Can Biogas Aid India’s Energy Security?

UPSC Syllabus: Gs Paper 2-  Infrastructure (energy)

Introduction:

India imports nearly 85% of its crude oil and a large share of its LPG, making its energy security vulnerable to geopolitical tensions, especially in West Asia. The recent LPG supply disruptions have renewed interest in biogas and Compressed Biogas (CBG) as clean, indigenous and renewable fuels. While India has launched several initiatives to promote biogas, achieving large-scale adoption requires stronger implementation, better infrastructure and sustainable feedstock management.

Significance of Biogas for India’s Energy Security

1. Reducing Import Dependence: Biogas can reduce India’s reliance on imported crude oil, LPG and natural gas by producing energy from locally available organic waste. This strengthens energy security during global supply disruptions.
2. Renewable and Versatile Fuel: Biogas is produced through anaerobic digestion of organic matter and mainly contains methane and carbon dioxide. After purification, it becomes Compressed Biogas (CBG), which is chemically identical to CNG and can be used for cooking, transport, electricity generation and heating.
3. Waste-to-Wealth Approach: Biogas converts agricultural residues, animal waste and other organic waste into useful energy. This helps manage waste while creating value from resources that are otherwise discarded.
4. Environmental Benefits: Biogas is a renewable and carbon-neutral fuel. It reduces methane emissions from waste, lowers dependence on fossil fuels and supports India’s climate goals.
5. Economic and Rural Benefits: Biogas can reduce household fuel costs, generate rural employment and improve sanitation. It also supports farmers by creating new income opportunities from agricultural waste.
6. Climate Finance Potential: Biogas projects can earn revenue from both gas sales and carbon credits. Each tonne of feedstock can reduce nearly 2.83 tonnes of CO₂, making projects more attractive for investors.

India’s Biogas Journey and Government Initiatives

1. Early Development: India’s biogas programme began in the late 1950s through the work of Dr. Ram Bux Singh, who established the country’s first Gobar Gas plant. This created the foundation for future development.
2. Expansion in Rural Areas: The National Project on Biogas Development (NPBD) in the 1980s promoted household biogas plants through subsidies. The Deenbandhu fixed-dome model introduced in 1984 made plants more affordable by using local materials.
3. SATAT Initiative: The Sustainable Alternative Towards Affordable Transportation (SATAT) scheme was launched in 2018 with a target of establishing 5,000 CBG plants by 2023. However, only 132 plants had been completed by 3 June 2026, showing slow progress.
4. GOBARdhan Scheme: The GOBARdhan programme promotes a waste-to-wealth approach by supporting community biogas plants. It provides grants of up to ₹150 lakh per district, ₹564 crore for biomass collection machinery and ₹994 crore for pipeline connectivity.
5. Mandatory CBG Blending: In 2023, the government approved mandatory blending of CBG in city gas distribution networks. The blending target starts at 1% in FY26 and will gradually increase to 5% by FY29.
6. Learning from Ethanol Blending: India increased ethanol blending in petrol from 1.5% in 2014 to 20% by December 2025, five years ahead of the original target. A similar implementation approach is expected for CBG blending.

Challenges in Scaling Up Biogas

1. Infrastructure Constraints: Slow establishment of CBG plants, inadequate biomass collection systems and limited pipeline connectivity have delayed large-scale expansion.
2. Financial Barriers: High initial investment, expensive technology, poor private investment and limited access to formal credit have reduced project viability.
3. Need for Better Policy Support: Government financial assistance can improve project viability. Additional incentives such as accelerated depreciation and tax holidays can attract more private investment.
4. Feedstock and Crop Diversion Risks: Higher prices for maize-based ethanol have encouraged farmers to shift towards maize cultivation. This may reduce crop diversity and affect food security if food crops are increasingly used as energy feedstock.
5. Impact on Agricultural Production: The Economic Survey 2026 noted that maize yield increased from 2.56 tonnes per hectare in FY16 to 3.78 tonnes per hectare in FY25, while yields of soybeans, sunflower, rapeseed, peanuts and millets stagnated or declined. During FY22–FY25, maize-based ethanol prices increased at a CAGR of 11.7%, making maize more profitable.
6. Food Security Concerns: Rising maize cultivation has coincided with declining pulse production and only modest growth in oilseeds and other cereals. Since India already imports large quantities of pulses and edible oils, this trend may increase import dependence and expose domestic food prices to future supply shocks.

Lessons from International Experience

1. Global Leadership in Biogas: Europe, China and the United States account for nearly 90% of global biogas production, showing that strong policy support can rapidly expand the sector.
2. Germany’s Policy Success: Germany accelerated biogas production after introducing the Renewable Energy Sources Act, 2000. Guaranteed income, bonuses and support for small plants encouraged large-scale investment.
3. Managing Crop Diversion: Germany’s rapid expansion led to excessive maize cultivation, replacing other food crops. The government later imposed limits on maize use in biogas plants to protect agricultural diversity.
4. Denmark’s Sustainable Model: Denmark aims to use only biomethane in its gas system by 2030. It discourages food crops as feedstock and mainly uses livestock manure and agricultural waste, offering a more sustainable approach.

Way Forward

1. Strengthen Infrastructure: Faster establishment of CBG plants, better biomass collection systems and stronger gas pipeline connectivity are essential for expanding production.
2. Improve Financial Support: Easier access to bank credit, government support and carbon market financing can make biogas projects commercially viable.
3. Encourage Private Participation: Stable policy support, tax incentives and long-term investment confidence can attract more private companies into the sector.
4. Promote Decentralised Systems: Expanding small (1–25 m³/day) and medium (25–2500 m³/day) biogas plants can support local energy production. A household can replace 1–2 LPG cylinders every month using daily organic waste.
5. Adopt Sustainable Feedstock: Priority should be given to livestock manure, agricultural residues and organic waste instead of food crops. This can strengthen energy security without affecting food security.
6. Integrate Existing Schemes: Better coordination between SATAT, GOBARdhan, CBG blending targets and other programmes can accelerate implementation and improve outcomes.

Conclusion

Biogas can become an important pillar of India’s energy security by reducing import dependence, promoting clean energy and supporting rural livelihoods. However, its success depends on faster implementation, stronger infrastructure, adequate finance and sustainable feedstock use. A balanced approach can help India expand renewable energy without compromising agricultural diversity or food security.

Question for practice:

Discuss the role of biogas in strengthening India’s energy security and examine the challenges in scaling up its adoption.

Source: The Hindu