Suzuki signs a three-party agreement for Rs 2.3 billion biogas plant in Gujarat

Suzuki Motor Corporation (Suzuki) has concluded a three-party agreement on Wednesday between Suzuki R&D Center India Private Limited, a wholly owned subsidiary of Suzuki in India, the National Dairy Development Board (NDDB), and Banas Dairy, one of the largest dairy manufacturers in Asia, to setup biogas production plants that would contribute toward realizing carbon neutrality in India.

A contract conclusion ceremony was held today at the Embassy of India in Japan, with Banas Dairy’s Chairman Chaudhry, NDDB’s Chairman and Managing Director Shah, and Suzuki’s President Suzuki attending. Suzuki signed an MoU with NDDB and Banas Dairy in December 2022 to start a Biogas Demonstration Project. The project is aimed at making fuel for automobiles by refining methane from biogas, which is generated by fermenting cow dung.

Four biogas production plants will be operated starting in 2025 in Banaskantha district in Gujarat. The total investment in four plants is planned to be Rs 2.3 billion (approximately JPY 4 billion). Also, a biogas filling station will be established alongside each plant, which will distribute fuel for CNG vehicles, in which Maruti Suzuki holds over 70% market share in India.

According to President Suzuki, the company is tackling greenhouse gas emissions in ways that suit the situations of each country and region. "In India, there is expectation for biogas, which is said to have high reduction effects. We will contribute toward realizing carbon neutrality through proactive initiatives in the biogas production business,” he added.