India’s Noida-based clean energy company REnergy Dynamics expects to develop compressed bio-gas (CBG) projects with a combined capacity of 175 tonnes per day (tpd) in the near future, Varun Karad, co-founder & CEO of REnergy Dynamics told bne Intellinews.

“Our current CBG projects under construction boast a significant combined capacity of 75 tpd. In the coming years, we are strategically targetting the development of additional CBG plants with a combined capacity of 100 tpd, further scaling up our operations. These projects are being executed in collaboration with one of the country’s largest conglomerates. This expansion positions us to achieve a remarkable total capacity of 175 tpd, solidifying our leadership in driving large-scale sustainable energy solutions and accelerating India's transition to a greener future,” Karad said.

India is one of the fastest growing economies in the world and its energy consumption is expanding rapidly. The country currently imports nearly 77% of its crude oil requirements and about 50% of natural gas requirements. The government has set a target of increasing the contribution of gas in India’s energy mix from a current 6.5% to 15% by 2030.

The government also believes that CBG can help reduce imports of LNG. Studies suggest that a significant increase in CBG production could reduce LNG import costs by billions of dollars annually.

Partnership with Emerson

Last year, REnergy Dynamics announced an exclusive distributor agreement with US-based Emerson to bring automation solutions to CBG projects in India. Through this partnership, REnergy Dynamics aims to boost the CBG sector in India with state-of-the-art automation solutions.

The automation solutions that the partners will provide are in: online gas chromatograph, supervisory control and data acquisition, and reliable and accurate flow management accessories.

Online gas chromatograph is crucial for determining the qualitative parameters of CBG, ensuring consistent gas quality and maintaining the durability of the piping network. Supervisory control and data acquisition is a cloud-based system that monitors and automates project operations in real time. The system ensures seamless functionality both on-site and from remote locations, enabling greater flexibility and control.

Reliable and accurate flow management accessories ensure seamless communication with programmable logic controllers (PLCs), optimising operations and reducing downtime.

“By implementing these advanced systems, the partnership aims to streamline the production process, reduce operational costs and enhance scalability for CBG projects. This will not only benefit individual operators but also strengthen the CBG sector's contribution to India's renewable energy goals,” Karad said.

To ensure the successful integration of Emerson technology, REnergy Dynamics is leveraging its captive projects to showcase the effectiveness and efficiency of these advanced solutions. This allows stakeholders to experience the technology's real-world benefits first hand.

“As a sunrise sector, the CBG industry is evolving rapidly. By introducing reliable, efficient and scalable solutions, we aim to support the industry's learning curve and drive its adoption of best-in-class practices,” Karad added.

CBG feedstock supply management

Aggregating feedstock for CBG production in India poses a challenge due to the country's diverse agricultural landscape and the seasonal availability of agricultural residues. Additional hurdles include competition for feedstock from alternative uses such as animal feed, inadequate infrastructure for collection and transportation and inconsistent biomass quality. These factors make it difficult to ensure a reliable and consistent year-round supply for CBG plants.

To counter these issues, REnergy Dynamics uses a decentralised approach to feedstock aggregation, leveraging partnerships with local farmers and municipalities. The primary feedstock includes agricultural residue, cattle dung, sugarcane press mud and food waste. Challenges include logistical issues in transporting feedstock from remote areas, inconsistent quality, weather inconsistencies and the need to ensure a steady supply chain across different regions.

“To address these, we use state-of-the-art baling technologies and storage solutions and offer fair compensation to suppliers,” Karad said.

Mandatory CBG blending and opportunities

The CBG sector is poised for exponential growth due to government policies, including mandatory blending targets and incentives under schemes like Sustainable Alternative Towards Affordable Transportation (SATAT). By 2029, the biogas industry in India alone is projected to have grown from its present valuation of around $1.47bn to $2.25bn, with a cumulative annual growth rate (CAGR) of 6.3%, according to the company.

The Indian government last year announced a mandatory phased blending of CBG with compressed natural gas (CNG) that is used in vehicles and piped natural gas (PNG) that is used in cooking, starting from fiscal year 2025-26. As per the new policy, blending will begin at 1% of the total CNG and domestic PNG consumption in 2025-26, progressively rising to 5% by 2028-29.

The Indian government says that the primary goals of mandatory CBG blending include boosting demand within the CGD sector, reducing LNG imports, conserving foreign exchange, advancing the circular economy and contributing to the achievement of eventual net-zero emissions targets.

“The mandatory CBG blending policy is a game-changer. It creates assured demand for CBG, encouraging investments and reducing dependency on fossil fuels. This policy aligns with India’s energy security and sustainability goals, fostering a robust market for producers like us while enabling reduced greenhouse gas emissions,” Karad said.

Karad also added that other demand drivers for CBG include rising fuel demand, increased awareness of environmental benefits and advancements in technology. As such, the firm aims to capitalise on these by expanding the project pipeline and scaling up operations.

In addition to setting up CBG plants, REnergy Dynamics is actively engaged in the feedstock aggregation business, which serves as a critical input for CBG plants as well as third-party plants.

“We take pride in operating the largest fleet of baler machines in India, efficiently deployed across multiple states to support our biomass aggregation efforts and to ensure a seamless supply chain for sustainable energy production,” Karad concluded.