Mumbai: State-owned GAIL and Energy Efficiency Services Ltd (EESL) signed a memorandum of understanding on Wednesday for cooperation in development of trigeneration projects in India.
Trigeneration or Combined Cooling, Heat and Power (CCHP) typically involves natural gas-fired generators to produce electricity.
The waste heat from flue gas is recovered to produce hot water or steam which in turn is used for heating purposes and also in absorption chillers for cooling.
The memorandum of understanding (MoU) aims at building a closer strategic partnership between the two companies by jointly exploring business opportunities in trigeneration business segment in India, an EESL statement said.
Under this MoU, GAIL and EESL shall jointly undertake studies and if found viable, a 50:50 joint venture between the two companies will be incorporated for undertaking trigeneration projects.
There is a significant market potential for trigeneration projects in India, particularly small industrial & commercial sectors and office buildings.
As trigeneration business is at initial stage, the collaboration would enable to take first mover advantage in the trigeneration business similar to GAIL’s city gas business, GAIL Chairman and Managing Director Manoj Jain said.
Further, it would also push gas usage in new applications which is in line with GAIL’s Strategy 2030. Accordingly, the strategic partnership between GAIL and EESL is a win-win situation for both the companies, he added.
EESL Managing Director Saurabh Kumar said, “The intervention potential of trigeneration technology in revolutionising India’s energy landscape is significant. EESL is proud to pioneer the effort towards harnessing this potential with GAIL which will set a precedent for upcoming trigeneration projects.”
The MoU was signed between Santanu Roy, Executive Director (Business Development & Project Development), GAIL and Amit Kumar Kaushik, Executive Director (Strategic Growth), EESL through video conference.
GAIL chief Manoj Jain and EESL MD Saurabh Kumar were also present.