India has achieved a compressed biogas (CBG) blending rate of 1.7% with domestic piped natural gas (D-PNG) and vehicular compressed natural gas (CNG) during the first half of the current financial year. However, the country will need to accelerate blending and distribution activities in the remaining months to achieve its mandated 3% target, according to the Petroleum and Natural Gas Regulatory Board (PNGRB).
The progress highlights India's continuing efforts to expand the use of compressed biogas in its natural gas distribution network. While the first-half performance indicates movement towards the target, infrastructure limitations, particularly pipeline connectivity, remain important factors influencing the pace of adoption.
India has also established higher blending targets for the coming years, making it necessary to strengthen production capacity, transportation infrastructure and access to gas distribution networks.
India's CBG Blending Targets for the Coming Years
The government has set a phased blending roadmap to increase the contribution of compressed biogas to domestic piped natural gas and vehicle fuel supplies.
The targets are:
Current financial year: 3% CBG blending.
2027–28: 4% CBG blending.
Following financial year: 5% CBG blending.
Against the current financial year's 3% target, India recorded 1.7% blending in the first half. This means that the country must make additional progress during the second half to achieve the annual requirement.
The higher targets for subsequent years indicate that CBG is expected to become a more significant component of India's gas distribution ecosystem.
Why Pipeline Connectivity Is Important
One of the key challenges in expanding CBG consumption is connecting production facilities with the existing natural gas distribution infrastructure.
Compressed biogas is produced by processing organic waste and biodegradable materials. However, production alone does not guarantee that the gas can reach consumers. Facilities need suitable transportation arrangements and access to distribution networks.
Pipeline connectivity can help producers supply CBG to the wider natural gas network, making it easier to reach industrial, commercial, household and transport-related consumers.
Where pipeline infrastructure is limited, producers may face additional transportation and distribution challenges. This can affect the ability to deliver gas consistently and increase the time and cost involved in bringing production into the market.
Improving connectivity between CBG plants and gas distribution networks will therefore be important for achieving the government's blending targets.
What Is Compressed Biogas and How Is It Produced?
Compressed biogas is generated through the processing of organic waste, including agricultural residues, animal waste, food waste and other biodegradable materials.
These materials undergo anaerobic digestion, a biological process in which microorganisms break down organic matter in the absence of oxygen. The resulting biogas is then purified to remove unwanted components and compressed for use as fuel.
CBG can be used in applications similar to conventional compressed natural gas, subject to applicable quality and technical requirements.
Its production also creates opportunities to convert waste into a useful energy resource. The process can support better waste management while contributing to the development of alternative domestic fuel supplies.
CBG's Role in India's Energy Transition
India's efforts to expand CBG blending are connected to broader objectives involving renewable energy, waste utilisation and energy security.
Greater use of domestically produced biogas could help diversify the country's energy mix and reduce reliance on conventional fossil-based gas supplies.
The potential benefits extend across several areas:
Waste management: Agricultural and organic waste can be converted into a useful energy resource.
Alternative fuel supply: CBG can supplement conventional natural gas in suitable applications.
Rural economic opportunities: CBG production facilities can create opportunities across agricultural and waste-processing value chains.
Energy diversification: Domestic biogas production can contribute to a more diversified energy supply.
Circular economy: Organic waste can be processed into fuel and useful by-products.
However, the scale of these benefits will depend on the commercial viability of plants, availability of feedstock, reliable transportation and consistent demand.
Challenges in Meeting the 3% Target
India's first-half blending performance of 1.7% demonstrates progress, but achieving the 3% target will require coordinated action across the CBG production and distribution ecosystem.
Pipeline connectivity is a major consideration, but other factors can also influence expansion. These include the availability of suitable organic feedstock, plant operating efficiency, investment requirements, gas purification standards and long-term purchase arrangements.
CBG producers also need dependable market access. Without suitable distribution infrastructure and predictable demand, additional production capacity may not translate into higher blending levels.
Financial planning and operational efficiency will be important for businesses investing in this emerging sector. Shunyatax's strategic advisory services provide a relevant reference for organisations assessing long-term business strategy and investment decisions.
The Road Ahead
India's CBG blending programme is entering an important phase as the government moves towards higher annual targets. The increase from 3% in the current financial year to 4% in 2027–28 and 5% in the following year reflects the country's intention to expand the role of compressed biogas in its gas distribution system.
The immediate challenge is to improve second-half performance and address infrastructure constraints, particularly pipeline connectivity.
Achieving these targets will require stronger coordination between CBG producers, gas distribution companies, infrastructure developers and regulators. If production capacity and distribution networks expand together, compressed biogas could become a more meaningful contributor to India's renewable energy and waste-to-energy ambitions.