Integrated High Impact Innovation in Sustainable Energy Technology Prefeasibility Analysis for Carbon Capture, Utilization and Storage (Subproject 2)

The break-even analysis in the report showed that the levelised cost for food grade CO2 is around INR 3.00 to 4.00/kg (US$ 41.4 to 55.2/t CO2) for both the locations, which are far less than the levelised Indian market sale price (INR 7.5/kg or US$ 103.5/t CO2). This renders business case reasonably strong. In fact, the healthy difference between the expected sales price and cost accords The Company ability to price its food grade CO2 at highly competitive rates to garner market share.

In conclusion, given the favourable financial outcome and reasonability of underlying assumptions, the food grade CO2 business appears promising and may merit detailed analysis to take the proposal further to its logical conclusion, more so with very plausible upsides. Despite Indian funding market lacking familiarity with financing such carbon utilisation projects, in view of the strong parentage of The Company and robust business case, Consultant Team believes that The Company will not have any difficulty in finding lenders to such project, if needed. In fact, Consultant Team believes that The Company may approach ADB for this type of lending. Also new lenders and new credit structures as outlined in Appendix 6 may be considered for such a project.