TruAlt Bioenergy is rapidly emerging as a key player in India's renewable energy sector, driving the nation's transition towards sustainable fuels and contributing significantly to the circular economy. The company focuses on converting waste into valuable resources like ethanol and compressed biogas (CBG), aligning with the Indian government's initiatives to promote bioenergy and reduce reliance on fossil fuels.
A significant development in TruAlt Bioenergy's journey is the recent authorization as an Oil Marketing Company (OMC). This milestone empowers the company to market and retail petroleum products, along with clean fuels like ethanol and Bio-CNG, directly across the country. As part of its OMC obligations, TruAlt Bioenergy is committed to establishing at least 5% of its retail outlets in remote areas, ensuring energy access to underserved communities and supporting the government's last-mile connectivity goals. Initially, the company plans to launch over 100 fuel stations in Karnataka and Maharashtra, creating a retail network that offers both conventional and blended fuel options. This expansion is projected to generate over 2,000 employment opportunities in both urban and rural areas.
TruAlt Bioenergy has secured a substantial order worth ₹390 crore from major oil marketing companies (OMCs) for the supply of 6 crore liters of 1G Bioethanol over three months, from August to October 2024. This order represents approximately 10% of the total allocated quantity, highlighting TruAlt's strong supply capabilities. The company has an installed capacity of 14 lakh liters per day for 1G Bioethanol and 10,200 kg per day for CBG production. Further expansion plans include increasing the 1G Bioethanol capacity to 20 lakh liters per day, incorporating dual feed integration to utilize maize and damaged grains for ethanol production. TruAlt Bioenergy also aims to establish at least 24 CBG plants across the country.
In a strategic move to expand its biogas ventures, TruAlt Bioenergy has partnered with Sumitomo Corporation Asia & Oceania (SCAO). The collaboration will focus on developing bioenergy projects in key areas such as Biogas, CBG, 1G Ethanol, 2G Ethanol, Sustainable Aviation Fuel (SAF), and biochemicals derived from the sugar value chain. The partnership will also explore carbon credit initiatives, aligning with the shared vision of promoting environmental sustainability and innovation in India's bioenergy sector. This partnership is particularly significant as India strives to achieve its renewable energy targets, including 500 GW of non-fossil fuel energy capacity and 50% renewable energy consumption by 2030.
TruAlt Bioenergy's subsidiary, Leafiniti Bioenergy Private Limited, has achieved a milestone by supplying over 1,000 tons of CBG to AGP City Gas Private Limited (AG&P) within five months. This achievement underscores the company's commitment to India's bioenergy goals and its contribution to sustainable energy solutions. To further enhance CBG production, Leafiniti Bioenergy has entered into a non-binding term sheet with GAIL (India) Limited to establish 10 new CBG plants, representing an investment of approximately ₹600 crores.
To further fuel its growth, TruAlt Bioenergy has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The IPO includes a fresh issue of ₹750 crore and an offer for sale of up to 36 lakh equity shares by existing shareholders. The funds raised from the fresh issuance will be utilized for capital expenditure, including setting up multi-feedstock operations, bolstering working capital, and general corporate purposes. In fiscal year 2024, TruAlt reported revenues of ₹1,223.40 crore and a profit after tax of ₹31.81 crore.
