Friday, 13th March 2026

Climate Fund Managers

Climate Fund Managers, a climate-focused blended finance investment manager, has committed USD 32.2 million from its EU-supported Climate Investor Two Construction Equity Fund to Akaia Green Fuels, a commercial-scale waste-to-biogas facility in Uttar Pradesh, northern India. This initiative reflects the European Union’s strong partnership with India on climate action, a priority reaffirmed at the 16th India–EU Summit. Through the partnership, the EU is accelerating decarbonisation – supporting industrial transition, scaling up green hydrogen and expanding renewable energy.

The investment will help reduce air pollution and greenhouse gas emissions by converting agricultural waste into compressed biogas – a renewable fuel that displaces imported fossil gas, while creating new income for rural communities. The project will convert ~94,000 tonnes of agricultural and organic waste each year, including paddy straw, press mud from sugar mills and cow dung, into ~20 tonnes per day of compressed biogas and ~123 tonnes per day of fermented organic manure. Once operational, the facility is expected to avoid more than 100,000 tonnes of CO₂ equivalent emissions annually and to improve air quality for an estimated 700,000 people across 640 villages by reducing open-field residue burning. The project will support significant job creation, including an estimated 480 roles during construction, 110 permanent operations and maintenance jobs and additional employment across the feedstock supply chain and logistics network.

Farmers will benefit from additional income from waste biomass sales as well as access to cost-effective organic fertilisers such as fermented organic manure, a by-product of the compressed biogas process, supporting improved soil health and reducing reliance on chemical fertilisers.

Climate Fund Managers’ construction equity investment builds on USD 3.3 million in early-stage development funding provided in 2023 by Climate Investor Two’s Development Fund, which supported critical development activities and helped de-risk the project ahead of financial close. This included support for land acquisition, pipeline access, securing long-term feedstock supply and gas offtake agreements, as well as financial and technical structuring in line with international standards. Construction commenced in February 2026 with full commercial operation targeted for H1 2027.

The biogas produced will be injected directly into the city gas distribution network under long-term offtake agreements with India’s largest natural gas company, GAIL India, and state-owned oil and gas company, Hindustan Petroleum Corporation Limited (HPCL), displacing imported fossil gas and strengthening India’s energy security.