GAIL, BPCL collaborate with Chhattisgarh Government to make biogas from urban waste

The Chhattisgarh Biofuel Development Authority (CBDA) has entered into a strategic agreement with GAIL (India) and Bharat Petroleum Corporation Ltd (BPCL) to produce compressed biogas (CBG) from the urban solid waste of six municipal corporations across the state.

State government believes that there is significant potential for biofuel production in the state, such as CBG, under the SATAT scheme. To this end, CBDA, GAIL, and BPCL have signed a tripartite agreement to establish CBG plants in Ambikapur, Raigarh, Korba, Bilaspur, Rajnandgaon, and Dhamtari.

According to the agreement, GAIL will develop CBG plants in Ambikapur, Raigarh, and Korba, while BPCL will set up plants in Bilaspur, Dhamtari, and Rajnandgaon. The plants will process about 350 metric tonnes (MT) of solid waste and an additional 500 MT of surplus biomass daily, producing an estimated 70 MT of compressed biogas per day.

The project will involve an investment of around Rs 600 crore by GAIL and BPCL. Additionally, Chhattisgarh government is expected to generate about Rs 6 crore annually in GST revenue from the production and sale of CBG.

Apart from addressing waste management challenges, the initiative will promote organic farming by utilizing the co-products generated during the biogas production process. It will also contribute to reducing greenhouse gas emissions and advancing the state’s commitment to achieving net-zero emissions.

Chief Minister (CM) Vishnu Deo Sai said that Chhattisgarh has taken a significant step toward achieving a clean environment and net-zero emissions. This project will not only enhance environmental protection and cleanliness but also create employment opportunities. He also instructed officials to expedite the project’s commencement and ensure its completion within the stipulated timeline.

Both GAIL and BPCL are bullish towards biofuels’ production. Last year, GAIL issued an Expression of Interest (EoI) to establish as many as 26 bio-CNG plants in the country over 2-3 years either by self or through joint ventures with raw material suppliers or biogas producers. This came after Bengaluru based TruAlt Bioenergy to establish a joint venture, named Leafinti Bioenergy Limited, with GAIL involving a $72-million investment to build 10 CBG plants.

BPCL aims to develop a large number of CBG plants, potentially reaching hundreds in total in partnerships with companies like GPS. Many of these biogas plants will be designed to process municipal solid waste (MSW) that would directly contribute to scientific management of waste.