Indian Biogas Association (IBA), a group of biogas stakeholders in the country, expects foreign investments worth Rs 1,500 crore in less than a year amid increasing interest of international firms for technological and equipment related partnerships, its chairman Gaurav Kumar Kedia told Moneycontrol in an interview on November 21.
Kedia noted a 60-70 percent increase in the participation of companies in the development of biogas plants in the country in current year so far as compared to 2022, amid an accelerating shift towards green energy to meet climate goals. Investment deals worth Rs 2,755 crore were struck during the Renewable Energy India Expo 2023, nearly double as compared to the last year, according to the IBA, which was established in 2011 and revamped in 2015 to promote a greener future through biogas.
IBA includes operators, manufacturers and planners of biogas plants, and representatives from public policy, science and research in India.
"Many companies are wanting to set up big projects in India, so from an association point of view, we expect about Rs 1,500 crore worth of foreign direct investments (FDI) in less than a year," added Kedia.
The target
The IBA now expects close to 2,000 compressed biogas (CBG) plants to be operational in the country by 2030. The IBA forecast comes as CBG, which has emerged as an attractive solution to pressing requirements globally to shift to cleaner energy, is witnessing significant interest from big conglomerates including Reliance Industries and Adani Group.
The government, on the other hand, had targeted the setting up of 5,000 CBG plants by 2024-25 with production of 15 million metric tonnes (MMT).
Reliance Industries is targeting setting up 100 CBG plants in the next three years, consuming 5.5 MMT of agricultural residue and organic waste.
Kedia added that German companies have shown interest in providing technological and equipment assistance for setting up biogas plants in India. Earlier this month Union Minister of Petroleum and Natural Gas Hardeep Singh Puri held discussions with the CEO of the German Biogas Association to address the issue of stubble burning.
What is compressed biogas?
In the recent past, CBG has emerged as a sustainable alternative to imported natural gas as India is exploring pathways for a low-carbon future. Among the commonly used raw materials for CBG include agricultural residues, animal manure, food and yard waste, energy crops, and sewage sludge. These raw materials undergo anaerobic decomposition to produce biogas, which is then turned into a gas that is primarily methane through purification. This gas is further compressed at high pressure to produce CBG.
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