HPCL to invest $231 million to build 24 compressed biogas plants in India
MEERUT, INDIA, June 20 (Reuters) - Indian state fuel retailer Hindustan Petroleum Corp Ltd (HPCL) (HPCL.NS), opens new tab aims to invest about 20 billion rupees ($231.04 million) in the next two to three years to set up 24 compressed biogas (CBG) plants, a company official said on Friday.
India, among the world's largest greenhouse gas emitters, is exploring the use of organic waste to produce cleaner fuels as part of its efforts to reduce carbon emissions and achieve its 2070 net-zero target.
HPCL Renewable and Green Energy Ltd, an HPCL subsidiary that is executing the project, has already set up two plants and would set up 24 more plants with a daily capacity to produce 10-15 tons each of CBG using agriculture residue, cattle dung and sewage water, among others, said Mohit Dhawan, chief executive of the subsidiary company.
Since April, India has mandated mixing gas used to run automobiles and cooking gas with 1% of CBG.
This would be gradually raised to 5% by 2028-2029, said Vikas Singh, a director in the federal oil ministry.
He said about 28 million cubic meters a day (MMSCMD) of gas is daily used to run automobiles and in cooking.
"We expect this to rise to 44 MMSCMD by 2028-29" Singh said, adding by that time India would have 480 CBG plants, including 195 by state oil and gas companies.
India at present meets nearly half of its gas needs through imports of costly liquefied natural gas (LNG). India wants to raise use of gas in its energy mix to 15% by 2030 from the current 6%.
($1 = 86.5650 Indian rupees)
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