VA Tech Wabag Ltd (WABAG), a leading player in the water technology space, has signed an agreement with Peak Sustainability Ventures (PEAK) to build 100 bio-CNG plants using methane generated by its sewage treatment facilities which would otherwise result in higher emissions and pollution.

VA Tech Wabag Limited’s shares were up by 5.22 per cent after the company entered into a Memorandum of Understanding (MoU) with Sustainability Ventures to establish 100 Bio-CNG plants at sewage treatment facilities in India and other agreed-upon locations

The proposed bio-CNG gas plants will be set up across India and other mutually agreed-upon locations in overseas regions such as GCC, Africa, and Europe.

The partnership aims to harness the unutilised potential of sewage treatment plants and to generate bio-CNG which can be used for mobility applications in trucks and heavy-duty vehicles, and industrial applications, thereby reducing the need for fossil fuels, said a statement.

The business potential for establishing 100 bio-CNG plants is estimated at more than $200 million, and this collaboration aims to generate over 73 million kgs of bio-CNG per annum.

This will boost the local and agrarian economies and will also result in employment opportunities while simultaneously providing immense ecological benefits, further empowering the G20 initiative of the Global Biofuel Alliance and enhancing the energy security of the country, it added.

“WABAG is already producing more than 40 MWh of green energy through its various installed plants. With this collaboration, we are taking the next step in our green energy segment to produce cleaner and greener fuel and to support the country’s vision of Atmanirbhar Bharat,” said Shailesh Kumar, CEO-India Cluster at WABAG.

Bio-CNG production from sewage treatment plants is described as an innovative and environmentally-conscious approach, transforming a once-discarded resource into a valuable and versatile energy asset.

“With our deep understanding of the energy space and our global network and relationships, we shall focus on bringing institutional capital to this pioneering initiative and work with WABAG to evaluate innovative technologies globally which can result in higher efficiency, improved process flow, hydrogen extraction and other ways to improve project outcomes,” Samir Shah, Managing Partner of Peak Sustainability Ventures said.

WABAG will play the role of a technology partner and will be responsible for the execution, commissioning and O&M of the bio-CNG plants. PEAK would provide inputs in energy-related areas and assist in raising capital for financing projects at scale.

WABAG has already implemented around 40 large biogas generation facilities in its various projects globally. PEAK manages an Alternative Investment Fund (AIF) which invests across 4 verticals: new energy (renewables, energy storage, waste-to-energy, hydrogen etc.), food systems, water and other climate-related sectors.