India's Biogas Sector Potential: Rs 1 Lakh Crore Investment Opportunity
India's biogas sector holds an estimated investment potential of Rs 1 lakh crore, with current CBG production under 1% of its capacity. The government's SATAT initiative and mandatory blending roadmap are key drivers for this transition.
Theia Market Signal Identification - AI AssistedIndia's compressed biogas (CBG) production is currently below 1% of its theoretical capacity of 62 million metric tonnes annually, presenting a significant opportunity for energy generation and investment. The SATAT initiative and a phased mandatory blending roadmap are expected to catalyze growth, with over 130 CBG plants operational and 1,000 projects in development.
This transition to mandatory blending enhances demand visibility and commercial viability, attracting infrastructure developers and investors. Major oil companies, including Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited, are increasingly investing in biogas projects. Recent policy measures, such as excise duty waivers and improved procurement pricing, are anticipated to further incentivize private sector participation and expand blending requirements.
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