Reliance Industries Limited (RIL) has partnered with DBS Bank India to promote the Compressed Biogas (CBG) project, aiming to set up approximately 100 CBG plants across India over the next five years. This initiative will utilize agricultural residue and organic waste, helping to reduce the country’s reliance on fossil fuels and contributing to its net-zero strategy. The partnership is a significant step toward decarbonization and sustainable energy practices.
Key highlights of the initiative include:
- CBG Production and Environmental Impact: The initiative plans to use over 5.5 million tonnes per annum of agricultural residue and organic waste, leading to a projected reduction of nearly 2 million tonnes of carbon dioxide emissions annually. The flagship CBG production facility in Barabanki, Uttar Pradesh, is expected to cut down CO2 emissions by 40,000 tonnes annually, comparable to the carbon absorption of a 15,000-acre rainforest.
- Sustainable Development Goals: These biogas facilities align with India’s clean energy shift and are part of the larger global effort to cultivate markets for sustainable biofuels. The Global Biofuel Alliance, launched during India’s G20 presidency, highlights this commitment.
- Economic and Agricultural Benefits: The initiative is expected to benefit the local agricultural economy by providing farmers with an additional revenue stream. It will also help avoid penalties linked to the burning of residue, which is a major contributor to air pollution.
- Customized Financing Model: DBS Bank India has customized the standard supply chain financing model to support this project. The financing will enable the development of an ecosystem for vendor partners to aggregate agricultural residue as inputs for the CBG production plants.
- Role of DBS Bank India: DBS Bank India’s role is crucial in providing innovative, responsible banking solutions that support the transition to green energy. The bank’s expertise in supply chain financing and its extensive Asian network play a vital role in enabling this initiative.
- Reliance’s Commitment to Bioenergy: Reliance Industries is aggressively pursuing this project as part of its larger goal of sustainable development and clean energy transition.
The collaboration between Reliance Industries and DBS Bank India represents a significant advancement in India’s journey towards sustainable and renewable energy sources. It not only addresses environmental concerns but also promotes economic development and supports the agricultural sector.