Suzuki Motor inks pact with NDDB, Banas Dairy to set up biogas plants

Suzuki Motor Corporation on Wednesday said it has inked a pact with National Dairy Development Board (NDDB), and Gujarat-based Banas Dairy to set up four biogas plants in Gujarat with an investment of around Rs 230 crore.

The three-party agreement between Suzuki R&D Center India, a wholly- owned subsidiary of Suzuki, NDDB and Banas Dairy was inked in Tokyo on Wednesday.

The project is aimed at making fuel for automobiles by refining methane from biogas, which is generated by fermenting cow dung, the Japanese carmaker said in a statement.

Four biogas production plants will be operated from 2025 in Banaskantha district of Gujarat, it added.

Total investment on the four plants is expected to be Rs 230 crore, Suzuki said in a statement. Also, a biogas filling station will be established alongside each plant, which will distribute fuel for CNG vehicles in which Maruti Suzuki holds over 70 per cent market share in India, it added.

"Suzuki is tackling to reduce greenhouse gas in ways that suit the situations of each country and region. In India, there is expectation for biogas which is said to have high reduction effects," Suzuki President T Suzuki said.

The automaker will contribute toward realising carbon neutrality through making proactive initiatives in the biogas production business, he added.

Suzuki signed an MoU with NDDB and Banas Dairy in December 2022 to start a Biogas Demonstration Project.