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Market Chatter: India Eyes Higher Biogas Output Through Subsidies, Guaranteed Prices Program

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The Indian government intends to increase the production of compressed biogas through a program that provides higher guaranteed purchase prices and subsidies to new facilities, Bloomberg reported Friday, citing undisclosed sources.

The policy proposes a hike in offtake prices for compressed biogas, while also providing financial advantages for new project developers, the report said.

The program, likely to be unveiled this month and implemented by the Ministry of Petroleum and Natural Gas, aims to increase the number of operational compressed biogas plants to about 700 from 200 now over the next few years, the report said.

Called Sampoorn, meaning complete or perfect in Hindi, the program also targets an increase in the proportion of biogas used for blending with other natural gas to 5% of the overall consumption by end of fiscal year 2029 ending March, the report said.

Compressed biogas, a methane-based fuel formed from organic waste, is considered to be carbon-negative by policymakers. Through this program, the government also intends to reduce carbon emission, combat the spike in fossil fuel prices, and tackle environment challenges, the report added.

has reached out to the Indian Ministry of Petroleum and Natural Gas for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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