Jio-BP, Adani Total Gas Plan To Set Up Biogas Plants

Mukesh Ambani's Reliance (RIL) and Gautam Adani-led Adani Total Gas (ATGL) are preparing to establish ten compressed biogas (CBG) plants each nationwide, according to officials of both these companies. 

These plants will have a maximum capacity of 30 tonnes per year. Initially, five plants will be set up within the next five years, followed by the remaining five. The companies plan to invest up to Rs 2500 crore each in constructing these plants. 

CBG is an environmentally friendly fuel derived from waste and biomass sources, sharing similar properties with Compressed Natural Gas (CNG) and suitable for automotive, industrial, and commercial applications. 

According to a senior official, the installation sites for these plants have been identified by RIL and Adani Group. Initially, they have planned to construct five plants, and the remaining five will be established based on the availability of feedstock, which is an important consideration. 

Each plant will have a feedstock processing capacity of 250-500 tonnes per day, with CBG production ranging from 10 to 20 tonnes per day (TPD). The estimated investment for the Uttar Pradesh unit is approximately Rs 750 crore. 

Jio-BP, a fuel retail joint venture between Reliance Industries and British oil major BP, has already commenced the retailing of compressed biogas (CBG) and bio-CNG (B-CNG), both of which can be used as substitutes for compressed natural gas in CNG-powered vehicles. As per the information, five of RIL's CBG plants will be located in Gujarat, while the remaining five will be spread across the country. 

Presently, India has nearly 30 operational CBG plants, and industry experts predict that the sector will attract investments of over USD 2 billion within the next five to seven years. Under the Satat scheme, the government has announced an ambitious plan to reach a capacity of 15 million metric tonnes per year, equivalent to approximately 40,000 tonnes per day.