Neev Fund has invested $5 million (Rs 35.4 crore) in biomass company Punjab Renewable Energy Systems Pvt. Ltd, making it the 10th investment for the private equity fund. Biomass is organic matter which is most of the time used as a fuel, especially in a power station for the generation of electricity.
The funds will be used for the company’s expansion of biomass supply chain in underdeveloped states to enable a safe and sustainable environment, said Neev Fund in a statement.
Punjab Renewable Energy Systems, which was incorporated in 2011, is an end-to-end biomass value chain management company involved in the collection, processing, storage and supply of biomass such as paddy straw, cotton stalk, soya husk, maize cob and mustard stalk to biomass-based power plants and process industries like pharmaceuticals, distilleries and sugar. The company provides biomass as a raw material to clients for energy or conversion into biofuels.
Monish Ahuja, managing director, Punjab Renewable Energy Systems, said that Neev Fund’s focus on environmental, social and governance (ESG) aspects of the business will help the company grow into a world-class institution and make an impact on climate change.
Manav Bansal, chief investment officer, Neev Fund, said, “Surplus biomass can be used by power plants to produce power and new generation refineries to produce bio-ethanol.