Biogas sector expected to see ₹5,000 cr investment in 2026-27: IBA

The biogas sector is expected to see investments of over Rs 5,000 crore in 2026-27 buoyed by strong interest from investors and stakeholders this calender year, the Indian Biogas Association (IBA) said.

As of date, more than 100 compressed biogas (CBG) plants have been commissioned, and the year 2025 witnessed strong interest from investors and stakeholders and growing CBG pipeline  According to government data, 94 CBG plants sold more than 31,400 tonne of CBG during FY 2024-25, which is a tangible proof of growth, and market uptake, the IBA said in a statement.

Also, there lies ample room for efficiency improvement and capacity utilization in the several million small-scale traditional biogas digesters, and the country programs are scaling up support for the various medium-sized plants which offer the benefits of cleaner cooking fuel, rural employment and organic manure.

The IBA anticipates significant commissioning of CBG facilities, effective and organized supply chains for feedstock, and unified and integrated policy frameworks to support the rapid adoption of biogas.

"The relaxed GST regime is going to augur ease of doing business in the CBG ecosystem. We anticipate that a reduction of 7 per cent in the applicable GST rate for CBG sector shall significantly improve project viability, and the direct impact would translate into 45 per cent increase in new investments in the industry over the short to medium term," Gaurav Kedia, Chairman, IBA said.

"Indirectly across the industry value chain, the multiplier effect would be much larger. In 2026, the CBG industry size shall soar to roughly USD 3-4 billion and reach approximately USD 5 billion by 2030, he added.

IBA is the first and largest nationwide and professional biogas association for stakeholders of the biogas industry including technology providers, project developers, plant operators and planners of biogas plants, and representatives from public policy, science and research in India.