What is a biogas project report?
A biogas project report is a detailed project report (DPR) for a plant that digests press mud, cattle dung or crop residue, cleans the gas and compresses it as CBG. It covers feedstock, process, machinery, offtake price, project cost, means of finance, five-year projections, DSCR and break-even.
Promoters use it to size the plant, sign an offtake agreement and apply for a term loan and capital assistance; lenders use it to test whether gas sales can repay the loan.
Also known as: CBG plant project report, compressed biogas DPR, Bio-CNG plant project report, biogas business plan, project report on biogas.
Biogas manufacturing plant cost in India: sample economics
The sample report models a CBG plant of 2,200 kg per day running 330 days a year, starting at 60% of capacity and reaching 80% in Year 5. Gas is sold at ₹104 per kg, close to the administered price of about ₹105 per kg announced in August 2026.
| Land and site development | 43.18 |
|---|---|
| Building and civil works | 145.09 |
| Plant and machinery | 386.59 |
| Other fixed assets | 59.38 |
| Contingencies | 26.58 |
| Preliminary and pre-operative | 16.52 |
| Working capital margin | 16.16 |
| Total | 693.50 |
| Promoter's contribution (25%) | 173.38 |
|---|---|
| Term loan from bank (75%) | 520.12 |
| Cash credit limit (separate) | 48.47 |
| Total project cost | 693.50 |
Working capital is small for a gas plant. The margin is only ₹16.16 lakh, because CBG is not stored for long and oil companies settle bills on agreed cycles. Plant and machinery is more than half the project cost, so equipment quotes decide whether the numbers hold.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. The sample counts gas sales only, with no capital assistance and no manure income. All figures are illustrative.
Biogas manufacturing process, from feedstock to CBG
Biogas is made by bacteria, not machines, so the process is built around keeping the digester stable. Raw biogas is roughly half methane; CBG must be over 90% methane and compressed to 250 bar before an oil company accepts it.
- Feedstock pre-treatment
Press mud, dung and shredded straw are mixed with recycled water into a slurry that pumps easily and feeds the digester at a steady rate.
- Anaerobic digestion
The slurry stays 25–35 days in heated, stirred tanks at about 37°C, where bacteria break it down into raw biogas of 50–60% methane.
- Gas storage and cleaning
Raw gas collects in a membrane gas holder, then a scrubber removes hydrogen sulphide and moisture that would corrode the compressor.
- Upgrading
A VPSA or water scrubbing unit strips out carbon dioxide and lifts methane above 90%, the level set by IS 16087:2016 for CBG.
- Compression and filling
Clean gas is compressed to 250 bar and filled into cascades for CNG stations, or fed into a city gas pipeline where one is close.
- Digestate processing
The spent slurry passes through a screw press. The solid becomes fermented organic manure (FOM) and most of the liquid goes back to the pre-mix tank.
Which biogas upgrading technology should you choose?
Upgrading is the second most expensive item in the sample plant, and it sets how much methane you lose. The choice depends on plant size, water and power cost, and how strict the buyer is on gas quality.
| Water scrubbing | Carbon dioxide dissolves in water under pressure. Simple to run and tolerant of some hydrogen sulphide, but it needs a reliable water supply and a cooling tower. |
|---|---|
| VPSA (vacuum pressure swing adsorption) | Carbon dioxide is held on an adsorbent bed and released under vacuum. Dry process, compact and common at 1–10 tonnes per day; hydrogen sulphide must be removed first. |
| Membrane separation | Gas passes through polymer membranes that let carbon dioxide through faster than methane. Modular and easy to expand; multi-stage units are used to keep methane loss low. |
| Amine scrubbing | A chemical solvent absorbs carbon dioxide, giving very low methane loss. Needs heat to regenerate the solvent, so it suits larger plants with spare heat. |
Ask suppliers for guaranteed methane purity, methane slip and power use per cubic metre, and compare them on the same basis.
Raw materials for a biogas plant
Feedstock is 25.9% of sales in the sample, a much smaller share than in most chemical plants, but it is the item that most often stops a CBG plant. The sample mixes press mud, dung and straw so the digester keeps running when one source dries up.
| Feedstock or input | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Press mud from sugar mills | 50% | 68.45 |
| Cattle dung | 25% | 34.23 |
| Paddy straw or other crop residue | 20% | 27.38 |
| Desulphurisation media and process chemicals | 5% | 6.85 |
| Total | 100% | 136.91 |
Yields differ widely. Indicatively, a tonne of press mud gives about 35–45 kg of CBG and a tonne of fresh cattle dung about 18–25 kg, so a dung-only plant needs roughly twice the tonnage. Press mud comes only in the cane crushing season, roughly November to April, so you need covered storage or a second feedstock for the rest of the year.
