Adani and RIL aim to spend Rs 600 crore each in the biogas industry.

Adani and RIL aim to spend Rs 600 crore each in the biogas industry.

Each of Adani and RIL plans to build two compressed biogas (CBG) facilities.

Senior executives who are aware of the project revealed that Mukesh Ambani- and Gautam Adani-led Reliance Industries (RIL) are each intending to build two Compressed Biogas (CBG) facilities. ANIL intends to build a 40 million tonne per year (mtpa) plant in Gujarat and Uttar Pradesh, while RIL is currently finalising the site of two units with a comparable capacity. For the construction of these plants, the corporations will each invest up to Rs 500– Rs 600 crore. Senior executive of an oil marketing company, "Adani and RIL are both intending to join the industry with numerous plants."

Municipal trash, sugarcane press mud, and agricultural waste are all decomposed anaerobically to form CBG. Green hydrogen made from CBG is also being studied as a potential alternative for piped natural gas for household usage.

Another industry official who is aware of the initiative stated, "We can offer both CBG and Compressed Natural Gas (CNG) as an automobile fuel from our retail outlets as well as inject CBG in our city gas distribution (CGD) network to improve supply to home and retail consumers." The individual further said that RIL and ANIL will feed CBG into their petroleum retail outlets and CGD network.

According to the source, RIL and ANIL will inject CBG into their networks of gasoline retailers and CGD stations.

Reliance BP Mobility, a petroleum retailing joint venture between RIL and BP, runs a network of more than 1,400 stores under the Jio-bp brand.

The city gas distribution market is served by Adani Group subsidiary Adani Total Gas. The cheap price of CBG has made it a lucrative area for private companies, according to another executive with knowledge of the situation.

"Pricing for the sustainable alternative to an affordable transportation plan in 2018 was between Rs 46 and Rs 56 per kilogramme. Now, it is between Rs 70 and Rs 76 per kilogramme," explained the first executive who was cited previously in the article.

The guy stated that the bio-manure produced after the manufacture of CBG may be a useful fertiliser and be utilised for farming and enhancing soil health. The government started the programme to increase CBG production and availability as a substitute and reasonably priced clean fuel for transportation in October 2018.

By the financial year 2023- 2024, 5,000 CBG plants were planned to be installed.

Up to 60% of the methane, 40% to 45% of the carbon dioxide, and traces of hydrogen sulphide are found in the biogas generated.