Companies

Global energy major Shell makes Series-B funding in PRESPL

Rahul Wadke Mumbai | Updated on August 29, 2019 Published on August 29, 2019

Shell along with SBI Ventures Neev Fund made a 55 crore PE investment in the Mumbai based bio-energy company- PRESPL

Global energy major Shell, along with SBI Ventures Neev Fund has jointly made a Series-B funding of Rs 55 crore in Mumbai based bio-energy company- PRESPL.

This is the first investment of the Anglo-Dutch behemoth in Indian a bio-energy firm, and has been directly cleared by the Shell management in the Netherlands. Shell clocked $ 388.4 billion in revenues for 2018.

Given PRESPL's expertise in handling agriculture generated biomass, the investment is expected to tackle the issue of winter stubble burning in a small way.

PRESPL, which stands for Punjab Renewable Energy Systems Pvt. Ltd has a defined strategy for biomass aggregation and logistics. It also has a long experience in briquetting industry and running co-generation power plants. It has created business models for handling a biomass supply of over 1,000 metric tonnes per day. The business is expected to scale-up to nearly 10,000 metric tonnes per day by 2022.

Every winter, framers in Punjab, Haryana and Uttar Pradesh burn leftover stubble after paddy is harvested. Such a practice is meant for preparing the field for the new crop But it creates worst pollution for the Delhi-NCR. Year after year the entire region in the grip of haze and smog, causing huge health problems for the locals and disturbing vehicular traffic.

In a press statement, Chairman of Shell group of companies in India, Nitin Prasad said that “these partnerships will help deliver the solutions, which the society needs for meeting energy demand along with reducing carbon emissions. Shell is keen to play an active role in the energy transition in India, supporting economic growth with cleaner energy solutions,” he said.

Managing Director of PRESPL, Monish Ahuja told BusinessLine the funds would be used in North and Central India for converting the crop residues into a value-added product such as briquettes and pellets, which is a replacement of fossil fuels such as coal and furnace oil in boilers and steam generators. The steam generated from these green sources would be sold as service to industries, which require steam for their industrial processes,

“PRESPL will set up and maintain the equipment in the industrial units of other companies and sell the steam as a service. The funds would also be used for providing supplying chain equipment such as balers to the farmers, which will help them scientifically collect the agriculture waste and bring it out of the fields,” he said.

Along with the investment, Shell will also help in following its global business and technology practice, which will help PRESPL to develop as a robust energy company, Ahuja added.

Published on August 29, 2019
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