Oil and Natural Gas Corp (ONGC) has announced plans to establish 10 compressed biogas (CBG) plants through a joint venture with EverEnviro Resource Management Pvt Ltd. The joint venture will be formed on an equal basis.

EverEnviro announced on Thursday that the two companies have signed a preliminary agreement to establish a joint venture.

The company stated that by utilising various feedstocks including agricultural waste, agro-industrial waste, energy crops, and municipal solid waste (MSW), the partnership intends to reduce approximately 7.5 lakh tons of CO2 equivalent annually. However, the statement did not provide specific details regarding investments for the planned CBG plants.

ONGC, India's largest oil and gas producer, is expanding into the non-fossil fuel sector, with plans to establish solar, wind, and biofuel facilities. The company aims to develop renewable projects both independently and in collaboration with other entities. Additionally, ONGC is actively seeking to acquire renewable projects as part of its strategic initiatives.

Satyan Kumar, Executive Director and Chief Corporate Strategy Officer at ONGC, stated, "ONGC has set its sights on achieving net zero emissions by 2038, highlighting the importance of transitioning to clean energy through the utilisation of agro-industrial waste and municipal solid waste."

EverEnviro, established in 2019 by Eversource Capital, specialises in waste management solutions. Eversource Capital, an equal joint venture between investment manager Everstone Group and Lightsource BP, is the parent company of EverEnviro.

EverEnviro is currently overseeing more than 20 CBG projects, with an investment of approximately Rs 2,000 crore. The company aims to establish over 100 CBG plants across India as part of its future plans.

"Our partnership with ONGC marks a significant milestone in our efforts to promote renewable energy production in India," stated Deepak Agarwal, Executive Director of Business Development and Strategy at EverEnviro.

The government has been urging both state-owned and private companies to invest in the CBG business, aiming to reduce India's reliance on natural gas imports. Currently, India imports half of the gas it consumes.

Image source: The Economic Times