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GPS Renewables, OIL form JV to Establish 8 CBGs

GPS Renewables (GPSR) and Oil India Limited(OIL) have announced a joint venture to establish eight compressed biogas (CBG) plants across India. Both GPSR and OIL will hold a 50% stake in the joint venture, which will be responsible for the design, build, finance, ownership, operation, and eventual transfer (DBFOOT) of the CBG projects.

 

Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, “There has been a strong interest from leading Indian oil companies towards biofuels like CBG to enhance energy security and support India’s net-zero goals. Our current partnership with OIL India is yet another step towards increasing the adoption of biofuels in India.”

 

Chakraborty added that the partnership aims to build a network of CBG plants to reduce dependence on fossil fuels and greenhouse gas emissions.

 

The joint venture follows GPS Renewables' recent fundraising efforts, including Rs. 1000 million ($12 million) of mezzanine financing from InCred Opportunities Fund and Spark Capital. This funding is part of a larger $100 million round being raised by GPSR, with $25 million allocated at the ARYA level and $50 million for step-down subsidiaries. The funds will be used for CBG projects under partnerships with Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation Limited (BPCL) as part of GPSR's ARYA vertical.

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