Knowledge Nugget | Is GOBARdhan a strategic bet for turning waste into energy security?

2. The GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) scheme is to be implemented by the Ministry of Petroleum and Natural Gas. 

What is the difference between biogas and compressed biogas? 

As per Ministry of Renewable energy website, 

3. Biogas contains about 55-65 % of methane, 35- 44 % of carbon dioxide and traces of other gases, such as Hydrogen Sulphide, Nitrogen and Ammonia. Biogas, in its raw form, that is without any purification can be used as clean cooking fuel like LPG, lighting, motive power and generation of electricity.

4. It can be used in diesel engines to substitute diesel up to 80% and up to 100% replacement of diesel by using 100% Biogas engines. Further, Biogas can be purified and upgraded up to 98% purity of methane content to make it suitable to be used as a green and clean fuel for transportation or filling in cylinders at high pressure of 250 bar or so and called as Compressed Bio-Gas (CBG).

5. CBG is an eco-friendly and purified form of biogas that is compressed to high pressures for use as a vehicle and industrial fuel. It has properties and energy content very similar to compressed natural gas (CNG), which means it can be blended with CNG or be used as a replacement fuel in automotive, industrial, and commercial sectors. 

How does  a CBG plant work? 

6. Biogas is generated using anaerobic digestion – a process by which the complex organic matter is broken down in the absence of oxygen to produce biogas. The digestion, taking place in a sealed vessel reactor, involves four successive stages: hydrolysis (break-down of organic matter into simple molecules), acidogenesis (their conversion into volatile fatty acids), acetogenesis (production of acetic acid, CO2 and hydrogen) and methanogenesis (biogas generation). You can refer to the infographic for a detailed explanation on the working mechanism of a CBG plant. 

From organic waste to clean fuel: Trace the science behind CBG. (Infographic source: AI generated)

Why is CBG strategically important for India?

7. Given India’s dependence on imports to meet about half of its natural gas requirement, boosting CBG production and use could help reduce imports and strengthen the country’s clean energy transition. It would also help insulate the domestic market against major supply and price shocks in the international market, like the prevailing Strait of Hormuz crisis.

8. The strategic importance of the scheme lies not merely in producing more biogas, but in addressing the commercial bottlenecks that have historically made CBG projects difficult to scale. Unorganised feedstock supply chains, high initial capital expenditure, inadequate local distribution infrastructure and weak offtake have been major roadblocks in the CBG segment, and the scheme aims to overcome them. 

9. According to the government, GOBARdhan  has the potential to transform the country’s abundant agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources into clean fuel, organic manure, rural income and national economic value. 

10. The GOBARdhan scheme is expected to further build and strengthen the CBG ecosystem by creating an integrated platform across the entire CBG value chain. This is likely to enable faster implementation, stronger project economics and greater certainty for investors, lenders and developers. This has the potential to move CBG from a “technology/pilot project” model to a commercially viable, bankable energy industry.

11. “India’s demand for natural gas is expanding across transport, households, industry and commercial sectors. CBG can meet a growing share of this demand through domestic renewable production, strengthening energy resilience and reducing dependence on imported fossil fuels. CBG is chemically equivalent to natural gas and can be seamlessly integrated into the existing gas ecosystem. It therefore combines the benefits of a renewable fuel with the reach and utility of India’s expanding gas infrastructure,” the government said.

How will GOBARdhan make CBG commercially viable?

12. GOBARdhan will have a dedicated CBG offtake assurance framework to provide a reliable and predictable market for producers. The procurement will be done by city gas distribution (CGD) entities to support their CBG blending obligations — 3% in 2026-27, 4% in 2027-28 and 5% from 2028-29 onwards — in CNG and household piped natural gas (PNG) segments. 

13. According to the government, the framework converts the blending obligation into a “clear, long-term demand signal for the industry”, and consistent implementation across CGD networks will improve project bankability and support capacity utilisation, which would in turn encourage long-term private investment.

14.  “GOBARdhan introduces a stable administered CBG price of Rs 2,110 per Metric Million British Thermal Unit (MMBTU), supported through a government-backed pricing framework. The framework provides long-term revenue visibility while protecting consumer affordability through a combination of government support and a market-based cost-sharing mechanism. With a minimum 10-year horizon, the pricing framework will provide producers with durable revenue certainty, commercially attractive returns and a stronger business case for investment and capacity expansion,” the government said.

15. Under the scheme, eligible greenfield CBG projects will receive capital assistance of up to Rs 2 crore per tonne per day of installed capacity. The support extends beyond core plant machinery to critical value-chain assets for feedstock aggregation, organic manure processing and value addition. Brownfield projects expanding their production capacity will also be eligible.

16.  As per the government, this support will lower the initial capital burden, accelerate financial closure and expand participation by private developers, small and medium enterprises, cooperatives, and rural entrepreneurs. The scheme will support cluster-based as well as standalone pipeline infrastructure connecting CBG plants with trunk pipelines and city gas distribution networks. Greater pipeline connectivity is expected to meaningfully reduce evacuation costs, improve reliability, expand market reach and enable higher utilisation of the fuel.

