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GAIL and VERBIO India sign MoU to develop agricultural residue-based CBG projects

New Delhi, October 25, 2024 : GAIL (India) Limited and VERBIO India Private Limited today signed a Memorandum of Understanding (MoU) to jointly explore the establishment of Agricultural Residue-based Compressed Biogas (CBG) plants in India. The MoU was signed in the presence of Shri Sandeep Kumar Gupta, C&MD, GAIL, functional Directors of GAIL and Shri Claus Sauter, Founder / CEO, VERBIO Group.

Shri Sumit Kishore, Executive Director (Business Development and Exploration & Production), GAIL and Shri Ashish Kumar, Managing Director, VERBIO signed the MoU. This collaboration aims to leverage the strengths of both the companies to promote sustainable energy solutions and enhance utilization of agricultural waste.

Under the terms of the MoU, the parties intend to work together to identify suitable locations for setting up of greenfield Agri Residue-based CBG plants in a Joint Venture (JV) mode. The parties envisage to undertake feasibility studies of the identified Projects. Based on the outcome of studies, the parties will secure investment approval from their respective management for investment in the project(s) and forming a JV company. Further, in line with the MoU, GAIL may explore the possibility of acquiring equity in the existing CBG plant of VERBIO in the State of Punjab.

Speaking on the occasion, Shri Sandeep Kumar Gupta, Chairman and Managing Director of GAIL said, “This MoU with VERBIO marks a significant step in our commitment to advancing clean energy in India. By harnessing agricultural residues for CBG production, we aim to contribute to the nation’s energy security and sustainability goals. This initiative will not only provide a renewable energy source but also support local farmers by utilizing agricultural waste, enhancing their income and livelihood."

Shri Claus Sauter, Founder / CEO, VERBIO Group, said, “We are pleased to partner with GAIL to jointly deploy bioenergy as one of the most innovative solutions for stubble burning in India. This collaboration aligns with our vision of promoting CBG while supporting the farmers and rural economy in India. With a strong partner as GAIL, VERBIO will be able to replicate the success of CBG proof of concept already implemented in Punjab, across India. Both GAIL and VERBIO are committed to fostering innovation in the biofuel sector, and this collaboration is a testament to that commitment. By leveraging agricultural residues, we will not only generate clean energy but also contribute to reducing GHG emissions and have a positive environmental impact.”

About GAIL: GAIL is India’s leading gas transmission & distribution company with extensive gas transmission and distribution pipelines in the country, LPG extraction plants and a gas based petrochemical plant besides upstream oil and gas blocks and interests in LNG terminals in India. GAIL also has global presence and business interests in USA, Singapore, Myanmar, Russia, China and Egypt. Further, GAIL is pursuing business opportunities in the entire value chain of renewable energy, and other clean energy ventures including Green Hydrogen and Biofuels.

About VERBIO: VERBIO is a leading bioenergy producer with presence across Europe, North America and Asia. VERBIO produces biofuels viz. Biodiesel, Bioethanol and Renewable Natural Gas (RNG), feed, fertilizers as well as high-quality renewable ingredients for the pharmaceutical, cosmetics, chemical and food industries. VERBIO is amongst world’s largest producers of RNG with 100% of its RNG based on Agriculture residues. VERBIO is a public company listed in the German SDAX. The company was founded in 2006 and has its administrative headquarters in Leipzig, Germany. In India, VERBIO has set up India’s largest Agri-residue based CBG plant with production capacity of 33 Tons Per Day (TPD) in Punjab.