Back Oct 31, 2025

Energising India’s bio-gas sector: Replicating ethanol success

Ethanol blending in India is no longer a target; it’s a reality. What began as an initiative in 2003 has reached 19.93 per cent blending by mid-2025, paving the way for the next frontier — Compressed Bio Gas (CBG).

CBG brings with it a host of benefits, such as effective management of agricultural waste, enhanced energy security, reduced dependence on gas imports, rural job creation, and strong support for India’s net-zero journey.

The implementation of CBG Blending Obligations starting FY 2025-26, where a 1 per cent CBG blending in natural gas use in the domestic and transport sectors is mandated by the government, sets the stage for sectoral growth. But to ensure viability and scale, targeted policy levers must be deployed to accelerate growth. We present six pivotal policy levers for the CBG market to reach its full potential:

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