Machinery for a CBG plant
| Equipment | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Feedstock receiving, shredding and pre-mixing | Sizes straw and blends the slurry | 46.39 |
| CSTR digesters with agitators and heating | Hold and stir the slurry while gas forms | 115.98 |
| Membrane gas holder and blower | Stores raw gas and evens out flow | 23.20 |
| Purification and upgrading unit | Removes CO₂ to reach CBG grade | 85.05 |
| CBG compressor, 250 bar | Compresses gas for cascades | 38.66 |
| Cascades and filling station | Carry gas to CNG stations | 23.19 |
| Screw press digestate separator | Separates solid manure from liquid | 23.19 |
| Flare, electricals, instruments, SCADA | Safety flaring, control and remote data | 30.93 |
| Total plant and machinery | 386.59 | |
The digesters are the largest single item in the sample. SCADA or remote monitoring is listed because government capital assistance has required plant data to be shared online. Get current quotations before you finalise.
Licences and approvals for a biogas plant
A CBG plant handles a flammable gas at high pressure, so it needs more approvals than a typical process unit. Oil company documents list these as the main ones.
| Business registration | Udyam (MSME) and GST registration, plus registration on the GOBARdhan Unified Registration Portal, which is needed to claim Ministry of Petroleum and Natural Gas benefits |
|---|---|
| PESO | Approval from the Petroleum and Explosives Safety Organisation for compressing and storing CBG at up to 250 bar; oil companies treat it as mandatory |
| Gas quality | CBG must meet BIS standard IS 16087:2016, which is similar to the CNG standard |
| Pollution board consent | Consent to establish and consent to operate from the State Pollution Control Board; confirm the category with your state board |
| Land and local body | Land approved for commercial or industrial use, building plan approval and panchayat or municipal NOC |
| Fire safety | Fire NOC for the gas holder, compressor and cascade area |
| Organic manure | Solid and liquid FOM sold as fertiliser must meet the specifications in Schedule IV of the Fertiliser (Control) Order |
Market for compressed biogas: who buys your gas
Most CBG is sold under long-term offtake agreements, not in an open market. Oil marketing companies buy it under SATAT and sell it at their CNG stations, and Indian Oil's standard agreement runs for 15 years.
City gas distribution companies are a second buyer, because they must blend CBG into CNG and piped gas: 3% in 2026-27, 4% in 2027-28 and 5% from 2028-29. As of August 2026, 217 CBG plants were commissioned and 339 were under construction, according to the Press Information Bureau.
- Oil marketing companies under SATAT
- City gas distribution companies meeting the blending obligation
- Industrial units replacing LPG or natural gas for heating
- Fertiliser companies and farmers buying fermented organic manure
Manure is the second income: a CBG plant produces far more digestate than gas by weight. Fertiliser companies have marketed FOM with government market development assistance of ₹1,500 per tonne, but the sample counts no manure income, so treat it as upside until a buyer is signed.
Subsidy, offtake price and loans for a CBG plant
GOBARdhan capital assistance
Up to ₹2 crore per tonne per dayFor new CBG capacity and expansions, from 2026-27 to 2035-36. Also covers feedstock aggregation and manure processing assets.
Administered CBG price
₹2,110 per MMBtu, about ₹105 per kgSet by the petroleum ministry in 2026 with a horizon of at least ten years. Lenders read this as the revenue line.
Term loan with credit guarantee
Guarantee up to 85% for eligible MSMEsBanks lend against the offtake agreement and project report; the guarantee covers part of the lender's risk on eligible loans.
MNRE's earlier Waste to Energy assistance (₹4 crore per 4,800 kg per day, up to ₹10 crore) closed to applications on 31 December 2025. Scheme terms change, so confirm current rules on the GOBARdhan portal before applying.
Mistakes that weaken a biogas project report
- No written feedstock contracts
A report that assumes press mud or straw "is available locally" fails credit review. Lenders want supply agreements, distances and a storage plan for the off-season.
- Full output from the first month
Digesters take weeks to build up a stable bacterial population. Year 1 should start well below rated capacity.
- Counting subsidy as day-one funding
Capital assistance has been released only after performance tests, and paid in part if output is low. The loan must cover the gap until it arrives.
- Booking manure sales without a buyer
FOM needs testing, bagging and a marketing tie-up. Without one, its revenue should be left out of the DSCR.
