India Compressed Biogas (CBG) Market Research Report: Forecast (2026-2032)

India Compressed Biogas (CBG) Market - By Feedstock Agricultural Residues, (Crop Waste, Straw, Husks), Animal Manure, Municipal Solid Waste (MSW), Industrial Waste, (Food Processing, Brewery Waste), S... ... g, Brewery Waste), Sewage Sludge, Energy Crops, By Technology (Water Scrubbing, Membrane Separation, Pressure Swing Adsorption (PSA), Chemical Absorption, Others), By Distribution Channel (Direct Supply, Retail Distribution), By Application (Vehicle Fuel, Electricity & Heat Generation, Industrial Applications, Commercial Uses, Cooking Gas, Others), By End User (Transportation Sector, Power Generation Companies, Industrial & Manufacturing Facilities, Municipal & Waste Management Authorities, Agriculture Sector, Residential, Others), and others Read more

  • Energy
  • Feb 2026
  • 135
  • PDF, Excel, PPT

India Compressed Biogas (CBG) Market Report Key Takeaways:

  • The India Compressed Biogas (CBG) Market size was valued at around USD 319 million in 2025 and is projected to reach USD 2,419 million by 2032. The estimated CAGR from 2026 to 2032 is around 33.56%, indicating strong growth.
  • By feedstock, the municipal solid waste (MSW) segment represented 44% of the India Compressed Biogas (CBG) Market size in 2025.
  • By application, the vehicle fuel represented 48% of the India Compressed Biogas (CBG) Market size in 2025.
  • The leading compressed biogas companies in India are Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, GAIL (India) Limited, Reliance Bio Energy Limited, Nexgen Energia Ltd, Primove Engineering Private Limited, Sevozone Energies & Fertilizers Pvt. Ltd., Green Elephant Engineering Private Limited, GPS Renewables Private Limited, Bharat Biogas Energy Limited, Praj Industries Limited, Adani TotalEnergies Biomass Limited, and others.

Market Insights & Analysis: India Compressed Biogas (CBG) Market (2026- 2032):

The India Compressed Biogas (CBG) Market size was valued at around USD 319 million in 2025 and is projected to reach USD 2,419 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 33.56% during the forecast period, i.e., 2026-32.

The India Compressed Biogas (CBG) Market is experiencing rapid growth, driven by the increasing adoption of bio-based gaseous fuels and the expanding use of multi-feedstock digestion systems that enhance production efficiency and feedstock reliability.

Government data for 2024 indicates that 94 operational CBG plants collectively sold over 31,400 tonnes of CBG, highlighting tangible market uptake and the transition of CBG from pilot-stage projects to commercial-scale fuel adoption. This growth reflects rising acceptance of CBG as a clean substitute for fossil-based natural gas in transport and industrial applications.

A key institutional backbone for this expansion is the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative. Since its launch, SATAT has promoted the conversion of organic waste into CBG to reduce import dependence on fossil fuels and support India’s environmental commitments.

By late 2025, 114 CBG plants had been commissioned, supported by over 1,100 letters of intent, underscoring strong project pipelines and investor confidence. Earlier progress milestones show that by November 2024, 77 commissioned plants contributed 17,801 tonnes of CBG during 2024–25, demonstrating steady scale-up despite initial implementation challenges .

Infrastructure integration is further strengthening the market outlook. Government-led schemes such as the CBG–CGD Synchronization Scheme and pipeline connectivity support enable CBG producers to inject renewable gas directly into city gas distribution (CGD) networks. This integration enhances offtake certainty, reduces logistics costs, and improves economic viability across transport, industrial, and household consumption segments.

The SATAT initiative targets 5,000 CBG plants with 15 million metric tonnes of annual output. Despite slow progress, 77 plants were operational by November 2024, supplying 17,801 tonnes in 2024–25, signaling rising adoption of renewable gaseous fuels.

Technological and operational innovation is also shaping future growth. The increasing adoption of multi-feedstock digestion systems allows plants to process agricultural waste, cattle dung, sewage, and food-processing residues simultaneously. A notable example is Hindustan Petroleum Corporation Ltd (HPCL), which has committed USD 231 million to develop 24 CBG plants using mixed feedstocks, signaling commercial-scale deployment of diversified biomass models.

Beyond 2025, sustained policy support and rising investments are expected to accelerate demand for clean and renewable fuels, particularly Compressed Biogas (CBG), in India. For example, the biogas sector is projected to attract investments exceeding around USD 600 million in 2026–27, driven by regulatory clarity and growing investor confidence, enabling capacity expansion and stronger CBG adoption.

