New Delhi, May 1 -- Japan-based Sojitz Corporation has made an investment in a holding structure of the special purpose company set up jointly by Neev Fund backed-GPS Renewables Pvt. Ltd and state-run refiner Indian Oil Corporation.
Sojitz's investment in the GPS-Indian Oil joint venture's biomethane platform, which designs, constructs, operates, and provides maintenance for biomethane plants in India, marks its foray into biomethane production and sales in India.
Sojitz will work in collaboration with the joint venture, IOC GPS Renewables Pvt. Ltd (IGRPL), to develop and operate biomethane production facilities using agricultural waste as feedstock.
IGRPL plans to establish 30 biomethane plants by FY27 with a production capacity of 160,000 tons of biomethane annually. These projects have a total outlay of over $400 million. Sojitz didn't disclose the amount it invested in the JV.
"Sojitz and GPSR group have a shared vision of improving India's energy self-sufficiency. As the country's energy demand continues to rapidly grow, it's crucial for us to prioritise biofuels and find ways to reduce our dependence on fossil fuels," said Mainak Chakraborty, chief executive officer and co-founder, GPS Renewables.
"This collaboration with Sojitz is a step towards increasing the production of cleaner sources of energy while reducing air pollution caused by the open burning of agricultural waste," Chakraborty added.
Sojitz has identified India as a key strategic market and aims to play a significant role in the country's transition to renewable energy. As part of its broader focus, the company has established a dedicated green transformation division to accelerate clean energy initiatives.
In India, Sojitz is prioritising the development of renewable energy projects that support the growth of the biomethane sector while addressing environmental challenges such as air pollution. Beyond India, it plans to explore opportunities to deploy GPSR's technology in other regions, expanding its footprint in the global bioenergy sector.
EY was the exclusive M&A investment banker and Cyril Amarchand Mangaldas led by Partner Alok Sonkar was the transaction advisor representing GPS Renewables.
Published by HT Digital Content Services with permission from VC Circle.