Collaboration with TruAlt Bioenergy, India's largest ethanol producer; Compressed Biomethane Gas Production and Sales to Commence Next Year- Acquisition of Shares in TruAlt Gas Private Limited, Plans Include Production of Bioethanol and SAF -

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) has agreed, as of November 11, 2025, to acquire a portion of the shares of TruAlt Gas Private Limited (Head Office: Bengaluru, India; Managing Director and CEO: Vijay Murugesh Nirani; hereinafter "TGPL"), a subsidiary of TruAlt Bioenergy Limited (hereinafter “TruAlt”), India's largest ethanol manufacturing company and to enter into a strategic collaboration with TruAlt. Following the acquisition, TGPL plans to change its name to TruAlt Sumi Gas Private Limited (hereinafter “TSGPL”). TSGPL aims to construct 16 compressed biomethane gas (CBG)*1 production facilities across India over the next three years and commence operations sequentially from 2026. The total daily production capacity of the 16 facilities is expected to reach approximately 320 tons, equivalent to the daily gas consumption of around 800,000 households in India. The raw materials for CBG production will include sugarcane and ethanol residue at TruAlt and other suppliers. The CBG produced will primarily be sold as automobile fuel to major city gas distributors within India. Alongside CBG production, Sumitomo Corporation and TruAlt also plan to collaborate on expanding bioethanol production and producing sustainable aviation fuel (SAF) derived from bioethanol.

Through its participation in the CBG production business and the bioenergy business in India, Sumitomo Corporation will accelerate the growth of its Energy Solutions Business, one of the key growth areas in its current Medium-Term Management Plan.

Promotion of CBG Supply in India

India, the world's third-largest energy consumer, is aiming to improve its energy self-sufficiency and achieve energy independence by 2047 in view of the country's growing energy demand. CBG is regarded as an important energy source that contributes both to effective waste utilization and improved energy self-sufficiency, as it can be produced from agricultural residue and other waste generated in India, a major agricultural nation. To promote domestic CBG supply, the Indian government has made it mandatory to blend CBG into automobile fuel and city gas for households. City gas distributors in India are required to gradually increase the CBG blending ratio and achieve a 5% CBG mix by 2028. Consequently, expansion of CBG production facilities in India is an urgent priority as the CBG market continues to grow.

Purpose of Investment in TSGPL

TruAlt is India's largest ethanol manufacturer and belongs to the same group with Nirani Sugars, one of India's major sugar producers. The company produces approximately two million liters of ethanol per day. TSGPL expects to achieve stable CBG production by sourcing raw materials such as residue generated during sugar manufacturing and ethanol production from TruAlt and other group companies’ production sites. Sumitomo Corporation will leverage its accumulated expertise and domestic network in India, particularly in the areas of CBG sales and marketing activities and will combine the strengths of both companies to promote CBG production across India.

Future Initiatives

TSGPL will first commence construction of four CBG production facilities in Karnataka and Maharashtra, major sugarcane-producing regions in southern India, while formulating strategies for the expansion of production bases and conducting feasibility studies. Furthermore, by leveraging the knowledge and experience of Sumitomo Corporation and TruAlt, the two companies will also consider future initiatives to expand bioethanol production facilities and produce SAF derived from bioethanol.
In addition, aiming to contribute to the Japan–India Bilateral Credit Mechanism (JCM) agreement signed in August 2025, Sumitomo Corporation will work through TSGPL to generate carbon credits.

Sumitomo Corporation's Bioenergy Business

Sumitomo Corporation positions bioenergy as an important means to achieve carbon neutrality in its business activities by 2050 and to realize a sustainable energy cycle. In June 2025, Sumitomo Corporation established North Sky A/S, a biogas production business in Denmark, marking its first participation in a biogas manufacturing business. In Japan, the company is advancing the Project Morisora, which aims to achieve domestic production of SAF. Sumitomo Corporation has also signed an MOU with Malaysia-based reNIKOLA for bioenergy development and is pursuing development opportunities in numerous countries.
The Energy Innovation Initiative SBU of Sumitomo Corporation will continue to strengthen its efforts in the bioenergy business field.

*1 Compressed biomethane gas (CBG): A fuel produced from agricultural residues and other organic waste materials. As it doesn't emit any new carbon dioxide upon combustion, returning to the atmosphere only the CO₂ originally absorbed by the raw materials, it is regarded as contributing to the realization of carbon neutrality. CBG is used as a drop-in fuel substitute for city gas.

Related Information:
Biogas and e-SAF Business Joint Venture Established with Denmark's Skovgaard Energy
JAL, Airbus, Nippon Paper Industries, Sumitomo Corporation, GEI sign MoU to collaborate on pure Japan-domestic wood-based SAF
Sumitomo Corporation to make primary investment in a Singapore platform to enter city gas business in India

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