Petronet LNG Limited announced on Thursday that it has entered into a binding term sheet with Gruner Renewable Energy, to establish a 50:50 joint venture for setting up compressed biogas plants across India.
The proposed joint venture company will develop 10 compressed biogas facilities, each having a production capacity of 18 metric tonnes per day, with an estimated total capital outlay of Rs 1,200 crore. The joint venture will be incorporated as a private limited company, with both entities holding equal equity and board representation.
Under the terms of the agreement, the new entity will manage feedstock procurement, manufacturing, processing, compression, distribution, storage, transportation, supply, trading, and sales of compressed biogas and associated by-products across various states.