Hindustan Petroleum Corp Ltd (HPCL), an Indian state-owned fuel retailer, plans to invest approximately Rs 20 billion ($231.04 million) over the next two to three years to establish 24 compressed biogas (CBG) plants, according to company official, reported Reuters.
As one of the world’s largest greenhouse gas emitters, India is focusing on converting organic waste into cleaner fuels as part of its strategy to lower carbon emissions and meet its 2070 net-zero target.
HPCL Renewable and Green Energy Ltd, a subsidiary of HPCL responsible for the project, has already built two CBG plants and intends to set up 24 more. It would be with a daily capacity to produce 10-15 tons each of CBG using agriculture residue, cattle dung and sewage water, among others, said Mohit Dhawan, CEO of the subsidiary.
Since April, India has mandated that automotive and cooking gases be blended with 1% CBG. This percentage is set to increase to 5% by 2028-2029, according to Vikas Singh, a director at the federal oil ministry.
Singh noted that about 28 million cubic meters per day (MMSCMD) of gas is currently consumed for vehicles and cooking purposes. “We expect this demand to grow to 44 MMSCMD by 2028-29,” he said, adding that by then, India will have 480 CBG plants operational, including 195 established by state oil and gas firms.
