Uttar Pradesh Government Approves Rs550 Crore Biogas and Biodiesel Projects

The Uttar Pradesh government has given the green light to twelve private sector bioenergy initiatives valued at Rs. 550 crore, reinforcing the state's commitment to expanding its green energy portfolio. These projects are focused on producing over 90 tonnes of compressed biogas (CBG) and 44 kilolitres (kl) of biodiesel daily, distributed across the state. The go-ahead for these bioenergy projects was granted by a state-level committee, led by Additional Chief Secretary Mahesh Gupta.

Uttar Pradesh is actively promoting green energy, attracting private sector interest due to the substantial potential in the sector. At the UP Global Investors' Summit (GIS) 2023, the state received investment proposals amounting to Rs 7 trillion in the renewable energy sector, highlighting the growing enthusiasm for sustainable energy initiatives.

These bioenergy projects are expected to not only address environmental issues caused by stubble burning, such as crop residue, but also offer a sustainable source of income to farmers. The UP State Bioenergy Policy 2022 outlines ambitious targets, including the production of 1,000 tonnes of CBG per day, 4,000 tonnes of bio-coal (pellets), and 2,000 kl of biodiesel. The policy aims to promote bioenergy derived from agricultural waste to support environmental conservation and combat soil fertility loss due to stubble burning.

In the bioenergy sector, the state has garnered investment interest totaling Rs 45,000 crore, with these projects currently undergoing various stages of evaluation. The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has identified nearly 60 bioenergy projects as commercially viable after thorough assessment.

To attract the private sector to invest in the bioenergy landscape, including CBG, bio-coal, and biodiesel, the state government is offering a range of incentives and concessions, such as capital subsidies. These incentives complement the incentives provided by the central government.

Biomass has always played a pivotal role in India's energy sector. It is a renewable, readily available, carbon-neutral resource with the potential to generate substantial employment opportunities in rural areas. According to UPNEDA, approximately 32% of India's total primary energy consumption is still derived from biomass, and over 70% of the country's population relies on it for their energy needs. The state's emphasis on bioenergy reflects its commitment to a sustainable and environmentally friendly energy future.

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