Leading Energy Corporations Strategize to Establish Compressed Biogas Projects

7 Jul 2023 , 11:11 AM

According to news reports, both Reliance Industries (RIL) and Adani Total Gas (ATGL) have announced plans to construct 10 compressed biogas (CBG) plants across the country. These plants will have a capacity of up to 30 tonnes per year. The construction will take place in two phases, with five plants built initially and discussions held later for the remaining five. Each corporation is expected to contribute up to Rs 2500 crore for the construction of these plants.

Compressed biogas (CBG), also known as bio-CNG, is a cleaner fuel derived from biomass or organic waste. It shares similar characteristics to compressed natural gas (CNG) and can be utilized in commercial, industrial, and automotive applications.

The report states that RIL and Adani Group have already identified several locations for the construction of these plants. Initially, the focus will be on building five plants, with the remaining five to follow based on feedstock availability.

Jio-bp, a fuel retail joint venture between Reliance Industries and BP, currently sells compressed biogas (CBG) and bio-CNG (B-CNG) as an alternative to compressed natural gas for CNG-powered vehicles. The report indicates that RIL’s five CBG units will be located in Gujarat, while the remaining five will be situated in other parts of the country.

India currently has over 30 operational CBG facilities, and industry experts predict significant investments of over $2 billion in the sector over the next five to seven years. The government’s ambitious Satat program aims to achieve a target of producing 15 million metric tonnes of CBG annually, equivalent to nearly 40,000 tonnes per day.

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