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UP bullish on green energy, approves CBG projects worth ₹6K crore
Currently, 25 CBG plants with a combined capacity of 213 tonnes per day (TBD) are functional in UP, accounting for 20 per cent of the operational CBG infrastructure in India
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A CBG plant converts organic waste into fuel, which can be used as an alternative to natural gas.
2 min read Last Updated : May 12 2025 | 5:05 PM IST
Uttar Pradesh recently approved new active pipeline compressed biogas (CBG) projects totalling ₹6,000 crore.
Currently, 25 CBG plants with a combined capacity of 213 tonnes per day (TBD) are functional in UP, accounting for 20 per cent of the operational CBG infrastructure in India. It is followed by Gujarat with 21 operational plants (16 per cent) and Maharashtra with 12 (9 per cent).
Additionally, the state has 129 new CBG plants in different stages of development.
According to a senior official, UP plans to expand CBG capacity to 1,000 TPD, bio-coal to 4,000 TPD, and bio-diesel to 2,000 kilo litres per day (KLPD) in the next two-three years. Investors in the state’s CBG ecosystem include Reliance and Indian Oil, among others.
The official added that industry-friendly incentives provided by the state government, such as land and capital subsidies, State Goods and Services Tax (SGST) reimbursement and single-window clearances have helped in boosting bio-energy projects.
The surge in private investment is driven by the Yogi Adityanath government’s clean energy push and focus on environmental sustainability, the official added.
A CBG plant converts organic waste into fuel, which can be used as an alternative to natural gas. Such units entail a process of anaerobic digestion of organic waste, followed by purification and compression.
These plants generate employment in the hinterland, convert agricultural waste into clean fuel and enhance supply of green energy across urban and industrial zones. Additionally, they mitigate vast amounts of carbon emissions annually, increase the availability of clean cooking fuel and provide farmers with the added benefit of organic manure production.
Apart from the CBG push, the UP government recently approved solar power projects worth nearly ₹10,000 crore to achieve renewable energy capacity of 22,000 megawatt (mw).
Three solar power projects totalling 2,000 mw will be set up in Jhansi, Lalitpur and Chitrakoot districts in the arid Bundelkhand region.
While NTPC Green Energy will develop 800 mw and 600 mw solar power plants in Chitrakoot and Lalitpur districts respectively, diversified Hinduja Group has been selected to develop a 600 mw unit in Jhansi district.