Compressed Biogas (CBG): Indian Market Scenario

Compressed Biogas (CBG) is emerging as a transformative alternative fuel in India, seamlessly aligning with the country’s ambitious goals for sustainable development and energy security. As a renewable and eco-friendly fuel, CBG offers substantial advantages over traditional fossil fuels, including a significant reduction in greenhouse gas emissions. This contributes directly to India’s climate change mitigation efforts and its commitments under international environmental agreements. Additionally, CBG production fosters a circular economy by converting organic waste into valuable energy, thereby addressing waste management challenges and reducing landfill use.

Market Potential of CBG for India

Market Size and Growth

• The CBG market in India is estimated to be worth approximately USD 30 billion by 2030, growing at a CAGR of 12% from 2023 to 2030.
• With increasing adoption and government support, the market is expected to witness significant expansion in the coming years.

Demand Drivers

• Government Policies: Initiatives like SATAT and the emphasis on clean energy drive demand for CBG.
• Environmental Awareness: Increasing awareness about environmental issues encourages the adoption of cleaner fuel alternatives.
• Energy Security: CBG contributes to energy security by reducing dependence on fossil fuels and promoting domestic energy production.

Production Capacity

• India’s current CBG production capacity is about 300,000 tonnes per annum (MTPA). However, the country presents orders of magnitude higher growth potential.
• Government incentives and investments in infrastructure are expected to boost production capacity in the coming years.

Future Potential

• Market Size Projection: The CBG market is projected to reach 15 MTPA by 2030, driven by increasing government support and growing demand.
• Focus on Advanced Technologies: Investments in research and development are expected to enhance CBG production efficiency and lower production costs, further boosting market growth.

Compressed Biogas Sector Companies in India (Examples)

Category	Company Name	Role(s)
Producers	Adani Group	CBG production, setting up CBG plants, promoting clean energy initiatives
	Indian Oil Corporation Limited (IOCL)	CBG production, establishing plants across the country for renewable and sustainable fuel
	Bharat Petroleum Corporation Limited (BPCL)	CBG production, contributing to the nation’s clean energy goals
Raw Material Suppliers	Agricultural Residue Aggregators
	AgriEnergy Producers Association of India (AEPAI)	Focuses on aggregating agricultural residues like rice straw, wheat straw, and sugarcane bagasse
	GreenTech India	Specializes in sourcing and supplying various types of biomass for CBG production
	State-Owned Trading Corporations
	Indian Renewable Energy Development Agency (IREDA)	Facilitates the procurement and distribution of biomass feedstock for CBG production
Manufacturers (Equipment)	Greenlane Renewables	Provides biogas upgrading systems and equipment for CBG purification
	Suez India Pvt. Ltd.	Offers solutions for wastewater treatment and biogas purification for CBG production
Technology Solution Providers	Wärtsilä India Pvt. Ltd.	Provides technology solutions for CBG production, including biogas upgrading systems and optimization
	Envitec Biogas India Pvt. Ltd.	Specializes in biogas plant construction and operation, offering turnkey solutions for CBG production
Research Institutions	Indian Institute of Technology (IIT) Delhi	Conducts research and development in advanced CBG production technologies
	National Institute of Renewable Energy (NIRE)	Focuses on research and innovation in renewable energy technologies, including CBG production processes
Consulting Firms	Ecozen Solutions Pvt. Ltd.	Provides consulting services for CBG project development, feasibility studies, and project management
	Energy Alternatives India (EAI)	Offers consulting and advisory services for CBG producers and investors, covering market analysis and strategy development

Overview of Compressed Biogas Technology and Processes

Compressed Biogas (CBG) technology encompasses various methods and types, each contributing to the efficient production and utilization of renewable biogas. This overview explores the different approaches and classifications within CBG technology, shedding light on its diverse applications and benefits.

Types of Compressed Biogas

• Renewable Natural Gas (RNG): RNG refers to biogas derived from renewable organic sources, which is further purified and compressed to meet pipeline-quality standards. RNG is chemically equivalent to conventional natural gas and can be seamlessly integrated into existing gas infrastructure for distribution and utilization.
• Vehicle-Grade CBG: Vehicle-grade CBG is specifically processed and compressed to meet the stringent quality requirements for use as a transportation fuel. It serves as a sustainable alternative to conventional fossil fuels, powering compressed natural gas (CNG) vehicles and reducing greenhouse gas emissions in the transportation sector.
• Industrial CBG: Industrial CBG caters to the energy needs of various industries, including manufacturing, food processing, and wastewater treatment. This type of CBG is utilized for thermal energy generation, process heating, and cogeneration applications, offering clean and renewable energy solutions for industrial processes.
• Residential and Commercial CBG: CBG can also be compressed and packaged for residential and commercial use, primarily for cooking, heating, and power generation purposes. Clean-burning CBG stoves, heaters, and generators provide sustainable energy solutions for households, restaurants, and small businesses.

