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Biogas: Need, Implications, Challenges

Against the backdrop of West Asia tensions, India is accelerating biogas adoption to strengthen energy security, reduce imports and promote sustainability.

About Biogas

  • Biogas: A renewable fuel comprising methane (CH₄), carbon dioxide (CO₂), and trace gases produced through anaerobic digestion of organic waste.
  • Compressed Biogas (CBG): Purified and compressed biogas, chemically equivalent to CNG, used in transport, cooking, electricity generation, industries, and Piped Natural Gas (PNG).

Current Facts and Data

  • Energy Dependence: India imports nearly 85% of its crude oil, making alternative fuels critical for energy security.
  • SATAT Progress: Against a target of 5,000 CBG plants by 2023, only 132 plants were operational as of 3 June 2026.
  • CBG Blending Target: India has mandated 1% CBG blending from FY26, increasing progressively to 5% by FY29.

Need for Biogas for Energy Security

  • Import Reduction: CBG reduces dependence on imported crude oil, strengthening India’s energy security against volatile global fuel markets.
  • Supply Resilience: Around 90% of LPG imports transit Hormuz, making domestic CBG crucial during geopolitical disruptions.
  • Clean Diversification: Renewable CBG diversifies India’s energy mix, reducing fossil-fuel dependence while supporting cleaner transportation and industries.
  • Waste Utilisation: Converts agricultural residue and livestock waste into clean fuel, promoting circular economy and rural energy security.
  • Strategic Transition: Mandatory CBG blending from FY26 supports long-term energy independence following India’s successful 20% ethanol blending achievement.

Implications of Biogas on Environment and Agriculture

  • Biogas promotes environmental sustainability and agricultural resilience, but requires balanced feedstock policies to protect food security and biodiversity.

Positive Implications

  • Waste Management: Converts crop residue and livestock waste into clean energy, reducing stubble burning under the GOBARdhan Scheme.
  • Emission Reduction: Carbon-neutral CBG replaces fossil fuels, supporting India’s clean energy transition and 1–5% mandatory CBG blending (FY26–FY29).
  • Farmer Income: Agricultural residues generate additional income while producing nutrient-rich bio-slurry, strengthening the circular economy.

Negative Implications

  • Crop Diversion: Economic Survey 2025-26 noted rising maize cultivation, while yields of pulses, oilseeds and millets stagnated or declined.
  • Food Security: Maize-based ethanol prices grew at 11.7% CAGR (FY22–FY25), incentivising maize cultivation over pulses and edible oil crops.
  • Biodiversity Loss: Germany’s “Corn Mania” reduced crop diversity, forcing the government to cap maize use in biogas plants.

Government Interventions

  1. SATAT (Sustainable Alternative Towards Affordable Transportation): Central pillar for CBG policy framework.
  2. GOBARdhan Scheme: Integrated initiative for biogas & organic manure; ₹10,000 crore investment in pipeline.
  3. National Biogas Programme (2021–26): Financial assistance for family-size biogas plants to promote clean cooking.
  4. Waste-to-Energy Programme: Focused on large-scale biogas production from organic waste.
  5. PLI Scheme for Bioenergy: Encourages domestic manufacturing & adoption of bioenergy technologies.

Challenges

  • Infrastructure Deficit: Against the SATAT target of 5,000 CBG plants, only 132 were operational as of June 2026.
  • Financial Constraints: High capital costs, limited institutional credit and weak private investment hinder the commercial viability of CBG projects.
  • Feedstock Diversion: Economic Survey 2025–26 highlighted rising maize cultivation while pulses, oilseeds and millets showed stagnant or declining yields.
  • Supply Bottlenecks: Inadequate biomass collection and gas-grid connectivity persist despite ₹564 crore and ₹994 crore infrastructure allocations.

Way Forward

  • Infrastructure Expansion: Accelerate SATAT and GOBARdhan implementation to rapidly scale up CBG production capacity.
  • Financial Incentives: Provide concessional credit, viability gap funding, tax holidays and accelerated depreciation to attract private investment.
  • Waste Prioritisation: Promote agricultural residue, livestock manure and municipal waste as feedstock, following Denmark’s biomethane model.
  • Market Assurance: Ensure effective implementation of mandatory CBG blending from 1% (FY26) to 5% (FY29).
  • Policy Alignment: Balance biofuel pricing with food security goals to prevent excessive maize cultivation and protect crop diversity.

Biogas must evolve from a waste-management initiative to a strategic energy-security mission. Balanced policies integrating energy, agriculture and food security will be crucial for achieving Viksit Bharat 2047.

Reference: The Hindu

PMF IAS Pathfinder for Mains – Question 744

Q. As geopolitical uncertainties expose India’s energy vulnerabilities, Compressed Biogas (CBG) is emerging as a strategic alternative. Discuss the role of CBG in strengthening India’s energy security and examine the challenges in its large-scale adoption. (250 Words) (15 Marks)

Approach

  • Introduction: Write a contextual introduction about biogas in India.
  • Body: Write about the role of biogas in strengthening India’s energy security and examine the challenges in its large-scale adoption with a way forward.
  • Conclusion: Emphasise waste-based biogas, robust CBG infrastructure and balanced feedstock policies to strengthen energy security and food security sustainably.

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