The growing potential of Compressed Biogas (CBG) manufacturing in India is underscored by the country's rapidly increasing energy demands, particularly in the context of rising oil and gas consumption. India is expected to experience one of the most significant surges in energy demand globally, with its demand for oil and gas projected to triple by 2050. This surge in energy demand presents a unique opportunity for CBG, as it offers a sustainable alternative to traditional fossil fuels.

Currently, India relies heavily on imported CNG, with about 46% of its CNG needs being met through imports. This heavy reliance on imported fuels highlights the need for domestic, sustainable energy sources like CBG. Bioenergy, including CBG, is derived from organic matter found in plants or other organic waste. The International Energy Agency (IEA) projects that bioenergy will account for 18% of the total energy supply in India by 2050. This projection further emphasizes the significant role that CBG can play in India's energy landscape, offering a locally sourced, renewable alternative to imported fuels, and helping to reduce the country's carbon footprint.

The Economics of Setting Up CBG Manufacturing Plant

Setting up a Compressed Biogas (CBG) manufacturing plant in India involves several economic considerations. The total investment required can vary based on factors such as plant scale, technology, feedstock cost, government incentives, and market demand for CBG. For instance, the approximate cost of installing a 5 tonnes per day (TPD) capacity CBG plant is estimated to be between Rs 20–25 crore. The majority of this cost, about 75–80%, is attributed to purchasing plant machinery.

In terms of ongoing operational costs, running a 5 TPD capacity BioCNG plant in India entails expenses such as raw materials, labor, electricity, maintenance, and other operational costs. These costs can fluctuate depending on various factors. However, as a rough estimate, the yearly operational cost for a 5 TPD capacity BioCNG plant in India can range from Rs 2.5–4 crore. Despite the initial investment and operational expenses, setting up a CBG manufacturing plant in India can be economically viable, especially with the increasing demand for sustainable energy sources and potential government incentives in the renewable energy sector.

Policies or Financial Assistance Related to CBG

Several policies and financial assistance schemes in India are aimed at promoting the production and use of Compressed Biogas (CBG) as a sustainable fuel source. The Sustainable Alternative Towards Affordable Transportation (SATAT) scheme, for example, incentivizes entrepreneurs to set up CBG plants and supply CBG to Oil Marketing Companies (OMCs) for use as automotive and industrial fuels. The scheme provides assurance for CBG off-take at fixed prices, encouraging investment in CBG production infrastructure.

Additionally, the Ministry of New and Renewable Energy (MNRE) offers the Waste to Energy Scheme, which provides higher financial assistance in Special Category States for setting up CBG plants. This scheme includes a 20% higher Central Financial Assistance (CFA) for plants based on cattle dung as the main feedstock, set up by Gaushalas independently or through joint partnerships. Moreover, the GOBAR (Galvanizing Organic Bio-Agro Resources) DHAN Scheme provides financial assistance for setting up model GOBARDHAN projects, with districts serving as nodal agencies for planning, implementation, monitoring, and approval of these projects. These policies and schemes demonstrate the government's commitment to promoting CBG production and utilization as part of its renewable energy strategy.

Documents Required for Biogas or Gobar Gas Plant Setup

Biomass is used as a raw material in CBG or biogas plant setup. Different types of biomass are designated as solid waste under the Solid Waste Management Rules of 2016, and processing of these materials requires CPCB authorization. You can apply for this Solid Waste Management Authorization and submit it with the necessary documentation - 

Site Clearance from the Local Authority- This letter concerns the land allotment for the CBG Plant Setup and is provided by the local government, such as the municipality or municipal corporation.

Environmental Clearance- If the common solid waste from the community is utilized as organic matter in the recycling industry, a copy of the environmental clearance is required.

CTE- Prior to the establishment of the Gobar Gas Plant in India, the State Pollution Control Board must also provide its consent.

СТО- СTO stands for Consent to Operate. At least thirty days before the site's operations begin, it must be secured from the SPCB.

Returns- Before receiving the Solid Waste Management Authorization, information about the plant's anticipated returns must be given with the CPCB.

Reports- Additionally, a report on solid waste management must be produced. This report will assist the Central Pollution Control Board in determining your company's level of competency, after which your authorization will be given.

Land- In order to verify your ownership of the site, Land Ownership Documents must also be presented. It could be a purchase receipt, lease deed, rent agreement, or land record.

Site Selection Committee- The application should also include the District Level Site Selection Committee's permission.

Process Flow Diagram- Along with the application, the plant's procedures and other pertinent technical information should be provided.

PESO License- This license is provided by the Petroleum and Explosives Safety Organisation (PESO). The purpose of this organization is to maintain the standards in the processes relating to the production and processing of explosive contents. In the present case, biogas has explosive content.

How NexGen Energia Can Help You?

At Nexgen Energia, we understand that navigating the complex world of licenses and permissions can be a daunting task. That's why we offer comprehensive License & Permissions Assistance services to ensure a smooth and hassle-free experience for our clients. With years of experience in the energy and infrastructure industry, Nexgen Energia has developed a deep understanding of the licensing and regulatory requirements associated with various projects. Our team of experts possesses extensive knowledge and expertise in obtaining licenses and permissions for CBG (Compressed Bio-Gas) projects.

Our services includes:-

License Identification: We begin by identifying the specific licenses and permissions required for your project. Our team conducts a thorough analysis of the regulatory landscape to determine the necessary approvals, permits, and licenses needed to establish and operate your facility legally.

Documentation Support: We assist you in preparing all the required documentation for license applications, including forms, supporting documents, project reports, and any other necessary paperwork. 

Application Process: Applying for licenses and permissions can be a time-consuming and complex process. Our experts handle the entire application process on your behalf, liaising with the appropriate government agencies, local authorities, and regulatory bodies. 

Regulatory Compliance: Compliance with regulations is essential to avoid legal complications and penalties. Our team closely monitors changes in regulatory frameworks, ensuring that your project remains compliant throughout its lifecycle.

Liaison with Authorities: Building positive relationships with regulatory authorities is vital for successful project execution. Our experienced professionals act as a liaison between your organization and the relevant authorities, representing your interests and addressing any queries or concerns they may have. 

Timely Renewals: Licenses and permissions often require periodic renewals. Nexgen Energia assists you in keeping track of renewal dates and ensures that all necessary documents and fees are submitted on time for seamless continuity of your operations.