Process Overview

CBG production methods revolve around the conversion of organic waste into purified biogas, followed by compression to enhance its energy density. The primary production methods include:

1. Feedstock Collection and Preparation

• Organic Waste Collection: Various organic feedstocks, including agricultural residues, livestock manure, food waste, and wastewater sludge, are collected from farms, industries, and municipalities.
• Feedstock Pre-treatment: Depending on the type of feedstock, pre-treatment processes such as shredding, grinding, and mixing may be employed to optimize biogas production and facilitate digestion.

2. Anaerobic Digestion (AD)

• Biogas Generation: The pre-treated feedstock is fed into anaerobic digesters, where microbial fermentation takes place in the absence of oxygen.
• Methane Production: During anaerobic digestion, microorganisms break down organic matter, releasing methane (CH4) and carbon dioxide (CO2) as byproducts.

3. Biogas Purification

• Removal of Impurities: Biogas undergoes purification processes to remove impurities such as hydrogen sulfide (H2S), moisture, and trace contaminants, which can degrade gas quality and equipment.
• Desulfurization: Hydrogen sulfide is typically removed using scrubbing techniques or biological desulfurization methods to prevent corrosion and maintain gas purity.

4. Compression

• Gas Compression: Purified biogas is compressed using specialized equipment such as compressors to increase its energy density and facilitate storage, transportation, and utilization.
• Pressure Management: Compression systems regulate the pressure of compressed biogas to meet specific requirements for different applications, including vehicle fueling and industrial processes.

5. Quality Assurance

• Gas Analysis: Compressed biogas undergoes rigorous quality testing to ensure compliance with industry standards and specifications for purity, composition, and performance.
• Certification: Certified testing laboratories and regulatory bodies may verify the quality and safety of compressed biogas products before distribution and commercialization.

End-Use Applications of Compressed Biogas (CBG) in India

Compressed Biogas (CBG) holds significant potential as a versatile and sustainable energy source across various sectors in India. Here are some key end-use applications of CBG in the Indian context.

1. Transportation Sector

• Fuel for Vehicles: CBG can be used as a clean and renewable alternative fuel for vehicles, particularly in compressed natural gas (CNG) vehicles. It can power buses, taxis, auto-rickshaws, and other public and private transport vehicles, reducing emissions of harmful pollutants and greenhouse gases.
  • Example: Pune Mahanagar Parivahan Mahamandal Limited (PMPML) uses CBG to fuel city buses, reducing emissions and operational costs.
• Fleet Operations: CBG is suitable for fleet operations, including government vehicles, commercial transport fleets, and logistics companies, offering a cost-effective and eco-friendly fueling solution for long-distance travel and urban mobility.
  • Example: Indraprastha Gas Limited (IGL) has partnered with logistics companies to convert fleets to CBG, enhancing fuel efficiency and sustainability.

2. Industrial Applications

• Process Heating: Industries can utilize CBG for process heating in manufacturing operations, such as food processing, textiles, ceramics, and pharmaceuticals, replacing conventional fuels like coal, diesel, and furnace oil, thereby reducing carbon emissions and energy costs.
  • Example: Godrej Agrovet uses CBG for process heating in its food processing units, replacing conventional fuels like diesel.
• Cogeneration and Power Generation: Combined Heat and Power (CHP) systems fueled by CBG can generate both electricity and thermal energy for industrial facilities, improving energy efficiency and reliability while minimizing environmental impact.
  • Example: Praj Industries implements CBG-fueled CHP systems in its bio-refineries to improve energy efficiency and reliability.

3. Agricultural Sector

• Farm Operations: CBG production units can be integrated into agricultural settings, utilizing farm waste such as crop residues, animal manure, and agricultural byproducts to generate biogas for on-site energy needs, including irrigation, heating, and electricity generation.
  • Example: Mahindra & Mahindra’s Swaraj Division uses CBG produced from crop residues and animal manure to power farm equipment and operations.
• Off-Grid Power: CBG-powered generators and microgrids offer off-grid power solutions for rural communities and agricultural regions, enabling reliable electricity access for lighting, water pumping, and other agricultural activities.
  • Example: Ecozen Solutions provides CBG-powered microgrids for rural electrification, ensuring reliable power for agricultural activities.

