Japanese trading house Sojitz plans to enter the biomethane market in India by repurposing discarded rice straw, marking its first venture into the renewable gas sector.
Sojitz will invest in a joint venture between state-owned Indian Oil and local producer GPS Renewables, with total project costs expected to exceed $400 million. The partnership aims to build 30 production facilities across India by fiscal 2027, eventually expanding to 100 sites by 2030.
The facilities will collect rice straw that farmers typically discard or burn, fermenting and refining it to produce biomethane. When fully operational, the initial 30 plants are projected to yield 160,000 tonnes of biomethane annually – enough to supply several hundred thousand households.
This initiative addresses multiple challenges simultaneously. It provides farmers with additional income while reducing air pollution from open-field burning of crop residue. The biomethane will be distributed for household use and as fuel for compressed natural gas vehicles.
The project aligns with India’s energy needs as it experiences rapid economic growth. The International Energy Agency forecasts the country’s natural gas consumption will surge approximately 60% by 2030 compared to 2023 levels. India currently imports nearly half its natural gas from the Middle East and the U.S.
