Organic Recycling Systems Limited (ORSL) has secured a ₹92.41 crore EPCOM contract from Bharat Petroleum Corporation Limited (BPCL) to develop an organic municipal solid waste-based compressed biogas (CBG) plant in Kozhikode, Kerala.
The order, awarded to ORSL’s wholly owned subsidiary Solapur Bioenergy Systems Private Limited (SBESPL), was formalised through a Letter of Acceptance issued on September 8, 2026. It is ORSL’s third BPCL contract in six days, taking the company’s total EPCOM orders from the state-owned oil marketing company to ₹259.71 crore.
Three BPCL CBG plant projects span three states
The Kozhikode award follows two BPCL contracts secured by ORSL earlier in September.
The first, worth ₹85.56 crore, was awarded for a CBG project in Mysuru, Karnataka, on September 3. A second contract valued at ₹81.74 crore followed for a project in Raipur, Chhattisgarh, on September 4.
The three contracts have a combined planned CBG production capacity of approximately 14.8 tonnes per day, according to the company. All three contract values include GST.
The concentration of orders within a single week gives ORSL a sizeable project pipeline across different regional markets while extending its relationship with BPCL beyond an individual facility.
Kozhikode plant to convert municipal waste into CBG
Under the Kozhikode contract, SBESPL will be responsible for the project’s engineering, procurement and construction, including engineering design, equipment procurement, construction and commissioning.
The facility will use organic municipal solid waste as its feedstock to produce compressed biogas. Converting the biodegradable fraction of municipal waste into CBG provides a route for recovering energy from waste while reducing dependence on conventional waste-disposal pathways.
The project schedule requires mechanical completion within 12 months of the Letter of Acceptance, followed by full commissioning within 15 months.
A Performance Guarantee Test Run is required within three months of commissioning or within 18 months of the Letter of Acceptance, subject to the applicable contractual requirement.
Five-year operations role extends ORSL’s involvement
The Kozhikode contract is structured as an EPCOM — Engineering, Procurement, Construction, Operation and Maintenance — arrangement, meaning ORSL’s involvement does not end once the plant has been built.
Following commissioning, SBESPL will operate and maintain the Kozhikode facility for five years. The same five-year O&M commitment applies to the Mysuru and Raipur projects.
Across the three contracts, this translates into 15 cumulative plant-years of contracted operations and maintenance, assuming each facility completes its full five-year O&M period.
For ORSL, the structure creates a longer-term operating role alongside its engineering and construction activities. It also gives the company exposure to plant performance after commissioning rather than limiting its involvement to project delivery.
ORSL strengthens CBG relationship with public-sector oil companies
The BPCL contracts add to ORSL’s existing work with India’s public-sector oil marketing companies.
The company recently secured the renewal of its operations and maintenance contract for a CBG facility in Gorakhpur from Indian Oil Corporation Limited (IOCL).
ORSL therefore has ongoing CBG-related mandates with both BPCL and IOCL, linking its project-development and operating activities with two major state-owned oil marketing companies.
Commenting on the Kozhikode award, Pankaj Tanwar, CEO – Bioenergy at ORSL, said the three BPCL contracts demonstrate the company’s execution capabilities and what he described as BPCL’s confidence in its team.
Tanwar also said the projects represent a move for ORSL from being primarily a project builder towards becoming a longer-term operating partner within India’s circular bioenergy sector.
Those comments are the company’s assessment of its position in the market and should be viewed separately from the contractual project commitments.
Municipal waste emerges as a CBG feedstock opportunity
The Kozhikode project highlights the role that organic municipal solid waste can play in India’s expanding CBG sector. Unlike projects centred primarily on agricultural residues or animal waste, municipal-waste-based plants connect renewable gas production directly with urban waste management.
India’s policy framework has increasingly encouraged the development of CBG as part of its efforts to expand renewable fuels and improve organic-waste utilisation. Initiatives including Sustainable Alternative Towards Affordable Transportation (SATAT) and the GOBARdhan programme have helped establish a policy backdrop for investment in compressed biogas infrastructure.
The commercial performance of individual projects will nevertheless depend on factors including reliable feedstock supply, waste segregation, plant availability, gas offtake and effective long-term operations.
For ORSL, the immediate milestone is the execution of the three BPCL projects. With the Kozhikode plant required to reach mechanical completion within 12 months and commissioning within 15 months of the September 8 Letter of Acceptance, the Kerala project provides the next defined delivery timeline within the company’s newly expanded BPCL portfolio.
Bioenergy Business Analysis
The latest BPCL awards strengthen ORSL’s position in India’s CBG market, but the more significant development is the shift towards long-term operating contracts rather than one-off plant construction. With ₹259.71 crore of EPCOM orders across three states and five-year O&M commitments attached to each project, ORSL is gaining recurring operational exposure alongside its engineering business.
The Kozhikode project also highlights the growing commercial potential of municipal organic waste as a CBG feedstock. Its success will ultimately depend on reliable waste segregation and supply, plant performance and timely commissioning. For BPCL, the three-project pipeline expands its CBG infrastructure footprint, while for ORSL, execution of the projects will be an important test of whether its integrated EPC and O&M model can be scaled across India.
Read Also: ORSL hits major biogas milestone with Rs 167 crore twin BPCL wins, accelerating India-wide expansion
