To diversify into renewable energy, Petronet LNG Ltd will reportedly invest an estimated Rs 1,200 crore to set up 10 Compressed Bio Gas (CBG) plants in a 50:50 joint venture with Gruner Renewable Energy.
Every upcoming CBG plant is likely to have 18 MTPA production capacity to reach the aggregate 180 MT per day planned capacity in 10 facilities. The soon-to-be joint venture signals the company’s major expansion, which expands into the booming CBG segment from its core LNG business.
Petronet LNG and Gruner Renewable Energy are expected to have equal ownership in the venture.
With CBG appearing as a crucial component of the country’s alternative-energy ecosystem, the energy companies increasingly explore opportunities across cleaner and renewable fuels.
While leveraging its existing capabilities in the broader energy sector, Petronet LNG’s foray into CBG underlines its strategic move to secure a foothold in a new energy business.
