Compressed Biogas (CBG): Powering India’s Green Fuel Revolution

Looking for a cleaner, greener, and more profitable energy solution? Compressed Biogas (CBG) is fast emerging as India’s next big fuel revolution. Produced from organic waste such as crop residues, cow dung, and food waste, CBG transforms waste into wealth while providing a renewable alternative to fossil fuels. With 90–98% methane, it is nearly identical to CNG, but cleaner and sustainable. CBG not only reduces pollution and manages waste efficiently but also supports farmers, boosts rural income, and strengthens India’s energy independence. Backed by government subsidies and policies, CBG offers immense opportunities for entrepreneurs and investors.

What is Compressed Biogas (CBG)?

CBG is purified and compressed biogas, produced from organic waste like:

Cow dung & poultry waste
Food & municipal waste
Agricultural residues (paddy straw, sugarcane press mud, etc.)
Sewage and sludge

This raw waste is processed in an anaerobic digester (oxygen-free tank) to generate biogas, which is then cleaned and compressed into CBG.

It has 90–98% methane content, making it equivalent to CNG but renewable and eco-friendly.

Key Benefits of CBG

Eco-Friendly Fuel – Near-zero carbon emissions; a sustainable alternative to petrol, diesel, and CNG.
Smart Waste Management – Converts farm, city, and industrial waste into green fuel, reducing garbage load.
Boosts Rural Economy – Farmers earn by supplying waste; by-product slurry becomes organic fertilizer.
Energy Security – Cuts India’s dependence on imported crude oil and natural gas.
Versatile Applications – Can fuel vehicles, replace LPG in kitchens, run industries, and generate electricity.

Government Support for CBG

SATAT Scheme (MoPNG) – Target of 5,000 CBG plants by 2030 + assured gas procurement by Oil Marketing Companies (OMCs).
MNRE Bioenergy Programme – Subsidies up to ₹10 Cr per project for new/expanded plants.
AIF (Agri Infra Fund) – 3% annual interest subsidy on loans up to ₹2 Cr for 7 years.
Section 80JJA (IT Act) – 100% tax exemption on profits for the first 5 years.

CBG Production & By-products

Waste Collection & Pre-treatment
Anaerobic Digestion → Produces Biogas
Purification → Removes CO₂, H₂S & impurities
Compression → Ready-to-use CBG

By-product: Digestate (slurry) – a nutrient-rich organic fertilizer, creating an extra income stream for plant operators and farmers.

Why CBG Demand is Rising

Massive Feedstock Availability – Huge agricultural & municipal waste in states like UP, Punjab, Gujarat, Maharashtra.
Government Push – Policies ensuring market security and financial incentives.
Industry Adoption – NTPC, IOC, and OMCs already buying CBG in bulk.
Clean Energy Goals – Growing demand from transport, industries, and households.

How KIP Can Help You

KIP has been a trusted subsidy and business consultant for Compressed Biogas (CBG) projects, helping entrepreneurs and investors turn opportunities into profitable green ventures. With deep industry expertise and a step-by-step approach, KIP ensures maximum returns while unlocking all eligible government benefits.

Here’s what KIP offers for CBG Investors & Entrepreneurs:

Business & Subsidy Updates – Timely alerts on MNRE schemes, SATAT policy, and state-level bio-energy incentives.
Subsidy Viability Report (SVR) – Customized analysis of subsidies and tax benefits for your CBG project.
Business Modeling & Registrations – Assistance with MSME, GST, Startup India, Pollution NOC, and Bio-Energy policy registrations.
Detailed Project Report (DPR) – Professionally crafted DPRs for bank financing, approvals, and subsidy claims.
Bank Financing Assistance – End-to-end loan support, documentation, and processing for affordable funding.
Subsidy Filing & Processing – Execution of subsidy claims under MNRE, AIF, PMEGP, and state bio-energy schemes.
Compliance & Claim Management – Smooth handling of approvals, fire NOC, pollution clearances, SGST refunds, and ongoing benefits.
Tender Assistance – Guidance and support for securing long-term CBG offtake agreements with OMCs (IOCL, BPCL, HPCL) and industrial buyers.

Frequently Asked Questions (FAQs)

Q1: How is CBG different from Biogas & CNG?

Biogas – Raw, impure gas (50–60% methane).
CBG – Purified biogas (90–98% methane), renewable, compressed for transport use.
CNG – Fossil fuel-based natural gas, non-renewable.

Q2: What waste can produce CBG?

Cow dung, poultry waste, food scraps, crop residue, sewage sludge, sugar mill press mud, etc.

Q3: What are the financial incentives for CBG projects?

Capital subsidy (MNRE), interest subsidy (AIF), and 100% tax exemption (Section 80JJA).

Q4: What is the main by-product?

Digestate/slurry – a high-quality organic manure.

Q5: Where can CBG be used?

Vehicles (cars, buses, autos), kitchens (LPG replacement), industries (boilers, machinery), and power generation.