India's Biogas Revolution: Paving the Way for a Market-Driven Renewable Gas Economy

The Confederation of Indian Industry's study urges a transformation to a market-driven renewable gas economy by setting up 5,000 compressed biogas plants by 2030. Key recommendations include rationalizing GST, expanding infrastructure, and launching a National Bioenergy Mission to enhance energy security and economic growth while reducing emissions.

The Government of India's ambitious goal to establish 5,000 compressed biogas (CBG) plants and produce 15 million metric tonnes of CBG annually by 2030 will necessitate a shift to a market-driven renewable gas economy, reveals a study by the Confederation of Indian Industry (CII).

The report, titled 'Mainstreaming Compressed Biogas (CBG),' was unveiled at a conference in New Delhi, highlighting a strategic roadmap to position CBG as a significant contributor to national energy security, rural development, and decarbonization. With global energy demand rising and reliance on imports, the study evaluates various growth trajectories and concludes that success lies in diversified offtake across industrial, transport, and commercial sectors rather than mandatory blending alone.

To expedite this transition, the CII suggests a reform agenda, including rationalizing GST to 5 percent across the CBG value chain and implementing Renewable Gas Certificates. The establishment of dedicated pipeline injection facilities and a National Bioenergy Mission are also recommended to enhance sectoral growth.

Chandrajit Banerjee, Director General of CII, stressed the domestic potential of CBG, highlighting its role in enhancing energy security and creating income opportunities for farmers. The study also builds upon existing policies to ensure long-term commercial viability, according to Ranjit Rath, Chairman of CII National Hydrocarbon Committee, aiming for a renewable gas ecosystem that supports India's Net Zero goals.