Noida-based Nexgen Energia Secures $1 Bn from Capital Edge

In a big news for India's green energy sector, NexGen Energia, a Noida-based firm specializing in Compressed Bio-Gas (CBG) production, has secured a $1 billion investment from Capital Edge, a Kuwaiti investment company. 

This funding will help NexGen Energia expand its CBG infrastructure across India, supporting the country's transition to clean energy and energy self-reliance.

The funding is equity-based, allowing NexGen Energia to scale operations without short-term repayment pressure.

The company aims to establish 1,000 CBG plants by 2026, contributing to India's clean energy transition. The investment aligns with India's National Bio-Energy Mission, which promotes bio-energy initiatives for sustainability and carbon neutrality.

The Kuwaiti firm, Capital Edge, specializes in high-impact investments across Asia, Africa, and the Middle East, focusing on scalable, sustainable projects.

The company aims to set up 1,000 CBG plants by 2026, significantly boosting India's renewable energy capacity 1. With the Indian government actively promoting bio-energy initiatives, this investment aligns well with national goals for sustainability and carbon neutrality.

NexGen Energia’s Director of Sales, Nishant Tiwari, emphasized that this funding will accelerate their vision of a greener India, fostering innovation, job creation, and energy independence.

This $1 billion investment in NexGen Energia's Compressed Bio-Gas (CBG) infrastructure is a significant step for India's renewable energy sector and has multiple far-reaching implications such as Job Creation, as setting up 1,000 CBG plants will generate employment opportunities, especially in rural areas. Moreover, farmers can sell agricultural waste to CBG plants, creating an additional revenue stream.

Globally, investments in renewable energy have surged, with clean energy spending now nearly double that of fossil fuels. In 2024, total energy investment is expected to exceed $3 trillion, with $2 trillion allocated to clean energy technologies and infrastructure.

Indian Oil-GPS Renewables JV is investing 1,200 crore to set up 10 CBG plants across India in FY26. These plants will produce 5,475 tonnes per annum (TPA) of CBG, along with fertilizers and biomass pellets. Locations include Haryana, Uttar Pradesh, Chhattisgarh, and Andhra Pradesh.

Last November, Reliance Industries announced a massive investment of ₹65,000 crore (approximately US$ 7.5 billion) to set up 500 CBG plants in Andhra Pradesh over the next 5 years.

The SATAT initiative (Sustainable Alternative Towards Affordable Transportation) aims to establish 5,000 CBG plants by 2023-24, with an estimated investment of ₹2 lakh crore. This program is designed to boost clean fuel availability and create employment opportunities.

Financial analyses indicate that CBG investments offer promising returns, with growing demand for biomass blending in coal-based power plants and fertilizer markets. However, challenges include securing skilled manpower and ensuring stable feedstock supply.