Four CBG plants to come up in Punjab in 2026-27, to consume 1.08 lakh tonnes of paddy residue

Four compressed biogas (CBG) plants are set to become operational across Punjab in 2026-27 as part of the state’s efforts to curb stubble burning and accelerate the shift to clean energy, the Hindustan Times reported.

According to officials of the Punjab Energy Development Agency (PEDA), the four upcoming plants — two in Ludhiana and one each in Moga and Hoshiarpur — will collectively consume 1.08 lakh tonnes of paddy residue annually once commissioned to full capacity. Together, they are expected to generate 38 tonnes of CBG per day.

PEDA’s nodal officer for CBG, Amarjot Singh, said a total of 58 CBG plants have been sanctioned across the state, of which six are already operational. He said the existing six plants are consuming 3.5 lakh tonnes of paddy residue annually, and with another four to five plants expected to come on stream this year, overall biomass consumption is projected to reach approximately 5 lakh tonnes per year.

To scale up the initiative, PEDA has partnered with national public sector undertakings including GAIL (India) Limited, Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). CBG produced at these plants will be supplied to oil companies for use as fuel in the transport sector, while the organic manure generated as a byproduct also has an established market.
Looking further ahead, PEDA officials said Punjab plans to commission 47 more CBG plants over the next two to three years, which would collectively be capable of consuming 2.8 million tonnes of biomass annually, providing a long-term solution to the recurring challenge of paddy residue disposal.

However, investor sentiment around the sector is tempered by concerns over local opposition. A second-generation entrepreneur investing in one such CBG project, who did not wish to be named, said the potential of waste-to-energy plants to reduce stubble burning and generate renewable energy was significant, but resistance from pressure groups and panchayats posed a serious policy challenge for both investors and the government. The investor also pointed to the ongoing crisis in the Middle East as underlining the urgency of accelerating the green energy transition to meet domestic CBG demand.