Gujarat Energy Limited to set up Compressed Bio-Gas plants with 200 tonne daily capacity

Gujarat Energy Limited (GEL), a Government of Gujarat owned company, is planning to establish a Compressed Bio-Gas (CBG) production capacity of 200 tonnes per day (TPD) in its first phase. The primary objective of this initiative is to diversify gas sources and reduce dependence on imported Liquefied Natural Gas (LNG). According to a report by DeshGujarat, an investment of approximately ₹100 crore will be made in this project.

Under this plan, out of the total 200 TPD capacity, a 100 TPD facility will be established in Gujarat and another 100 TPD facility will be set up outside the state. GEL has invited joint venture (JV) partners for the development and operation of these plants. In this arrangement, GEL's equity stake will be 49%, while the selected partners will hold a 51% stake. Depending on the availability of raw materials, the capacity of each plant will range from 10 to 20 TPD. These plants will be located within GEL's City Gas Distribution (CGD) areas or near the natural gas pipeline network of Gujarat Integrated Gas Limited (GIGL).

In Gujarat, priority has been given to districts such as Ahmedabad, Gandhinagar, Surat, Bharuch, Valsad, Rajkot, Jamnagar, and Bhavnagar. Outside the state, areas such as Indore, Ujjain, Thane, Amritsar, and Bathinda in Madhya Pradesh, Rajasthan, Maharashtra, Punjab, and Haryana have been identified.

The joint venture partners will be responsible for technology, plant construction, procurement and supply of raw materials, as well as operation and maintenance for up to 20 years. Additionally, they will be responsible for the export of Fermented Organic Manure (FOM) produced by the plant. GEL will provide the off-take facility for CBG through its CGD network or GIGL pipeline.

This initiative is aligned with the Central Government's GOBARDHAN scheme and the Compressed Bio-Gas blending obligations for the CGD sector. GEL has invited applications from eligible partners by December 15, 2026.