India approves $2.5bn biogas scheme

India has approved a $2.5 billion programme to expand domestic biogas production, as the government seeks to reduce reliance on imported energy.

A government statement said the National Circular Bioenergy Scheme will support waste collection, manure processing and the expansion of existing biogas plants. It said the scheme will turn agricultural residue, cattle dung, sugar cane waste, municipal organic waste and other biomass into clean fuel, organic manure, rural income and economic value.

India consumes more than 30 million tonnes of liquefied petroleum gas each year and imports more than half of its needs. The country is the world's third-largest oil importer and the second-largest buyer of LPG.

The government has promoted large-scale biogas output as part of its goal of reaching carbon neutrality by 2070. It has also subsidised more than five million rural digester units since the 1980s.

India last year required biogas to account for at least 1% of liquid gas used in vehicles and homes, rising to 5% by 2028.