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New Delhi — Hindustan Petroleum Corporation Ltd (HPCL) has announced a ₹20 billion (approximately $231 million USD) investment to build 24 compressed biogas (CBG) plants across India over the next two to three years, as part of its strategy to support the country’s clean energy transition and reduce dependence on imported natural gas.
The initiative will be implemented through HPCL’s green energy subsidiary, HPCL Renewable and Green Energy Ltd.
“Each plant will produce between 10 and 15 metric tons of compressed biogas per day using agricultural residues, cattle dung, sewage, and other organic waste,” said Mohit Dhawan, CEO of HPCL Renewable and Green Energy Ltd. He added that two plants are already operational under the program.
CBG — also known as biomethane — is seen as a key component of India’s roadmap toward net-zero emissions by 2070, offering a sustainable alternative to fossil fuels for transportation and household energy needs.
Policy Backing and Market Expansion
India’s government has begun mandating CBG blending into the domestic gas supply. As of April 2024, a 1% blend is required in automotive and cooking gas, with a target to scale that to 5% by 2028–2029, according to Vikas Singh, Director at the Ministry of Petroleum and Natural Gas.
“India currently consumes around 28 million standard cubic meters per day (MMSCMD) of gas in transport and domestic cooking. This is projected to rise to 44 MMSCMD by 2028–29,” Singh noted. By that time, India aims to have at least 480 CBG plants operational, including 195 developed by state-owned enterprises.
Strategic Shift to Domestic Gas Sources
India relies on liquefied natural gas (LNG) imports for nearly half of its current gas needs, exposing the energy sector to global price volatility. The expansion of domestic CBG capacity is expected to play a critical role in reducing import dependence and supporting the government’s goal of raising the share of natural gas in the national energy mix from 6% to 15% by 2030.
HPCL’s commitment aligns with national policies promoting renewable gas, waste-to-energy initiatives, and decentralized energy production — key elements in India’s broader climate and energy security strategy.
