KEC Agritech plans to set up 15 CBG parks in five states

New Delhi, Sep 3 (PTI) KEC Agritech plans to set up 15 compressed biogas (CBG) parks in five states in the coming years, driven by increasing demand for the cleaner fuel and government incentives to promote its production, a top company official said on Tuesday.

The green fuel company, which has set up a CBG park in Bulandshahar in Uttar Pradesh, targets to set up more than 225 CBG plants by 2027, KEC Agritech CEO Jitendra Narayan said.

The company expects to close this year with more than 74 such plants, Narayan added.

On the growth potential, he said compressed biogas has emerged as a game-changer in energy transition, as it has the potential to address three critical national priorities -- energy security, waste management, and rural income generation.

The CBG market is expected to touch USD 37.63 billion by 2032, implying a robust compounded annual growth rate of 12 per cent (2025-32). The CBG market size was around USD 15.2 billion in 2024.

The central government, under the Sustainable Alternative Towards Affordable Transportation scheme, has set an ambitious target to set up 5,000 CBG plants by 2025. Oil marketing companies have already issued thousands of letters of intent to purchase CBG, ensuring a ready market for producers, Narayan said.

India generates nearly 750 million metric tonnes of agricultural residue, municipal solid waste, and other biomass annually. This abundant feedstock has the potential to produce more than 62 million tonnes of CBG every year, replacing a significant share of imported natural gas and LPG, he added. PTI RR BAL BAL