Sojitz Corporation has made a strategic investment in a holding entity tied to the joint venture between GPS Renewables Private Limited and Indian Oil Corporation Ltd (IOCL), aimed at advancing biomethane production infrastructure across India. The joint venture, known as the GPSR-IOCL Biomethane Platform, is responsible for the development, construction, operation, and maintenance of biomethane plants nationwide.
Through this partnership, Sojitz marks its entry into India’s biomethane sector and will collaborate with IOC GPS Renewables Pvt. Ltd. (IGRPL), the operating company for these projects. IGRPL plans to commission 30 biomethane facilities by fiscal years 2026–2027, targeting a total production capacity of 160,000 tons per year. The combined investment in these projects exceeds USD 400 million.
Ernst & Young served as the exclusive investment banker for the transaction, while legal advisory was led by Cyril Amarchand Mangaldas under the leadership of Partner Alok Sonkar. Biomethane is derived from the purification of biogas and serves as a cleaner alternative to conventional fossil fuels. It contributes to lower greenhouse gas emissions and promotes a circular economy by converting agricultural waste into energy.
Mainak Chakraborty, CEO and Co-Founder of GPS Renewables, stated: “This collaboration with Sojitz represents a joint commitment to advancing India’s energy independence. As energy demand grows, expanding access to clean fuel alternatives like biomethane is essential. Utilizing agricultural waste not only reduces pollution from stubble burning but also supports sustainable fuel production.”
Sojitz has identified India as a priority market and intends to play an active role in the country’s transition toward cleaner energy sources. As part of its broader green transformation strategy, the company has established a dedicated division focused on renewable energy investments. This latest move strengthens Sojitz’s efforts to address environmental concerns while participating in the expansion of India’s bioenergy sector.
Under this partnership, Sojitz and GPSR will accelerate the rollout of biomethane projects nationwide. GPSR brings extensive expertise in project development, engineering, operations, and maintenance of biofuel facilities. IOCL’s established customer network will support the large-scale distribution of the produced biomethane. Looking ahead, Sojitz will also explore opportunities to introduce GPSR’s biomethane technology in international markets to broaden its bioenergy footprint.
Formed through the merger of Nichimen Corporation and Nissho Iwai Corporation, Sojitz has over 160 years of experience in global trade and investment. The company operates approximately 400 subsidiaries and affiliates around the world. Sojitz conducts a diverse range of businesses spanning automotive, infrastructure, energy solutions, healthcare, chemicals, consumer industries, and retail, through a seven-division organizational structure.
Headquartered in Bengaluru, GPS Renewables is a leading biofuels company that provides end-to-end solutions for renewable gas projects. Initially focused on biogas, the company has expanded to build some of the largest renewable natural gas (RNG) plants globally. In 2022, GPSR launched GPSR Arya Pvt Ltd to develop Build-Own-Operate (BOO) biofuel projects, reinforcing its long-term climate impact strategy.
