Greenjoules has raised ₹150 crore through its Series B round of funding, including a loan of ₹100 crore from the Technology Development Board (TDB). The substantial funding is a significant milestone for the enterprise as it continues to expand its indigenous second-generation biofuel technology. This capital infusion is particularly timely as the transition to clean energy and sustainable practices, including alternatives to fossil fuels, becomes increasingly significant in various industrial sectors worldwide and in India. The company has made efforts in the direction of processing low-energy density agricultural waste into high-specification green fuels to meet the environmental sustainability and national energy security goals.

Funding round and expansion plans

Amazon’s Smbhav Venture Fund and Climate Pledge Fund were the co-lead investors in the Series B round valued at ₹150 crore. Rainmatter, the investment wing of Zerodha, and Singularity’s Strategic Autonomy Fund were also present in the round. The Series A round was led by Blue Ashva Capital, which continues to be the largest shareholder of Greenjoules.

Amazon’s investment vehicles joining alongside Indian climate-focused investors reflect the increased interest in firms developing renewable fuels and waste-to-energy technologies. For Greenjoules, the round offers a growth injection and investor support for a technology-led business.

Apart from the equity investment, Greenjoules has also received a loan of ₹100 crore from the Technology Development Board under the Government of India’s Department of Science and Technology. With this loan, the company’s financing for its expansion programme becomes ₹250 crore.

The Technology Development Board has provided support since it aligns the expansion of business in line with India’s vision of developing domestic clean energy technology. In the capital financing process, there is a combination of private investment as well as institutional debt, which provides more options to Greenjoules in order to implement its manufacturing plans.

Focus on second-generation biofuel and alignment

The fund will be used for the development of a new plant at Khed City, Pune. The plant will be designed to have the capability to manufacture 200,000 litres of biocrude oil each day using agricultural waste. Greenjoules will develop the plant in stages from 2027 onwards.

The company is hopeful that upon completion, the plant at Khed City will become the largest such facility in India. Being focused on agricultural waste, the plant will fit within the scope of the larger concept of circular economy, where waste is converted to energy products.

Greenjoules is currently developing the second-generation diesel-equivalent biofuel technology. The company’s proposed commercial-scale facility is intended for the production of advanced biofuels using agricultural waste and agro-processing residues. 

The company stated that it would enable faster commercialization of the indigenous biofuel technology. The company is hopeful that this technology will facilitate wider use of sustainable fuel solutions.

This development is occurring against the backdrop of India fast-tracking its move towards cleaner energy resources and industrial development through the circular economy model. Greenjoules’ project is thus seen as an offering that helps the nation in its quest for energy security, waste-to-wealth program, and achieving a net-zero future. Through the production of biocrude from agricultural residue, the firm is attempting to address two interrelated issues: decreasing reliance on traditional fossil fuels and creating value out of agricultural residue.

Conclusion

The company’s financing of ₹150 crore in the Series B round and another ₹100 crore in terms of institutional loan represents an important milestone in the scaling up of production of second-generation biofuel in India. As a result of obtaining these funds, Greenjoules will construct a phased facility in Khed City, Pune. This facility is expected to produce 200,000 liters of biocrude per day using agricultural waste. If this project is successful, the company will develop the largest plant in India of this type.