Hindustan Petroleum Corp Ltd (HPCL), a major state-owned fuel retailer in India, plans to invest around Rs 20 billion ($231 million) over the next two to three years to establish 24 compressed biogas (CBG) plants, a company official stated on Friday, reported Reuters.
As one of the world’s top greenhouse gas emitters, India is actively seeking cleaner fuel alternatives by utilizing organic waste, aiming to cut carbon emissions and meet its net-zero goal by 2070.
HPCL Renewable and Green Energy Ltd, a subsidiary managing the project, has already set up two CBG plants and intends to build 24 more. Each plant will have the capacity to produce between 10 and 15 tons of CBG daily, using agricultural residues, cattle dung, sewage water, and other feedstocks, said Mohit Dhawan, CEO of the subsidiary.
Since April, India has mandated that 1 percent of the gas used in vehicles and cooking must be blended with CBG. This percentage is expected to increase gradually to 5 percent by 2028-29, according to Vikas Singh, a director in the federal oil ministry.
Currently, about 28 million cubic meters of gas per day are used for automotive fuel and cooking, Singh explained. “We expect this to rise to 44 million cubic meters per day by 2028-29,” he added, noting that by then India aims to have 480 CBG plants operating nationwide, including 195 developed by state oil and gas firms.
India currently imports nearly half of its natural gas needs in the form of expensive liquefied natural gas (LNG). The government aims to increase the share of gas in the country’s overall energy mix to 15 percent by 2030, up from the current 6 percent.
