Thermax Secures Major Order for Bio-CNG Plants, Commits to R&D Growth

Pune-based energy and environment solutions provider Thermax has secured a significant order worth Rs 500 crore to establish five bio-CNG plants for a leading energy conglomerate. This major development was announced during the inaugural Thermax Fest held in the city.

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Massive R&D Investment

In addition to this notable order, Thermax revealed its plans for a substantial increase in research and development (R&D) spending over the next two years. The company intends to allocate its highest-ever amount towards R&D, with a primary focus on sustainability and climate change solutions. Thermax's Chief Executive and Managing Director, Ashish Bhandari, emphasized the importance of exploring innovative solutions to address these critical challenges, even if some ventures may not yield immediate returns.

Bio-CNG Plants Across India

The five bio-CNG plants will be strategically located in Rajasthan, Madhya Pradesh, Maharashtra, and Uttar Pradesh. These plants will have the capacity to produce 110 tonnes of bio-CNG per day, utilizing local feedstock such as rice straw, Napier grass, cane trash, and soya trash. The bio-CNG generated from these plants will be utilized for commercial and captive use by the customer.

Broader Initiatives for Clean Energy

The bio-CNG plants are part of Thermax's broader commitment to introducing solutions centered around biochemicals and bioenergy. The company holds the distinction of being the largest provider of biomass-based green energy solutions for fuel flexibility. Thermax has also invested in a biomass-sourcing supply chain for captive consumption to ensure a consistent supply of biomass fuel.

Furthermore, Thermax is actively pursuing the installation of 1 GW of hybrid renewable energy solutions by the financial year 2027. These projects will encompass both intra-state and inter-state initiatives. Currently, the company manages an operational portfolio of 140 MWp, with an additional 145 MWp under construction, over 300 MW in development, and 400 MW in the pipeline.

Strategic Investments and Future Plans

Thermax has already invested Rs 300 crore in the renewables business over the past 18 months, typically taking a majority stake in projects. However, to accelerate the 1 GW capacity target, the company plans to raise funds from an external investor in its renewables arm, FEPL. Thermax prefers a strategic investor for this transaction, which is expected to take place within a year.

Additionally, Thermax aims to develop gasification plants with carbon capture capabilities to process coal ranging from 100 to 500 TPD. The company is also exploring the development of a green hydrogen front, although the current cost of USD 4 per kilogram presents a challenge.

Thermax's significant order for bio-CNG plants and its commitment to R&D and clean energy initiatives demonstrate the company's dedication to sustainability and innovation. By leveraging its expertise in energy and environmental solutions, Thermax is well-positioned to contribute to India's transition towards a greener and more sustainable future.