India Compressed Bio Gas (CBG) Market Synopsis:<\/p>\n
India Compressed Bio Gas (CBG) Market Size Was Valued at USD 15.2 Billion in 2024, and is Projected to Reach USD 37.63 Billion by 2032, Growing at a CAGR of 12% From 2025-2032.<\/p>\n
Biogas is produced from waste \/ bio-mass sources (e.g., agricultural residue, cattle dung, sugarcane press mud, municipal solid waste, and sewage treatment plant waste) through the process of anaerobic decomposition. Compressed Biogas (CBG) has calorific value and other properties similar to Compressed Natural Gas (CNG) and hence can be utilized as green renewable automotive fuel. Thus, it can replace CNG in automotive, industrial, and commercial areas, given the abundance biomass availability within the country.<\/p>\n
India is the 3rd largest energy and oil consumer in the world. Furthermore, the IEA forecasts India will be responsible for a quarter (25%) of all growth in global energy consumption in the coming two decades. The Statistics Review estimates that India\u2019s energy demand will double, while natural gas demand is expected to grow five-fold by 2050.<\/p>\n
The demand for compressed biogas (CBG) or bio-CNG in India is set to see massive expansion due to mandatory blending obligations in the city gas distribution (CGD) sector, covering both piped natural gas (PNG) used for cooking and compressed natural gas (CNG) used for transport. The Indian government last year announced mandatory phased blending of CBG in CNG and PNG segments starting the fiscal year 2025-26. Under the new policy, the compulsory blending obligation will begin at 1% of total CNG and domestic PNG consumption in fiscal 2025-26, gradually increasing to 5% by fiscal 2028-29. The quantity of CBG to be mandatorily blended in PNG and CNG sector is set to reach around 868,000 tonnes by FY2029-30, almost 40-fold jump from CBG sales.<\/p>\n
India Compressed Bio Gas (CBG) Market Growth and Trend Analysis:<\/p>\n
Rapidly Expansion of Biogas and CBG Sector to Accelerate Its Energy Transition<\/p>\n
India has been building momentum towards a sustainable energy transition, with a goal of achieving Net Zero by 2070. This vision reflects the country\u2019s determination to address its growing energy demand, utilise the significant waste generated and tackle pressing environmental challenges such as air pollution. To accelerate the energy transition and create jobs across the country, India has been fostering the production and expansion of biogas and compressed biogas (CBG), also known as biomethane. The International Energy Agency (IEA) highlighted in the Renewables 2024 report that India is addressing the growing demand for biogas and is building infrastructure and feedstock supply chains for future acceleration.<\/p>\n
According to the Government of India\u2019s GOBARdhan portal, there are currently 872 operational biogas plants with a minimum capacity of five cubic meters per day, with an additional 350 plants under progress. Further, over 100 large scale CBG plants are operational, and approximately 600 plants are under development. The states of Gujarat (17), Uttar Pradesh (15) and Haryana (10) have the highest number of operational CBG plants6.<\/p>\n
Key policies from the Government of India support the CBG market for instance, the SATAT scheme is making progress in establishing an ecosystem to produce CBG from diverse biomass and waste sources. By ensuring a guaranteed offtake price and encouraging commercial partnerships with Oil & Gas marketing companies, the scheme aims to promote the use of CBG alongside natural gas. Prices for CBG offtake continue to be driven by the market, according to Compressed Natural Gas (CNG) prices. There are strong trends to scale up CBG plants in India<\/p>\n
According to the WBG Report, The CBG blending obligation aims to stimulate investment of around INR 37,500 crore (~USD 4.46 Bn) and facilitate the establishment of 750 CBG projects by 2028-29. <\/p>\n
Strengthening Feedstock Supply Chains <\/p>\n
One of the major challenges in the CBG sector is the supply chain management of feedstock. Ensuring supply chain assurance and quality consistency remain key concerns for scaling up operations. To address these issues, partnerships with aggregators and diverse feedstock sources are being explored. Paddy straw remains the most difficult feedstock to handle due to inconsistent moisture levels. Going forward, better data on surplus availability at the tehsil level will be required for expansion. Developers also need support for storage infrastructure.<\/p>\n
Achieving Clean Energy Objective<\/p>\n
India has set a target to increase the share of gas in energy consumption from the current 7 per cent to 15 per cent by 2030. Compressed biogas (CBG), as a domestic renewable energy resource, holds substantial promise to bridge this gap and achieve the country\u2019s clean energy objectives. Given this, the CBG sector in India is gradually gaining the attention it deserves due to its high potential of 40 mmt. Five states \u2013 Uttar Pradesh, Madhya Pradesh, Maharashtra, Punjab and Gujarat \u2013 contribute 50 per cent to the total national potential. These states also lead in terms of the number of functional plants and CBG production capacity. India\u2019s significant CBG production potential can be attributed to the availability of surplus feedstock, with animal and poultry waste contributing 38 percent and agricultural residue 31 percent. Given this potential and the available opportunities, the CBG sector has attracted interest from several private and public companies. <\/p>\n
