India generates more than 170,000 tonnes of municipal solid waste (MSW) every day, with quantities increasing due to rapid urbanization and economic growth. The organic fraction of municipal solid waste (OFMSW) represents a significant renewable resource that can be converted into Compressed Biogas (CBG), contributing simultaneously to clean energy production, scientific waste management, reduction of landfill dependency, and greenhouse gas emission mitigation.

The Government of India has introduced several initiatives, including the SATAT initiative, CBG Blending Obligation (CBO), Swachh Bharat Mission (Urban), and the Sustainable Development Mission (SDM), to promote the bioenergy sector. While these initiatives have created strong market opportunities, successful implementation of MSW-to-CBG projects largely depends on supportive state-level policies and effective coordination with Urban Local Bodies (ULBs).

Despite growing interest from investors and technology providers, many MSW-based CBG projects continue to face challenges such as:

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  Inadequate segregation of municipal waste at source.
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  Uncertainty in long-term feedstock availability and quality.
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  Lack of standardized concession agreements with ULBs.
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  Limited access to suitable land for project development.
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  High preprocessing and segregation costs.
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  Delays in project approvals and clearances.
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  Inadequate tipping fee mechanisms and revenue models
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  Limited policy support for digestate/FOM utilization.
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  Weak coordination among state departments, municipalities, and project developers.