Guide to Setting Up a Compressed Biogas (CBG) Plant in India.
Key Considerations for Compressed Biogas (CBG) Plant Setup
1. Pre-Feasibility Assessment
- Feedstock Availability:
- Agricultural residue (rice straw, sugarcane press mud)
- Cattle dung (3-5 kg/day per animal)
- Municipal solid waste (organic fraction)
- Food processing waste
- Land Requirement:
- 1 TPD CBG plant: 1-2 acres
- 10 TPD plant: 5-10 acres
- Water Supply: 5,000-10,000 liters/day for 10 TPD plant
2. Regulatory Approvals
- Environmental Clearance (MoEFCC)
- PCB Consent (State Pollution Control Board)
- Explosives Department License (for gas storage)
- FSSAI Approval (if selling bio-manure)
3. Technology Selection
| Parameter | Options |
|---|---|
| Digester Type | Fixed dome, Floating drum, CSTR (Continuous Stirred Tank Reactor) |
| Purification | PSA (Pressure Swing Adsorption) or membrane technology |
| Compression | 250 bar CNG-grade compression systems |
4. Investment Requirements
| Plant Capacity | Estimated Cost |
|---|---|
| 1 TPD (1000 kg/day) | ₹8-12 crore |
| 5 TPD | ₹25-35 crore |
| 10 TPD | ₹45-60 crore |
Cost Breakdown:
- 60%: Digester & gas purification
- 20%: Civil works & utilities
- 15%: Gas compression & storage
- 5%: Land & approvals
5. Feedstock Procurement Strategy
- Farmers’ cooperatives for agri-waste
- Gaushalas/dairy farms for dung supply
- Municipal contracts for organic waste
6. Government Support
✔ SATAT Scheme (Oil marketing companies buy CBG at ₹54-56/kg)
✔ Capital Subsidy: 20-30% under MNRE/State policies
✔ Interest Subsidy: 5-6% via SIDBI
7. Revenue Streams
- CBG Sales (to OMCs or commercial users)
- Bio-manure (₹8-15/kg)
- Carbon Credits (via VERRA/Gold Standard)
8. Challenges & Mitigation
| Risk | Solution |
|---|---|
| Feedstock seasonality | Multi-feedstock design |
| Gas offtake delays | Tie-ups with OMCs beforehand |
| High working capital | Avail RBI’s Priority Sector Lending |
Step-by-Step Implementation Plan
Phase 1: Planning (3-6 months)
- Secure feedstock agreements
- Obtain land & environmental clearances
- Finalize EPC contractor
Phase 2: Construction (12-18 months)
- Digester & purification unit setup
- Gas compression & storage installation
Phase 3: Commissioning (3 months)
- Trial runs with feedstock
- Performance testing
Success Factors
✔ OMC tie-up for assured offtake
✔ Automated feeding system to reduce labor costs
✔ Regular maintenance of digesters
Best Locations: Punjab, Haryana, Maharashtra, UP (high agri-waste)
For detailed project reports, consult MNRE-approved agencies like Indian Biogas Association or TERI.
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