In a strategic move toward enhancing sustainable energy practices and advancing the bio-economy in India, GAIL (India) Ltd has signed a memorandum of understanding (MoU) with the US-based Petron Scientech Inc. The agreement focuses on exploring the establishment of a 500 kilo ton per annum (KTA) bio-ethylene plant and its downstream units in India through a joint venture (JV). This collaboration marks a significant step in the country’s efforts to promote clean energy and reduce carbon emissions.

Details of the MoU

The non-binding MoU was signed on Wednesday by Sumit Kishore, Executive Director (Business Development and Exploration and Production) at GAIL, and Yogi Sarin, Chief Executive of Petron. According to the statement released by GAIL, the two companies will jointly conduct feasibility studies to evaluate the technical viability and financial prospects of the project. Both parties aim to secure investment approval from their respective management teams and formalize the joint venture.

Importance of the Collaboration

This partnership between GAIL and Petron Scientech is pivotal in advancing India’s bio-economy. The collaboration leverages the expertise and strengths of both companies, creating a synergy that aligns with India’s broader environmental goals. As part of its sustainability strategy, GAIL has diversified its portfolio to include cleaner fuels and renewable energy, reflecting its commitment to the country’s net-zero target.

GAIL’s Commitment to Renewable Energy

GAIL, a public sector major focusing on natural gas transmission and distribution, has made significant strides in adopting sustainable energy practices. In June 2024, GAIL announced its decision to advance its target of completely eliminating carbon emissions by five years, now aiming for 2035. This ambitious goal will be achieved through various approaches, including the electrification of processes, the use of renewable energy, and the development of green hydrogen.

In May 2024, GAIL commissioned its first green hydrogen plant in Madhya Pradesh. Additionally, the company is setting up around 20 megawatts of solar power facilities at its plant in Vijaipur, Madhya Pradesh, further demonstrating its commitment to clean energy. GAIL’s focus on sustainable practices is also evident in its plans to adopt battery energy storage systems, compressed biogas, and afforestation.

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Financial Performance

For the first quarter of FY25, GAIL reported a 77.5% year-on-year increase in its consolidated net profit, reaching ₹3,183 crore. This strong financial performance underscores the company’s robust business model and its ability to generate significant profits while pursuing sustainable energy initiatives.

About Petron Scientech

Headquartered in New Jersey, Petron Scientech Inc. specializes in setting up biomass and grain processing biorefinery projects to produce ethanol, bio-ethylene, bio-chemicals, and various bio-fuels. With branches in Portugal and India, as well as a technology and R&D hub in the UAE, Petron Scientech is at the forefront of innovation in the bio-economy sector.

Conclusion

The MoU between GAIL and Petron Scientech represents a significant milestone in India’s journey toward a sustainable future. By focusing on the development of a 500 KTA bio-ethylene plant, this partnership not only advances the country’s bio-economy but also reinforces its commitment to achieving net-zero carbon emissions by 2035. As GAIL continues to invest in renewable energy and green technologies, this collaboration with Petron Scientech is poised to play a crucial role in shaping India’s energy landscape for the better.

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