Indian Biogas Association Advocates Rs 30k Crore Investment for Compressed Biogas Plants


Indian Biogas Association Advocates Rs 30k Crore Investment for Compressed Biogas Plants
In a bid to significantly reduce LNG imports, the Indian Biogas Association proposes a hefty investment of Rs 30,000 crore for machinery and equipment essential for biomass supply to compressed biogas (CBG) plants. The move aims to ensure the reduction of 12 million metric tonnes per annum (MMTA) in LNG imports.
Gaurav Kedia, Chairman of the Indian Biogas Association, emphasizes the dual benefits of utilizing agricultural residues like paddy straw for bioenergy production and soil enrichment. However, challenges such as unappealing economics lead farmers to burn straw rather than sell it promptly.
To address this, Kedia suggests government intervention, including subsidies for combined harvesters and support for balers and storage units. Operational guidelines for crop residue management, custom hiring centers, and awareness campaigns are also recommended.
The ASCI study reveals India's vast biomass potential, with a total crop production area of 198 million hectares generating 754 million tonnes of total biomass. The proposed investment would address challenges in states with significant biomass generation, potentially attracting Rs 170,000 crore in CBG plant investments.
This initiative aligns with the government's green energy goals, contributing to reduced LNG imports by 12 MMTA. While welcoming progress in the Union Budget 2024, Kedia emphasizes the need for long-term financing options, incentives for domestic production, and tradable CBG certificates.