HPCL to Invest Rs 20 Billion in 24 Biogas Plants
Hindustan Petroleum Corporation Ltd (HPCL), a state-owned fuel retailer, plans to invest approximately Rs 20 billion (about USD 231 million) over the next two to three years to establish 24 compressed biogas (CBG) plants, according to a senior company official.
The initiative is part of India’s broader strategy to reduce carbon emissions and meet its 2070 net-zero target. As one of the world’s largest greenhouse gas emitters, India is increasingly exploring the use of organic waste to generate cleaner fuel alternatives.
The project is being implemented by HPCL Renewable and Green Energy Ltd, a subsidiary of HPCL. The company has already commissioned two CBG plants and will set up 24 additional plants, each capable of producing 10�15 tonnes of CBG daily. The production will utilise agricultural residue, cattle dung, and sewage water, said Mohit Dhawan, Chief Executive of the subsidiary.
In a policy push towards cleaner fuels, India has mandated that since April, one per cent of compressed biogas be blended with fuel used for transport and cooking. This blending requirement will rise to five per cent by 2028�2029, stated Vikas Singh, a Director in the Union Ministry of Petroleum and Natural Gas.
Currently, India consumes around 28 million standard cubic metres per day (MMSCMD) of gas for vehicular and cooking use. This demand is projected to grow to 44 MMSCMD by 2028�2029. By that time, the country is expected to have 480 CBG plants in operation, of which 195 will be established by public sector oil and gas companies.
At present, India imports nearly half of its gas requirements in the form of costly liquefied natural gas (LNG). The government aims to increase the share of natural gas in the national energy mix to 15 per cent by 2030, up from the current six per cent, by promoting indigenous and sustainable alternatives like biogas.