India has 62 million tonnes of biogas potential, report finds

  • Gas
  • September 15, 2026

India could produce around 62 million metric tonnes (MMT) of compressed biogas (CBG) annually from its available organic waste streams, according to a new report from investment banking firm Equirus.

According to news coverage of the report, it estimates that India has around 472 MMT of annual feedstock potential, with animal waste representing the largest individual opportunity.

Around 190 MMT of animal waste could produce nearly 25 MMT of biogas, accounting for around 41% of the country’s total potential.

However, only around 15% of gross dung is currently collectable, meaning dense rural clusters and collection infrastructure will be critical to turning the theoretical potential into commercial production.

Agricultural residues represent another major opportunity, with around 150 MMT of feedstock capable of producing approximately 20 MMT of biogas

The report identifies paddy and wheat straw and cane trash among the key feedstocks, although aggregation remains a challenge due to the relatively short harvest window of around 45 days.

Municipal waste could provide a further 5 MMT of CBG from around 62 MMT of feedstock, while sewage biomass could generate around 10 MMT from 50 MMT of feedstock.

A further 2 MMT of CBG could come from around 20 MMT of press mud from sugar mills, which the report identifies as having favourable economics because of its single-point sourcing and lack of pre-treatment requirements.

The findings reinforce the scale of India’s domestic renewable gas opportunity as the country looks to reduce its reliance on imported natural gas.

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Agricultural waste presents a major opportunity for India’s biogas industry ©Taro Pumps

CBG production could also address several waste and environmental challenges. Around 87 MMT of crop residue is reportedly burnt each year, while the report estimates that diverting this material to CBG production could avoid 0.8 to 1.2 tonnes of CO2e emissions per tonne of residue.

In the municipal waste sector, only around 92,000 tonnes per day (TPD) of India’s 170,000 TPD municipal solid waste is treated, according to the report. Anaerobic digestion could also capture methane that would otherwise be released from dumpsites.

Building out biogas

The assessment comes as India steps up efforts to build a domestic CBG industry.

In July, gasworld reported that a new in Assam would convert dairy and agricultural waste into biomethane and organic fertiliser. 

It was also reported that India could theoretically produce around 62 MMT of bio-CNG annually from available feedstocks, with livestock manure identified as a key resource. 

The latest Equirus assessment puts the same overall potential at around 62 MMT, although the estimates come from different assessments.

The pace of development is also increasing.

In April, Juno Joule Biofuels on a $75m biogas project in Telangana. The cluster of 10 plants is expected to produce around 100 tonnes of CBG per day from agricultural residues, cattle dung and poultry waste.

The project has secured offtake agreements with GAIL and Bhagyanagar Gas and is being developed under India’s CBG-CGD Synchronisation Scheme, which aims to connect CBG production with the country’s city gas distribution network.

The Indian government is also attempting to provide greater certainty for the sector through financial support, offtake mechanisms and infrastructure development.

In August, gasworld reported that the Union Cabinet had Rs23,731 crore ($2.5bn) for the GOBARdhan national circular bioenergy scheme.

The 10-year programme aims to establish CBG as a major part of India’s future energy mix, with support for greenfield projects, pipeline infrastructure, credit guarantees and district-level CBG development.

   

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