Trualt Bioenergy Limited (TBL) has announced a significant partnership with Japan-based Sumitomo Corporation, marking a pivotal milestone in accelerating India's compressed biogas (CBG) ecosystem. This collaboration aims to develop and scale a robust network of commercial CBG plants, strengthening India's clean energy transition and promoting circular bioeconomy solutions.

Key Partnership Details

The partnership involves the following key elements:

• Joint Venture Agreement (JVA): TBL has entered into a JVA with Sumitomo Corporation and Trualt Gas Private Limited (TGPL).
• Share Purchase Agreement (SPA): TBL has signed an SPA with Sumitomo Corporation, Nirani Holdings Private Limited, and TGPL.
• Ownership Structure: TBL will hold a 51% stake in TGPL, while Sumitomo Corporation will acquire the remaining 49% from Nirani Holdings Private Limited.
• Board Composition: TGPL's board will consist of five directors - three nominated by TBL and two by Sumitomo Corporation.

Project Scope and Objectives

The joint venture plans to:

• Develop and set up biogas and CBG production plants
• Initially focus on four CBG production facilities
• Undertake sales and distribution of CBG and associated by-products
• Produce value-accretive by-products such as fermented organic manure, biogenic CO₂, and carbon credits

Strategic Importance

This partnership is expected to:

• Facilitate large-scale adoption of clean energy solutions
• Reduce carbon footprint
• Promote a circular economy in line with the Government of India's CBG and renewable energy policies
• Combine TruAlt's integrated bioenergy expertise with Sumitomo Corporation's global industrial experience

Financial Aspects

• Share Transfer: Nirani Holdings Private Limited will transfer its 49% stake in TGPL to Sumitomo Corporation at Rs. 24.00 per equity share.
• Valuation: The share price is based on a Fair Market Value assessment by an independent registered valuer.

Additional Developments

IPO Success

TBL recently completed its IPO, which was oversubscribed by 75.02 times. The company allotted 1,51,20,967 equity shares at Rs. 496.00 per share, raising approximately Rs. 750.00 crore.

Expansion Plans

• TBL is in talks with the Andhra Pradesh Economic Development Board to set up an Ethanol to Sustainable Aviation Fuel (SAF) plant with an investment of Rs. 2,250.00 crore.
• The company has entered into an agreement with Gas Authority of India Limited (GAIL) for potential investment in its subsidiary, Leafiniti Bioenergy Private Limited.

Operational Update

TBL's ethanol business is seasonal, with the period between April and October being the off-season. The company has recently made three of its units fully operational, which is expected to improve capacity utilization in the coming quarters.

This strategic partnership between Trualt Bioenergy and Sumitomo Corporation represents a significant step towards enhancing India's CBG production capabilities and advancing the country's clean energy goals. The collaboration is poised to create substantial value in the biogas sector while contributing to environmental sustainability.

Trualt Bioenergy Limited has made significant moves to support its subsidiary, Trualt Gas Private Limited (TGPL), in the compressed biogas (CBG) sector. The company's board has approved two major financial decisions and a change in key personnel.

Corporate Guarantee and Investment

The board has given the green light for providing a corporate guarantee worth 51% of the project cost for a Rs 180.00 crore term loan from the National Bank for Agriculture and Rural Development (NABARD) to TGPL. This guarantee is intended to support the setting up of three CBG plants, each with a capacity of 20 TPD (tonnes per day).

In addition to the guarantee, Trualt Bioenergy has approved an additional investment of up to Rs 20.00 crore in TGPL's equity shares. This investment will be made at Rs 24.00 per share, with the transaction expected to be completed by November 30, 2025.

Joint Venture with Sumitomo Corporation

The corporate guarantee aligns with the joint venture conditions established with Sumitomo Corporation. Under this arrangement:

This structure ensures proportionate security coverage and equitable commitment from both joint venture partners, facilitating the project's implementation and meeting NABARD's security conditions.

Strategic Implications

The additional investment in TGPL is part of a broader strategic initiative with Sumitomo Corporation. This move aims to:

• Leverage opportunities in the CBG segment under India's renewable energy initiatives
• Combine technical expertise, operational capabilities, and financial resources
• Enhance long-term revenue visibility through participation in an environmentally sustainable business area

Management Changes

In a separate development, the board has removed Deepak Kumar Gulati from his position as Company Secretary and Compliance Officer. The decision was attributed to prolonged absence and unsatisfactory performance.

Conclusion

These strategic decisions reflect Trualt Bioenergy's commitment to expanding its presence in the compressed biogas sector. The company's collaboration with Sumitomo Corporation and investment in its subsidiary demonstrate its focus on sustainable energy solutions and long-term growth in the renewable energy market.