Suvarna Shakthi Bioenergy Pvt Ltd is developing an upcoming Compressed Biogas (CBG) project, backed by a Letter of Intent from Think Gas and targeted to begin production within the next three years. This page sets out the investment case: the market, the policy support, the revenue model, the impact, and the risks. It contains forward-looking statements about a project under development; all projections are expectations, not guarantees.
The Market Opportunity
India is one of the fastest-growing energy markets in the world, and natural gas is central to its transition strategy: the government has a stated goal of raising the share of gas in the national energy mix to around 15% by 2030. A significant portion of India’s gas is imported, which makes domestically produced, price-stable green gas strategically valuable.
Compressed Biogas is chemically equivalent to CNG and can be injected into existing city gas distribution (CGD) networks, used in vehicles, or supplied to industry. Unlike solar and wind, CBG provides molecules, not just electrons – it decarbonises transport fuel and industrial heat, segments that are otherwise hard to abate.
Policy Tailwinds
- SATAT – assured offtake framework through Oil & Gas Marketing Companies, with a target of up to 5,000 CBG plants nationwide.
- CBG Blending Obligation – blending of CBG into CNG and PNG becomes mandatory from FY 2025-26, rising to around 5% by FY 2028-29, creating structural demand growth.
- GOBARdhan – unified registration and support ecosystem for bioenergy projects.
- MNRE capital subsidy – central financial assistance available for eligible CBG plants under the Waste-to-Energy Programme.
- Market Development Assistance – notified support for Fermented Organic Manure sales, strengthening the second revenue stream.
- India’s Net Zero 2070 commitment – long-term policy direction that favours renewable fuels.
For details, see our Government Schemes & Incentives page.
What the Think Gas LOI Means
Suvarna Shakthi Bioenergy has secured a Letter of Intent from Think Gas, a city gas distribution company. For a CBG project, offtake certainty is the single most important commercial de-risking milestone: it connects future production to a distribution network and end customers before construction begins. The LOI anchors the project’s revenue model and signals credibility to lenders, partners and regulators.
Revenue Model
- Compressed Biogas – the primary product, supplied into the city gas ecosystem.
- Fermented Organic Manure (FOM) – a saleable by-product for farmers, supported by government market development assistance.
- Potential carbon revenue – CBG projects avoid methane emissions and displace fossil fuel; carbon market participation is a potential upside evaluated project by project.
Environmental Impact (Projected)
- Diversion of agricultural residue from open-field burning, a major contributor to seasonal air pollution.
- Avoided methane emissions from unmanaged decomposition of organic waste.
- Displacement of imported fossil fuel with a domestic renewable fuel.
- Return of nutrients to farmland through organic manure, supporting soil health.
Social Impact (Projected)
The project is expected to generate direct employment at the plant and indirect employment across feedstock collection, transport and logistics – jobs that stay in the rural economy. Farmers supplying crop residue are expected to earn a new income stream from material that today is often burned.
Scalability
The proposed plant is designed as the first step of a longer-term vision. India’s feedstock base – crop residue, cattle dung, organic municipal waste – is vast and dispersed, which favours a model of replicable, regionally anchored plants. A successful first project creates a template (feedstock network, engineering, offtake relationships) that can be scaled to additional sites.
Risks and How We Address Them
Feedstock supply risk
CBG economics depend on reliable, affordable biomass. The project plans long-term feedstock partnerships with local farmers and aggregators, with collection logistics designed before commissioning.
Execution risk
Biogas plants require disciplined engineering and commissioning. The project intends to use proven anaerobic digestion and gas upgrading technology with experienced EPC partners.
Price and policy risk
CBG pricing and incentives are policy-linked and can evolve. The blending mandate trajectory and multiple revenue streams (gas, manure, potential carbon credits) provide diversification.
Timeline risk
Approvals and financial closure can shift schedules. Our roadmap targets production within approximately three years and we communicate milestones transparently.
Long-Term Outlook
The direction of travel is clear: mandated blending percentages rise year on year, city gas networks are expanding, and India’s climate commitments require renewable molecules at scale. Early, well-executed CBG projects with secured offtake are positioned to benefit from an expanding market for at least the next decade.
Start the Conversation
If you are an investor, lender, government body or industry partner interested in this upcoming project, contact us or use the inquiry form on any page. Learn more about the proposed plant and our roadmap.