, RIL and ANIL plan to enter the segment by investing Rs 500-600 crore each to set up the plants.
The Economic Times reported citing sources that said while ANIL plans to set up 40 million tonne per annum (mtpa) plants in Uttar Pradesh and Gujarat, RIL is still deciding on unit capacities and locations.
The companies plan to sell CBG and compressed natural gas (CNG) as auto fuel from their retail outlets and inject CBG in our city gas distribution (CGD) network to boost supplies to domestic and retail users.
RIL has a fuel retailing joint venture with BP called Reliance BP Mobility that operates 1,400 outlets under the Jio-BP brand. For the Adani Group, its arm Adani Total Gas operates in the CGD space.
Sugarcane press mud, municipal waste and anaerobic agricultural waste is used to produce CBG which contains 40 percent carbon dioxide, 60 percent methane, and traces of hydrogen sulphide.
Further, CBG can be used to produce green hydrogen as a replacement to piped natural gas for domestic use, and the bio-manure generated can be utilised as fertiliser. The government’s clean fuel for transportation scheme envisages 5,000 CBG plants by FY24.