Driven by rising demand for cleaner fuels and supportive government incentives, KEC Agritech plans to establish 15 compressed biogas (CBG) parks across five Indian states in the coming years, a top company executive said on Tuesday.
The green energy firm, which has already set up a CBG park in Bulandshahar, Uttar Pradesh, aims to commission over 225 CBG plants by 2027, according to Jitendra Narayan, CEO of KEC Agritech. He added that the company expects to close the current year with more than 74 operational CBG plants.
Speaking on the sector’s prospects, Narayan said compressed biogas is proving to be a game-changer in India’s energy transition, as it aligns with three key national goals — enhancing energy security, improving waste management, and boosting rural income.
The CBG market is projected to reach USD 37.63 billion by 2032, reflecting a compound annual growth rate (CAGR) of 12% between 2025 and 2032. For context, the market size stood at USD 15.2 billion in 2024.
Under the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme, the central government has set an ambitious target of establishing 5,000 CBG plants by 2025. Oil marketing companies have already issued thousands of letters of intent (LOIs) to procure CBG, offering a ready and growing market for producers, Narayan noted.
He further highlighted that India produces approximately 750 million metric tonnes of agricultural residue, municipal solid waste, and other biomass each year. This abundant feedstock has the capacity to generate over 62 million tonnes of CBG annually, which could substantially offset the country’s reliance on imported natural gas and liquefied petroleum gas (LPG).
