Sojitz Corporation (Sojitz) invests in a holding structure of the special purpose company established jointly by GPS Renewables Private Limited. (GPSR) and Indian Oil Corporation Ltd. (IOCL), which designs, constructs, operates, and provides maintenance for biomethane plants in India (GPSR-IOCL Biomethane Platform). Through this strategic investment, Sojitz will foray into biomethane production and sales in India.

Sojitz will work in collaboration with IOC GPS Renewables Pvt. Ltd. (IGRPL), a joint venture between GPS Renewables and Indian Oil Corporation Ltd, to develop and operate biomethane production facilities using agricultural waste as feedstock. IGRPL plans to establish 30 biomethane plants by FY 2026  - FY 2027  with a production capacity of 160,000 tons of biomethane annually. These projects have a total outlay of over USD 400 Mn. EY was the exclusive M&A investment banker and Cyril Amarchand Mangaldas led by Partner Alok Sonkar was the transaction advisor representing GPS Renewables.

Biomethane is produced by purifying biogas and it can be a direct replacement for fossil fuel,  significantly reducing greenhouse gas emissions and promoting circular economy.

Commenting on the investment, Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, “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 prioritize biofuels and find ways to reduce our dependence on fossil fuels.  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”

Sojitz currently focuses on developing renewable energy projects that have the potential to accelerate India’s biomethane sector while also addressing a few key environmental concerns such as air pollution.

Through this investment, Sojitz and GPSR will work to drive India’s clean energy goals by accelerating the expansion of biomethane production and operation across the country. The companies will leverage GPSR’s expertise in biomethane production processes, technology expertise, indepth experience in design, construction, operation, and maintenance of biomethane plants. Additionally, IOCL’s expansive network with gas consumers will play a crucial role in scaling distribution. Furthermore, Sojitz will assess opportunities for biomethane production beyond India by deploying GPSR’s technology in new regions to explore opportunities in the broader bioenergy sector.