India Biogas Market Size, Share & COVID-19 Impact Analysis, By Feedstock (Organic Residue & Wastes {Animal Waste, Municipal & Sewage, Agricultural Waste, and Others}, and Energy Crops), By Application (Heating, Electricity Generation, and Transportation), Forecast, 2022-2029

India biogas market size was valued at USD 1.40 billion in 2021. The market is expected to grow from USD 1.47 billion in 2022 to USD 2.25 Billion in 2029 at a CAGR of 6.3% in the 2022-2029 period. The impact of COVID-19 has been unprecedented and staggering, with the industry experiencing lower-than-anticipated growth across all regions compared to pre-pandemic levels. Based on our analysis, this market exhibited a decline of -2.2% in 2020 as compared to 2019.

Agriculture, manure, municipal waste, plant material, sewage, green waste, and food waste are all raw materials used to produce biogas. The growth of this sector is directly dependent on population’s awareness of environmental protection, and the desire for renewable energy sources grows.

COVID-19 IMPACT

Delays in Biogas Projects Due to Lack of Access in Overall Supply Chain Affected Market Dynamics

The COVID-19 pandemic has put a halt on global manufacturing and trade potential. All the countries across the world have observed an abrupt increase in the number of affected people since the starting of 2020.

COVID-19 continues to spread rapidly around the world. Almost every country has reported infected cases. Every country is at different stages of the pandemic. Some countries appear to be at the peak of infection and are urgently building surge capacity in their health systems. India has experienced a significant increase in the number of cases since the beginning of April 2020 and has evolved its response strategy, including extending the nationwide lockdown. The pandemic has adverse impacts on the bioenergy industry as many projects got either halted or delayed due to restrictions imposed across the world. The industry also faced investment related issues during the pandemic.

LATEST TRENDS

Growing Interest towards Sustainable Alternatives Leading a Paved Way Towards Market Growth

The Government of India, Ministry of New and Renewable Energy (MNRE), has enhanced the CFA (Central Financial Assistance) for several certified components. Now, 100% biogas engines in smaller capacity ranges are available, and surplus can be used to power lighting, small appliances, and plant's electrical requirements. The farmers are being encouraged to use nutrient-enriched organic bio-manure. The scheme aims to increase the value of the CBG plant slurry by connecting it to enrichment units such as vermicomposting, Phosphate Rich Organic Manure (PROM) plants, and other organic enrichment facilities as a source of additional revenue and cost savings for farmers.

DRIVING FACTORS

Increasing Adoption of Renewable Owing to Environmental and Economic Advantages Drives Market Growth

India is the world's second-largest biogas consumer in the world. According to the Oil and Natural Resources Minister, India will receive Rs 2 lakh in investment to develop 5000 biogas plants by 2023-24. The Ministry of Renewable Energy is fairly optimistic on the subject. India is gaining traction as a center for renewable energy investment. Between 2014 and 2021, this sector received around US$ 64 billion in investment, the majority of which came from outside. The prime aim is to reduce greenhouse gas (GHG) emissions while increasing energy demand has been a main objective of governments throughout the world. Following this, the installation of renewable energy sources is expected to increase significantly over the next decade, resulting in India biogas market growth.

Waste Utilization for Energy Production Will Accelerate Biogas Market Forecast Growth

Biogas plants can generate various organic materials, including commercial food waste, household food waste, municipal and industrial sewage, agricultural waste, and livestock manure. According to the IBA (Indian Biogas Association), India creates over 2.5 lakh metric tonnes of trash daily, and over 85 % of all organic waste generated presently ends up in landfills. India generates 0.4 kg of waste per capita, roughly half of which is organic and can be transformed into CBG facilities. India has approximately 5 million tiny and medium-sized plants. There are around 300 megawatts of installed capacity in large-scale facilities.

RESTRAINING FACTORS

High Initial Investment Required for a Large-Scale Biogas Plant to Stifle Market Growth

The high capital expenditure required by industry players to build a production unit and well-managed waste acquisition, natural gas transmission and distribution lines is one of the significant market barriers for the market. This has resulted in a less fragmented market, and new entrants face significant challenges. Subsidies are set too low in some cases to close the widening gap between the cost of generating and the level of government financial aid. Subsidies that should have been phased out in line with cost reductions have been extended in some situations for more than two decades, hampering the market growth.