4. Residential and Commercial Use

• Cooking Fuel: CBG can be used as a clean cooking fuel for households, restaurants, and street food vendors, replacing traditional biomass fuels like firewood, charcoal, and kerosene, thereby improving indoor air quality and reducing health risks.
  • Example: GAIL (India) Limited supplies CBG for domestic cooking purposes, reducing the reliance on traditional biomass fuels.
• Heating and Cooling: CBG-powered appliances, such as gas stoves, water heaters, and space heating systems, provide efficient heating and cooling solutions for residential buildings, hotels, hostels, and commercial establishments.
  • Example: Thermax Ltd. offers CBG-based heating solutions for commercial establishments, enhancing energy efficiency and reducing emissions.

5. Waste Management and Environmental Benefits

• Organic Waste Utilization: CBG production helps in the effective management of organic waste streams, including municipal solid waste (MSW), sewage sludge, and agro-industrial residues, diverting them from landfills and mitigating methane emissions.
  • Example: Waste-to-energy company Mailhem Ikos Environment converts municipal solid waste to CBG, which is then used to power local transportation networks.
• Climate Mitigation: CBG utilization contributes to climate change mitigation by reducing greenhouse gas emissions, promoting carbon sequestration, and supporting India’s commitments to the Paris Agreement and sustainable development goals (SDGs).
  • Example: Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL) uses agro-industrial residues to produce CBG, supporting India’s climate goals under the Paris Agreement.

Feedstocks- States

State	Reason
Maharashtra	– Abundance of sugarcane molasses from sugar mills. – Availability of organic municipal solid waste (MSW) from urban areas and food processing industries.
Uttar Pradesh	– Rich source of sugarcane molasses due to large-scale sugarcane cultivation. – Large livestock population contributing to ample supply of animal manure.
Karnataka	– Sugarcane cultivation for molasses production. – Availability of agricultural residues such as bagasse, rice straw, and wheat straw. – Presence of food processing units generating organic waste.
Tamil Nadu	– Significant sugarcane cultivation leading to ample availability of molasses. – Presence of food processing industries contributing to organic MSW generation.
Gujarat	– Presence of sugar mills and sugarcane cultivation resulting in availability of molasses. – Abundance of agricultural residues such as cotton stalks, groundnut shells, and rice husk. – Significant food processing industry generating organic waste.
Punjab	– Presence of sugar mills and sugarcane cultivation resulting in the availability of molasses. – Abundance of agricultural residues such as cotton stalks, groundnut shells, and rice husk. – Significant food processing industry generating organic waste.
Haryana	– Large agricultural sector generating crop residues like wheat and rice straw. – Availability of animal manure from dairy and poultry farms due to significant livestock farming.
Madhya Pradesh	– Abundance of agricultural residues such as maize stalks, soybean straw, and sugarcane bagasse. – Availability of animal manure from dairy and poultry farming.
Rajasthan	– Crop residues from agriculture including wheat straw, barley straw, and mustard stalks. – Significant livestock population contributing to animal manure supply from dairy and poultry farms.
Andhra Pradesh	– Agricultural residues from crops like rice and maize, with significant maize cultivation in the state. – Availability of organic waste from food processing industries.
West Bengal	– Presence of organic MSW from urban areas and industrial centers. – Availability of sewage sludge from wastewater treatment plants (STPs) in cities like Kolkata.
Delhi	– Large urban population generating organic MSW. – Availability of sewage sludge from sewage treatment plants (STPs) in the city.

Types of Feedstock for Compressed Biogas (CBG) in India

Compressed Biogas (CBG) production relies on various organic feedstocks, each contributing to the efficient generation of renewable biogas. The diversity of feedstocks ensures a steady supply of raw materials, enhances sustainability and supports waste management. Here’s an overview of the primary and emerging feedstocks used in CBG production in India.

Primary Feedstocks

1. Agricultural Residues

• Crop Residues: Includes wheat straw, rice straw, maize stalks, and sugarcane bagasse. These residues are abundant, especially post-harvest, providing a significant resource for biogas production.
• Horticultural Waste: Waste from fruits and vegetables, including peels, pulp, and trimmings, is a valuable feedstock for biogas plants.

