German Development Bank commits ₹343 crore to CEF Group for compressed biogas plants in India, boosting SATAT scheme & sustainable fuel production from waste.
Germany Backs India’s Green Energy Push with ₹343 Crore Biogas Investment
New Delhi, August 1, 2025 – In a major boost to India’s clean energy transition German Export Finance Bank (KfW) has committed €38 million (₹343 crore) in funding to CEF Group a leading Indian cleantech company specializing in waste-to-biogas solutions.
The investment will support the construction of two new Compressed Biogas (CBG) plants advancing CEF’s ambitious plan to develop 22 such facilities across India under the government’s SATAT (Sustainable Alternative Towards Affordable Transportation) initiative.
Key Highlights of the Deal
✅ ₹343 Crore Funding – Mix of equity & debt financing from Germany’s development bank
✅ 2 New CBG Plants – Adding to CEF’s existing projects in Jammu, Ahmedabad & UP
✅ Waste-to-Energy Focus – Agricultural, agro-industrial & municipal waste conversion
✅ SATAT Scheme Alignment – Supports India’s goal of 5% CBG blending in gas networks
Why This Investment Matters?
🔹 Reduces Fossil Fuel Dependence – Each CBG plant can replace ~15,000 tons of diesel/year
🔹 Promotes Circular Economy – Converts 300+ tons of waste daily into clean fuel
🔹 Creates Rural Jobs – Especially in farming & waste collection sectors
🔹 Strengthens EU-India Green Partnership – Follows recent collaborations in renewables
CEF Group’s Growing Footprint
Founded in 2018, CEF currently operates:
- Municipal waste plants in Jammu & Ahmedabad
- Press mud processing facility in Western UP (sugar industry byproduct)
With this funding, CEF accelerates its 22-plant national rollout, potentially preventing 2 million tons of CO2 emissions annually at full capacity.
Government’s SATAT Scheme: Driving CBG Growth
Launched in 2018, SATAT aims to:
✔ Establish 5,000 CBG plants by 2025
✔ Produce 15 MMT of biogas yearly
✔ Generate $12 billion in rural economy value
“This German investment validates India’s biogas potential,” said a Ministry of Petroleum official. “We’re simplifying approvals to attract more global capital.”
The Bigger Picture: India’s Biogas Revolution
🇮🇳 Current Status:
- 46+ operational CBG plants
- ₹30,000 crore+ investments committed
- Reliance, Adani, EverEnviro among key players
🌱 What’s Next?
- New biogas subsidy policy expected in 2025
- GAIL & IOC expanding CBG procurement
- EU-India Green Hydrogen Alliance may include biogas
Investor Takeaways
💡 Emerging Opportunities:
- Waste aggregation & pre-processing tech
- CBG distribution infrastructure
- Specialized biogas plant components
💡 Regulatory Support:
- 100% FDI allowed
- 10-year tax holidays
- VGF funding for first 100 plants
Final Thoughts
As India races to meet its 2070 net-zero target, partnerships like KfW-CEF demonstrate the viability of scalable waste-to-energy models. With global finance + local execution, such projects can simultaneously address energy security, waste management and farmer incomes – a true triple win.
Watch this space: CEF’s new plants are expected to commence operations by Q2 2026.
