Hindustan Petroleum Corporation Ltd (HPCL) plans to invest ₹20 billion over the next two to three years to build 24 compressed biogas (CBG) plants. The initiative is part of India’s broader strategy to reduce greenhouse gas emissions and transition toward cleaner energy sources.
HPCL Subsidiary to Lead Project Execution
HPCL Renewable and Green Energy Ltd, a subsidiary dedicated to advancing sustainable energy solutions, is executing the project. “We have already commissioned two plants and will add 24 more, each capable of producing 10–15 tonnes of CBG daily,” said Mohit Dhawan, CEO of the subsidiary. The plants will use agricultural residue, cattle dung, sewage water, and other organic waste to generate biogas.
Aligning with India’s Net-Zero and Gas Blending Goals
India, one of the largest emitters of greenhouse gases globally, is turning to biofuels like CBG as part of its 2070 net-zero emissions target. Since April 2025, the government has mandated a one percent blending of CBG into automotive and cooking gas. This will gradually increase to 5% by FY 2028–29.
Growing Demand for Gas Spurs Clean Alternatives
Vikas Singh, Director at the Ministry of Petroleum and Natural Gas, said that India currently consumes about 28 million standard cubic meters of gas per day. The country uses this gas primarily for transportation and household cooking. “We expect this to grow to 44 MMSCMD by 2028–29, driven by increasing demand and policy incentives,” he added. To meet this goal, the government plans to operationalize 480 CBG plants by then, including 195 run by state-owned oil and gas companies.
Reducing LNG Dependency, Enhancing Energy Mix
Currently, India meets nearly half of its gas demand by importing expensive liquefied natural gas (LNG). By ramping up domestic CBG production, the country aims to cut costs and improve energy security. The government is also targeting a significant shift in its energy mix. It aims to increase the share of natural gas from 6% today to 15% by 2030.
Conclusion
As reported by msn.com, HPCL’s ambitious CBG expansion reflects India’s commitment to sustainable energy development. Through strategic investments and policy support, the country is positioning biogas as a key component of its clean energy future.
