India's Compressed Biogas Plant Capacity Utilisation Hovers Around 35%: IEA

Capacity utilisation at compressed biogas (CBG) plants in India is currently low at around 35 per cent, according to a recent assessment by the International Energy Agency (IEA). The agency pointed out that while new project announcements point to accelerated growth, operational challenges continue to impact existing facilities.

The primary challenges identified by the IEA include difficulties in securing sufficient and continuous feedstock throughout the year, limited storage and market options for digestate, and logistics constraints involved in delivering CBG to end users. Despite these hurdles, the announcement of new projects consolidated in the central Gobardhan registry indicates promising growth for upcoming years.

Data shows that India currently has roughly 1,944 tonnes per day of commissioned CBG capacity. According to the Gobardhan portal, the country has a total of 2,099 registered CBG plants. Of this total, 1,344 plants are functional, while another 96 plants have completed physical construction but await trial runs, safety clearances, or commercial commissioning. Furthermore, approximately 514 plants are under construction, and 155 are yet to begin construction.

Regarding distribution methods, 79 per cent of CBG produced in India in 2025 was delivered using pressurised cylinders transported on trucks via mobile cascades. However, injection into gas grids, particularly within city gas distribution networks, is advancing alongside broader gas infrastructure development.

The Gobardhan scheme, or the National Unified Scheme for Compressed Biogas, provides an integral framework backed by a budget of ₹23,700 crore. The initiative aims to accelerate CBG production through assured offtake, stable pricing, capital assistance, pipeline connections, and access to financing. It unifies previous support schemes across the value chain with long-term support extending to fiscal year 2036, aiming to increase CBG production nearly tenfold.

Under the framework, the CBG price is established at ₹2,110 per million British thermal units. Capital assistance is provided at up to ₹2 crore per tonne per day of installed capacity, which covers feedstock aggregation, digestate processing, and value addition.

The IEA noted that India possesses one of the highest feedstock potentials among major economies to produce biogas and biomethane—exceeding 75 billion cubic metres equivalent—primarily driven by agricultural residues and animal manure. State policies in key agricultural states also support the development of the sector.

Looking ahead, the IEA projects that India could achieve exponential growth, increasing CBG production nearly ninefold by 2031. The agency stated that if new plants can operate at capacity factors comparable to existing facilities, national blending targets remain within reach.

"The low capacity utilisation of 35 per cent highlights the early-stage operational friction in India's compressed biogas sector, particularly around feedstock supply chains and logistics. While the policy framework, financial assistance, and long-term targets under the Gobardhan scheme provide a strong foundation for investors and entrepreneurs, addressing supply chain bottlenecks is essential to bridge the gap between registered capacity and actual output." — Dr. Shishir Gupta, Founder & CEO, StartupLanes