India Unveils $2.5 Billion Compressed Biogas Program Amid LNG Shortages

New Delhi has launched a $2.5 billion initiative to boost compressed biogas production, aiming to reduce reliance on imported liquefied natural gas (LNG) and bolster energy security.

The National Circular Bioenergy Scheme will run for 10 years and targets a 10-fold increase in CBG production, with the goal of meeting blending targets of 3% by FY28 and 5% from FY29.

CBG is made from organic waste such as cattle dung, crop residue, food waste, sewage, and municipal waste, which undergoes purification before being used to replace LNG in industries, vehicles, and piped gas networks for households.

The program also aims to create an $8 billion local biogas industry and save over $4 billion in foreign exchange over a decade by reducing LNG imports.