Introduction: The Rise of Bioenergy and the Role of CBG
Over the last few decades, the global energy sector has undergone a significant transformation. Rising environmental concerns, the depletion of fossil fuel reserves, and the global movement toward sustainability have driven governments, industries, and entrepreneurs to seek clean, renewable, and efficient energy alternatives. Among these alternatives, bioenergy has emerged as one of the most promising sectors, capable of tackling two major global challenges — energy security and waste management.
In India, a country that generates nearly 300 million tonnes of agricultural residue annually and over 60 million tonnes of municipal solid waste, bioenergy offers a unique dual advantage: it not only provides clean fuel but also converts waste into wealth. Within the bioenergy segment, Compressed Biogas (CBG) has taken center stage due to its wide applicability in transportation, industries, and households.
CBG is chemically similar to compressed natural gas (CNG) and can be produced from various organic waste materials through anaerobic digestion. This renewable gas can replace fossil fuels in vehicles and industries, drastically cutting down carbon emissions. While large public sector companies have been part of the movement, it is the startups that are now redefining how CBG is produced, distributed, and commercialized.
With their technological innovations, data-driven systems, and circular business models, startups are not just supporting the bioenergy ecosystem — they are disrupting traditional energy practices, creating economic opportunities, and accelerating India’s journey toward energy self-reliance.
The Transformation of the Bioenergy Landscape
Traditionally, India’s energy framework was built around fossil fuels such as coal, diesel, and natural gas. Renewable energy initiatives were mostly driven by government policies and large corporations. However, such models faced challenges including bureaucratic delays, large capital requirements, and limited adaptability to local needs.
This changed with the rise of India’s startup ecosystem, which brought innovation, speed, and local problem-solving capacity into the renewable energy sector. In the last decade, thousands of clean-tech startups have emerged, focusing on biogas, solar, hydrogen, and waste-to-energy technologies.
In the CBG domain, startups are introducing smart plant designs, innovative feedstock sourcing mechanisms, and data analytics-based performance monitoring. This transformation has turned biogas production into a commercially scalable and decentralized energy system, where even small communities and industrial clusters can generate their own clean fuel from waste.
Unlike older systems that relied on centralized plants, modern startups are focusing on decentralized CBG production, enabling rural and semi-urban areas to become energy self-sufficient. This change not only enhances accessibility but also reduces the environmental footprint associated with fuel transportation.
Startup Innovations Reshaping the CBG Sector
Startups are driving innovation at every stage of the CBG value chain — from waste collection to gas purification and distribution. Let’s explore some key innovations transforming this sector:
a. Diversified Feedstock Utilization
Earlier, biogas plants were dependent on single types of waste, often leading to operational downtime during off-seasons. Modern startups are diversifying their feedstock sources by combining agricultural residues, press mud, cattle dung, food waste, and municipal solid waste.
This approach ensures a continuous raw material supply and increases gas yield while reducing dependency on any one type of waste.
b. Modular and Decentralized CBG Units
Startups are introducing modular plug-and-play CBG plants that can be installed quickly in smaller spaces with minimal infrastructure. These systems are ideal for farms, dairies, and industrial areas.
For example, a startup in Maharashtra developed a containerized biogas unit that processes 10 tonnes of waste daily, serving a local fleet of vehicles. Such decentralized models lower transportation costs and encourage local energy generation.
c. Smart Technology Integration
Digitalization is one of the biggest disruptions introduced by startups. Using IoT (Internet of Things) devices, AI algorithms, and remote monitoring dashboards, startups can track feedstock input, gas purity, production levels, and equipment health in real time.
This predictive approach reduces plant downtime, prevents operational failures, and optimizes gas output, leading to higher profitability and efficiency.
d. Waste-to-Wealth Circular Economy
Startups are championing the concept of circular economy by ensuring that every by-product is reused. The digestate left after gas production is converted into organic manure rich in nutrients, replacing chemical fertilizers in agriculture. This not only creates an additional revenue stream but also improves soil fertility and sustainability in farming practices.
The Role of Government Policies and Partnerships
Government support has been a key catalyst in the rapid rise of CBG startups. India’s flagship initiative — SATAT (Sustainable Alternative Towards Affordable Transportation) — launched in 2018, aims to set up 5,000 CBG plants and produce 15 million tonnes of biogas annually.
The policy encourages entrepreneurs and private investors to participate by ensuring long-term purchase agreements with oil marketing companies such as IOC, BPCL, and HPCL.
In addition to SATAT, several state governments and financial institutions are offering subsidies, tax incentives, and low-interest loans to bioenergy projects. The government has also facilitated collaborations between municipal corporations and private startups to manage urban waste effectively and produce biogas.
Such initiatives have created an enabling environment where startups, policymakers, and public enterprises work together toward a shared vision — reducing fossil fuel dependence and achieving energy independence.
Startups like EverEnviro, GPS Renewables, and Hydrogenium Energy have emerged as examples of successful collaboration between innovation and government vision.
