Que: How do you see the CBG sector evolving over the next few years, and what role will it play in India's clean energy transition?

Ans: The CBG sector is poised for rapid expansion in the coming years in India, driven by rising blending targets, policy support and increasing investment in waste-to-wealth infrastructure. CBG can become an important part of India’s clean energy transition by providing a renewable alternative to conventional sources of energy. Its growing importance is expected to encourage investment and facilitate the establishment of 750 CBG projects by 2028-29, with a potential investment of INR 37,500 crore.

CBG is also crucial for managing organic waste, lowering emissions and strengthening energy security by creating biofuels domestically. Organic waste dumping is a common problem across India. The residue of agricultural waste is often burned, the implications of which are quite evident in North India, where every year, the arrival of winter months leads to a thick blanket of smog, choking the northern plains.

Beyond its environmental benefits, the growth of CBG sector can support farmers and rural livelihood. Converting waste into CBG and expanding the CBG sector will generate 1.5 lakh new direct and indirect employment opportunities in rural areas. It would potentially add INR 75,000 crore to GDP over the next 10 years. With greater private participation and a stronger supply chain, CBG can contribute significantly to India’s sustainable energy goals, while supporting the 5 percent blending mandate and the national program to boost rural prosperity by FY 2035–36 through waste-to-wealth infrastructure and private investment.

Que: What are the biggest opportunities today in converting agricultural, industrial, and municipal waste into commercially viable energy solutions?

Ans: The biggest opportunities lie in creating value from different waste streams by converting them into clean fuels and useful products. Agricultural waste can be converted into CBG, Sustainable Aviation Fuel (SAF), and the remaining biochar can be added back to the soil to improve soil health. Municipal solid waste offers an opportunity to produce Refuse-Derived Fuel (RDF), reducing landfill dependence while creating an alternative fuel source. Used industrial and vegetable oils can be converted into biodiesel to reduce waste and support the shift towards cleaner fuels. In the journey towards reducing carbon emissions, Managing the Waste and turning it into valuable resources has a strategic role. Scaling these technologies can accelerate India’s transition towards a circular, low-carbon economy and create new growth opportunities.

Que: How is GPI positioning itself to capitalise on the growing demand for CBG infrastructure and waste-to-energy projects across India?

Ans: GPI is well positioned to capitalise on the growing demand for CBG infrastructure and waste-to-energy projects, leveraging its extensive expertise. We are an industry leader in EPC and O&M, with over two decades of experience in the sector. We are using this expertise to support the industry in setting up CBG and waste-to-energy projects through relevant technology tie-ups, cost-effective designs and detailed engineering support.

Our greatest strength lies in our well-executed projects and timely delivery, ensuring that projects are completed on schedule and deliver the expected ROI. Our work does not end with setting up a project, we also provide reliable O&M support to ensure that plants operate smoothly and efficiently throughout their expected life.

Que: What are the key challenges currently facing the CBG industry, and what measures can help accelerate large-scale adoption?

Ans: The CBG industry is relatively new. Challenges are natural. At present, the CBG industry faces challenges like the selection of the right technology, the selection of a competitive EPC partner, developing and managing a reliable feedstock supply chain, project financing, limited pipeline infrastructure, and the availability of trained manpower.

To accelerate large-scale adoption, awareness among prospective investors is most important. Along with it, the sector needs support from industry associations and government bodies. Wider outreach by experienced EPC companies, and growth of waste-to-wealth and feedstock aggregation businesses in rural areas, can also help. The sector can be further strengthened through infrastructure financing, interest subvention, lower collateral requirements, and greater participation from global investors and energy majors. In addition, support from CGD companies for pipeline development and specialised training programmes will be critical for building the industry.

Que: Which sectors or customer segments do you see driving the next phase of growth for the CBG market?

Ans: The CBG market will be driven by different sectors that produce large amounts of waste. Municipal solid waste (MSW) and city waste generation and management agencies will play an important role by enabling the conversion of urban waste into useful fuel. Agricultural biomass residue generators and aggregators will also be key contributors. In addition, industrial waste generators offer significant potential for CBG production by providing alternative sources of organic waste. Together, these segments can help strengthen the CBG feedstock ecosystem and expansion of the CBG market in India.

Que: What are GPI's expansion priorities in the CBG space, and how does the company envision scaling its footprint over the next 2–3 years?

Ans: CBG is a promising and emerging technology. It is still in the development phase, and demand is in the acceleration phase. We are still at an early stage of entering this new territory. However, leveraging our extensive expertise in EPC and O&M, and most importantly, our understanding of clients and their needs, supported by an impressive OEM Vendor list, enables us to compete and deliver high-quality offerings to our clients in the CBG space.

We are taking small steps, but our target is to ensure that every step we take is in the right direction. GPI aims to scale up to 10, 20 and 45 projects over the next three years.