IOC-GPS Renewables Secures $95M for 9 Biogas Plants

This Diwali, IOC GPS Renewables Private Ltd (IGRPL) secured $95 million in debt funding from an Indian bank, a major boost to India's clean energy goals.

The largest single-bank loan in India's compressed biogas (CBG) industry was raised by the joint venture between Indian Oil Corporation (IOC) and GPS Renewables. In order to produce renewable natural gas and lessen stubble burning, a significant source of air pollution, the money will be utilized to build nine CBG units in four states utilizing paddy straw as feedstock.

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Parag Parikh, CEO of GPSR Arya and Group CFO of GPS Renewables, said the funding demonstrates strong investor confidence in India’s circular economy. “When we ventured into this, we looked at tying up and achieving financial closure for these nine projects, and we received very encouraging interest,” he said. The deal is notable for being the first fully non-recourse loan in the sector, reflecting the viability and credibility of the projects.

The nine facilities, three in Uttar Pradesh, four in Haryana, and one in each of Chhattisgarh and Andhra Pradesh, will process roughly 15 tonnes of paddy straw every day, for a daily total of 135 tonnes. Parikh explained the technology behind the plants, saying,

“The lignin component of the paddy straw is processed through anaerobic digestion technology. Through this process, compressed biogas is produced.” The partnership leverages GPS Renewables’ technology expertise and IOC’s operational strength, giving the financing sector confidence in the project model.