Economic, Environmental, and Social Benefits
CBG technology’s value lies not only in its ability to produce renewable fuel but also in the multiple benefits it generates for the economy, environment, and society.
a. Economic Growth and Employment
Each CBG plant employs skilled and unskilled workers across feedstock collection, plant operations, logistics, and maintenance. According to the Ministry of Petroleum and Natural Gas, the SATAT scheme alone has the potential to create 75,000+ direct and indirect jobs nationwide.
Startups often establish CBG plants in rural or semi-urban areas, creating livelihood opportunities for farmers and local youth.
b. Import Substitution
India currently imports over 50% of its natural gas requirements. Producing biogas domestically helps reduce this dependency, saving foreign exchange and stabilizing the energy economy. For instance, replacing just 10% of CNG with CBG could save India billions annually.
c. Environmental Conservation
CBG contributes to reducing greenhouse gas emissions significantly. It prevents methane release from decomposing waste, reduces air pollution caused by stubble burning, and lowers carbon dioxide emissions by up to 90% compared to diesel. Additionally, using organic fertilizer from digestate reduces chemical fertilizer pollution in soil and water bodies.
d. Social Empowerment
By involving farmers, local communities, and small enterprises in the waste-to-energy value chain, startups promote inclusive growth. Villages become self-sufficient in energy, and farmers gain new income sources from waste materials that once went unused.
Challenges Confronting CBG Startups
Despite their impressive growth, startups in the CBG sector face significant challenges that require strategic solutions.
a. High Capital Costs
Setting up a biogas plant demands considerable investment — typically ₹4–6 crore for a medium-scale unit. Access to finance remains limited as banks often classify such projects as high-risk due to their long payback periods.
b. Feedstock Logistics
A steady supply of organic waste is critical. Inconsistent feedstock availability due to seasonal agricultural cycles or inadequate collection infrastructure often disrupts operations. Developing cluster-based sourcing models and municipal partnerships is essential to overcome this.
c. Technological Gaps
While startups are introducing innovation, there is still a lack of standardized technology and certification systems. Variations in gas purity, plant design, and equipment efficiency can limit scalability.
d. Market and Awareness Barriers
Public knowledge of CBG as an alternative fuel remains low. Consumers and industries need confidence that CBG can deliver reliable performance at competitive prices. Awareness campaigns and demonstration projects can help bridge this gap.
Success Stories of Indian Startups in CBG
Several Indian startups have already made remarkable progress in commercializing CBG and proving its feasibility.
- GPS Renewables: Based in Bengaluru, this company has deployed over 100 decentralized biogas plants and developed advanced gas purification technology.
- EverEnviro Resource Management: Partnered with IOCL to establish large CBG plants under SATAT across multiple Indian states.
- Hydrogenium Energy: Focused on combining biogas with hydrogen production for hybrid clean fuel solutions.
- Green Planet Energy: Works with farmers to set up small-scale rural CBG units that generate income while reducing stubble burning.
- Mynergy Renewables: Uses municipal waste from cities like Pune and Indore to produce CBG and organic manure, helping urban waste management.
These startups have proven that sustainability and profitability can coexist, inspiring many new entrants to explore the CBG market.
The Future of CBG Startups
The coming decade holds immense potential for CBG startups as India aims to achieve Net Zero emissions by 2070. The next wave of growth will focus on scaling, integration, and innovation.
a. Integration with E-Mobility
CBG can complement the electric vehicle ecosystem by powering hybrid vehicles and serving as a bridge fuel during the transition from fossil fuels to complete electrification.
b. Expansion of Fueling Infrastructure
Setting up CBG refueling stations along highways and within cities will make the fuel accessible to public and commercial vehicles. Oil companies are already collaborating with startups to develop such networks.
c. Advanced R&D and Automation
Future CBG systems will integrate AI-driven optimization, microbial enhancements, and blockchain-based carbon tracking, ensuring higher productivity and transparent carbon credit trading.
d. International Expansion
With strong domestic experience, Indian startups can export CBG technology to countries in Africa, Southeast Asia, and Latin America, where agricultural waste is abundant and energy access remains limited.
The next generation of bioenergy entrepreneurs will drive India toward becoming a global leader in renewable gas technology.
Conclusion: A Green Revolution Led by Startups
The evolution of CBG startups is not merely a technological movement — it represents a new vision for India’s sustainable future. These innovators are proving that clean energy can be profitable, inclusive, and scalable when driven by entrepreneurial passion.
By converting waste into fuel, startups are tackling multiple challenges at once — reducing pollution, improving rural incomes, creating green jobs, and strengthening energy independence. The government’s supportive framework, combined with the private sector’s agility, ensures that the CBG revolution is just beginning.
In the coming years, the synergy of policy, innovation, and investment will make India a shining example of how startups can lead a nation’s transition toward clean and renewable energy. CBG will no longer be viewed as an alternative fuel — it will stand as a pillar of India’s energy independence and environmental resilience.