Scania and Swedfund, the Swedish state’s development financier, are establishing a partnership to develop biogas production for use as an automotive fuel in the Indian city of Nagpur.
The plans for the biogas project were announced today in connection with the inauguration of Scania’s bus facility in Narasapura in Karnataka state.
The biogas will be produced in collaboration with local companies by using digested sludge from one of the city’s wastewater treatment plants.
Swedfund’s CEO Anna Ryott says:
“This is a Swedish venture, which in a sustainable and profitable manner can create many new jobs and contribute to India’s shift towards renewable fuels. Biogas is the fuel of the future, which will contribute to solving India’s huge pollution problems while taking a comprehensive approach to the major environmental challenges.”
An initiative in 100 cities
India currently produces the third highest carbon dioxide emissions in the world and these emissions are expected to double in the next few decades. The country’s continued urbanisation is also causing the quantity of waste produced in the cities to increase.
Nagpur is located in Maharashtra State and has 2.5 million inhabitants. The biogas project forms part of the city’s participation in the Indian Government’s Smart Cities initiative which aims to improve the environment and transport systems in India’s 100 largest cities.
As part of the Smart Cities initiative the Indian Government is approaching international companies that want to invest in technologies and systems that can promote the development of sustainable cities.
Scania’s President and CEO Martin Lundstedt says:
“Scania has vehicles and technologies that can contribute to this shift, here and now. We see great opportunities for Sweden as a country to lead the development towards sustainable cities in the world in general and in India in particular. For this reason, we are extremely happy to be able to take this step together with Swedfund.”
Solving problems through sustainable businesses
Producing biogas from waste in major cities and residual products from agriculture represents an important part of the solution to India’s air pollution, waste management and cost of imported energy issues.
Swedfund, which is owned by the Swedish state, offers risk capital, expertise and financial support for investments in African, Asian, Latin American and Eastern European growth markets. Swedfund’s goal is to help reduce poverty by creating sustainable businesses which contribute to economic, environmental and social development.
Since 1979, Swedfund has been an active, responsible and long-term investor in more than 230 companies. More information is available at www.swedfund.se