- Using laboratory gas yields
Yields from a lab test of fresh feedstock are higher than a plant achieves on stored material. Use a pilot or plant-scale figure.
How NPCS helps you set up a biogas plant
- Feedstock and capacitySize the plant to the press mud, dung or straw you can secure within a practical radius.
- Technology and suppliersCompare digester and upgrading options and get comparable quotations.
- Bank-ready project reportProjections, DSCR and sensitivity on feedstock cost and gas price, in the format your lender wants.
- Schemes and approvalsThe GOBARdhan, PESO and pollution board documents your project needs, in order.
NPCS's client list includes 269 assignments in specialty chemicals, and the NPCS project team has prepared project reports and feasibility studies for entrepreneurs, banks and companies since 1994.
What's inside the biogas sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS biogas project reports
These are biogas project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Biogas | 450 KGS/day | ₹29 lakh | 40% | 35% | Get this report |
| Compressed Biogas | 1200 MT/Annum | ₹4.47 crore | 43% | 33% | Get this report |
| Compressed Biogas | Compressed Bio Gas , 6 MT Per Day Spent Slurry as Manure, 60 MT Per Day | ₹5.22 crore | 27% | 46% | Get this report |
| Biogas Power Plant from Cow Dung | 1000 KWh or 1 MWh | ₹12.45 crore | 22% | 45% | Get this report |
| Dairy Farming, Milk Products With Cow Urine Processing and Biogas Plant - Cattle Breeding Farm, Fodder… | On request | ₹16.65 crore | 47% | 32% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Biogas project report: frequently asked questions
How much does it cost to set up a biogas (CBG) plant in India?
A CBG plant of 1–3 tonnes per day usually needs about ₹6–15 crore, and a 5–10 tonne plant about ₹20–50 crore, depending on feedstock, digester type and land. These are indicative ranges. Our sample report models a 2,200 kg per day plant at ₹694 lakh, of which plant and machinery is ₹387 lakh.
Is a compressed biogas plant profitable?
It can be, when feedstock is secured at a steady cost and the plant runs close to rated output. In our illustrative sample, a 2,200 kg per day plant earns a 16% return on investment in Year 3, breaks even at 37% of capacity and pays back in about 4.1 years. Weak feedstock supply is the most common reason plants underperform.
What price do oil companies pay for CBG?
As of August 2026, the Ministry of Petroleum and Natural Gas has set an administered CBG price of ₹2,110 per MMBtu, which the government equates to about ₹105 per kg, with a horizon of at least ten years. The earlier SATAT price was linked to CNG retail prices. Check the rate and delivery terms in your offtake agreement.
Which raw material is best for a biogas plant?
Press mud from sugar mills gives one of the highest gas yields per tonne and needs little pre-treatment, but it is available mainly in the crushing season. Cattle dung is steady but low in yield. Paddy straw yields well on a dry basis but needs shredding, pre-treatment and longer digestion. Most plants mix two or three feedstocks to keep gas output steady.
What subsidy is available for a CBG plant?
The GOBARdhan scheme approved in August 2026 offers capital assistance of up to ₹2 crore per tonne per day of new CBG capacity, from 2026-27 to 2035-36, plus a credit guarantee of up to 85% for eligible MSME projects. Registration on the GOBARdhan Unified Registration Portal is required. Confirm current terms before you apply.
Biogas plant ka business kaise shuru kare?
Start with feedstock: tie up press mud, dung or straw within about 25–30 km and test its gas yield. Then size the plant, get an offtake letter from an oil or gas company, register on the GOBARdhan portal and get a project report for your bank. Land, pollution consent and PESO approvals follow before construction.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report; its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, feedstock, location and offtake terms.
Sources and references
- GOBARdhan: Fuelling Clean Energy and Rural Growth (backgrounder, 6 August 2026)Press Information Bureau, Government of India, checked Oct 2026
- Frequently asked questions on CBGIndian Oil Corporation Ltd, checked Oct 2026
- SATAT initiativeBharat Petroleum Corporation Ltd, checked Oct 2026
- Waste to Energy Programme: revised guidelines (November 2022)Ministry of New and Renewable Energy, checked Oct 2026
- Lok Sabha unstarred question 3055: CBG blending obligation (21 December 2023)Ministry of Petroleum and Natural Gas, via Lok Sabha Digital Library, checked Oct 2026
- Fertiliser (Inorganic, Organic or Mixed) (Control) (Sixth) Amendment Order, 2023Ministry of Agriculture and Farmers Welfare, Gazette of India, checked Oct 2026
- GOBARdhan Unified Registration Portal: benefitsDepartment of Drinking Water and Sanitation, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.