Mumbai: Mahanagar Gas Limited (MGL) has signed a Memorandum of Understanding (MoU) with Organic Recycling Systems Limited (ORSL) to explore opportunities for developing Compressed Biogas (CBG) plants in Maharashtra and Karnataka. The partnership aims to promote sustainable energy solutions, improve the utilisation of organic waste and support India’s transition towards a cleaner and more circular economy.
The collaboration brings together MGL’s expertise in city gas distribution and ORSL’s capabilities in waste management, organic waste processing and bioenergy solutions. ORSL has recently secured Engineering, Procurement, Construction and Management (EPCOM) contract awards for Municipal Solid Waste-based CBG projects.
Through this partnership, both companies intend to explore commercially viable opportunities in the compressed biogas sector and identify potential avenues for expanding clean energy production.
MGL and ORSL to Explore CBG Project Opportunities
The MoU establishes a framework for Mahanagar Gas and Organic Recycling Systems to jointly explore the development of CBG plants in Maharashtra and Karnataka.
The proposed collaboration will combine MGL’s experience in the city gas distribution sector with ORSL’s technical expertise in processing organic waste and developing bioenergy projects.
The companies will assess potential projects that can convert organic waste into compressed biogas, providing a cleaner energy alternative while supporting more productive waste management practices.
The partnership will also explore potential offtake opportunities for the compressed biogas produced by these projects. This could help identify commercially viable arrangements for supplying CBG and integrating it into the broader clean energy ecosystem.
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Focus on Waste Management and Clean Energy
Compressed Biogas is produced by processing biodegradable materials, including organic waste, through anaerobic digestion and upgrading the resulting biogas to meet the required fuel specifications.
CBG projects can support the productive use of municipal organic waste while contributing to renewable energy generation and a circular economy.
Through the proposed collaboration, MGL and ORSL aim to explore opportunities that combine sustainable waste management with clean fuel production. The initiative also aligns with broader efforts to increase the utilisation of organic waste and diversify India’s energy sources.
The proposed projects will be assessed for their commercial viability and potential to contribute to the development of the CBG sector in both states.
MoU Is Non-Binding, With No Definitive Investment Commitment
MGL and ORSL have clarified that the MoU is non-binding and does not specify any consideration or definitive investment commitment.
Any future commercial arrangements, including Engineering, Procurement and Construction (EPC) contracts, will depend on the outcome of feasibility studies, due diligence, mutual agreement and the receipt of requisite approvals, wherever applicable.
The companies will also need to enter into definitive agreements before proceeding with any applicable commercial commitments.
Therefore, the MoU represents an initial step towards exploring potential CBG projects rather than a final commitment to construct specific plants.
About Mahanagar Gas Limited (MGL)
Mahanagar Gas Limited is one of India’s leading city gas distribution companies. It supplies Compressed Natural Gas (CNG) for vehicles and Piped Natural Gas (PNG) for domestic, commercial and industrial consumers. Through its focus on expanding gas distribution and exploring cleaner energy opportunities, MGL aims to support India’s energy transition and promote more sustainable fuel options. Its proposed collaboration with ORSL reflects its interest in exploring compressed biogas as an additional clean energy opportunity.
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