Bioenergy/Biogas
Introduction to the Subsector of Bioenergy/Biogas
Bioenergy, especially biogas, is a renewable energy source produced from organic materials like agricultural waste, cattle dung, municipal solid waste, and sewage. In India, biogas is generated through anaerobic digestion—a process where microorganisms break down organic matter in the absence of oxygen. The resulting biogas contains methane (55–65%), which can be used for cooking, electricity generation, and as a clean fuel for vehicles (when purified as Compressed Biogas, or CBG). Biogas plants range from small household units to large commercial facilities, helping reduce greenhouse gas emissions, improve sanitation, and create rural jobs.
Opportunities India is Working Towards in This Subsector
- Energy Security & Import Reduction: India aims to reduce its dependence on imported fossil fuels by substituting natural gas and LPG with biogas and CBG.
- Waste Management: With over 62 million tonnes of municipal waste and 700 million tonnes of agricultural residue generated annually, biogas offers a sustainable solution for waste disposal.
- Climate Action: Biogas helps India meet its climate commitments by reducing methane emissions from landfills and stubble burning, and by providing a cleaner alternative to fossil fuels.
- Rural Development: The sector creates jobs, empowers women, and improves rural livelihoods by providing clean cooking fuel and organic fertilizer.
- Industrial Growth: India is rapidly expanding its biogas market, with projections of 45% growth in bioenergy consumption between 2023 and 2030.
Initiatives Launched in India
- National Bioenergy Programme (NBP): Launched in 2022, this program supports the installation of biogas and CBG plants, with a budget outlay of ₹858 crore for Phase-I (2021–26).
- SATAT Scheme: The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative (since 2018) aims to set up 5,000 CBG plants by 2030, producing 15 million metric tonnes of CBG annually.
- GOBARdhan Scheme: Focuses on converting cattle dung and organic waste into biogas, promoting rural cleanliness and energy access.
- State Policies: Uttar Pradesh, Bihar, Gujarat, and Haryana have launched their own bioenergy policies to accelerate local adoption.
- Global Biofuel Alliance: Launched under India’s G20 leadership in 2023, this international initiative promotes biofuel development and deployment.
Projects Launched Over the Past 3 Years
- HPCL Investment: Hindustan Petroleum Corporation Ltd announced a ₹20 billion investment for 24 new CBG plants (2025–2027), each producing 10–15 metric tonnes of CBG per day.
- BPCL Project: Bharat Petroleum Corporation Limited is developing a 5–10 mt/day CBG plant in Bilaspur, Chhattisgarh, processing 150 tonnes of municipal waste daily.
- Expansion of CBG Plants: As of March 2023, 46 CBG plants have been commissioned under SATAT, with over 4,000 Letters of Intent issued to entrepreneurs.
- 2G Ethanol Plants: Oil companies are setting up 12 second-generation ethanol plants using agricultural residues; one has been commissioned recently.
Data on Growth in the Subsector Over the Past 3 Years
- Market Size: The Indian biogas market was valued at USD 1.64 billion in 2024, projected to reach USD 1.77 billion in 2025 and USD 3.49 billion by 2032 (CAGR: 10.2%).
- Plant Numbers: Over 5 million biogas plants are operational, with Maharashtra leading (935,000 plants as of March 2023).
- CBG Output: Current bio-CNG output is 3.2 BCM/year, with the potential to reach 86 BCM/year by 2047.
- Installed Capacity: Biomass & waste-to-power capacity is ~10.8 GW as of March 2023, with a 15% CAGR in renewable energy installations from 2016–2023.
- Government Support: Central Financial Assistance and subsidies have increased, with targeted allocations for small and community biogas plants across states.
