Indian Oil Corp commissions CBG plant in Uttar Pradesh

Indian Oil Corporation (IOC), a state-owned energy company, has commissioned a compressed biogas (CBG) plant in the city of Gorakhpur, located in the state of Uttar Pradesh, Indian oil and gas minister Hardeep Singh Puri announced via X, formerly known as Twitter, on March 8. 

"This plant is an important effort towards energy self-sufficiency. It has been set up by Indian Oil Corporation with state-of-the-art facilities on 18 acres of land allotted by the state government at a cost of approximately 1.65bn rupees ($20mn)," Puri said.

The CBG plant in Gorakhpur can produce 20 tonnes of CBG and 125 tonnes of organic fertilizer per day. The production process utilizes approximately 200 tonnes of paddy straw, press mud, and animal dung to generate biogas. 

Puri further elaborated on the progress of the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme in India, revealing that 58 CBG plants have been commissioned nationwide under the initiative. Out of these, 10 plants have been established in Uttar Pradesh alone. Additionally, 10 other CBG projects are currently in various stages of construction across the country, he said.

SATAT was launched in 2018 by the government of India to extract economic value from bio-mass waste in the form of CBG and bio-manure. The scheme encourages entrepreneurs to set up CBG plants, and produce and supply CBG to oil marketing companies. The SATAT scheme, offering subsidies, specifically targets the bio-CNG sector and aims to encourage the production and utilisation of biofuels.

India last year announced a phased mandatory blending of CBG in CNG and domestic piped natural gas (PNG) segments starting the fiscal year 2025-26. This move is aimed at reducing reliance on traditional fossil fuels, promoting sustainable energy sources, and achieving net zero emission goals.