MGL to develop 350-TPD compressed biogas (CBG) plant in Mumbai

In a significant push towards sustainable urban infrastructure, Mahanagar Gas Limited (MGL) and the Brihanmumbai Municipal Corporation (BMC) have signed a Concession Agreement for Phase I of a Compressed Biogas (CBG) plant at Mankhurd.

MGL, a subsidiary of GAIL (India) Ltd, said that the agreement marks the formal launch of implementation activities for one of Mumbai’s key green energy initiatives.

The upcoming CBG facility will have a processing capacity of 350 tonnes per day (TPD) and will convert municipal organic waste into renewable biogas.

MGL said on social media, “The project will convert municipal organic waste sourced exclusively from designated hotels, vegetable markets and kitchen waste into renewable Compressed Biogas, creating a green energy source, reducing landfill waste and lowering greenhouse gas emissions.”

The CBG project is expected to play a critical role in reducing the burden on Mumbai’s landfills while simultaneously generating clean energy. By diverting organic waste from dumping grounds, the plant will help curb methane emissions and contribute to lowering the city’s overall greenhouse gas footprint.

The CBG initiative also aligns with broader national and municipal goals of promoting circular economy practices and enhancing energy self-reliance through waste-to-energy solutions. The biogas produced will serve as a greener alternative to conventional fossil fuels, particularly in urban transport and industrial applications.

The signing of the agreement signals the beginning of on-ground development, with authorities aiming to position the Mankhurd facility as a model for scalable, sustainable waste management in metropolitan areas.

In its previous budget, the BMC had revealed that it had signed an MoU with MGL for setting up a bio-CNG plant at Deonar dumping ground. Subsequently, MGL announced plans to invest about Rs 1,325 crore to establish a battery manufacturing unit and a CBG project.

While MGL has traditionally focused on city gas distribution, it is actively exploring new avenues for growth, including segments within the production of bioenergy and electric vehicle (EV) value chain.