Feedstock sourcing: The next critical lever for scaling CBG ecosystem

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While the Union Government’s latest push for Compressed Biogas (CBG) provides a more stable framework for offtake, industry observers and senior government officials say the next major imperative is to establish an efficient supply chain for procuring, storing and managing feedstock. This will be critical to ensuring both the viability of CBG plants and the quality of their output.

Press mud, agricultural residues such as paddy and wheat straw, and animal manure are among the most commonly used feedstocks for CBG production. However, each has its own logistical challenges, particularly because of seasonal availability, transportation requirements and storage constraints.

With the aim of accelerating the growth of CBG in India, the Union Cabinet on August 9 approved a revamped GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) scheme with an outlay of ₹23,731 crore. The scheme, which will remain in place until 2036, seeks to increase CBG production nearly tenfold.

Speaking to The Hindu, Gaurav Kedia, Chairman of the Indian Biogas Association (IBA), emphasised that the type of feedstock and the proximity of a CBG plant to its source are crucial for ensuring a consistent supply. He also cautioned against long-distance transportation that could undermine the environmental benefits of CBG by increasing fossil-fuel consumption.

A senior government official similarly stressed that the quality of feedstock is critical, as it directly influences the quality of CBG produced and the long-term sustainability of a plant.

Press mud and cattle dung, according to Mr. Kedia, need to be sourced close to the plant because of their high moisture content and perishable nature. Paddy straw, by comparison, can be transported over longer distances, but it must first be baled and stored appropriately.

Press mud is the solid residue left after sugarcane processing. Since sugar mills generally operate for only four to five months a year, the material must be stored temporarily and transported to CBG plants in a timely manner.

“Supply chain feasibility [for press mud] becomes important. We see [within] 25-km radius as a viable option,” Mr. Kedia said.

Cattle dung presents a further challenge because it is typically dispersed across a wide geographical area. Collecting and transporting sufficiently large quantities may therefore prove economically unviable. Press mud and paddy straw also pose seasonal supply challenges.

Paddy straw, meanwhile, is available mainly during the harvesting periods of Kharif and Rabi crops. Collection must be completed within a short window—typically around 15 days—before farmers prepare their fields for the next crop.

Herein, aggregators being able to rapidly collect the feedstock is essential, Mr. Kedia indicates.

Storage creates another set of challenges. Large quantities of agricultural residue must be stored in a manner that prevents fire hazards, particularly during the summer months.