Bio Gas Plant Project in Uttar Pradesh

• Location: The plant will be strategically located in Uttar Pradesh, one of India’s most populous states and a leader in renewable energy initiatives.

• International Collaboration: This project is a joint venture between Turkish and Japanese companies, symbolizing international cooperation towards sustainable energy.

• Project Value: The first project under this venture is valued at a whopping 943 million euros, reflecting the scale and potential of this initiative.

Uttar Pradesh is leading the way in setting up compressed bio-gas (CBG) plants as part of India’s efforts to reduce its dependence on imported energy. The state holds a significant position, having been issued 126 letters of intent (LoI) for setting up CBG plants, the highest among all Indian states. This showcases the state government’s commitment to pioneering clean and renewable sources of energy.

• Feedstock: Our biogas plants will utilize a variety of biomass sources, such as agricultural residue, cattle dung, sugarcane press mud, municipal solid waste, and sewage treatment plant waste.

• Production Process: The biomass undergoes anaerobic decomposition to produce bio-gas. This bio-gas is then purified to remove hydrogen sulphide, carbon dioxide, and water vapour. The resultant product, CBG, contains more than 90% methane.

• Use of CBG: CBG has calorific value and properties similar to compressed natural gas (CNG), making it an excellent green, renewable automotive fuel alternative. It can replace CNG in automotive, industrial, and commercial areas.

• Addressing Stubble Burning Issue: Annually, farmers, mainly from Punjab and Haryana, burn an estimated 35 million tonnes of crop waste. Our CBG plants aim to offer an alternative to this practice by providing an additional income option to farmers.

• Reducing Import Dependence: India currently imports nearly 83% of the crude oil it processes and about 50% of its natural gas requirement. This project aligns with the government’s target to reduce this import dependence by 10% in the next two years.

• Climate Change Mitigation: Utilization of CBG will assist India in achieving its climate change goals as per the Paris Agreement 2015.

• Economic Opportunity: The business is lucrative for entrepreneurs, as state-run oil majors like IOC and GAIL India are providing off-take guarantees to such plants. Moreover, the government has been considering according the project a priority sector lending tag for easy and cheaper finance.

The Indian government has ambitious plans for the CBG sector, targeting 5,000 plants across the country by 2023 that can produce 15 million metric tonnes of CBG. It is expected that these plants will also produce 50 million metric tonnes of bio-manure, a key by-product, promoting organic farming.