ONGC to form an equal JV with EverEnviro to build 10 CBG plants

Oil and Natural Gas Corp (ONGC) will form an equal joint venture with EverEnviro Resource Management Pvt Ltd to build 10 compressed biogas (CBG) plants.

The two companies have signed a preliminary agreement to form a joint venture, EverEnviro said in a statement on Thursday.

“By harnessing diverse feedstocks such as agri waste, agro-industrial waste, energy crops, and municipal solid waste (MSW), the partnership aims to mitigate approximately 7.5 lakh tons of CO2 equivalent annually,” the company said. The statement didn’t offer details on investments for the planned CBG plants.

ONGC, the nation's largest oil and gas producer, is now venturing into the non-fossil fuel business, aiming to set up solar, wind, and biofuel facilities. It plans to build renewable projects independently and in partnership with others. It is also in the market to buy renewable projects.

“ONGC has set sights on being net zero by 2038 and hence we recognize the urgency of transition to clean energy by utilizing agro-industrial waste and municipal solid waste,” said Satyan Kumar, Executive Director, Chief Corporate Strategy, ONGC.

EverEnviro, set up in 2019 by Eversource Capital, offers waste management solutions. Eversource Capital is an equal joint venture between investment manager Everstone Group and Lightsource BP.

EverEnviro is executing more than 20 CBG projects with an investment of about Rs 2,000 crore and aims to build more than 100 CBG plants in the country.

“Our collaboration with ONGC represents a significant milestone in our journey toward advancing renewable energy production in India,” Deepak Agarwal, Executive Director, BD and Strategy, EverEnviro.
The government has been pushing state and private players to invest in the CBG business, which can help cut natural gas imports. India imports half the gas it consumes today.