New Delhi: The board of state-run Indian Oil Corporation (IOCL) on Friday approved joint ventures with EverEnviro Resource Management Pvt Ltd and GPS Renewables Pvt Ltd to set up compressed biogas (CBG) plants.

In a regulatory filing, the oil marketing company (OMC) said both joint ventures require approval from NITI Aayog and the Department of Investment and Public Asset Management (DIPAM), among others.

The board on Friday approved the “formation of a 50:50 joint venture company in India between EverEnviro Resource Management Pvt. Ltd. and Indian Oil or its wholly owned subsidiary, subject to approval from NITI Aayog, DIPAM etc. for setting up of compressed biogas plants.” Similarly, the joint venture with GPS Renewables will also be formed with IOCL or a subsidiary of Public Sector Major.

The joint ventures will strengthen IOCL’s presence in the CBG space. In its annual report for FY23, the company said IOCL is spearheading the promising SATAT initiative, which aims to increase the availability of biofuels as a viable eco-friendly automotive option while reusing organic waste and strengthening rural economies.

By the end of 2022/23, IOCL had commissioned 22 CBG plants and was offering biogas through 46 Indigreen outlets. It said that a 200 tonne per day (TPD) plant has been set up in Gorakhpur that utilizes agricultural crop residues and provides an environment-friendly solution for paddy straw disposal. In Hingonia, near Jaipur, a 100 tonnes per day cattle dung-based CBG plant has been set up at the Hingonia Cattle Rehabilitation Centre.

Indian Oil has been exploring alternative energy joint ventures to achieve net zero by 2046. Last month, the joint venture was formed with ReNew and L&T for a green hydrogen company called ‘GH4India Pvt Ltd’. In March, the company signed an agreement with NTPC Green Energy Limited to set up renewable energy projects to meet the 24×7 power needs of IOCL refineries.

At its 64th annual general meeting last month, CMD Shrikant Madhav Vaidya said the oil marketing company would invest $30 billion in its green initiatives.

This investment will be used strategically to advance a range of comprehensive environmental sustainability measures across the company’s extensive operations, he said.

Shares of Indian Oil on the BSE closed at ₹90.92, 1.24% higher than the previous close.