2. Animal Manure

• Livestock Manure: Cow dung, poultry litter, and pig manure are rich in organic matter, making them ideal for biogas generation. Large-scale dairy and poultry farms can supply a consistent feedstock.
• Animal By-products: Abattoir waste, including blood, bones, and offal, can also be processed to produce biogas.

3. Food Waste

• Municipal Food Waste: Organic waste from households, restaurants, and markets is a significant feedstock source, helping address urban waste management issues.
• Industrial Food Processing Waste: Residues from food processing industries, such as pulp, peels, and wastewater, can be effectively converted into biogas.

4. Organic Municipal Solid Waste (MSW)

• Household Organic Waste: Includes kitchen waste, yard waste, and other biodegradable materials collected from municipal solid waste streams.
• Market Waste: Organic waste from vegetable and fruit markets contributes to the feedstock pool for biogas plants.

5. Sewage Sludge

• Wastewater Treatment Plants (WWTPs): Sludge generated from the treatment of sewage in urban areas is a valuable feedstock, providing a sustainable solution for waste management and energy production.

Emerging Feedstocks for Compressed Biogas in India

Emerging feedstocks for compressed biogas (CBG) in India indicate the evolving landscape of renewable energy sources within the country. Several factors contribute to the emergence of these feedstocks, ranging from technological advancements to environmental imperatives. Here’s an overview of some noteworthy emerging feedstocks.

Feedstock Type	Reason
Agro-Industrial Residues	Agricultural residues such as maize stalks, soybean straw, and sugarcane bagasse are abundant in states like Madhya Pradesh and Maharashtra, providing ample resources for biogas generation.
Food Processing Waste	States like Karnataka and Tamil Nadu, with a significant presence of food processing units, can utilize organic waste generated from food processing industries for CBG production.
Aquatic Weeds	Abundant aquatic weeds like water hyacinth and water lettuce in states like Kerala and Assam offer unconventional feedstocks for biogas generation, addressing weed management issues while promoting renewable energy.
Organic Municipal Solid Waste	With large urban populations and industrial centers, states like Gujarat and West Bengal can harness organic MSW from urban areas for CBG production, contributing to waste management and renewable energy goals.
Sewage Sludge	Cities like Delhi and Kolkata, with extensive sewage treatment infrastructure, can utilize sewage sludge from wastewater treatment plants (STPs) for biogas generation, offering a sustainable solution for sewage management and energy production.

Compressed Biogas (CBG) Production Technologies in India: Development Stage by TRL Level

TRL Level	Development Stage	Description	Examples in India
1-3	Basic Research to Proof of Concept	Microbial Consortia Development: Research on genetically engineered microbial strains and specialized consortia to enhance biogas production efficiency.	Indian Institute of Technology (IIT) Delhi, National Institute of Renewable Energy (NIRE)
1-3	Basic Research to Proof of Concept	Advanced Anaerobic Digestion (AD) Processes: Innovations in multi-stage digestion and high-rate AD processes for faster and more efficient biogas production.	NIRE, academic research labs
4-6	Technology Development to Demonstration	High-Rate Anaerobic Digestion Systems: Development of high-rate AD systems capable of handling diverse feedstocks and producing biogas more efficiently.	Envitec Biogas India Pvt. Ltd., Greenlane Renewables
4-6	Technology Development to Demonstration	Biogas Upgradation Techniques: Implementation of pressure swing adsorption (PSA), water scrubbing, and membrane separation technologies for biogas purification.	Suez India Pvt. Ltd., Wärtsilä India Pvt. Ltd.
4-6	Technology Development to Demonstration	IoT-Enabled Monitoring and Control Systems: Integration of IoT sensors and data analytics platforms for real-time monitoring and optimization of biogas production processes.	Ecozen Solutions Pvt. Ltd., research institutions
7-9	System Prototype to Commercial Deployment	Full-Scale Anaerobic Digestion Plants: Deployment of large-scale AD plants utilizing agricultural residues, food waste, and municipal solid waste.	Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL)
7-9	System Prototype to Commercial Deployment	Advanced Biogas Purification Systems: Commercial-scale implementation of advanced biogas purification systems ensuring high-quality CBG for diverse applications.	Adani Group, Greenlane Renewables
7-9	System Prototype to Commercial Deployment	CBG Distribution Infrastructure: Development of infrastructure for CBG storage, transportation, and distribution, including fueling stations for vehicles.	IOCL, BPCL, state-owned trading corporations

Recent Innovations in the Compressed Biogas Sector

The Compressed Biogas (CBG) sector has been witnessing significant innovations aimed at enhancing efficiency, sustainability, and scalability. Here are some recent innovations:

