Gandhinagar, Sep 24: Gujarat is looking to expand its compressed biogas (CBG) network with Japanese financial and technical support, a move that could create new business opportunities across the state’s dairy, agriculture, renewable energy and waste-management sectors.
The Gujarat government, Suzuki Motor Corporation and the Japan International Cooperation Agency (JICA) are preparing to work together on expanding CBG plants in the state. A proposal for financial and technical assistance was discussed during a meeting in Gandhinagar, with the three sides expected to move towards a formal memorandum of understanding.
The proposed model will focus on setting up CBG plants through cooperative dairy organisations with government support. Along with biogas production, the initiative also aims to increase the production of quality organic fertilisers.
The plan is significant for Gujarat because the state has a large dairy and cooperative network that can provide a steady supply of cattle dung and other organic waste for biogas production. Converting this waste into commercial fuel can create an additional source of income for farmers and dairy cooperatives while supporting a wider clean-energy ecosystem.
CBG is produced by processing organic materials such as cattle dung and agricultural waste. After purification and compression, the gas can be used as a fuel similar to conventional CNG. The process also generates organic manure, creating an additional commercial product for the agriculture sector.
The expansion of CBG plants could therefore create business opportunities at multiple stages of the value chain. Companies can participate in biomass collection, transportation, plant construction, equipment manufacturing, plant operations, gas distribution, maintenance and organic-fertiliser production.
For rural communities, the model could provide a new economic value to cattle dung and agricultural residues. Organised collection of biomass can generate income for farmers, while dairy cooperatives can become important links between rural producers and energy companies.
The initiative could also strengthen Gujarat’s circular economy. Waste generated by the dairy and agriculture sectors can be converted into energy, while the resulting organic fertiliser can return nutrients to farms. This creates a local cycle connecting agriculture, energy production and waste management.
The proposed Japanese partnership could further support the sector by bringing technical expertise, financing capabilities and experience in developing commercially viable biogas projects. For businesses, access to technology and project finance can be important for reducing the challenges involved in setting up and operating CBG plants.
Gujarat already has experience with a dairy-linked CBG project involving Suzuki, Banas Dairy and the National Dairy Development Board. The proposed expansion could take the model beyond individual projects and create a broader network of plants connected to the state’s cooperative dairy ecosystem.
The growth of CBG can also contribute to India’s energy-security objectives. Locally produced renewable gas can provide an alternative source of fuel while reducing the dependence on conventional fossil fuels over the longer term. For industries and transport operators, a larger CBG supply network could gradually create additional options for cleaner fuel procurement.
The opportunity extends beyond energy companies. Engineering firms, equipment manufacturers, technology providers, logistics companies, agricultural businesses and fertiliser producers could all find new demand as the CBG ecosystem expands.
The Centre’s ₹23,731-crore GOBARdhan scheme has also created a wider policy framework for supporting compressed biogas production through measures such as assured offtake, capital assistance and financing support. This could provide additional momentum to investments in the sector.
For Gujarat, the proposed Japan-backed expansion represents a shift in how rural waste can be viewed — from a disposal challenge to a commercial resource. If implemented at scale, the CBG network could link farmers, dairy cooperatives, technology companies, energy producers and consumers into a new rural green-energy business chain.
The success of the expansion will depend on factors such as reliable biomass collection, plant efficiency, financing, transportation infrastructure and a stable market for CBG and organic fertiliser. However, the proposed collaboration highlights the growing potential of biogas as a business sector that can simultaneously support rural incomes, clean energy production and India’s transition towards a more circular economy.