The nation is highly prioritising sustainability, clean energy transition, and efficient waste management. Amidst the various renewable pathways, biogas has garnered immense attention for its ability to address multiple challenges, including reducing greenhouse gas emissions, mitigating organic waste, and supplying domestically produced clean fuel. This has fueled a shift in momentum, with the Indian Biogas Association (IBA) expecting India’s biogas sector to attract over ₹5,000 crore in 2026-27, buoyed by strong investor and stakeholder interest this calendar year.
As of date, the major contributor to the sector’s momentum is the rapid expansion of compressed biogas infrastructure. More than 100 compressed biogas (CBG) plants have been commissioned, and 2025 saw strong investor and stakeholder interest, along with a growing CBG pipeline. Alongside the commissioning of hundreds of CBG plants, biogas upgradation plants are playing an increasingly important role in enabling renewable gas to be utilised for transportation, industrial applications, and city gas distribution networks.
These strict requirements by oil marketing companies will help ensure that end users of compressed biogas (CBG) do not face any hindrances when switching from a conventional fossil fuel, most likely natural gas. Considering that biogas upgradation systems are designed for European Grid Injection Standards, they can easily fulfil the gas quality requirements of the Indian Market.
According to government data, 94 compressed biogas plants sold more than 31,400 tonnes of CBG during FY 2024-25, which is tangible proof of growth and market uptake. This steady rise in CBG volumes indicates that the market demand is evolving beyond pilot projects into large-scale commercial adoption.
The IBA anticipates significant commissioning of CBG facilities, effective and organized supply chains, and feedstocks to support the rapid adoption of biogas. Policy initiatives promoting waste-to-energy solutions, rational tax policy, and improved procurement mechanisms have improved project economics and minimized operational uncertainties. As per the opinion of the Indian Biogas Association’s Chairman Gaurav Kedia, “The relaxed GST regime is going to augur ease of doing business in the CBG ecosystem. There’s anticipation that a 7 percent reduction in the applicable GST rate for the CBG sector will significantly improve project viability, and that the direct impact will translate into a 4-5 percent increase in new investments in the industry over the short to medium term.”
As India’s biogas sector enters a significant growth phase, the convergence of rising demand, increased private investment, and supportive policies is laying a solid foundation for long-term expansion. The development of reliable project components, including biogas upgrading plants, biogas production facilities, and biogas storage, will be paramount to ensure supply stability and operational continuity to foster and keep the market confidence intact. The biogas industry is well-positioned to play a lasting role in strengthening India’s clean energy future.
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