Biogas Industry in India Likely to Attract Over ₹5,000 Crore Investment in 2026–27: IBA

New Delhi, December 21: India’s biogas sector is set for a major expansion, with investments expected to cross ₹5,000 crore in the financial year 2026–27, according to the Indian Biogas Association (IBA). The growth is being driven by rising investor interest, expanding compressed biogas (CBG) infrastructure, and strong policy support from the government. The IBA said that the sector has gained steady momentum over the past year, especially in 2025, as more stakeholders have shown confidence in biogas as a clean and commercially viable energy source. At present, more than 100 compressed biogas plants have already been commissioned across the country, and several new projects are in different stages of planning and development. Government data also points to growing market acceptance. During the financial year 2024–25, 94 operational CBG plants together sold over 31,400 tonnes of compressed biogas. According to the IBA, this performance reflects both rising demand and improving confidence in biogas-based fuel solutions. The association noted that India has significant untapped potential in the biogas space. While millions of small, traditional biogas digesters exist across rural areas, many operate below optimal capacity. At the same time, government programmes are increasingly supporting medium-sized biogas plants, which not only provide cleaner cooking fuel but also create rural employment and produce organic manure for agriculture. Looking ahead, the IBA expects faster commissioning of CBG facilities, better-organised supply chains for feedstock such as agricultural waste and organic matter, and more unified policy frameworks. These factors, it said, will play a key role in speeding up the adoption of biogas across urban and rural India. A major boost for the sector could come from tax reforms. IBA Chairman Gaurav Kedia said that a relaxed Goods and Services Tax (GST) regime would improve ease of doing business for companies operating in the compressed biogas ecosystem. He added that a reduction of 7 per cent in the applicable GST rate could significantly enhance project viability and may lead to a 4–5 per cent rise in new investments in the short to medium term. Kedia also pointed out that the benefits of growth in the biogas sector go beyond direct investments. He said the multiplier effect across the value chain — including equipment manufacturing, logistics, feedstock supply, and plant operations — would be much larger. According to IBA estimates, the compressed biogas industry could grow to a market size of around USD 3–4 billion by 2026 and further expand to nearly USD 5 billion by 2030. The biogas sector is increasingly seen as an important pillar in India’s clean energy transition. It helps reduce dependence on fossil fuels, lowers greenhouse gas emissions, and supports waste-to-energy solutions. In rural areas, biogas projects also contribute to income generation and local development. Founded as the country’s first nationwide professional body for the biogas industry, the Indian Biogas Association represents a wide range of stakeholders. These include technology providers, project developers, plant operators, researchers, and policymakers working to promote biogas adoption in India. With rising demand for sustainable energy, improving technology, and stronger policy backing, the IBA believes the biogas sector is entering a phase of sustained growth. If current trends continue, the coming years could see biogas emerge as a key contributor to India’s energy security, rural economy, and environmental goals — turning waste into wealth, quite literally. Biogas Industry in India Likely to Attract Over ₹5,000 Crore Investment in 2026–27: IBA India’s biogas sector is gearing up for major growth, with investments expected to exceed ₹5,000 crore in 2026–27, according to the Indian Biogas Association (IBA). Investor interest has been rising steadily, and the compressed biogas (CBG) pipeline is expanding, making this a promising year for the sector. Currently, over 100 CBG plants are operational across the country, and government data shows that 94 of these plants sold more than 31,400 tonnes of compressed biogas in FY 2024–25. This is a clear sign that biogas is gaining traction, both as a cleaner fuel option and as a commercially viable energy solution. There is also huge potential in rural areas. Millions of small, traditional biogas digesters exist but often operate below capacity. Medium-sized plants are being supported by government programs, offering benefits like clean cooking fuel, rural employment, and organic manure for farming. IBA Chairman Gaurav Kedia said a relaxed GST regime will make doing business easier for the CBG sector. A 7 per cent reduction in GST could improve project viability and may boost new investments by 4–5 per cent in the near term. He also highlighted that growth in biogas has a multiplier effect across the entire value chain, including feedstock supply, plant operations, and logistics. Looking ahead, the IBA expects the CBG industry to reach a market size of USD 3–4 billion in 2026 and nearly USD 5 billion by 2030. With strong policy support, organized supply chains, and growing market demand, biogas is not just helping India move towards cleaner energy but also creating jobs and supporting rural economies. The IBA, India’s first nationwide professional body for the biogas sector, represents technology providers, developers, plant operators, researchers, and policymakers working together to expand biogas adoption across the country.