India’s waste could produce 62 million metric tonnes of CBG per year: Equirus report

India has the potential to produce around 62 million metric tonnes (MMT) of compressed biogas (CBG) annually from animal waste, crop residue, municipal waste and other organic feedstocks, according to a report by Equirus.

The estimate is based on an annual feedstock availability of around 472 MMT across the country. Animal waste accounts for the largest share, with about 190 MMT potentially generating nearly 25 MMT of CBG, or around 41% of the country’s estimated potential.

However, the Equirus report highlighted that feedstock availability does not automatically translate into commercially viable CBG projects. Only around 15% of the dung generated in India is collectable, making the availability of concentrated rural clusters critical for plant economics.

Equirus said that agricultural residue is the second-largest potential source. Around 150 MMT of paddy and wheat straw, sugarcane trash and other crop residues could produce nearly 20 MMT of CBG annually. However, collection remains a major challenge, as the material generally needs to be aggregated within a window of around 45 days after harvesting.

The economics of CBG plants will therefore depend heavily on the efficiency and cost of collection, transportation and feedstock supply.

Municipal waste, sewage add to potential

Municipal solid waste represents another significant opportunity. Equirus mentions that around 62 MMT of municipal waste could potentially generate nearly 5 MMT of CBG. However, only 50–55% of urban wet and food waste is biodegradable and suitable for biogas production.

Sewage treatment plant biomass could contribute another 10 MMT of CBG from around 50 MMT of feedstock, while 20 MMT of sugar-mill press mud could generate nearly 2 MMT of CBG.

Press mud offers an advantage as it can be sourced from a single location and does not require pre-treatment, the report noted.

The scale of the opportunity could also strengthen India’s energy security. Citing Petroleum and Natural Gas Regulatory Board estimates, Equirus said the country’s 472 MMT feedstock base could support around 230 million metric standard cubic metres per day (MMSCMD) of biogas.

Mumbai headquartered Equirus is a prominent, full-service financial services and investment banking firm founded in July 2007.