Climate Investor Two (“CI2”) is considering an equity investment in Akaia Green Fuels, which is an India-focused waste-to-value company set up to develop, construct, and operate compressed biogas (CBG) plants. The first project is a 20 tonnes per day (TPD) CBG plant to be located in Uttar Pradesh, India.  The CBG plant will use anaerobic digestion technology to convert agricultural waste (press mud, paddy straw and cow dung) into CBG.

Our Development Partner

Akaia Green Fuels

We Invest

DF2 and CEF2

Estimated Project Impact

Direct Jobs ~82 construction jobs and ~115 jobs during O&M.

Additional indirect jobs are expected to be created in supply chain and logistics (e.g. processing and transport of feedstock), and organic manure sales

Annual avoided GHG emissions (tCO2eq/year) ~103,000
Amount of waste processed (tonnes per year) ~94,000 tonnes of organic waste per year

CI2 E&S Rationale

E&S risks and/or impacts are limited, generally site-specific and largely reversible which can be effectively managed in line with available international standards. IFC Performance Standards (PS) 1-4 are applicable, and the key E&S impacts and risks relate to occupational health and safety, third-party labour and working conditions (including in the supply chain), and sustainable water use and waste management.

An environmental and social management system (ESMS) is being implemented for Akaia Green Fuels and the underlying projects. An environmental and social management plan (ESMP) will be implemented during the construction and operation of the CBG plant.

Funding Objective

Akaia Green Fuels presents an attractive opportunity for CI2 to generate biogas from agri-residues, much of which is burned, causing air pollution, GHG emissions, and health issues.

Displacing imported fossil-based natural gas in the transport sector, the investment supports India’s SATAT initiative and also has climate change mitigation benefits, fitting within the CI2 mandate – clean water supply projects with a Rio Marker score of “2” for Climate Change Mitigation.

Region

Uttar Pradesh

Country

India

Business Model

Waste to Value

Environmental & Social Category

B+

Sector

Circular Economy

Why Climate Investor Two Wants to Invest in This Project

India generates around 500 million tonnes of crop residues annually.  In Uttar Pradesh alone, 60 million tonnes of residues such as paddy straw and sugarcane press mud are produced each year.

CBG projects create a value chain for agri-wastes, improving air quality and displacing imported fossil-based natural gas. The CBG plant will generate 123 tonnes per day of fermented organic manure (FOM) processed for commercial sale. Farmers will benefit from new income streams (from agri-wastes) and access to cost-effective fertilizers that restore soil health degraded by chemical overuse. The CBG plant will directly and indirectly contribute to both socioeconomic and environmental benefits.

Carbon dioxide (CO₂) from the process will be sold to industrial users, avoiding atmospheric release. FOM will be sold to fertilizer companies and farmer cooperatives. The CBG plant will result in net GHG) emissions avoided of approximately 103,000 tons CO2eq per year (subject to detailed engineering design) and support India’s climate change mitigation action plan, national policies and state-level action plans to promote the use of biomass as a renewable energy resource to achieve COP26 commitments of net Zero by 2070.

Disclosures

Here you can find and download all the relevant disclosure documents for this project: