Mahanagar Gas Ltd (MGL) and Organic Recycling Systems Ltd (ORSL) have signed a memorandum of understanding (MoU) to tap opportunities in the compressed biogas (CBG) value chain in Maharashtra and Karnataka, Financial Express reported.
The collaboration will focus on evaluating potential CBG projects using agricultural waste, organic food waste and other organic feedstocks. The companies will assess project feasibility, techno-commercial viability, project development opportunities and potential arrangements for CBG offtake.
The partnership aims to combine MGL’s expertise in city gas distribution with ORSL’s capabilities in organic waste processing and CBG project development. Through the collaboration, both companies will explore commercially viable projects and potential opportunities to market the biogas produced.
The initiative could create opportunities to utilise agricultural and organic waste as feedstock for CBG production while supporting the development of the renewable gas value chain in the two states.
However, the MoU is non-binding and does not specify any consideration or definitive investment commitment. Any future commercial arrangements, including engineering, procurement and construction (EPC) contracts, will be subject to feasibility studies, due diligence, mutual agreement, necessary approvals and definitive agreements, wherever applicable.
The proposed collaboration remains at the exploratory stage, with the companies yet to establish specific project investments or implementation timelines.
