Biogas sector likely to see investments over Rs 5,000 crore in FY27

The biogas sector is expected to attract investments worth over Rs 5,000 crore in 2026-27, driven by strong interest from investors and stakeholders this calendar year, according to the Indian Biogas Association (IBA).

The IBA anticipates significant commissioning of CBG facilities, effective and organised supply chains for feedstock, and unified and integrated policy frameworks to support the rapid adoption of biogas.

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As of date, over 100 compressed biogas (CBG) plants have been commissioned, and the year 2025 witnessed strong interest from investors and stakeholders and a growing CBG pipeline.

Notably, the IBA is the first and largest nationwide and professional biogas association for stakeholders of the biogas industry, including technology providers, project developers, plant operators and planners of biogas plants, and representatives from public policy, science and research in India.

As per the government data, 94 CBG plants sold more than 31,400 tonnes of CBG during FY 2024-25, which is tangible proof of growth and market uptake, the IBA said in a statement.

There lies ample room for efficiency improvement and capacity utilisation in the several million small-scale traditional biogas digesters, and the country programmes are scaling up support for the various medium-sized plants which offer the benefits of cleaner cooking fuel, rural employment and organic manure, it further added.

As per the data, a total of 2,361 MW of biomass power projects and 228 MWe of waste-to-energy projects have been installed in the last ten years in the bioenergy sector in the Indian context. Additionally, a total of 2.88 lakh biogas plants have also been installed in the country to increase the use of sustainable energy solutions.

Biogas, a mixture of gases primarily methane and carbon dioxide, is produced by the breakdown of organic matter in the absence of oxygen. Methane is a combustible component of biogas, making it a fuel.