Long-term government initiatives such as SATAT, which targets 5,000 CBG plants with 15 million metric tonnes of annual output, along with the GOBARdhan scheme, will remain central to India’s renewable fuel strategy .

Strong policy support, rising commercial production, infrastructure integration, and sustained post-2025 investments position the India CBG market for accelerated growth. Together, these factors establish CBG as a cornerstone of India’s clean, circular, and energy-secure future.

India Compressed Biogas (CBG) Market Recent Developments:

  • November 2025: The Arail processing plant in Prayagraj has started producing compressed biogas (CBG) from municipal wet waste and has commenced organic compost processing, marking a key step in sustainable waste-to-energy conversion. The facility, inaugurated by the city mayor, initially converts about 100 tonnes of waste daily into CBG, with compost sales expected soon.
  • September 2025: Delhi’s Ghogha Dairy has launched a 100 tonne-per-day wet-waste compressed biogas (CBG) plant with an integrated CBG–CNG pump, converting local organic waste into about four tonnes of CNG daily. Developed by the Municipal Corporation of Delhi and Indraprastha Gas Limited, the facility supports decentralized waste management, cutting landfill dumping while supplying cleaner fuel.

India Compressed Biogas (CBG) Market Scope:

 Category  Segments
By Feedstock Agricultural Residues, (Crop Waste, Straw, Husks), Animal Manure, Municipal Solid Waste (MSW), Industrial Waste, (Food Processing, Brewery Waste), Sewage Sludge, Energy Crops,
By Technology Water Scrubbing, Membrane Separation, Pressure Swing Adsorption (PSA), Chemical Absorption, Others
ByDistribution Channel Direct Supply, Retail Distribution
By Application Vehicle Fuel, Electricity & Heat Generation, Industrial Applications, Commercial Uses, Cooking Gas, Others
By End User Transportation Sector, Power Generation Companies, Industrial & Manufacturing Facilities, Municipal & Waste Management Authorities, Agriculture Sector, Residential, Others), and others

India Compressed Biogas (CBG) Market Driver:

Growing Adoption of Bio-Based Gaseous Fuels

India’s accelerating transition toward clean and renewable energy sources is a core driver of growth in the compressed biogas (CBG) market, supported by firm regulatory action and expanding gas infrastructure integration.

The Compressed Biogas Blending Obligation (CBO) mandates CBG blending into CNG and PNG from 2025, starting at 1% and rising to 3% in 2026–27, 4% in 2027–28, and 5% by 2028–29, creating assured demand and positioning CBG as a viable substitute for fossil-based natural gas .

Parallel, the government’s SATAT (Sustainable Alternative Towards Affordable Transportation) initiative is reshaping the bioenergy landscape by targeting the development of 5,000 CBG plants with an estimated output of 15 million metric tonnes of biogas annually . This program embeds renewable gas into transport fuel supply chains and industrial energy consumption, while promoting waste-to-energy conversion at scale.

Further strengthening demand linkage, the CBG–CGD Synchronization Scheme mandates GAIL (India) Limited to integrate CBG into city gas distribution (CGD) networks. As of September 2024, 74 CBG producers and 31 CGD entities were operational under this framework, collectively enabling the injection of 97,000 standard cubic meters per day (around 2,131 metric tonnes) of biogas into gas grids .

