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

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:

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.

India Compressed Biogas (CBG) Market Trend:

Multi-Feedstock Digestion Systems Gaining Traction

A notable innovation shaping India’s compressed biogas (CBG) market is the increasing adoption of multi-feedstock digestion systems, which allow CBG plants to process a combination of organic waste streams rather than relying on a single input source.

Multi-feedstock digestion systems combine agricultural residues, cattle dung, food-processing waste, and municipal organic waste in a single anaerobic process, improving gas yield stability and plant utilization. By reducing seasonal feedstock risks, these systems are increasingly preferred for the commercial viability and operational reliability of CBG plants across India.

Government-aligned assessments indicate that feedstock diversification supports year-round CBG production and stronger project economics, while advancing circular economy goals by integrating agricultural waste management, municipal solid waste treatment, and renewable fuel generation.

A flagship example of this trend is India’s first cooperative multi-feed CBG plant, inaugurated in Maharashtra in 2025 with support from the National Cooperative Development Corporation (NCDC). The facility processes a mix of biomass inputs, including jaggery and molasses waste, and produces 12 tonnes of CBG per day along with 75 tonnes of potash fertilizer. This project demonstrates the technical and commercial feasibility of mixed-feedstock operations while creating additional revenue streams through bio-fertilizer output.

The shift toward multi-feedstock digestion systems enhances operational resilience, feedstock security, and financial sustainability of CBG plants. This trend is expected to accelerate capacity additions and strengthen long-term growth prospects for India’s CBG market.

India Compressed Biogas (CBG) Market Challenges:

Feedstock Supply & Quality Constraints

One of the key challenges facing India’s CBG market is inconsistent feedstock supply and poor raw material quality. Fragmented biomass supply chains, seasonal agricultural residue availability, irregular municipal waste flows, and limited storage infrastructure disrupt continuous operations and lower plant capacity utilization.

Logistical limitations further compound this issue. Inadequate biomass aggregation centers, absence of silos, and insufficient preprocessing facilities result in rapid feedstock degradation, higher transportation costs, and lower methane yields.

These challenges are particularly evident in urban waste-to-energy projects. For instance, a biomethane facility in Guwahati, Assam, has been operating below its designed capacity despite the city generating nearly 550 tonnes of municipal solid waste per day . Poor source segregation and uncoordinated waste collection systems have restricted the plant’s access to consistent, digestible organic feedstock.

Overall, persistent feedstock supply instability and quality issues directly undermine gas yields, plant economics, and investor confidence. Unless addressed through improved segregation, logistics, and storage infrastructure, these constraints will continue to hinder the scalable growth of India’s CBG market.

India Compressed Biogas (CBG) Market (2026-32) Segmentation Analysis:

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

Based on Feedstock:

• Agricultural Residues
  • Crop Waste
  • Straw
  • Husks
• Animal Manure
• Municipal Solid Waste (MSW)
• Industrial Waste
  • Food Processing
  • Brewery Waste
• Sewage Sludge
• Energy Crops

The municipal solid waste (MSW) segment holds the top spot in the India Compressed Biogas (CBG) Market, with a market share of around 44%. This segment is maintaining its leadership due to its structural and economic advantages over alternative inputs.

Continuous waste generation from urban centers ensures a stable, year-round feedstock supply, unlike agricultural residues that are constrained by harvest cycles and regional seasonality. The growing emphasis on source segregation of wet waste by urban local bodies has further improved the suitability of MSW for anaerobic digestion.

National policy frameworks such as the Swachh Bharat Mission and GOBARdhan programme actively promote the diversion of organic municipal waste from landfills to bioenergy facilities, strengthening the regulatory support for MSW-based CBG projects.

In addition, MSW-derived plants are typically located closer to demand centers, lowering logistics costs and enabling smoother integration with city gas distribution (CGD) networks. Municipal waste supply contracts and tipping fee mechanisms also enhance revenue certainty and reduce feedstock procurement risks for project developers.

By simultaneously addressing urban waste management challenges and renewable fuel generation, MSW-based CBG facilities deliver strong environmental and economic outcomes, underpinning their dominant role within India’s CBG feedstock segmentation.

Based on Application:

• Vehicle Fuel
• Electricity & Heat Generation
• Industrial Applications
• Commercial Uses
• Cooking Gas
• Others

The vehicle fuel category leads the India Compressed Biogas (CBG) Industry, accounting for 48% of market share, driven by its strong compatibility with the existing CNG-based transport ecosystem.

CBG functions as a direct substitute for conventional CNG, allowing its use in buses, taxis, commercial fleets, and municipal vehicles without requiring significant engine modifications or infrastructure upgrades. This technical interchangeability has enabled faster adoption within the transport sector compared to other end-use segments.

Policy interventions have further reinforced this dominance. Government-led initiatives promoting alternative fuels, coupled with long-term offtake arrangements under programs such as SATAT and mandated blending frameworks, have created predictable demand from city gas distributors and transport operators.

Additionally, the continued expansion of city gas distribution networks and CNG refueling stations has improved accessibility for vehicle-based applications, particularly in urban and peri-urban regions.

From an economic perspective, vehicle fuel applications offer higher and more consistent volume consumption, quicker revenue realization, and lower market entry risk relative to power generation or industrial uses. These structural advantages collectively position vehicle fuel as the most commercially viable and scalable application for CBG in India.

Gain a Competitive Edge with Our India Compressed Biogas (CBG) Market Report:

• India Compressed Biogas (CBG) 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.
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