17. “A dedicated credit guarantee mechanism will strengthen lender confidence and expand the flow of institutional credit to eligible MSME-based CBG projects. By sharing a portion of lending risk, the mechanism will improve access to affordable finance, reduce collateral requirements and support faster project development. This will widen participation by MSMEs, women entrepreneurs and first-time developers, helping build a broad, competitive and entrepreneurial CBG industry,” the government said.

BEYOND THE NUGGET: Harnessing waste-to-energy technologies for sustainable growth

1. The United Nations Statistical Division Glossary of Environmental Statistics defines waste as ‘materials that are not prime products for which the generator has no further use in terms of his/her purposes of production, transformation or consumption, and of which he/she wants to dispose’. There is no waste in nature because all natural by-products are recycled and reused in the ecosystem. 

2. Human activities, on the other hand, generate different types of waste, such as municipal solid waste, hazardous waste, radioactive waste, bodily waste, etc. These waste forms cannot be readily used in nature, are non-recyclable, and may have detrimental effects on human health and the environment.

3. A modern solution is waste-to-energy technologies which serve two purposes: (a) managing large-scale waste generated from household, municipal and industrial activities and, (b) meeting the rising energy demands. 

4. Simply put, ‘waste-to-energy refers to a series of technologies that convert non-recyclable waste into some usable forms of energy’. These technologies are different or upgraded versions of the existing waste management technologies, for they are designed to generate fuel or gas as one of their end products, which can then be used to produce heat and electricity.  

5. There are two main conversion processes: biochemical and thermochemical. These technologies require specific kinds of pre-treatment for waste materials such as sorting, shredding, drying, etc. Thermochemical Technologies generally include three methods: incineration, pyrolysis and gasification. 

(i) Incineration involves burning waste materials at high temperatures in a specific kind of furnace called incinerators. Incineration is particularly suitable for heterogeneous waste, which includes mixed waste like food, garden, plastic and paper. It is estimated that 70 to 90 per cent of waste is treated by incineration. This technique is appropriate for wastes with high caloric value as well as for non-hazardous municipal waste.

(ii) Pyrolysis breaks down inorganic (or largely plastic) waste in the absence of oxygen to produce fuels in all three states of matter such as char, pyrolysis oil and syngas. It is an old technology that was used to produce charcoal from wood.

(iii) Gasification is an advanced thermal treatment that involves the decomposition of carbon-rich municipal waste to produce syngas or producer gas (a combination of several gases such as hydrogen, carbon monoxide, methane). This is a well-established technology in the petrochemical and power industries. Pyrolysis and gasification are better suited for homogenous waste types.

6. Biochemical technologies: The decomposition of biodegradable organic components occurs through biological processes under the influence of bacteria. This includes anaerobic digestion (AD) and landfilling.

(i) Anaerobic Digestion (AD) is appropriate for organic waste (kitchen and garden) where micro-organisms are broken down into biodegradable material in the absence of oxygen. One of the end-products is biogas, which is used to generate heat or electricity. This method can occur naturally or can be engineered in bio-digesters and sanitary landfills.

(ii) Composting and landfilling involve burying of waste accompanied by deploying landfill gas recovery systems. Although landfilling is less expensive, it is environmentally detrimental due to the release of toxic and obnoxious gases.

7. Both thermochemical and biochemical technologies contribute to the circular economy by reducing waste and recovering energy. Waste-to-energy could significantly contribute to sustainable growth, development, and job creation if deployed effectively. There are several global practices that could be innovated and emulated in India, such as Denmark’s idea of hedonistic sustainability (eco-friendly choices can make life more enjoyable than old, dirty ways). 

Post Read Questions

(1) With reference to the National Circular Bioenergy Scheme (GOBARdhan) approved in 2026, consider the following statements:

1. It seeks to substantially expand domestic CBG production.

2. It is implemented by the Ministry of Petroleum and Natural Gas.

3. It seeks to address only the production-side technology constraints of CBG plants.

4. Its policy architecture includes measures relating to assured offtake, pricing, capital assistance, pipeline infrastructure and credit support.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 1, 2 and 4 only

(c) 2, 3 and 4 only

(d) 1, 2, 3 and 4

(2) Consider the following pairs:

How many of the above pairs are correctly matched?

(a) Only one

(b) Only two

(c) Only three

(d) All four

(3) With reference to Compressed Biogas (CBG), consider the following statements:

1. CBG is produced by compressing raw biogas obtained from anaerobic digestion without necessarily removing carbon dioxide and hydrogen sulphide.

2. CBG and CNG have similar properties and energy content because methane is the principal constituent of both.

3. Unlike CNG, the carbon present in CBG originates from recently generated biomass and organic waste.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer key

1. (b), 2. (d), 3. (b)

(Sources: To cut gas imports, Cabinet clears Rs 24K-crore biogas scheme — GOBARdhan, Harnessing waste-to-energy for sustainable growth in India) 

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