Overall, mandatory blending targets, large-scale plant development under SATAT, and formal integration with CGD networks collectively anchor long-term demand for CBG. These measures ensure sustained market expansion, positioning CBG as a critical pillar of India’s clean fuel transition.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. India Compressed Biogas (CBG) Market Policies, Regulations, and Product Standards
  5. India Compressed Biogas (CBG) Market Trends & Developments
  6. India Compressed Biogas (CBG) Market Dynamics
    1. Growth Drivers
    2. Challenges
  7. India Compressed Biogas (CBG) Market Hotspot & Opportunities
  8. India Compressed Biogas (CBG) Market Outlook, 2022-2032
    1. Market Size & Outlook
      1. By Revenues (USD Million)
      2. By Volume (Million Cubic Meters)
    2. Market Share & Outlook
      1. By Feedstock –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
        1. Agricultural Residues
          1. Crop Waste
          2. Straw
          3. Husks
        2. Animal Manure
        3. Municipal Solid Waste (MSW)
        4. Industrial Waste
          1. Food Processing
          2. Brewery Waste
        5. Sewage Sludge
        6. Energy Crops
      2. By Technology –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
        1. Water Scrubbing
        2. Membrane Separation
        3. Pressure Swing Adsorption (PSA)
        4. Chemical Absorption
        5. Others
      3. By Distribution Channel –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
        1. Direct Supply
        2. Retail Distribution
      4. By Application –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
        1. Vehicle Fuel
        2. Electricity & Heat Generation
        3. Industrial Applications
        4. Commercial Uses
        5. Cooking Gas
        6. Others
      5. By End User –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
        1. Transportation Sector
        2. Power Generation Companies
        3. Industrial & Manufacturing Facilities
        4. Municipal & Waste Management Authorities
        5. Agriculture Sector
        6. Residential
        7. Others
      6. By Region
        1. North India
        2. South India
        3. West India
        4. East India
      7. By Company
        1. Company Revenue Shares
        2. Competitor Characteristics
  9. India Agricultural Residues Compressed Biogas (CBG) Market Outlook, 2022-2032
    1. Market Size & Outlook
      1. By Revenues (USD Million)
    2. Market Share & Outlook
      1. By Technology –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      2. By Distribution Channel –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      3. By Application –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      4. By End User –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      5. By Region
  10. India Animal Manure Compressed Biogas (CBG) Market Outlook, 2022-2032
    1. Market Size & Outlook
      1. By Revenues (USD Million)
    2. Market Share & Outlook
      1. By Technology –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      2. By Distribution Channel –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      3. By Application –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      4. By End User –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      5. By Region
  11. India Municipal Solid Waste (MSW) Compressed Biogas (CBG) Market Outlook, 2022-2032
    1. Market Size & Outlook
      1. By Revenues (USD Million)
    2. Market Share & Outlook
      1. By Technology –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      2. By Distribution Channel –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      3. By Application –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      4. By End User –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      5. By Region
  12. India Industrial Waste Compressed Biogas (CBG) Market Outlook, 2022-2032
    1. Market Size & Outlook
      1. By Revenues (USD Million)
    2. Market Share & Outlook
      1. By Technology –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      2. By Distribution Channel –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      3. By Application –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      4. By End User –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      5. By Region
  13. India Sewage Sludge Compressed Biogas (CBG) Market Outlook, 2022-2032
    1. Market Size & Outlook
      1. By Revenues (USD Million)
    2. Market Share & Outlook
      1. By Technology –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      2. By Distribution Channel –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      3. By Application –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      4. By End User –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      5. By Region
  14. India Energy Crops Compressed Biogas (CBG) Market Outlook, 2022-2032
    1. Market Size & Outlook
      1. By Revenues (USD Million)
    2. Market Share & Outlook
      1. By Technology –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      2. By Distribution Channel –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      3. By Application –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      4. By End User –  Market Size & Forecast 2022-2032, USD Million & Million Cubic Meters
      5. By Region
  15. India Compressed Biogas (CBG) Market Key Strategic Imperatives for Success & Growth
  16. Competition Outlook
    1.  Company Profiles
      1. Bharat Petroleum Corporation Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. Indian Oil Corporation Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. Hindustan Petroleum Corporation Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. GAIL (India) Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. Reliance Bio Energy Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Nexgen Energia Ltd
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Primove Engineering Private Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Sevozone Energies & Fertilizers Pvt. Ltd.
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Green Elephant Engineering Private Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. GPS Renewables Private Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      11. Bharat Biogas Energy Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      12. Praj Industries Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      13. Adani TotalEnergies Biomass Limited
        1. Business Description
        2. Product Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      14. Others
  17. Disclaimer


MarkNtel Advisors follows a robust and iterative research methodology designed to ensure maximum accuracy and minimize deviation in market estimates and forecasts. Our approach combines both bottom-up and top-down techniques to effectively segment and quantify various aspects of the market. A consistent feature across all our research reports is data triangulation, which examines the market from three distinct perspectives to validate findings. Key components of our research process include:

1. Scope & Research Design At the outset, MarkNtel Advisors define the research objectives and formulate pertinent questions. This phase involves determining the type of research—qualitative or quantitative—and designing a methodology that outlines data collection methods, target demographics, and analytical tools. They also establish timelines and budgets to ensure the research aligns with client goals.

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Data Trangulation

4. Data Forecast and FinalizationThe final phase involves forecasting future market trends based on the analyzed data. MarkNtel Advisors utilize predictive modeling and time series analysis to anticipate market behaviors. The insights are then compiled into comprehensive reports, featuring visual aids like charts and graphs, and include strategic recommendations to inform client decision-making

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