India has a theoretical capacity to produce 62 million metric tonnes of compressed biogas annually, but the current output is less than 1% of this potential, presenting a significant untapped energy opportunity. A report highlighted that utilizing agricultural residue, cattle waste, municipal solid waste, and industrial byproducts could reduce India’s reliance on imported hydrocarbons. The government’s SATAT initiative and the mandatory CBG blending roadmap are expected to drive growth in this sector.
Over 130 CBG plants have already been set up under SATAT, with more than 1,000 projects in the pipeline. The gradual increase in mandatory blending obligations over the coming years is anticipated to provide long-term demand certainty for producers and infrastructure developers. The shift from voluntary adoption to mandatory blending is seen as a pivotal moment for the industry, enhancing demand visibility and commercial feasibility.
According to Karthick Jonagadla, the transition to mandatory blending marks a significant shift in the sector’s economics, attracting greater participation from infrastructure developers, technology providers, and institutional investors. India’s increasing dependence on imported crude oil is identified as a major economic vulnerability, making biogas and compressed biogas (CBG) crucial domestic energy solutions. Despite India’s vast agricultural and organic waste resources, the country is only beginning to tap into its biogas potential.
Policy measures such as excise duty waivers on CBG blended with CNG and revisions in procurement pricing are expected to enhance project viability and boost private-sector involvement. The expanding biogas opportunity extends beyond individual producers to various segments of the energy and infrastructure landscape. Oil marketing companies like Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited are actively investing in biogas projects and supply networks, while gas utilities and city gas distribution firms are poised to benefit from the growing blending requirements and improved pipeline integration.