SEGMENTATION

By Feedstock Analysis

Animal Waste Held Largest Share of Market Owing to Abundance of Availability

Based on the feedstock, the market is divided into organic residue & waste and energy crops. Organic residues and wastes are further classified as animal waste, municipal & sewage waste, agricultural waste, and others.

Based on the stated data of ICAR (The Indian Council of Agricultural Research), every year, India produces over 350 million tons of agricultural waste that can generate more than 18,000 MW of power each year and green fertilizer for agricultural use. MNRE states that India generates around 0.1 million tons of municipal solid waste/day. This equates to around 36.5 million tons per year. In large Indian cities, per capita garbage generation ranges from 0.2 to 0.6 kilograms. Urban local governments pay between Rs.500 and Rs.1500 per ton for solid waste management.

By Application Analysis

Heating Application Held Dominated Share of Market Owing to High Demand from Residential Sector

The market can be segmented into heating, electricity generation, and transportation based on the application.

Currently, India biogas production is less than its potential, between 29 and 48 billion m3/year. India biogas energy capacity has grown steadily over the years. MNRE's Biogas Power Generation (off-grid) and Thermal Application Program will be implemented to establish proven standard design specifications and proven CBG plants, including the use of various materials and equipment such as 100% CBG engines. The government's SATAT (Sustainable Alternative Towards Affordable Transportation) initiative promotes the use of CBG by collaborating with public sector oil marketing companies to issue Expressions of Interest (EOI) to entrepreneurs interested in establishing CBG plants as a viable alternative to conventional fossil fuels.

REGIONAL INSIGHTS

India biogas potential is very large. Currently, more than 5 million biogas plants are operational in the country. Maharashtra, Gujrat, Karnataka, Utter Pradesh, and Madhya Pradesh are India's major biogas plant operating states. Maharashtra will have the largest number of biogas plants, i.e., 925,235, by the end of 2020. The Union Ministry announced its potential for setting up at least 5,000 bio CNG manufacturing units in India under the assistance of MNRE. Furthermore, the Ministry of New and Renewable (MNRE) has issued Concessional Custom Duty Certificates (CCDC) to import machinery and components. These machinery and components are needed for the initial setup of projects to generate electricity from non-conventional materials such as agricultural, forestry, agro-industrial, industrial, municipal and urban waste, bio waste, or poultry litter.

KEY INDUSTRY PLAYERS

Key Participants to Concentrate on Expanding Production Capacities

The India biogas market is extremely fragmented due to many regional and international players. Most companies improve their production abilities by adding new plants or expanding their ones. For instance, in 2021, GAIL (India) and Ranchi Municipal Corporation agreed to a CBG facility in Ranchi, India. GAIL will establish a CBG plant to treat 150 tons of organic municipal solid waste per day under the terms of the agreement.

List of Key Companies Profiled:

• GAIL (India)


• Wärtsilä (Finland)


• Clarke Energy (U.K.)


• GPS Renewable (India)


• Primove Engineering Pvt. Ltd.  (India)


• Renergon International AG (Switzerland)


• Green Elephant Engineering Pvt. Ltd. (India)


• SLPP RE-NEW (India)


• SFC Umwelttechnik GmbH (Austria)


• Bharat Bio Gas Energy Ltd (India)


• Spectrum Renewable Energy Pvt. Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• October 2021 – Bert Mobil opens a one-ton-per-day (TPD) food waste biogas facility in Chennai with a capacity of 1-1.5 tons of food waste that will be treated every day.


• July 2020 – GAIL (India) Limited and Carbon Clean Solutions Limited (CCSL) have signed a Memorandum of Understanding (MoU) in India's Compressed Biogas (CBG) value chain. The two corporations would then collaborate to increase the number of plants in India to 100.

REPORT COVERAGE

The market research reports provide a detailed analysis of the market and focus on key aspects such as leading companies and leading feedstock and applications. Besides this, the report offers insights into the India biogas market trends and highlights key biogas industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

REPORT SCOPE & SEGMENTATION