Adani Total Gas starts production at Barsana biogas project; stock jumps 8%

Shares of Adani Total Gas surged 8% in intraday trade on Monday after the city gas distribution arm of Adani Group informed exchanges that its subsidiary commenced production at Barsana biogas project in Uttar Pradesh. This is the first compressed bio gas (CBG) production facility by Adani TotalEnergies Biomass Limited (ATBL), a subsidiary of Adani Total Gas, and marks a significant milestone in its journey towards a greener future, as per the exchange filing.

Following this announcement, shares of Adani Total Gas (ATGL) gained as much as 8% to ₹1,000 on the BSE, while the market capitalisation rose to ₹1.06 lakh crore. Early today, shares of ATGL, in which French energy giant TotalEnergies SE has a 37.4% stake, opened at ₹947, up 2.3% against the previous closing price of ₹925.45.

“Adani TotalEnergies Biomass Limited (ATBL), a wholly-owned subsidiary of Adani Total Gas Limited (ATGL), today said that it has commissioned operations at phase 1 of its Barsana Biogas Plant, located in the Mathura district of Uttar Pradesh,” the company says in a BSE filing on March 31.

The Barsana biogas project has three project phases and would attain the overall capacity of 600 tonnes per day (TPD) of feedstock, generating over 42 TPD of CBG and 217 TPD of organic fertiliser after full commissioning. Project cost for all three project phases for the plant would be around ₹200 crore.

“This plant will be India’s largest agri waste-based bio-CNG plant upon reaching full design capacity at phase-3,” Adani Total Gas says in the release.

By utilising advanced anaerobic digestion technology, the plant converts organic materials into renewable biogas, significantly reducing greenhouse gas emissions and reliance on fossil fuels, besides aiding to the nation’s fuel security and emission reduction goals.

Suresh P Manglani, ED & CEO, ATGL, says, “We are excited to unveil our endeavor towards contributing in sustainable energy production. The Barsana Biogas Plant represents our Chairman Gautam Adani’s commitment to fully leverage renewable resources to create a cleaner, more sustainable world for our future generations. In addition to producing CBG, the plant yields high-quality organic fertiliser, contributing to circular economy principles and agricultural sustainability.”

“The setting up and initiation of CBG production fully aligns with our promoters’ - Adani Group and TotalEnergies - broader sustainability goals and by investing in renewable energy like CBG. Adani Group and TotalEnergies aim to play a pivotal role in the global transition to a lowcarbon economy,” Manglani adds.

Last month, Adani Total Gas had signed a deal with Gujarat-based INOX India Ltd (INOXCVA) to strengthen the liquefied natural gas (LNG) ecosystem in India. INOXCVA is one of the world’s leading cryogenic liquid storage, distribution and re-gas solutions providers.

ATGL is developing city gas distribution (CGD) networks to supply piped natural gas (PNG) to industrial, commercial and domestic (residential) customers and compressed natural gas (CNG) to the transport sector.

India currently has about 25 gigawatt (GW) of gas-based power capacity installed, which translates to about 30 million-35 million metric tonnes a year of LNG demand, as per S&P Global report. With over 400 CNG stations and 878,175 residential connections being set up from April to October 2023, the government is trying to increase domestic production of natural gas and adopted strategies for the promotion of biofuels, compressed Biogas, National Gas Grid for pipeline infrastructure, City Gas distribution Networks and LNG regasification terminals. 

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