#India #Biogas #Delhi #Sojitz

Sojitz Expands into India's Biogas Market

Sojitz Corporation has taken a significant step towards a sustainable future by entering the biogas production and sales sector in India. The company will invest in a special purpose company called IOC GPS Renewables Pvt. Ltd. (IGRPL), established through a partnership with GPS Renewables Private Limited (GPSR), which focuses on designing, constructing, and operating biogas plants. With this strategic move, Sojitz aims to significantly contribute to bio-methane production in one of the world’s most rapidly growing energy markets.

The IGRPL Initiative

IGRPL is set to develop and operate biogas plants utilizing agricultural waste and other raw materials. The ambitious plan is to bring 30 biogas plants online from fiscal years 2026 to 2027, collectively producing and selling around 160,000 tons of biogas annually. The total projected investment in this venture exceeds $400 million. Sojitz and the GPSR Group will focus on addressing the growing energy needs in India, contributing to improved energy self-sufficiency while also tackling air pollution caused primarily by the open burning of agricultural waste, thus enhancing the livelihoods of local farmers.

What is Biogas?

Biogas is produced from the breakdown of agricultural and urban waste in an anaerobic environment by microorganisms. This process generates bio-gas, a mixture of methane and carbon dioxide, which is then refined to increase its methane purity. As a cleaner energy source, biogas can significantly reduce greenhouse gas emissions compared to traditional fossil fuel-derived gases.

India’s Energy Landscape

India ranks as the third-largest energy consumer globally, trailing only the United States and China. Projections indicate that by 2040, India's primary energy usage will be comparable to that of the U.S. However, approximately 70% of the energy consumed currently comes from fossil fuels like coal and oil. In light of this, the Indian government is pushing for the proliferation of domestic biofuels such as bio-methane sourced from agricultural waste, aimed at boosting energy self-sufficiency in the country.

The Collaboration's Synergy

Through this investment, Sojitz will leverage GPSR’s extensive knowledge in biogas production processes, cutting-edge proprietary technologies, and the company's established expertise in the design, construction, operation, and maintenance of such plants. The established networks between IOCL and gas consumers will also facilitate rapid deployment of biogas production operations nationwide.

Sojitz plans to explore expanding biogas production and sales in other regions while considering further ventures into bio-energy business opportunities both domestically and internationally.

Strategic Focus on Green Transformation

In its mid-term management plan for 2026, Sojitz aims to address market needs and capture growth opportunities, with India being a central focus. The company has also established a specialized organization to strategically enhance Green Transformation (GX) initiatives, actively allocating resources towards projects that contribute to GX. This approach seeks to balance achieving a carbon-neutral society with enhancing Sojitz's profitability and corporate value.

As a leader in the energy sector, Sojitz's focus on sustainable practices is poised to make a significant impact not only on India's energy landscape but also on global environmental efforts as they work towards a greener and more prosperous future.