Sojitz Corporation Joins Hands with GPS Renewables and Indian Oil to Boost Biomethane Production in India Through this strategic investment, Sojitz will foray into biomethane production and sales in India, marking a pivotal step in its Green Transformation (GX) business initiatives.
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In a significant move towards advancing India's clean energy landscape, Japan-based Sojitz Corporation has invested in the holding structure of the special purpose company jointly established by GPS Renewables Pvt. Ltd. (GPSR) and Indian Oil Corporation Ltd. (IOCL). The entity—IOC GPS Renewables Pvt. Ltd. (IGRPL)—will spearhead the development, operation, and maintenance of biomethane plants across India.
Through this strategic investment, Sojitz will foray into biomethane production and sales in India, marking a pivotal step in its Green Transformation (GX) business initiatives. IGRPL aims to build 30 biomethane plants by FY 2026–2027, with a combined production capacity of 160,000 tons annually. The total project outlay exceeds USD 400 million.
Biomethane, a purified form of biogas, serves as a sustainable and cleaner alternative to fossil fuels. It not only curbs greenhouse gas emissions but also supports a circular economy by utilising agricultural waste.
"Sojitz and GPSR group have a shared vision of improving India's energy self-sufficiency," said Mainak Chakraborty, CEO and Co-founder of GPS Renewables. "As the country's energy demand continues to rapidly grow, it's crucial for us to prioritize biofuels and find ways to reduce our dependence on fossil fuels. This collaboration with Sojitz is a step towards increasing the production of cleaner sources of energy while reducing air pollution caused by the open burning of agricultural waste."
Sojitz, recognising India as a key strategic market, has set up a dedicated GX organisation to drive its renewable energy initiatives. "Our investment reflects our long-term commitment to contribute to India's renewable transition. Biomethane presents a promising opportunity to address energy demand and environmental concerns simultaneously," a Sojitz spokesperson noted.
The partnership will leverage GPSR's proven technological and operational expertise, IOCL's robust distribution network, and Sojitz's global renewable experience. Additionally, Sojitz plans to explore biomethane opportunities beyond India using GPSR's technology.
EY acted as the exclusive M&A investment banker for the transaction, while Cyril Amarchand Mangaldas, led by Partner Alok Sonkar, served as the legal advisor to GPS Renewables.
This collaboration represents a strong push toward a greener, more sustainable energy future for India and potentially, beyond.
