In a first-of-its-kind initiative in the country, the Bangalore Water Supply and Sewerage Board will convert sewage sludge in Bengaluru into a commercial energy product. The programme is intended to create a sustainable revenue stream while addressing urban waste management. The board described the move as an effort to monetise waste and support the city's circular economy.

The board will convert raw biogas from five sewage treatment plants (STPs) into compressed biogas, with an anticipated additional revenue of Rs 1.2 billion (Rs 1,200 mn) over the next 20 years. The scheme has secured state cabinet approval and will be implemented under a public-private partnership model. The private concessionaire will bear the entire capital expenditure of Rs 850 mn (Rs 0.85 bn) and handle operational costs, thereby avoiding any direct financial burden on the board. The arrangement is designed to transfer technical and commercial risk to the private partner.

The initiative is significantly larger than comparable projects, using 550 MLD of sewage compared with around 120 MLD processed in cities such as Surat. Officials framed the project as a major step in converting urban effluents into transport and industrial fuel. The conversion of raw biogas into compressed biogas will add value and reduce the volume of sludge requiring disposal. Compressed biogas is suitable for transport and industrial use, offering a cleaner alternative to conventional fuels.

Authorities indicated the scheme is designed to strengthen municipal finances and support cleaner energy objectives without immediate expenditure by the board. The model is intended to attract private investment and operational expertise while retaining public oversight. Monitoring and regulatory oversight will remain with the board to ensure service standards and environmental compliance. Further technical and commercial details are expected to be finalised as the concession process is carried out.