Business · Energy & Commodities · 8 hrs ago
India’s biogas plants struggle to sell manure left over from gas production
India’s compressed biogas plants are struggling to sell their leftover manure.
The plants turn organic material into gas, but also produce large amounts of solid and liquid manure that must be stored and sold.
Without buyers, manure piles up and raises operating costs, forcing some plants to run below capacity or nearly stop.
India has 217 commissioned plants and 339 more under construction, out of 1,908 registered plants.
The manure market has no guaranteed buyer system like the gas market, while farmers have limited reason to switch from subsidised chemical fertilisers.
The bottleneck threatens the sector’s financial viability and could prevent plants from qualifying for government capital support if they cannot operate fully.
The government previously offered support of ₹1,500 per tonne of manure sold, but withdrew it; no next step is stated.
India’s compressed biogas plants are struggling to sell the organic manure produced alongside gas, putting project finances and operations at risk.
The government has committed ₹23,731 crore to expand the sector, but manure lacks the guaranteed market framework available to gas.
Of 1,908 registered plants, 217 have been commissioned and 339 are under construction, according to the Indian Biogas Association.
A typical plant processing 100 tonnes of feedstock a day can produce 35–40 tonnes of solid manure and up to 50,000 litres of liquid manure.
Farmers have little incentive to switch from heavily subsidised chemical fertilisers, while the government’s earlier manure sales support has been withdrawn.
- Who
- India’s compressed biogas plant operators are struggling to sell manure.
- What
- A lack of buyers for organic manure is raising costs and threatening plant operations and project economics.
- When
- Not stated
- Where
- India
- Why
- Organic manure has no guaranteed market comparable to the one for gas, and farmers have little incentive to switch from subsidised chemical fertilisers.
This story does not have two clearly opposing sides.
The government offered market development assistance of ₹1,500 per tonne of manure sold.
The government’s manure sales support has been withdrawn.
- Government commitment
- ₹23,731 crore to expand the sector
- Registered CBG plants
- 1,908
- Commissioned plants
- 217
- Plants under construction
- 339
- Typical daily output
- A plant processing 100 tonnes of feedstock can produce about 4 tonnes of CBG, 35–40 tonnes of solid manure and up to 50,000 litres of liquid manure
What people are saying
The government secured the gas market, but forgot the slurry
Manure is great for the soil, but you can only store it for a few days before physical capacity runs out.
If the plants are virtually stopped, they are unable to operate at optimum capacity, which means they will not receive the government's capital assistance either
We believe the fertiliser component of biogas plants must be equally energised to ensure end-to-end project viability, technically, financially and socially