- Climate Fund Managers’ EU-supported Climate Investor Two Fund backs 20-tonnes-per-day compressed biogas facility in Uttar Pradesh, one of India’s major agricultural states
- Project converts ~94,000 tonnes of agricultural and organic waste annually into clean energy and organic fertiliser products
- Expected to avoid over 100,000 tCO₂e per year, improve air quality for 700,000+ people, and support farmer livelihoods
New Delhi, 11 March, 2026: Climate Fund Managers, a climate-focused blended finance investment manager, has committed USD 32.2 million from its EU-supported Climate Investor Two Construction Equity Fund to Akaia Green Fuels, a commercial-scale waste-to-biogas facility in Uttar Pradesh, northern India. This initiative reflects the European Union’s strong partnership with India on climate action, a priority reaffirmed at the 16th India–EU Summit. Through the partnership, the EU is accelerating decarbonisation – supporting industrial transition, scaling up green hydrogen and expanding renewable energy.
The investment will help reduce air pollution and greenhouse gas emissions by converting agricultural waste into compressed biogas – a renewable fuel that displaces imported fossil gas, while creating new income for rural communities. The project will convert ~94,000 tonnes of agricultural and organic waste each year, including paddy straw, press mud from sugar mills and cow dung, into ~20 tonnes per day of compressed biogas and ~123 tonnes per day of fermented organic manure. Once operational, the facility is expected to avoid more than 100,000 tonnes of CO₂ equivalent emissions annually and to improve air quality for an estimated 700,000 people across 640 villages by reducing open-field residue burning. The project will support significant job creation, including an estimated 480 roles during construction, 110 permanent operations and maintenance jobs and additional employment across the feedstock supply chain and logistics network.
Farmers will benefit from additional income from waste biomass sales as well as access to cost-effective organic fertilisers such as fermented organic manure, a by-product of the compressed biogas process, supporting improved soil health and reducing reliance on chemical fertilisers.
Climate Fund Managers’ construction equity investment builds on USD 3.3 million in early-stage development funding provided in 2023 by Climate Investor Two’s Development Fund, which supported critical development activities and helped de-risk the project ahead of financial close. This included support for land acquisition, pipeline access, securing long-term feedstock supply and gas offtake agreements, as well as financial and technical structuring in line with international standards. Construction commenced in February 2026 with full commercial operation targeted for H1 2027.
India, one of the world’s largest producers of crops such as rice and sugarcane, generates millions of tonnes of agricultural residues each year, particularly in northern states. Much of this waste is currently burned in the open or left to decompose, but with improved management practices, there is a strong opportunity to reduce air pollutants and greenhouse gas emissions and help prevent severe seasonal smog. The Akaia Green Fuels project addresses this challenge by repurposing agricultural waste into clean energy and organic fertiliser products, while improving air quality. Through long-term supply agreements with local farmers and sugar mills, crop residues and organic by-products are collected and processed through anaerobic digestion, with the resulting biogas upgraded to compressed biogas.
The biogas produced will be injected directly into the city gas distribution network under long-term offtake agreements with India’s largest natural gas company, GAIL India, and state-owned oil and gas company, Hindustan Petroleum Corporation Limited (HPCL), displacing imported fossil gas and strengthening India’s energy security.
The facility will be delivered by GPS Renewables under a fixed-price EPC and multi-year operations and maintenance contract, with independent technical oversight from European advisors Fichtner and TÜV to ensure compliance with international engineering, environmental and safety standards.
Jirong Lim, Investment Director at Climate Fund Managers, said: “Agricultural residue burning remains one of the most persistent environmental challenges in northern India. Projects like Akaia Green Fuels show how this waste can be transformed into clean energy, organic fertiliser and new income streams for farmers, while delivering meaningful improvements in air quality and emissions. By producing biogas that feeds directly into the gas network, the project supports India’s national objective to reduce reliance on imported natural gas while diversifying the energy mix and improving energy security. Climate Fund Managers’ blended finance approach enables solutions like this to be delivered at commercial scale and replicated across the country.”
Rajkumar Roy, Project Co-Sponsor, said: “This project turns an everyday problem for farmers and sugar mills into a long-term opportunity. By securing feedstock, offtake and high technical standards from the outset, we are building a robust, scalable model for compressed biogas infrastructure in India. Beyond clean energy, the project delivers tangible benefits for rural communities through additional income, better air quality and access to affordable organic fertiliser.”
