Petronet LNG has signed a binding term sheet with Gruner Renewable Energy Private Ltd to form a 50:50 joint venture (JV) for setting up compressed bio-gas (CBG) plants across India, with an estimated capital outlay of ₹1,200 crore.

The agreement was finalised on October 22; the envisioned JV plans to set up 10 CBG plants nationwide, each designed to produce 18 metric tonnes per day, as stated by Petronet in a regulatory filing.

This JV will be formed as a private limited company, with both Petronet LNG and Gruner Renewable Energy sharing equal ownership stakes.

Board representation for the joint venture will reflect the equity distribution of each partner, as per the filing.

The joint venture’s operations will encompass sourcing feedstock, as well as the production, manufacturing, processing, compression, distribution, storage, transportation, supply, trading, and sale of CBG.

Additionally, it will manage related by-products and oversee the development, establishment, operation, maintenance, and commissioning of CBG plants.

The filing also indicated that the joint venture may pursue further business opportunities in the bioenergy sector. 

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