India’s pursuit of a sustainable energy future presents a challenging puzzle, with pieces like rising energy needs, reliance on imports, agricultural byproducts and public health – all in play. Within this context, biogas has the potential to be surfaced as a versatile answer, capable of converting waste into a valuable resource. Indian Biogas Association observes, first hand, the sector’s transformation from a rural energy option to a vital national resource. The commitment of public sector entities, such as Hindustan Petroleum Corporation Ltd (HPCL), which last year pledged R2,000 crore for 24 compressed biogas (CBG) plants, underscores a significant change in focus. This progress represents more than just generating power; it’s a model for a circular economy. It fosters growth, improves environmental conditions and supports local communities.
The economic justification for biogas adoption within India is significant. Projections indicate that the sector will draw in excess of Rs5,000 crore during 2026-27, with the market anticipated to expand by two-threefold in the calendar year. This expansion is supported by a robust investment strategy focused on energy independence and reducing reliance on imports. India allocates substantial funds each year to oil and gas imports; substituting a mere 20 per cent of natural gas consumption with domestically produced biogas could potentially decrease liquefied natural gas (LNG) import costs by an impressive $29 billion during 2024-25 to 2029-30.
Government policy has to be a key driver in ensuring this investment-friendly environment. The Sustainable Alternative Towards Affordable Transportation (SATAT) programme exemplifies this approach, aiming to establish 5,000 CBG plants and generate 15 million tonnes per annum of CBG. To mitigate investment risk, the programme provides a fixed-price offtake agreement for CBG with public sector oil marketing companies. Biogas’s most significant advantage lies in its potential to convert two of India’s enduring environmental challenges – organic waste and air pollution – into a source of clean energy.
A coordinated, mission-driven strategy is essential for progress
India generates an enormous volume of organic waste. Annually, the country produces about 500 million tonnes of agricultural residue. Furthermore, there are 62 million tonnes of municipal solid waste, and daily, about 3 million tonnes of cattle dung.
Much of this waste, as it stands, is either incinerated, dumped in landfills or allowed to rot, which, in turn, releases harmful greenhouse gases and toxic particles into the air. A World Bank report paints a grim picture, connecting air pollution to 6.4 million premature deaths each year, with India facing a particularly heavy toll.
Biogas technology presents a solution to the issue at hand. It works by intercepting this waste stream. Through anaerobic digestion, it captures methane – a greenhouse gas that’s over 25 times more potent than CO2 – and transforms it into a fuel that can be used. The outcome is a significant reduction in greenhouse gas emissions, between 60 per cent and 80 per cent, when compared to traditional fossil fuels used in the transport sector. The by-product of this process, digestate, is a nutrient-rich organic fertiliser that can improve soil health and reduce dependence on chemical alternatives, completing a virtuous ecological cycle.
The biogas solution is profoundly decentralised, with its most transformative impact felt in rural India. Over 5 million small-scale biogas plants already dot the countryside, though many require revitalisation. Access to biogas for clean cooking properly improves respiratory health, particularly for women and children suffering from indoor pollution.
The National Bio-energy Programme, alongside the SATAT and GOBAR-Dhan initiatives, is aiming to convert agricultural, livestock and other organic waste into biogas. A crucial regulatory tool is the CBG Blending Obligation (CBO). This mandates that CGD companies integrate CBG blending into their current systems, aiming for a blend of up to 5 per cent by 2028. This obligation guarantees a consistent and reliable biogas demand.
Nevertheless, several challenges persist, such as scaling up the sector requires significant capital and initial operational costs. Securing affordable financing is also essential, along with establishing reliable, year-round feedstock supply chains and a market for organic fertiliser. These elements are critical to the long-term operational success of biogas plants.
A coordinated, mission-driven strategy is essential for progress. The Indian Biogas Association has proposed a ‘Unified National Biogas Mission’ to consolidate existing programmes, simplify funding mechanisms and establish measurable goals. Achieving this will require bolstering local supply chains, encouraging waste separation in cities and promoting ongoing technological advancements to create effective, regionally tailored solutions.
Biogas could be more than just a peripheral solution; it has the potential to be central. It mirrors India’s ambitions for energy independence, the 2070 net-zero goal and a more equitable economy. By transforming waste into energy, we’re not just fuelling homes and businesses; we’re also building a stronger India.