State can potentially instal 1,000 CBG plants, shows CSE report, solutions proposed to overcome sector hurdles
Photo for representation: iStock
Uttar Pradesh holds a remarkable position in India’s renewable energy landscape, with the potential to generate 24 per cent of the nation’s compressed biogas (CBG), according to a report by the Delhi-based think tank Centre for Science and Environment (CSE). This was the focal point of discussions at a symposium organised by CSE and the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) in Muzaffarnagar.
“Compressed biogas (CBG) offers a multitude of benefits for India: It can help enhance waste management, promote local clean energy solutions, and bring down our dependence on imported compressed natural gas (CNG),” stated researchers from CSE. The symposium highlighted that Western UP, particularly Muzaffarnagar, Meerut, Saharanpur, Bijnor, Bulandshahar and Aligarh, is rich in feedstock availability and houses the majority of the state’s functional and upcoming CBG plants.
The experts pointed out that UP could potentially instal 1,000 CBG projects from the 5,000 plants envisioned nationwide under the Sustainable Alternative Towards Affordable Transportation scheme, tapping into just 20 per cent of its surplus feedstock.
Speaking at the symposium, Nivit Kumar Yadav, programme director, industrial pollution, CSE, said:
Among Indian states, Uttar Pradesh has taken the lead in this sector with its ambitious bioenergy policy, allocating Rs 750 crore (2022-27) for CBG, while providing subsidies, land for lease and other incentives. This symposium has been organised to discuss the challenges faced by CBG producers, share successful practices, highlight opportunities for start-ups, raise awareness among district-level bioenergy committees, and educate farmer-producer bodies on the potential of bioenergy.
Despite these promising statistics, the sector faces significant challenges. Key issues include the limited offtake of bioslurry, a by-product of CBG production, partial gas offtake by oil and gas marketing companies, a shortage of skilled technical personnel and financing difficulties. Bioslurry, also known as fermented organic manure, is often viewed as a disposal problem rather than a revenue source. Rahul Jain, deputy programme manager of renewable energy team at CSE, noted that plant owners frequently give away bioslurry to nearby farmers or dispose of it on vacant land due to a lack of awareness about its benefits.
The inconsistent purchasing of gas by oil and gas marketing companies leaves many plants operating below capacity. The absence of nearby CNG pipelines exacerbates this issue. For smaller plants (below 5 tonnes per day), gas transport through cascades is viable, but larger plants require direct pipeline access for optimal operation. Operational inefficiencies, such as gas leakage and suboptimal performance, stem from a shortage of trained personnel knowledgeable in biogas systems and operations. Establishing training centres for CBG operations is a proposed solution.
Banks are hesitant to finance CBG projects due to perceived risks and low margins, requiring high collateral and offering interest rates starting at 11.5 per cent. Yadav suggested a government-backed guarantee programme to ease these financing hurdles and recommended the Reserve Bank of India oversee CBG project applications through a centralised portal to ensure transparency and efficiency. Currently, 80 per cent of CBG plants rely on press-mud. Jain advocated for diversifying feedstock sources to include liquid effluents like spent wash from distilleries and industrial discharges, which can enhance plant viability and sustainability.
Pankaj Singh, secretary / CPO of UPNEDA, acknowledged the challenges and committed to addressing them through policy modifications. He emphasised the importance of involving farmers as shareholders to ensure active participation and profit-sharing in bioenergy projects. The symposium underscored the critical role of strategic planning and collaboration among stakeholders to overcome these challenges and unlock the full potential of CBG in Uttar Pradesh. As the state continues to lead in the bioenergy sector, the implementation of these recommendations could serve as a blueprint for other regions in India.
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