Reliance Industries partners with DBS Bank to finance compressed biogas plant projects
Mumbai: Reliance Industries and DBS Bank India have come together to launch a financing program to facilitate compressed biogas (CBG) plant projects.
This will promote the creation of an ecosystem where vendor partners can gather agricultural residue to serve as raw material for Reliance's CBG production plants across India.
In an official statement, the company said a huge amount of agricultural residue in India is frequently disposed of through burning due to insufficient processing infrastructure and logistical assistance.
The current agricultural residue supply chain has been lacking organization, with farmers and aggregators facing challenges in terms of incentives and financial backing.
Reliance Industries views this initiative as a crucial element in its net-zero roadmap.
The company intends to make nationwide investments to manufacture Compressed Biogas (CBG) as an environmentally friendly substitute for imported Compressed Natural Gas (CNG) and other fossil fuels, aiming to establish India as a significant bio-fuel provider.
Despite advancements in CBG technology, the process of commercialization requires the development of new infrastructure and active involvement in the value chain, engaging farmers across different states, according to a company statement.
Harindra K Tripathi, head of Bio-energy Business at Harindra K Tripathi, head of Bio-energy Business at Reliance Industries, emphasized the significance of CBG plants in utilizing organic waste, a major contributor to air pollution.
"Beyond mitigating carbon emissions, the CBG plants will also contribute to the production of Fermented Organic Manure (FOM), enhancing soil fertility and reducing reliance on chemical fertilizers over time".
Rajat Verma, managing director and head of Institutional Banking at DBS Bank India, highlighted the significance of green energy sector in the India's net-zero strategy.
He lauded Reliance Industries' bold move and highlighted the crucial role of transition financing in empowering businesses to implement and scale innovative technologies for decarbonization.
In the next five years, Reliance aims to set up around 100 CBG plants, with the help of more than 5.5 million tonnes annually of agricultural residue and organic waste.
This endeavour is expected to lead to an annual decrease of nearly 2 million tonnes in carbon dioxide emissions.
Reliance Industries Limited is setting up world-class biogas facilities at multiple locations in Uttar Pradesh by using surplus agro residue and organic waste. These facilities will be linked to a network of biogas dispensing stations operated by Reliance Jio BP.
Reliance has set up a flagship CBG production facility in Barabanki, Uttar Pradesh, which is expected to cut down CO2 emissions by 40,000 tonnes annually, the company said.
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