GAIL Invests ₹130 Million in TruAlt Bioenergy Subsidiary

TruAlt Bioenergy Limited has announced a strategic investment of ₹130 million by GAIL (India) Limited in its subsidiary, Leafiniti Bioenergy Private Limited (LBPL). This investment is pursuant to a Share Subscription-cum-Shareholders’ Agreement executed on August 11, 2025. Under this agreement, GAIL will acquire a 49% equity stake in Leafiniti, while TruAlt will retain a 51% stake. The investment is aimed at advancing TruAlt’s Compressed Biogas (CBG) portfolio and strengthening its role in India’s energy transition.

The financial terms of the agreement specify that GAIL will invest an aggregate amount of ₹130 million towards the subscription of equity shares in Leafiniti. This capital is designated for deployment in new CBG projects. The investment structure reflects a balanced partnership, with defined project approvals and governance mechanisms to ensure disciplined capital allocation and phased scale-up of the clean gas portfolio.

The operational scope of the joint venture includes establishing multiple greenfield CBG plants across Karnataka, Maharashtra, and Odisha. In its first phase, the venture will roll out six state-of-the-art greenfield plants, each with a capacity of 12 tonnes per day. These plants will primarily utilize residues from sugar mills, delivering a combined annual output of 23,976 tonnes of CBG. Additionally, the facilities will produce 97,902 tonnes of Fermented Organic Manure (FOM) and 4,70,862 tonnes of Liquid Fermented Organic Manure (LFOM) annually.

The implementation of the joint venture will occur in phases, with the first phase focusing on the rollout of the six greenfield plants. The timeline for the completion of these plants and the subsequent phases has not been specified in the filing. However, the phased rollout is designed to scale rapidly and deliver measurable environmental, economic, and social outcomes.

The entities involved in this strategic partnership are TruAlt Bioenergy Limited and GAIL (India) Limited. TruAlt brings expertise in bioenergy production, while GAIL contributes its extensive gas infrastructure and market reach. The collaboration aims to leverage TruAlt’s access to feedstock and experience in operating CBG plants with GAIL’s gas marketing expertise and vast gas pipeline network.

This investment and collaboration are significant within the context of India’s clean energy roadmap. The joint venture aligns with the Government of India’s initiatives to establish thousands of CBG plants nationwide. The partnership is expected to contribute to reducing fossil fuel displacement and methane emissions, supporting India’s climate commitments.

GAIL (India) Limited is a state-owned natural gas processing and distribution company. It plays a crucial role in India’s energy sector, focusing on gas marketing, transmission, and distribution. GAIL’s strategic investments and partnerships aim to enhance energy security and support the country’s transition to cleaner energy sources.

TruAlt Bioenergy Limited is a leading biofuels company in India, specializing in bioenergy production. The company is committed to delivering sustainable energy solutions and has been a pioneer in India’s bioenergy transition. TruAlt is focused on expanding its CBG portfolio and exploring advanced biofuels and low-carbon energy solutions.