This Bioenergy Startup Aims To Become The Sector's Biggest Player
GPS Renewables is developing three projects of its own and also working on technology as well as EPC for four other projects this year
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GPS Renewable's captive biogas plant, BioUrja, digests bio-waste and produces clean bio-CNG for use in cooking, thermal application and power generation In 2012, IIM Bangalore graduates Mainak Chakraborty and Sreekrishna Sankar joined forces to alleviate a mutual frustration: "How can we solve this garbage mess?" Thus was born Bangalore-based cleantech firm GPS Renewables. In its initial years, the company used bio methanation technology for organic waste management, accelerating the substitution of fossil fuel with bioenergy and mitigating climate change.
GPS also built a captive biogas plant, BioUrja, which is a modular IoT biogas plant that digests bio-waste and produces clean bio-CNG. The latter can be directly used for cooking, thermal application and power generation. "We spent the first couple of years in the research and development of the BioUrja product. Our concept was to introduce biogas plants to hotels, commercial offices and campuses. For any commercial establishments, the return on investment is key. After successfully commissioning one of Asia's largest waste to BioCNG plant in Indore, GPS is all set to become a project developer," said Varun Karad, chief business officer, GPS Renewables.
尽管旅程并非没有挑战。According to Karad, at the time of the company's inception, there was neither an established market for nor institutional investors' interest in its products. The GPS team had to educate clients before closing a sale and labour hard to secure a line of credit from commercial banks. "The Swachh Bharat Mission came as a boon to us. It unlocked the potential of this sector and fuelled the interest of many major funds. The agri residue/waste from the paddy straw alone in Punjab, Haryana and Uttar Pradesh has a potential of $11.25 billion for investment," explained Karad.
Today, GPS Renewables claims to have over 100 BioUrja installations at locations across South Asia, including Fortune 500 companies, such as Microsoft, Intel, Bosch and Reliance, and leading hospitality chains, such as Oberoi, Taj, ITC, Marriott and Hyatt. The company also claims to have expanded its capacity by over 5,000 times over the last couple of years, aiming to become a sought-after project integrator in the bioenergy space, comprising bio-CNG, bio ethanol and green hydrogen. Having raised $20 million thus far, GPS Renewables is now working closely with Mitsui and Co, Osaka Gas and IFC for funding its future projects, states the company.
How does the bioenergy sector appear to Karad now?
"With the current government bringing in policies like SATAT, the Green Hydrogen Mission, the National Bamboo Mission and the Ethanol Blending Policy, this is one of the fastest growing sectors in the country," he said. Moreover, there appears to be a mismatch between the supply and demand of qualified people in the sector. "We have a team of over 100 people and are still aggressively hiring," added Kharad. For aspiring entrepreneurs too, he considers this to be the best time to break into the field if they have something unique to offer: "We started GPS from scratch. All of us are first generation entrepreneurs from middle class backgrounds. We survived initially and are now thriving because we had something of value to offer to our clients."
As for its future plans, GPS Renewables is developing three projects of its own and also working on technology as well as EPC for four other projects this year. The company has incubated projects to the tune of $200 million till date. "If all goes as per plan, GPS will be one the largest
players in the sector," claims Karad.
