Green Energy Push: IRM, GAIL, IAV Biogas Team Up in Tamil Nadu

In a strategic alliance that underscores the power of collaboration in building a sustainable energy future, IRM Energy Limited, GAIL (India) Limited, and IAV Biogas Pvt. Ltd. have joined hands to bring Compressed Bio-Gas (CBG) into the mainstream gas supply network in the state. The landmark Tripartite Agreement (TPA), signed on April 17, 2025, aims to supply CBG to the Namakkal and Tiruchirappalli regions under the CBG-CGD Synchronization Scheme — a major clean energy push from the Ministry of Petroleum & Natural Gas (MoPNG).

A Milestone in India’s Green Energy Journey

The partnership is more than just a business agreement. It is a bold step toward India's clean energy transition, aligning perfectly with the nation’s aspirations under the SATAT (Sustainable Alternative Towards Affordable Transportation) scheme and the broader Net Zero goals.

For Tamil Nadu, this means a cleaner, greener fuel will soon be powering homes, vehicles, and industries — derived not from fossil fuels, but from agri-residues and organic waste. This move not only ensures better utilization of bio-waste but also puts rural development and local economies on a more sustainable track.

Under this pact, IRM Energy will offtake up to 3,000 SCMD (Standard Cubic Meters per Day) of Compressed Bio-Gas from IAV Biogas Pvt. Ltd. for supply through its City Gas Distribution (CGD) network in the target districts.

While the numbers are promising, the message from industry leaders is even more telling.

M.K. Sharma, CEO of IRM Energy, remarked during the signing ceremony,

“This agreement is a step forward towards integration of sustainable practices in energy distribution. We are proud to collaborate with GAIL and IAV Biogas Pvt. Ltd. in bringing cleaner fuel solutions to the forefront. This step not only aligns with our strategic vision but also contributes to India’s mission of becoming a greener and more self-reliant energy nation.”

The sentiment was echoed by senior representatives from GAIL and IAV Biogas, who were also present at the ceremony, emphasizing the role of strategic public-private partnerships in accelerating India’s shift to green fuels.

CBG: The Unsung Hero in India’s Energy Mix?

While solar and wind power often steal the spotlight, CBG is emerging as a quiet game-changer in India’s energy story. Derived from organic waste like crop stubble, cattle dung, and kitchen refuse, CBG mirrors the properties of natural gas and can be seamlessly blended into the CGD pipeline infrastructure.

By turning agricultural waste into clean fuel, projects like this not only solve pressing waste management problems but also empower rural India by creating local employment and additional income streams for farmers.

Why This Matters for Startups and Innovators

The collaboration also offers key insights for India’s startup ecosystem, especially those working in climate tech, waste-to-energy, and rural innovation.

Here’s a blueprint for impact:

• Leveraging government schemes like SATAT and CBG-CGD Synchronization

• Partnering with legacy players for infrastructure and scale

• Tapping into local ecosystems for sourcing bio-waste and creating circular economic value

For green-tech entrepreneurs and innovators, the message is clear: The future of energy is collaborative, sustainable, and deeply local.

The Road Ahead: Cleaner Cities, Empowered Villages

As this agreement gets operationalized in the coming months, residents of Namakkal and Tiruchirappalli could soon witness tangible benefits — from reduced urban pollution to more efficient energy use in households and transportation.

More importantly, this could become a template for replication across other states, driving India closer to its ambitious climate targets, while unlocking rural prosperity through green innovation.

In an era where sustainability is no longer optional, partnerships like this show that meaningful progress is not only possible — it’s already underway. Tamil Nadu may just be the starting point. But the ripple effect could fuel an entire nation.