According to a report in the media today, Anil Ambani Group’s venture capital arm Reliance Venture Asset Management (RVAM) has forayed into the strategic cleantech sector and announced an investment in the biomass energy start-up AllGreen Energy.
Along with an affiliate of General Electric (GE), RVAM has completed the Series A funding for the Bangalore- headquartered AllGreen Energy , a release issued here by RVAM said, adding this is the first investment by the fund in the strategic cleantech space comprising wind, solar, hydel.
AllGreen will utilise the funding for its 6.4 MW biomass project–which involves utilising agricultural waste to generate power–in Tamil Nadu’s Perundurai and the company intends to establish more such projects in the country in the next 10 years totalling nearly 100 MW of installed capacity.
“The demand in India, for energy from renewable sources has become pressing. The (Perundurai) project will be the largest Biomass Integrated Gasification Combined Cycle Power based plant in India,” RVAM’s Chief Executive Harshal Shah was quoted as saying.
Nuances of the deal, including valuations and the stake bought, were not immediately disclosed.
The company will generate revenues from producing renewable power, selling by-product charcoal, sale of carbon credits; while the heat generated will be used to power cold storage facilities, it added.
According to the company, it will employ the gasification technology of the Indian Institute of Science (IISC) based in Bangalore, India. This proven technology, which also incorporates thermal activation of charcoal to produce activated carbon, is low cost, very efficient, and is considered to have several unique advantages compared to other biomass to energy technologies.
Earlier, Dinesh J. Kagathi, COO, AllGreen Energy, has said, “AllGreen Energy will also adopt a holistic approach in handling the entire biomass chain, starting from biomass production to sourcing. This will range from professional harvesting facilities for the farmers, through to, post harvesting services such as drying, and shell-breaking as in copra production in return for the rights
over the biomass generated.”
AllGreen Energy has entered into an MOU with ITC’s Agri Business Division for biomass procurement. ITCs e-Choupal has played a transformational role in empowering millions of farmers in rural India.
With these agreements for supply of feedstock it seems like the company has taken steps to mitigate the biggest risk in biomass projects which is the feedstock risk.
Panchabuta, will track the progress of AllGreen Energy in this area and keep readers updated on the same.