Gas transmission & marketing company and VERBIO India sign MoU to develop agricultural residue-based CBG projects
The stock is up by 80 per cent from its 52-week low of Rs 116.20 per share and gave multibagger returns of 140 per cent in 2 years.
GAIL (India) Limited and VERBIO India Private Limited today signed a Memorandum of Understanding (MoU) to jointly explore the establishment of Agricultural Residue-based Compressed Biogas (CBG) plants in India. The MoU was signed in the presence of Shri Sandeep Kumar Gupta, C&MD, GAIL, functional Directors of GAIL and Shri Claus Sauter, Founder / CEO, VERBIO Group.
Shri Sumit Kishore, Executive Director (Business Development and Exploration & Production), GAIL and Shri Ashish Kumar, Managing Director, VERBIO signed the MoU. This collaboration aims to leverage the strengths of both companies to promote sustainable energy solutions and enhance the utilization of agricultural waste.
Under the terms of the MoU, the parties intend to work together to identify suitable locations for setting up greenfield Agri Residue-based CBG plants in a Joint Venture (JV) mode. The parties envisage undertaking feasibility studies of the identified Projects. Based on the outcome of the studies, the parties will secure investment approval from their respective management for investment in the project(s) and forming a JV company. Further, in line with the MoU, GAIL may explore the possibility of acquiring equity in the existing CBG plant of VERBIO in the State of Punjab.
About VERBIO: VERBIO is a leading bioenergy producer with a presence across Europe, North America and Asia. VERBIO produces biofuels viz. Biodiesel, Bioethanol and Renewable Natural Gas (RNG), feed, fertilizers as well as high-quality renewable ingredients for the pharmaceutical, cosmetics, chemical and food industries. VERBIO is amongst the world’s largest producers of RNG with 100% of its RNG based on Agriculture residues. VERBIO is a public company listed in the German SDAX. The company was founded in 2006 and has its administrative headquarters in Leipzig, Germany. In India, VERBIO has set up India’s largest Agri-residue-based CBG plant with a production capacity of 33 Tons Per Day (TPD) in Punjab.
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About GAIL (INDIA) LTD: GAIL is India’s leading gas transmission & distribution company with extensive gas transmission and distribution pipelines in the country, LPG extraction plants and a gas-based petrochemical plant besides upstream oil and gas blocks and interests in LNG terminals in India. GAIL also has a global presence and business interests in the USA, Singapore, Myanmar, Russia, China and Egypt. Further, GAIL is pursuing business opportunities in the entire value chain of renewable energy, and other clean energy ventures including Green Hydrogen and Biofuels.
The company has a market cap of over Rs 1.35 lakh crore. The stock is up by 80 per cent from its 52-week low of Rs 116.20 per share and gave multibagger returns of 140 per cent in 2 years. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.