Reliance Industries and DBS Bank India have collaborated to introduce a financing initiative aimed at supporting the establishment of compressed biogas (CBG) plants. The initiative aims to foster the development of an ecosystem where vendor partners can aggregate agricultural residue as raw material for Reliance’s CBG production plants throughout India.
Read More: ITC Surpasses BAT To Become Third Most Valuable Tobacco Company Globally
In a press release, the company highlighted the significant volume of agricultural residue in India, often disposed of through burning due to a lack of processing infrastructure and logistical support. The existing agricultural residue supply chain has been disorganized, with farmers and aggregators lacking proper incentives and financial support.
Reliance Industries views this initiative as a crucial element in its net-zero roadmap. The company intends to invest nationwide to produce CBG as an eco-friendly alternative to imported compressed natural gas (CNG) and other fossil fuels, positioning India as a notable bio-fuel source. While CBG technology has advanced, commercialization necessitates new infrastructure and engagement with the value chain, involving farmers across various states, the company release said.
Read More: SBI Card: Cashback Benefits On Online And Offline Transactions – All You Need To Know
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,” Tripathi said.
Rajat Verma, managing director and head of Institutional Banking at DBS Bank India, underscored the importance of India’s green energy sector in the country’s net-zero strategy. He commended Reliance Industries’ bold initiative and emphasized the pivotal role of transition financing in enabling businesses to adopt and scale innovative technologies for decarbonization.
Read More: CCPA Issues 20 Notices to IAS Coaching Institutes for Misleading Ads, Imposes Fines On 8 Entities
Over the next five years, Reliance plans to establish approximately 100 CBG plants, consuming over 5.5 million tonnes per annum of agricultural residue and organic waste. This initiative is projected to result in a yearly reduction of nearly 2 million tonnes of carbon dioxide emissions.
