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

India Biogas Market Report Key Takeaways:

• The India Biogas Market size is valued at around USD 1.32 billion in 2025 and is projected to reach USD 4.98 billion by 2032. The estimated CAGR from 2026 to 2032 is around 20.89%, indicating strong growth.
• By Feedstock, Cattle Dung and Livestock Waste seized around 28% share of the India Biogas Market in 2025.
• India’s CBG potential is around 40–60 MMTPA, yet installed capacity remains below 1%, highlighting a massive untapped growth opportunity.
• North India is leading the India Biogas Market, holding around 35% market share in 2025.
• The leading Biogas companies in India are GAIL, Wartsila, Clarke Energy, GPS Renewable, PlanET-Biogas, Green Elephant Engineering Pvt. Ltd., Bharat Bio Gas Energy Ltd., KIS Group, Homebiogas, Spectrum Renewable Energy Pvt. Ltd., and others.

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

The India Biogas Market size is valued at around USD 1.32 billion in 2025 and is projected to reach USD 4.98 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 20.89% during the forecast period, i.e., 2026-32. The India Biogas Market is primarily driven by strong government policies promoting CBG adoption and abundant organic waste availability that ensures a reliable feedstock supply.

India’s biogas market is set to become a key pillar of the country’s energy transition as renewable energy takes center stage in national planning. Government programmes such as the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme continue to create an enabling environment for compressed biogas (CBG) production, with thousands of letters of intent issued to developers and financial assistance schemes targeting plant set‑ups and pipeline integration. Financial outlays, including government support for biomass aggregation machinery and CBG pipeline infrastructure, are designed to strengthen the entire fuel value chain.

The biogas segment is also benefiting from policy integration and regulatory alignment, such as the expansion of the CBG‑City Gas Distribution synchronization scheme and the phasing in of mandatory CBG blending obligations beyond 2025, gradually increasing blending targets through 2028–29. These regulatory levers are complemented by strong municipal and state waste management plans, such as Delhi’s waste processing expansion that includes new biogas facilities to address growing legacy waste.

Commercial-scale deployment is also being strengthened by active corporate participation and private investment incentives. Notably, the GST Council’s reduction of tax on biogas plants and devices from 12% to 5% is projected to encourage USD 4–5 billion of private investment by 2030, improving project economics and facilitating smoother capital flow across the sector. Initiatives such as Germany‑based bioenergy company Verbio Group have revealed plans to establish around 10 new compressed biogas (CBG) plants in Punjab to tackle stubble burning and support India’s clean energy goals.

 On the operational front, municipal waste management expansion, such as the Nagpur plant commissioning in 2025, demonstrates local-scale momentum in sustainable waste-to-energy projects.

Overall, with increasing commercial-scale capacity, favorable policy incentives, and rising global and private-sector investment, India’s biogas market is set to expand rapidly, supporting a cleaner, circular bioenergy economy while creating significant energy, environmental, and economic benefits.

India Biogas Market Recent Developments:

• October 2025: The REI Expo 2025 highlighted India’s rapidly growing biogas industry, with the Indian Biogas Association projecting over USD 218 million in new investments. The event showcased waste-to-energy and CBG projects, drawing strong participation from global technology players and signaling rising confidence in CBG as a key clean-energy solution.
• August 2025: CEF Group, an Indian cleantech business that specializes in turning trash into compressed biogas, has received USD 44.5 million in loan and equity financing from German Export Finance Bank.

India Biogas Market Scope:

India Biogas Market Drivers:

Rising Demand for Clean & Renewable Fuel Alternatives

The push for cleaner transport and domestic fuels is rapidly increasing demand for CBG/biomethane in India. The government’s CBG Blending Obligation (CBO) makes blending mandatory from FY2025-26 (1% in 2025-26, 3% in 2026-27, 4% in 2027-28, 5% from 2028-29), creating firm, regulatory demand for CBG across CNG/PNG networks. This mandate is expected to catalyze investment. Official estimates foresee roughly USD 4.37 billion of sector investment tied to CBO implementation.

Capacity is already scaling. Compressed Biogas projects grew from a single plant in 2014 to 150 projects totaling 1,211 TPD of CBG as of March 2025, demonstrating accelerating deployment.

Government programmes such as the MNRE Biogas Programme / National Bio-energy Programme provide capital support and grants, improving project economics and encouraging decentralized plants. Independent technical reviews also highlight methane-emission reductions and circular-economy benefits when organic waste is used for CBG, strengthening policy rationale and commercial uptake.

Beyond 2025, phased CBO increases to 5% by 2028–29, planned public investments, and international concessional finance commitments will sustain demand for CBG feedstock and offtake contracts, driving new plant builds and supply-chain investments.

Overall, regulatory mandates plus clear environmental and import-substitution economics create predictable demand, which will accelerate commercial CBG projects and rapidly expand India’s biogas market.

India Biogas Market Trends:

Rapid Growth of Commercial-Scale CBG Plants Changing Market Dynamics

India has witnessed significant growth in commercial compressed biogas (CBG) infrastructure over the past few years. For instance, in May 2025, Uttar Pradesh alone had 25 operational CBG plants with a combined capacity of approximately 213 tonnes per day (TPD), accounting for nearly 20% of the country’s commercial biogas output. Gujarat and Maharashtra followed with 21 and 12 operational plants, respectively. Additionally, the Uttar Pradesh government has approved new CBG projects worth USD 720 million to expand commercial-scale capacity and attract private and international investments.

