India's new biogas policy: higher prices and subsidies to boost CBG production and cut emissions
business-standard.comIndia is set to launch a new program called Sampoorn to increase compressed biogas (CBG) production by raising guaranteed purchase prices and offering subsidies for new plants. The policy aims to grow the number of operational CBG plants from around 200 to about 700 over the next several years. CBG is made from organic waste like paddy straw and cattle dung, and is considered carbon-negative because it captures methane that would otherwise escape into the atmosphere while replacing fossil fuels. The move comes as India faces high fossil fuel import costs and supply disruptions from the Iran conflict, and also targets the chronic problem of crop residue burning that causes severe air pollution in northern states. Previous efforts to scale biogas fell short due to financing challenges and commercial viability concerns. The new price support is expected to improve project economics and attract private investment, with major companies like Reliance Industries and Suzuki already investing in CBG plants. India currently imports about half its gas needs and aims to blend biogas to 5% of total natural gas consumption by 2029. The policy addresses both climate goals and energy security by creating a domestic, low-carbon fuel source from agricultural waste.
