Infistar, Finland’s Arciplug form JV to build small biogas plants

Infistar Renewables and Finland's Arciplug Oy have launched a 50:50 joint venture, Arcistar Bioenergy, to make factory-built modular reactors for small compressed biogas (CBG) plants. The venture will invest ₹50 crore initially…

The Story in Brief

Infistar Renewables and Finland's Arciplug Oy have launched a 50:50 joint venture, Arcistar Bioenergy, to make factory-built modular reactors for small compressed biogas (CBG) plants. The venture will invest ₹50 crore initially in a demonstration plant in Gandhinagar, Gujarat, designed to process over 100 types of feedstock including farm waste and municipal solid waste into CBG. The modular units can be commissioned in four to five months, compared to 12-18 months for conventional plants, and produce 20-50% more methane while using 35% less electricity. Each plant will use Napier grass cultivated on 60 acres, with biogas sold under a 15-year offtake deal to the local city gas distributor. The JV aims to sell 150 reactors across India in five years, targeting MSMEs and private firms. India's CBG market, currently worth ₹8,000-9,000 crore, is projected to reach ₹25,000-30,000 crore by 2032, company officials said.

The Indian Opinion

Some talk up India's biogas boom as if modular reactors are a magic fix, but the real test is whether farmers and small firms will actually supply consistent feedstock and pay for the gas. The ₹50 crore Gandhinagar demo is tiny against an ₹8,000-9,000 crore market. Until we see a half-dozen such units running profitably for three years, the hype of '30,000 crore by 2032' remains just that, hype. The first concrete number to watch is not the market size, but how many tonnes of Napier grass buyers commit to in firm contracts.


Source: thehindubusinessline.com

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