Mainak Chakraborty, Co-Founder of GPS Renewables, said: “We are delighted to welcome Climate Fund Managers into India’s CBG sector through their investment in Akaia Green Fuels. Their commitment underscores the maturity and scalability of CBG as a climate and energy solution for India, and we look forward to working together to set new standards for project quality, governance and impact.”
A community development programme will be developed and implemented in 2026, guided by an independent community needs assessment and expected to focus on areas such as rural development, education or improving the climate resilience of farm-based livelihoods. The project has already initiated early community development activities in collaboration with a local hospital, including funding medical check-ups and providing medication to nearby communities.
Notes to Editors
For more information, please contact Sophie Blythe: s.blythe@climatefundmanagers.com.
About Akaia Green Fuels:
Akaia Green Fuels is a 20 tonnes per day Waste-to-Biogas facility in Uttar Pradesh, India, converting 94,000 tonnes of agricultural organic waste annually (including paddy straw, cow dung and press mud) into clean, domestically produced compressed biogas and organic fertilizer. The project will avoid generation of over 100,000 tCO₂e each year, reduce residue burning and improve air quality for 700,000+ people (in the feedstock catchment area), while also lowering India’s reliance on imported fossil fuel (natural gas).
About Climate Fund Managers:
Climate Fund Managers is a climate-focused blended finance investment manager operating in emerging markets across Africa, Asia, and Latin America. It raises and deploys blended climate finance funds, working in partnership to deliver climate-resilient solutions at scale and pace. With over USD 2.8 billion in assets under management and targeting an additional USD 4 billion, Climate Fund Managers’ private equity and private credit facilities address key areas of climate change mitigation and adaptation, including renewable energy, green hydrogen, energy transmission, water, waste and sanitation, and biodiversity and oceans infrastructure. With over 50 active projects across its Climate Investor One, Two and Three equity funds, the company has recently expanded into private credit through the GAIA Climate Loan Fund. Each fund is supported by public and private sector organisations, with public capital deployed strategically to balance risk and mobilise private sector capital, enabling investment across the project lifecycle – from development to construction and operation. Established in 2015, Climate Fund Managers is a joint venture between Dutch development bank FMO and Sanlam InfraWorks of the Sanlam Group of South Africa, with offices in The Hague, Cape Town, Singapore, and Bogotá. www.climatefundmanagers.com.
About GPSR (GPS Renewables) Group:
Headquartered in Bengaluru, India, GPS Renewables (“GPSR”) is a leading full-stack, renewable oil & gas company offering technology and project solutions for climate-positive biofuel projects. Starting from captive biogas plants, GPSR has scaled up to set up some of the world’s largest Compressed Biogas (CBG) plants. In 2022, GPS Renewables launched GPSR Arya Pvt Ltd, to commission BOO (Build-Own-Operate) projects, augmenting its climate impact ambitions. GPSR has formed joint ventures with Indian Oil, Bharat Petroleum, and Oil India to build compressed biogas (CBG) plants across India. These plants will process agricultural and organic waste, reduce carbon emissions, and support the government’s SATAT initiative. https://gpsrenewables.com/
About the European Union:
The European Union (EU) is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit. The EU has contributed €30 million to CI2 as part of the Global Gateway, the European strategy for sustainable and trusted infrastructure for people and the planet that will mobilise up to €300 billion of investments for high-quality projects globally, taking into account the needs of partner countries and ensuring lasting benefits for local communities. The total EU contribution to CFM-managed funds is EUR 178 million to date plus a EUR 205 million EFSD+ guarantee, making them the largest public investor in CFM operations. https://european-union.europa.eu/index_en
Disclaimer
Climate Fund Managers is a manager of alternative investment funds and has obtained an AIFMD license from the Dutch Authority for the Financial Markets (Autoriteit financiële markten) pursuant to section 2:65 of the Dutch Act on Financial (Wet op het financieel toezicht). Climate Fund Managers is included in the public register maintained by the AFM on its website under license number 15004367. Climate Fund Managers is the appointed fund manager of Climate Investor One, Climate Investor Two and Climate Investor Three. The Construction Equity Funds of Climate Investor One and Climate Investor Two and the Climate Investor Three Fund are registered Alternative Investment Funds with the AFM.