Government-backed programmes are central. The SATAT initiative (IndianOil-led) aims to build a large CBG ecosystem and has driven hundreds of letters of intent and developer interest across states. Also, the MNRE National Biogas Programme (2021–26) and related capital support schemes supply grants and technical assistance for medium-to-large plants, improving bankability and attracting EPC contractors.

Historically ambitious targets the government had earlier envisioned 5,000 CBG plants with an estimated USD 1.7 trillion investment, underlining official intent to commercialize biomethane at scale, USD 19.82 billion.

These examples confirm that the large public-sector play and city projects, such as the Brahmapuram/Nagpur-area CBG projects, moving to commissioning show urban waste streams being processed at commercial throughput levels (e.g., 150–300 TPD plant scale).

Strengthened policy support, targeted capital subsidies, and visible commercial projects lower perceived project risk and attract larger investors, driving faster roll-out of multi-TPD CBG plants nationwide. Overall, the shift to commercial-scale plants transforms CBG from a niche solution into an investible, industrial fuel stream, accelerating market growth and supply-chain investments.

India Biogas Market Challenges:

High Capital Cost & Financing Difficulties

One of the foremost challenges facing the India biogas industry is the high capital cost of setting up large‑scale CBG and biogas plants, coupled with persistent financing difficulties. Commercial plants require substantial upfront investment for land, digester technology, biomass handling systems, and gas purification units. Traditional lenders often view these projects as high‑risk due to long gestation periods, uncertain feedstock supply, and fluctuating offtake prices, which makes securing affordable long‑term credit difficult. According to industry stakeholders, accessing reasonable financing remains a barrier despite the inclusion of biogas/CBG under priority sector lending, as developers still struggle with high interest rates and limited credit availability.

To address financing constraints, the General Budget 2025 expanded the MSME Credit Guarantee Scheme, increasing credit guarantee limits and allowing easier access to collateral‑free loans for biogas and CBG developers. This helps reduce the risk premium for lenders and encourages investment.

However, this support still falls short of bridging the broad financing gap, particularly for larger commercial plants that require multi‑million‑dollar investments and long‑term capital commitments. The disaggregated nature of subsidy schemes across ministries also complicates planning and financing, as developers must navigate multiple support pathways rather than a coordinated funding framework.

Overall, without improved access to long‑term, low‑cost finance and a more cohesive subsidy framework, high capital costs will continue to slow project scale‑up, dampen investor confidence, and impede the rapid commercialization of India’s biogas market.

India Biogas Market (2026-32) Segmentation Analysis:

The India Biogas Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Feedstock

• Biomass Agriresidues
• Cattle Dung and Livestock Waste
• Municipal Waste & City Wastewater
• Pressmud (sugar & Distilleries)                              

Among the various feedstock categories in the India biogas industry, cattle dung and livestock waste emerge as the dominant segment, accounting for approximately 28% share of the total feedstock size. This prominence arises from India’s large livestock population and the substantial volume of dung produced daily, making it a readily available and cost‑effective resource for biogas production. According to government data, India generates around 3 million tonnes of cattle dung daily, with untapped biogas potential reaching into millions of cubic meters per day.

Recent developments show increased investment in cattle dung‑based biogas infrastructure across states. For instance, in New Delhi, the Nangli Dairy biogas plant began operations to process up to 200 metric tonnes of cattle dung per day, producing compressed natural gas (CNG) and organic compost, thus turning waste into clean fuel while addressing local environmental concerns.

The abundant availability, low procurement cost, and dual benefits of waste management and renewable fuel production reinforce why cattle dung and livestock waste dominate feedstock usage in India’s biogas sector. Its strong integration into both small rural digesters and emerging commercial plants sets it apart from other feedstock types.

Based on Application

• Heating
• Electricity Generation
• Transportation               

In the Indian biogas industry, transportation stands out as the leading application segment due to rapid policy and infrastructure support for compressed biogas (CBG) as a cleaner automotive fuel. The government has introduced phased mandatory CBG blending obligations in city gas distribution networks, requiring CBG to be blended with CNG and PNG starting in FY 2025-26 and rising to 5% by FY 2028-29. This regulatory shift directly drives demand in the transport sector, as CBG replaces a portion of conventional CNG used in vehicles, reducing emissions and fossil fuel imports.

Greater Noida’s proposed biogas plant aims to produce vehicle-grade compressed natural gas (CBG/CNG) from cow dung to fuel local buses and vehicles, highlighting transport use.

New initiatives in New Delhi’s Ghogha CBG-CNG facility, which produces 4 tonnes of CNG daily for vehicle use, further demonstrate commercial deployment aligned with transport demand. These developments show that transportation demand, backed by policy mandates and infrastructure expansion, is driving the growth and commercial scaling of biogas applications in India.

India Biogas Market (2026-32): Regional Projection

The North India region leads the India Biogas Market with a 35% share, supported by its high livestock density, large-scale agricultural activity, and rapid adoption of waste-to-energy systems. States such as Punjab, Haryana, Uttar Pradesh, and Delhi NCR generate some of the country’s highest volumes of cattle dung and crop residues, creating a consistent and cost-effective feedstock base for biogas and CBG production. Strong policy alignment under initiatives like SATAT and Gobardhan has further accelerated the rollout of commercial biogas plants in this region.

Urban hubs also contribute significantly through municipal solid waste and sewage-based biogas projects, particularly in Delhi NCR. For example, Nangli Dairy Biogas Plant in Delhi, inaugurated in 2025, processes around 200 tonnes of cattle dung per day to produce CBG and organic compost, showcasing North India’s leadership in integrating clean energy solutions with waste management.

Gain a Competitive Edge with Our India Biogas Market Report 

• India Biogas Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions. 
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition. 
• India Biogas Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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