Reports say that both Adani and Ambani are planning to install two compressed biogas (CBG) plants. Adani’s plants would come in Uttar Pradesh and Gujarat. Reliance Industries is yet to confirm the locations. The plants will have a capacity of 40 million tonnes per annum, and both the companies will invest up to Rs 600 crore to build the plants.
What is compressed biogas (CBG)? It is produced by the anaerobic decomposition of agricultural waste, sugarcane press mud, and municipal waste. CBG can also replace piped natural gas for domestic use. The plants will benefit the fuel retail outlets and CGD networks of both Reliance Industries Limited (RIL) and Adani New Industries (ANIL).
RIL and BP run a fuel retailing joint venture called Reliance BP Mobility that operates a network of more than 1,400 outlets. Adani Group’s subsidiary Adani Total Gas functions in the city gas distribution segment.
In 2018, the government launched a scheme to encourage the production and availability of CBG with the aim of using it as an alternative and affordable clean fuel for transportation. The scheme aims to have 5,000 CBG plants by the financial year 2023-24.
