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Adani and RIL plan biogas foray, each to invest Rs 600 cr

“We can sell both CBG and compressed natural gas (CNG) as automotive fuels at retail outlets, as well as inject CBG into the city's gas distribution network (

Adani New Industries (ANIL) led by Gautam Adani and Reliance Industries (RIL) led Mukesh Ambani are planning to build two compressed biogas (CBG) plants each, according to senior executives familiar with the project. ANIL plans to set up a 40-million per annum (mtpa) plant in Uttar Pradesh and Gujarat, while RIL is still formalizing the site for two similar units. The companies will invest up to Rs 500-Rs 600 crore each to build these units. "Both Adani and RIL plan to enter the sector with multiple plants," said a senior executive at the oil trading company. ANIL and RIL did not respond to the comment.

CBG is produced by the anaerobic decomposition of agricultural waste, sugarcane sludge, and municipal waste. CBG is also being considered for green hydrogen production and can be used as an alternative to piped natural gas for domestic use.

“We can sell both CBG and compressed natural gas (CNG) as automotive fuels at retail outlets, as well as inject CBG into the city's gas distribution network (CGD) to increase supply to local users and retailers” said Development Science.

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The person added that RIL and ANIL will introduce CBG at retail fuel outlets and in the CGD network.

RIL, with equal partner BP, has a fuel retail joint venture called Reliance BP Mobility, which operates a network of more than 1,400 outlets under the Jio-bp brand.

Adani Group's subsidiary, Adani Total Gas, operates in the city's gas distribution sector. Another executive familiar with the development said CBG's attractive prices made it a lucrative segment for private players.

Also Read: CARE acquires United CIIGMA for Rs 300-400cr

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