Mumbai, February 20, 2024: Bajaj Hindusthan Sugar Limited (Bajaj Sugar) and EverEnviro Private Limited have partnered to establish CBG (compressed biogas) plants in Uttar Pradesh. Bajaj Sugar presently generates approximately 500,000 M.T. of press mud annually from its 14 operational sugar mills, which could potentially support the setup of CBG plants with a total capacity of 70 M.T. per day. Bajaj Sugar is one of Asia's largest crushing capacity owners and globally one of the largest.
On the development, Bajaj Group Chairman, Mr. Kushagra Bajaj’s office said, “Bajaj Group has been in business for more than 90 years now and the focus has always been on nation building. The Government of India and Government of Uttar Pradesh has been promoting and encouraging setting up of CBG plants and production of CBG as renewable gas in line with country’s objective to reduce dependency on fossil fuels. CBG is an eco-friendly fuel derived from various waste streams. Press-mud from sugar mills is one such main by-product that Bajaj Sugar aims to utilise to produce green energy.”
EverEnviro is currently India's largest CBG player, with operational projects and projects under commissioning in multiple states.
Emphasizing on the significance of this partnership, Mr. Mahesh Girdhar, MD and CEO of EverEnviro Resource Management Pvt Ltd, said, “Our partnership with Bajaj Hindusthan Sugar Limited is a significant milestone in our journey towards sustainable energy solutions. Through this alliance, EverEnviro will leverage its expertise to develop, operate, and scale up CBG projects across Uttar Pradesh. The steady supply of press mud from Bajaj Hindusthan's sugar mills will significantly boost the CBG production capacity of our plants. Furthermore, the fermented organic manure produced as a byproduct of CBG will promote regenerative agriculture, enhancing soil health and fertility in the region. This initiative aligns perfectly with our nation's objective of reducing fossil fuel dependency and promoting environmental sustainability.”
Under the bilateral arrangement with EverEnviro, Bajaj Sugar will have the option to either sell press mud at predetermined long-term prices and/or take equity in the CBG plant project alongside EverEnviro.
Leveraging its experience of operating in Uttar Pradesh, Bajaj Sugar will pursue a mixed strategy to realize partial value for its press mud as a fixed value in cash and partial value by taking equity in the CBG project. This signifies a development in Bajaj Sugar's business strategy, expanding its portfolio to include another green fuel alongside Ethanol, contributing to a sustainable revenue model.
