Hindustan Petroleum Corporation Ltd (HPCL) plans to invest around ₹2,000 crore over the next two to three years to build 24 compressed biogas (CBG) plants, a senior company official said on Friday. The project is being implemented through HPCL Renewable and Green Energy Ltd, a subsidiary of the state-run fuel retailer.
According to CEO Mohit Dhawan, the company has already commissioned two plants, with plans to set up 24 more. Each plant is expected to produce between 10 and 15 tonnes of CBG daily, using materials such as agricultural waste, cattle dung, and sewage water.
India, one of the world’s largest carbon emitters, is seeking to reduce its dependence on fossil fuels by encouraging the production and use of cleaner alternatives. Expanding the use of CBG is one of the steps the country is taking to cut emissions and work toward its 2070 net-zero goal.
Since April 2025, the Indian government has mandated that CBG make up 1% of gas used for vehicles and domestic cooking. This target is expected to rise to 5% by 2028–2029, said Vikas Singh, a director at the Ministry of Petroleum and Natural Gas.
Currently, about 28 million standard cubic meters of gas are used daily for cooking and transport. The ministry projects this demand will grow to 44 MMSCMD by 2028–29. Of the 480 CBG plants anticipated by then, 195 are expected to be built by public sector oil and gas companies.
India currently imports nearly half of its gas in the form of liquefied natural gas (LNG). The government is aiming to increase the share of natural gas in the country’s overall energy mix to 15% by 2030, up from around 6% today. HPCL remains dedicated to sustainability and innovation in India’s energy transformation, focusing on cleaner fuels, renewable energy, and digital advancements in fuel retailing.
The company’s extensive infrastructure, including refineries and terminals, ensures consistent product availability across both urban and rural markets. HPCL continues to play an essential role in promoting sustainable mobility and emission reduction, contributing to a cleaner and more efficient transportation future for India.
