VA Tech WABAG Limited (WABAG) and PEAK Sustainability Ventures (PEAK) are developing the first bio-compressed natural gas (Bio-CNG) plant in Ghaziabad, Uttar Pradesh, marking the inaugural project under a waste-to-energy initiative launched on 29 January 2024 that targets 100 Bio-CNG plants across India and other markets. The facility will be developed through a newly incorporated special purpose vehicle, Ghaziabad Bioenergy Private Limited, formed jointly by WABAG and PEAK on a build-operate-transfer model in partnership with the municipal authority. The project converts wastewater-derived biogas into a marketable renewable fuel and aims to create a scalable route for local energy supply.

The plant will be installed at the 70 mn litres per day Sewage Treatment Plant (STP) in Dundaheda and will capture raw biogas, upgrade it into high-quality Bio-CNG and prevent methane emissions to the atmosphere. This renewable gas will replace conventional fossil fuels in mobility and industrial uses, creating a circular revenue stream while easing pressure on global LNG and CNG supply chains. All major equipment will be sourced domestically to support the Government of India’s Atmanirbhar Bharat policy.

Project sponsors estimate that over its life the initiative will reduce approximately 250,000 tonnes (t) of carbon emissions, noting that methane has nearly 28 times the global warming potential of carbon dioxide. Commercial operations are expected to commence within one year and the sponsors anticipate material environmental and air quality benefits alongside local employment generation. The company will pay a reverse tipping fee to the Ghaziabad Nagar Nigam for purchasing the biogas, creating a new revenue model for the client.

WABAG will lead project execution and undertake operations and maintenance for a 15-year period while PEAK will contribute strategic inputs, global energy technology insights and support in raising capital from climate-focused investors to accelerate scaling. The initiative is positioned to reinforce several sustainable development goals including affordable and clean energy, good health and well-being, responsible consumption and production, and climate action. Sponsors present the project as a replicable model to turn an environmental liability into a reliable, locally produced renewable fuel.