1. Advanced Digestion Technologies

• The introduction of high-rate anaerobic digestion technologies enables faster biogas production and enhances the efficiency of biogas plants.
• Innovations in multi-stage digestion processes optimize the breakdown of organic matter, increasing biogas yields.
  • Example: Anaergia’s Omnivore digestion technology increases biogas production efficiency.
  • Location: USA

2. Biogas Upgradation Techniques

• The development of advanced biogas upgradation technologies such as pressure swing adsorption (PSA) and water scrubbing improves the quality of biogas, making it suitable for use as vehicle fuel or injection into the natural gas grid.
• Membrane separation techniques offer a cost-effective and energy-efficient solution for biogas purification, removing impurities such as carbon dioxide and hydrogen sulfide.
  • Example: Air Liquide’s Cryo Pur technology uses PSA for efficient biogas upgrading.
  • Location: France

3. Use of Microbial Consortia

• Utilization of specialized microbial consortia enhances the degradation of complex organic substrates, improving biogas production rates and overall efficiency.
• The application of genetically engineered microbial strains increases biogas yields and reduces process inhibition, leading to more robust biogas production systems.
  • Example: Novozymes develops microbial solutions to enhance biogas production rates.
  • Location: Denmark

4. Smart Monitoring and Control Systems

• Implementation of IoT-enabled sensors and data analytics platforms allows real-time monitoring of biogas plant parameters such as temperature, pH, and gas production rate.
• Automated control systems optimize process conditions based on real-time data, ensuring optimal biogas production and plant performance.
  • Example: Schneider Electric provides IoT solutions for real-time biogas plant monitoring.
  • Location: France

Key Challenges in the CBG Sector in India

1. Feedstock Supply Chain and Quality

• Inconsistent Feedstock Availability: The availability of organic waste and agricultural residues can be seasonal and inconsistent, affecting the steady supply of raw materials for CBG production.
• Feedstock Quality: Variations in feedstock quality can impact the efficiency of biogas production. Ensuring a consistent and high-quality feedstock supply remains a significant challenge.

2. Infrastructure and Technology Gaps

• Lack of Advanced Infrastructure: The current infrastructure for biogas collection, processing, and distribution is inadequate, particularly in rural areas where feedstock is abundant.
• Technological Limitations: Many biogas plants use outdated technology, resulting in lower efficiency and higher operational costs. Investment in advanced biogas production and upgrading technologies is crucial.

3. Financial and Regulatory Barriers

• High Initial Investment: The capital expenditure required for setting up biogas plants and upgrading facilities is high, posing a barrier to entry for small and medium enterprises.
• Regulatory Hurdles: Navigating the complex regulatory landscape, including obtaining necessary permits and complying with environmental regulations, can be time-consuming and costly.

4. Market Development and Awareness

• Market Penetration: The market for CBG is still in its nascent stages, with limited awareness and adoption among potential consumers and industries.
• Public Awareness: Increasing public awareness about the benefits of CBG and its applications is essential to drive demand and support market growth.

5. Logistics and Distribution

• Distribution Challenges: Efficiently transporting CBG from production sites to end-users, particularly in remote areas, presents logistical challenges.
• Storage Solutions: Developing effective storage solutions to maintain the quality and energy density of compressed biogas over time is necessary.

Conclusion

Compressed Biogas (CBG) holds significant promise for addressing India’s energy and environmental challenges. With an estimated market potential of USD 30 billion by 2030 and a projected growth rate of 12% CAGR from 2023 to 2030, the CBG sector is poised for substantial expansion. This growth is driven by robust government policies, increasing environmental awareness, and the pressing need for energy security. Key stakeholders, including major producers like Adani Group and Indian Oil Corporation Limited, along with innovative technology providers and research institutions, are playing pivotal roles in advancing the sector. Innovations in biogas production and upgradation technologies are enhancing efficiency and scalability, while diverse feedstocks, such as agricultural residues, food processing waste, and sewage sludge, provide ample resources for biogas generation.

The versatile applications of CBG, ranging from transportation fuel to industrial and residential use, underscore its potential to significantly reduce greenhouse gas emissions and promote sustainable energy solutions. Central and state-level policies are crucial in supporting this growth, offering incentives and fostering an enabling environment for investment and development. As the CBG ecosystem continues to evolve with ongoing research and strategic insights, India is well-positioned to lead in renewable energy innovation, setting a global example for sustainable development and energy security.