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Reliance Industries and DBS Bank India Join Forces for CBG Expansion

Reliance Industries aims to set up approximately 100 CBG plants over the next five years, utilizing agricultural residue and organic waste.

December 15, 2023. By Abha Rustagi

Reliance Industries Limited and DBS Bank India have embarked on a collaborative venture to boost the Compressed Biogas (CBG) sector in India. This strategic partnership aims to promote sustainable practices in energy production by investing significantly in countrywide infrastructure for the production and distribution of CBG.

Reliance Industries aims to set up approximately 100 CBG plants over the next five years, utilizing agricultural residue and organic waste.

The CBG industry, inherently linked to agriculture and subject to seasonal variations, presented challenges that required DBS Bank India to customize the standard supply chain financing model. The innovative funding structure introduced by DBS Bank India will support the development of an ecosystem for vendor partners to aggregate agricultural residue for Reliance's CBG production plants across the country.

Rajat Verma, Managing Director and Head of Institutional Banking at DBS Bank India, emphasising the significance of green energy initiatives, said, "India's green energy sector, which includes solar and wind, as well as emerging areas like biogas, will be one of the key pillars of the country’s net-zero strategy. Bold initiatives like the Compressed Biogas plants, spearheaded by Reliance Industries, are an important step forward to reduce dependance on fossil fuels. Transition financing plays a crucial role in enabling businesses to identify and scale new technologies that can accelerate the path to decarbonisation. DBS Bank India is proud to partner with Reliance Industries to empower the journey to a sustainable future through innovative, responsible banking solutions.”

Harindra K Tripathi, Head of Bio-energy Business at Reliance Industries Limited, highlighted the positive impact of CBG plants on mitigating carbon emissions and producing Fermented Organic Manure (FOM), enhancing soil fertility and reducing reliance on chemical fertilizers.

The movement towards biofuels aligns with India's clean energy shift, driven by regulations incentivizing biomass to meet international emission reduction commitments. The Global Biofuel Alliance, launched during India's G20 presidency, aims to cultivate markets for sustainable biofuels, with Reliance's CBG project poised to play a pivotal role in this strategy.

Reliance Industries Limited is establishing world-class biogas facilities in Uttar Pradesh, utilizing surplus agro residue and organic waste. These facilities will connect to a network of biogas dispensing stations operated by Reliance Jio BP. The flagship CBG production facility in Barabanki is expected to significantly cut down CO2 emissions, showcasing Reliance's commitment to leading India's bioenergy transformation.

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