The agreement includes new biogas plants in Karnataka and Maharashtra, future plans in ethanol and aviation fuel, and collaboration under Japan’s Joint Crediting Mechanism
Prime Minister Narendra Modi’s official visit to Japan this week witnessed the signing of a significant clean energy agreement between TruAlt Bioenergy Limited of India and Sumitomo Corporation of Japan.
The agreement was formalised at the Japan–India Next-Generation Economic Forum in Tokyo, held in the presence of Prime Minister Modi and his Japanese counterpart Shigeru Ishiba. It marks a new chapter in India–Japan cooperation on renewable energy and climate-focused technologies.
The first phase of the agreement covers the construction of four compressed biogas (CBG) plants in Karnataka and Maharashtra. The projects are expected to generate about 700 jobs and support up to 1,000 additional rural livelihoods through feedstock supply and related services.
Beyond the initial plants, the two companies said they plan to expand their cooperation to ethanol production and sustainable aviation fuel (SAF), both seen as critical for India’s clean energy goals and global decarbonisation efforts.
The joint venture will be structured with TruAlt holding 51 percent and Sumitomo 49 percent. The collaboration will operate under the Joint Crediting Mechanism (JCM), Japan’s framework that links international investment with measurable greenhouse gas reductions.
Speaking at the event, Vijay Nirani, Founder and Managing Director of TruAlt Bioenergy, said the agreement reflects the shared vision of India and Japan to accelerate clean energy adoption while empowering farmers and rural communities. He added that biofuels are central to India’s path to energy independence.
The agreement underscores how India and Japan are aligning national policy goals with private-sector collaboration. For Japan, it strengthens the reach of the JCM framework in South Asia. For India, it demonstrates how international technology and investment can support domestic targets under the Paris Agreement and the country’s Nationally Determined Contributions (NDCs).
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