Reliance Industries, DBS Bank Partner for CBG Project Financing
Reliance Industries Ltd has collaborated with DBS Bank India to introduce a financing initiative targeted at compressed biogas (CBG) facilities. This financial arrangement aims to foster ecosystem development for vendor partners involved in aggregating agricultural residues for use as inputs in Reliance's Compressed Biogas (CBG) production plants throughout India. The company mentioned that the funding structure will be tailored to optimize logistics, ensuring competitiveness in this emerging stream while achieving increased commercial scale.
India generates a significant volume of agricultural residue, typically burned due to the absence of necessary processing infrastructure and logistical support. The agricultural residue supply chain has been disorganized thus far, lacking adequate incentives and financial support for farmers and aggregators.
"Recognizing this as a crucial aspect in their net-zero strategy, Reliance Industries aims to invest nationwide in producing CBG, serving as a domestic substitute for imported CNG and other fossil fuels", the company stated. They highlighted that while CBG technology has progressed, its commercialization requires the development of fresh infrastructure and engagement with the value chain involving farmers across various states.
RIL has outlined plans to establish approximately 100 CBG plants within the next five years, utilizing over 5.5 million tonnes per annum of agricultural residue and organic waste. This initiative is expected to result in an estimated annual reduction of nearly 2 million tonnes of carbon dioxide emissions.