India's Biogas Boom: CBG Industry Projected to Soar by 2026

The Indian Biogas Association forecasts over Rs 5,000 crore investments in the biogas sector by 2026-27 amid strong investor interest. With more than 100 compressed biogas (CBG) plants operational, sales exceeded 31,400 tonnes in FY 2024-25. Significant growth and policy support are expected.

The Indian biogas sector is poised for significant growth, with the Indian Biogas Association (IBA) projecting investments exceeding Rs 5,000 crore by 2026-27. A surge in investor interest is fueling the expansion, with the sector witnessing a blossoming market and strong uptake.

Government data reveals that over 100 compressed biogas (CBG) plants are now operational, with 94 facilities selling more than 31,400 tonnes of CBG in the fiscal year 2024-25—a clear sign of the sector's burgeoning growth. The IBA underscores the need for upgrading several million small-scale digesters to enhance efficiency and capacity.

The association highlights the importance of streamlined commissioning of CBG facilities, robust supply chains for feedstock, and cohesive policy frameworks. Additionally, a favorable GST reform is set to boost the ease of business in the CBG environment, potentially increasing industry investments by 4-5% in the near term.