India Targets 10-Fold Growth in Compressed Biogas Production

India is targeting a 10-fold increase in compressed biogas (CBG) production, with output expected to rise from around 0.4 million standard cubic metres per day (mmscmd) to 5 mmscmd over the next five to 10 years. The move is aimed at expanding domestic clean-fuel production and reducing India's dependence on imported energy.

The government is working to accelerate the development of the CBG sector, with more than 300 plants currently under construction. Key challenges such as feedstock availability, project financing, pricing, pipeline connectivity and assured offtake are being addressed to improve the viability of new CBG projects.

Under the proposed Govardhan framework, the government is considering measures to simplify approvals and improve infrastructure for CBG producers. Support for pipeline connectivity, capital financing and credit guarantees could help attract further investment and encourage greater participation from businesses and MSMEs.

The expansion of CBG production will also support India's waste-to-energy and circular economy goals. CBG can be produced from agricultural residues, cattle dung and other organic waste, turning these resources into a useful clean fuel while creating additional value from waste.

By scaling up domestic CBG production, India aims to strengthen energy security, diversify its fuel mix and support the clean-energy transition. The initiative could also create opportunities across the bioenergy value chain while helping reduce the country's reliance on conventional and imported fuels.

A 10x CBG expansion is genuinely large-scale, and it depends on solving feedstock aggregation, pipeline connectivity and offtake in parallel - the same three problems that hold back most emerging bioenergy sectors. Our energy-transition and supply-chain-and-operations teams help developers, gas utilities and industrial offtakers evaluate CBG's role in a credible transition plan, particularly for gas-to-CBG blending and Scope 1 reductions.