GAIL (India) will invest about Rs 5,000 crore to build a portfolio of at least one GW of renewable energy and set up compressed biogas as well as ethanol plants. GAIL will be laying pipeline infrastructure to connect consumption centres to gas sources and spend as much as Rs 4,000 crore on renewable energy. Also, it plans to set up ethanol units that can convert agriculture waste or sugarcane into less polluting fuel that can be doped in petrol, helping cut India’s import dependence.
GAIL will bid for 400 MW solar power capacity being auctioned by the Solar Energy Corporation of India (SECI) in Rewa, Madhya Pradesh. GAIL has signed up with state-run power gear maker Bharat Heavy Electricals (BHEL) for renewable energy foray. The tie-up looks to leverage the competitive strengths of both companies. GAIL will be the project developer and BHEL will be a project manager and EPC contractor.
GAIL is setting up its first compressed biogas (CBG) plant in Ranchi at a cost of Rs 200-300 crore. The facility will produce five tonne of CBG per day and approximately 25 tonne of bio-manure using municipal waste. The gas produced will be fed into the city gas network supplying CNG to automobiles and piped natural gas to households. This will help reduce pollution. GAIL has floated an expression of interest (EoI) seeking partners to set up CBG plants. It also plans to set up an ethanol manufacturing unit.
GAIL recently signed an agreement with Carbon Clean Solutions. Under this, CCSL will initially build four CBG plants using its own funding, technology and expertise. These plants will be based on 10 year CBG off-take agreements with GAIL or its associated companies.