Reliance Industries Ltd and Adani New Industries Ltd plan to set up two compressed biogas (CBG) plants each, The Economic Times reported. 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, a senior oil marketing firm executive told the publication.
Moneycontrol could not independently verify the report.
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", another industry executive aware of the plans told the publication.
ANIL and RIL did not respond to queries, the report said.
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 bi-manure generated can be utilised as fertiliser.
The government’s clean fuel for transportation scheme envisages 5,000 CBG plants by FY24.Disclaimer: Moneycontrol is a part of the Network18 Group. Network18 is controlled by Independent Media Trust, of which Reliance Industries (RIL) is the sole beneficiary.