Regulatory and Standardization Issues <\/p>\n
The bio-based nutraceuticals market is growing globally, but it faces several critical challenges that limit its full-scale development and consumer penetration. Regulatory and Standardization Issues remain at the forefront, as varying international and regional standards create confusion around product approvals, labeling, and claims, often delaying time-to-market. High Production Costs and Pricing Pressures also act as major barriers, as sourcing bio-based ingredients and maintaining sustainable practices significantly increase manufacturing expenses, resulting in higher prices that may not appeal to cost-conscious consumers.<\/p>\n
India Compressed Bio Gas (CBG) Market Segment Analysis:<\/p>\n
India Compressed Bio Gas (CBG) Market is segmented based on Feedstock Type, Technology, Application, End-User, and Distribution Channel.<\/p>\n
By Feedstock Type, the Agricultural Residues segment is expected to dominate the market during the forecast period<\/p>\n
India focuses on its agricultural residue as the key substance for expanding compressed bio-gas (CBG) production through paddy straw as well as sugarcane residue and various farm wastes. The agriculture residue segment holds the status of main raw material source for CBG production due to its abundant paddy straw and press mud supply which contributes to India’s energy security program and emission reduction objectives as well as fossil fuel import reduction.<\/p>\n
The Indian Ministry of New and Renewable Energy (MNRE) reports that India generates yearly amounts of 500 million tons (Mt) of crop residue. The extensive amounts of agricultural waste available in the country create a substantial potential for the production of Compressed Bio Gas (CBG). Affordable biomethane or bio-CNG products can be made from crop residue which consists of paddy straw along with sugarcane residue and multiple agricultural side products. The utilization of agricultural waste as material for CBG production serves dual purposes by helping waste management and supporting India’s objectives to decrease its reliance on imported fossil fuels while enhancing clean energy generation.<\/p>\n
By Application, the Electricity and heat Generation segment held the largest share in the projected period<\/p>\n
The total installed capacity of biomass power and cogeneration plants in India reaches 10,232 MW while Maharashtra together with Uttar Pradesh generates about 45% of this capacity. Through the National Bioenergy Programme as well as SATAT for BioCNG and GOBARDHAN for community biogas plants the government actively encourages bioenergy development. Several bioenergy projects are currently at different development stages across West Bengal as well as other states. The implemented actions promote renewable energy systems while minimizing the need for fossil fuels.<\/p>\n
With a robust regulatory framework, Government mandates and schemes, and a focus on indigenous technological innovations, CBG can embody India’s vision for a cleaner and more sustainable energy future. It is not merely a technological innovation but can become a catalyst for positive environmental, economic, and social change in the country.<\/p>\n
India Compressed Bio Gas (CBG) Market Active Players: <\/p>\n
Advanced Biofuels USA<\/p>\n
Bharat Petroleum Corporation Limited (BPCL)<\/p>\n
Gruner Renewable Energy<\/p>\n
Gail Gas Limited<\/p>\n
Hindustan Petroleum Corporation Limited<\/p>\n
Hycons Bioenergy<\/p>\n
Indian Oil Corporation Limited (IOCL)<\/p>\n
Mushroom World Group<\/p>\n
Nexgen Energia Ltd<\/p>\n
Praj Industries<\/p>\n
Sevozone<\/p>\n
ZVS International<\/p>\n
Other Active Players<\/p>\n
Key Industry Developments in the India Compressed Bio Gas (CBG) Market:<\/p>\n
In November 2024, GPS Renewables (GPSR), a leading biogas engineering firm, partnered with Oil India Limited (OIL) to establish eight compressed biogas (CBG) plants in India. The two companies will hold equal stakes in a 50:50 joint venture, which will oversee the design, construction, financing, ownership, operation, and eventual transfer of these facilities under a DBFOOT model.<\/p>\n
In October 2024, the Prime Minister of India inaugurated Gwalior\u2019s new 100 TPD cattle dung-based Compressed Bio-Gas (CBG) plant, exemplifying his vision for a “Waste to Wealth” initiative. The CBG plant is Gwalior’s largest cowshed, Adarsh Gaushala, located in Laltipara, Gwalior. The Gaushala is operated by Gwalior Municipal Corporation and over 10,000 cattle live here. The Gaushala has achieved a landmark feat with the establishment of India’s first modern, self-sufficient gaushala that houses a state-of-the-art Compressed Biogas (CBG) plant. The speciality of this plant is that it is the first CBG plant in Madhya Pradesh in which biogas will be prepared from cattle dung and garbage such as vegetable and fruit waste materials collected from mandis and homes.<\/p>\n","protected":false},"excerpt":{"rendered":"
India Compressed Bio Gas (CBG) Market Size Was Valued at USD 15.2 Billion in 2024, and is Projected to Reach USD 37.63 Billion by 2032, Growing at a CAGR of 12% From 2024-2032.<\/p>\n","protected":false},"featured_media":6586,"template":"","meta":{"_acf_changed":false},"product_brand":[],"product_cat":[154,179],"product_tag":[],"class_list":["post-9758","product","type-product","status-publish","has-post-thumbnail","product_cat-automotive-transportation","product_cat-energy-environment","first","instock","virtual","purchasable","product-type-simple"],"acf":[],"yoast_head":"\n