Pune: Thermax has bagged a ₹500 crore order to set up five bio-CNG plants for a leading conglomerate and announced a massive ramp-up in R&D spending over the next two years.
The city-based company will spend its highest-ever amount in research and development (R&D) over the next two years, its chief executive and managing director Ashish Bhandari said.
The focus on R&D will be primarily driven by the need to look for solutions focused on sustainability and climate change, he added.
Conceding that some of the bets may not pay off for the company, Bhandari said the company has the capacity to take the essential risks for the future.
The bio-CNG plants will be set up in Rajasthan, Madhya Pradesh, Maharashtra and Uttar Pradesh, the company said in the announcement made at the maiden "Thermax Fest" here.
The company, through one of its subsidiaries, has secured orders worth more than ₹500 crore from a leading energy conglomerate for setting up five bio-CNG plants across India, it stated.
Details about the conglomerate were not disclosed.
With the capacity to produce 110 tonnes per day of bio-CNG, these plants will utilise local feedstock exceeding 1,000 TPD, which includes rice straw, Napier grass, cane trash and soya trash.
The bio-CNG generated from these plants will be employed for commercial and captive use by the customer.
This is part of Thermax's broader initiative to introduce solutions around biochemicals and bioenergy.
Thermax is the largest provider of biomass-based green energy solutions for fuel flexibility. It has also invested in a biomass-sourcing supply chain for captive consumption to ensure a consistent biomass fuel supply.
Another initiative aligned towards clean energy is the installation of 1 GW of hybrid renewable energy solutions by FY2027. These will be intra-state and inter-state projects.
Currently, the company manages an operational portfolio of 140 MWp, with an additional 145 MWp under construction, over 300 MW in development, and 400 MW in the pipeline.
It has already invested Rs 300 crore over the last 18 months in the renewables business, where typically it takes a majority stake in a project, Bhandari said.
A few years ago, it had announced plans to invest USD 100 million in the renewable business, but the 1GW capacity will have to be hastened up, Bhandari said, adding that this will entail the capital expenditure to go up beyond the budgeted amount.
To bridge the shortfall, it plans to raise money from an external investor in its renewables arm FEPL, Bhandari said, adding that it will prefer a strategic investor and the transaction will happen in a year.
Thermax aims to develop gasification plants with carbon capture capabilities to process coal ranging from 100 to 500 TPD.
Bhandari said the company is also working on developing a green hydrogen front, but at the current levels, the cost is USD 4 per kilogram.
