Compressed Biogas (CBG) projects are important component of the renewable energy sector and are established for production of clean and eco-friendly fuel from organic waste and biomass such as paddy straw, cattle dung, press mud, municipal solid waste and other agricultural residue. CBG has properties similar to Compressed Natural Gas (CNG) and can be used as an alternative fuel for vehicles, industries and domestic purposes. In a CBG project, organic biomass is first processed through anaerobic digestion in the absence of oxygen, where microorganisms decompose the biomass and produce raw biogas. The raw biogas mainly contains methane and carbon dioxide. Thereafter, the biogas is purified and upgraded by removing impurities, moisture, hydrogen sulphide and carbon dioxide to obtain high-purity methane. The purified gas is then compressed to produce Compressed Biogas (CBG). CBG projects provide several environmental, economic and social benefits. These projects help in reducing dependence on fossil fuels, lowering greenhouse gas emissions, controlling stubble burning, and improving air quality. The major by-products of CBG plants are Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM), which are rich in nutrients and can be used as organic fertilizers in agriculture. These by-products improve soil health, reduce dependence on chemical fertilizers and promote sustainable farming practices.

Punjab Current Status:

Punjab Energy Development Agency (PEDA), being the State Nodal Agency for promotion and development of renewable energy projects, including Compressed Biogas (CBG) projects, has allocated 57 Compressed Biogas (CBG) projects with a total capacity of about 815.68 Tonnes Per Day (TPD), based on paddy straw and other agro-residues.

Out of these, 6 CBG projects with a total capacity of 107.48 TPD are operational. Further, 5 more projects with a total capacity of 37.5 TPD are expected to become operational during F.Y. 2026–27. The remaining 46 CBG projects, which include 10 projects each by GAIL (India) Limited and HPCL, are at different stages of execution/pre-construction clearances and are expected to be commissioned within the next two years. Once commissioned, these projects shall consume about 2.80 million tonnes of paddy straw annually.

Waste to Energy (CBG projects based on cattle dung):

In addition to above, 1 Project of Waste to Energy of capacity 10,000 cum of raw biogas/3 TPD CBG is operational in Haibowal Dairy Complex, Ludhiana which is consuming about 200 ton cattle dung daily. 2 more projects each for daily consumption of 300 ton cattle dung are in pipeline to be setup in Haibowal Dairy Complex and Tajpur Dairy Complex in Ludhiana. These projects will each produce 6.4 ton CBG daily.

Advantages of CBG Projects:

• These projects attract private investment.
• These projects generate employment opportunities for skilled and unskilled persons.
• These projects help in reducing the emission of greenhouse gases.
• These projects contribute to the upliftment of the rural economy.
• Farmers receive additional income from agricultural waste.
• Fermented Organic Manure generated as a by-product from these projects is used for organic farming.
• Local allied industries receive a boost from these projects.