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Bio-CNG (Compressed Natural Gas) and CBG (Compressed Biogas) are sustainable alternatives to traditional natural gas produced from fossil fuels, produced via the process of anaerobic digestion, also known as biomethanation, using organic waste products.

At Advance Biofuel, we are the leading Biofuel Plant Manufacturer in Ahmedabad, India. We are well known for manufacturing Biodiesel plants and CNG Production plants too. 

Biogas is produced from agricultural, manure, municipal, plant material, sewage, green, or, food waste and is a cleaner alternative to petrol and diesel. Bio-compressed natural gas (bio-CNG) has potential in India as a replacement for CNG and LPG catering to various sectors. 

Bio-CNG could replace CNG and LPG, benefiting industries like distilleries, sugar and scratch factories, milk processing, pulp and paper, and slaughterhouses.

What is BioCNG?

BioCNG is produced by breaking down organic waste materials such as animal waste, food waste, and industrial sludge into biogas and digestate. This process takes place in a sealed, oxygen-free tank, also known as an anaerobic digester. The biogas is then processed, yielding 95% pure methane gas. The process yields a high-quality concentrated liquid fertilizer.

Biomethane is another name for bioCNG. Biomethane is produced by the fermentation of biomass to biogas. The biogas is then purified and transformed into a grid-quality gas.

How is BioCNG Produced? 

BioCNG is produced by breaking down organic waste materials such as animal waste, food waste, and industrial sludge into biogas and digestate. This process takes place in a sealed, oxygen-free tank, also known as an anaerobic digester. The biogas is then processed, yielding 95% pure methane gas. The process yields a high-quality concentrated liquid fertilizer.

What are the benefits of Bio-CNG?

High-Calorific Value

Bio-CNG provides a high calorific value, which makes it an efficient fuel source for various applications. 

Clean Fuel

As clean energy, Bio-CNG helps control air pollution by significantly reducing emissions such as carbon monoxide (70-90%), non-methane organic gas (50-75%), nitrogen oxides )75-95%), and carbon dioxide (20-30%).

No Residue Production

Bio-CNG combustion does not produce any residue, contributing to a cleaner environment.


It is more cost-effective than conventional fuels, with production costs ranging between $0.65 and $1.15 per gallon of gasoline equivalent (GGE), and it is eligible for federal renewable fuel credits (RINs).


Bio-CNG vehicles are very safe and so is filling them up with biogas. It’s safer than refueling with conventional fuels. Bio-CNG is less fire resistant, lighter than air, and evaporates upon release.

Reduces Dependency on Fossil Fuels

Bio-CNG reduces the burden on forests and fossil fuels, offering a sustainable alternative energy source.

Convenient Ignition Temprature

It has a convenient ignition temperature, which makes it easy to burn and use in various applications.

Similar to Natural Gas

Because bio-CNG’scompositionand characteristics are comparable to those of natural gas, it can be used in many applications in place of the latter. 

Waste Management

It can help to avoid problems associated with solid waste being dumped in landfills by utilizing organic waste to produce energy. 

Reduction in Greenhouse Gases

Vehicles running on Bio-CNG can reduce CO2 emissions by 78% compared to petrol or diesel, contributing to the fight against climate change.

Current State of Bio-CNG in India

Production and Consumption

There is a lack of comprehensive research on Bio-CNG, which is preventing its widespread adoption. India is currently experiencing a significant increase in energy demand, with oil and gas consumption expected to triple by 2050. Bio-CNG, derived from organic waste, is being promoted as a renewable energy source to meet demand. 

About 46% of the CNG used in India is presently imported and the government aims to reduce this dependency through the production and consumption of Bio-CNG. 

Government Initiatives

The Indian government has rolled out several initiatives to promote Bio-CNG. The union budget for 2023-24 allocated INR 35,000 crore to the energy transition, which included the installation of 500 new waste-to-wealth CBG plants. The government has also introduced a 5% CBG mandate and exempted excise duty on CBG. The sustainable Alternative Fuel Towards Affordable Transportation (SATAT) scheme aims to set up 5,000 bio-CNG plants. 


Several states in India have started producing Bio-CNG. Gujarat leads with 12 Bio-CNG plants, followed by Punjab and Maharashtra. The Kaira District Cooperative Milk Producers Union Limited, also known as Amul Dairy, has successfully implemented BioCNG projects.

Economic Aspects

The Ministry of New and Renewable Energy (MNRE) estimates that India has a Bio-CNG production potential of approximately 62 million metric tons. The production of Bio-CNG aligns with the demand in the market making it economically viable. The possibility of receiving renewable fuel credits helps to offset production costs.

What is the Government’s Vision for CNG

The Government announced a phased mandatory blending of compressed Bio-CNG (CBG) in compressed Natural Gas (CNG) and piped Natural Gas (PNG) segments of the City Gas Discount (CGD) sector in October 2023. 

CBG Blending Obligation (CBG) will promote the production and consumption of compressed Bio Gas in the country. Up until FY 2024–2025, the requirement to blend will be optional; after that, it will become required, with goals established for the years that follow.

5% blending of biogas with natural gas will reduce LNG import by USD 11.17 billion. 

From FY26 onward, the CBO will be required; it will be optional until FY25.

CBO will be kept as 1%, 3%, and 4% of total CNG/PNG consumption for FY26, 2026-27, and 2027-28 respectively. From 2028-29 onwards CBO will be 5%.


Lack of Sufficient Feedstock

There is a shortage of suitable feedstock for biogas production, such as agricultural waste and sewage, which limits the potential for Bio-CNG production. 

Limited Technology and Infrastructure

There is a limited number of Biogas plants and the technology used in these plants often makes it difficult to achieve large-scale Bio-CNG production. 

High Costs

Potential investors may be discouraged by the comparatively high cost of developing and maintaining biogas facilities.

Distribution Challenges

There are challenges related to the distribution of Bio-CNG, including the need for a robust infrastructure for storage and green transportation. 

Inadequate Research

The lack of comprehensive research on Bio-CNG impedes its widespread adoption.

Regulatory Challenges

Currently, there is no single ministry that regulates and deals in the Bio-CNG sector, which can lead to policy inconsistencies. 

What should be done for effective implementation of CBG Blending:

The National Biofuels Coordination Committee (NBCC) is responsible for overseeing the implementation of the mandate. 

The Ministry of Petroleum and Natural Gas (MoPNG) will provide financial and other support to CGD companies. CGD companies will be responsible for integrating CBG into their CNG and PNG networks.


The key objectives of the CBO are to stimulate demand for CBG in the CGD sector, reduce Liquified Natural Gas (LNG) imports, save in forex, promoting a circular economy among other things, it will help to achieve a net zero emissions target.


Bio-CNG in India represents a promising avenue for sustainable energy production, offering environmental benefits and economic benefits such as reduced greenhouse gas emissions, decreased reliance on fossil fuel imports, and local job creation. 

While challenges in feedstock availability, technology, and infrastructure continue, government initiatives and schemes are actively promoting its adoption. Successful case studies demonstrate Bio-CNG’s potential to contribute significantly to India’s energy security and environmental goals.