GPSR Arya, part of the full-stack biofuels company GPS Renewables, recently secured mezzanine funding from Alternates by Axis AMC. This investment will help speed up the development of compressed biogas (CBG) projects across India. The company is partnering with major public sector oil marketing firms like Indian Oil Corporation and Bharat Petroleum Corporation.
India is working to boost its clean energy sources, especially since it heavily imports natural gas, making it vulnerable to global market swings. Recent events in West Asia have disrupted trade, causing prices for liquefied petroleum gas cylinders to rise. CBG, produced from organic waste, offers a more stable alternative since it relies largely on domestic resources.
Mainak Chakraborty, CEO of GPS Renewables, emphasized the importance of building local fuel options. “CBG is advantageous for India because we have plenty of locally sourced materials,” he said. This advantage can help create extensive biofuel infrastructure.
Parag Parikh, CEO of GPS Renewables Arya, noted that their focus is on expanding biogas projects throughout the country. “This funding will help us create a nationwide network of CBG plants,” he explained.
Nachiket Naik, Head of Structured Credit at Axis AMC, mentioned, “This investment marks one of the first in private credit for the CBG sector, highlighting our commitment to emerging cleantech.” He believes that such funding can significantly advance India’s clean energy objectives.
GPS Renewables has spent the last decade developing its expertise in technology, engineering, and project development. Currently, they are working on about $1 billion in biogas projects and expanding into alternative fuels like sustainable aviation fuel. The company boasts over 30 projects either in operation or nearing completion, and they have a robust pipeline of 200 more CBG projects lined up.
In comparison to traditional energy sources, CBG not only reduces emissions but also enhances energy security. As India strives for a cleaner future, the shift towards renewable sources like CBG reflects the country’s commitment to sustainability.
Recent surveys show that investor interest in clean energy solutions is growing. According to a report from the International Energy Agency, global investment in clean energy reached over $500 billion in 2022, indicating a shift towards greener technologies.
Given these trends, the future of biofuels in India looks promising. With continued investment and technological advancements, compressed biogas may play a vital role in the country’s energy landscape.
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