India's ₹23,731 Crore GOBARdhan Scheme Aims to Boost Compressed Biogas Production

The Indian government has approved a ₹23,731 crore scheme called GOBARdhan to support compressed biogas (CBG) production. The scheme aims to address multiple risks facing CBG projects through an integrated architecture of assured offtake, administered price, capital assistance, pipeline connectivity, and credit guarantees.

GOBARdhan's design is based on the understanding that CBG will be commercially attractive when its delivered cost is competitive with natural gas prices. The scheme also recognizes the importance of creating a market for feedstocks such as bovine dung and crop residues, which are abundant in India but have competing uses.

For the GOBARdhan scheme to succeed, it's essential to design a biomass market that provides remunerative prices to farmers, viable returns to aggregators, and reliable and competitively priced feedstock to CBG plants. This balance is crucial for aligning commercial viability with farmer incomes, sustainable biomass use, and energy security.