HPCL and Oil India to Develop Compressed Bio-gas Project

04 Feb 2026 CW Team

Hindustan Petroleum Corporation Limited (HPCL) and Oil India Limited (OIL) have signed a memorandum of understanding to develop a compressed bio-gas (CBG) plant, establishing a framework for joint efforts to promote cleaner and more sustainable energy solutions. The agreement envisages the implementation of a plant that will convert organic waste streams into CBG using HPCL's indigenously developed HP RAMP technology. The partners will focus on leveraging public sector capabilities to advance domestic bio-energy capacity.

Under the collaboration, OIL will lead the execution and operational management of the project while HPCL will provide technology support and know how for plant design and process optimisation. The arrangement is intended to combine technical innovation with field experience to ensure efficient conversion of waste into a usable transport and industrial fuel. The plan includes assessment of feedstock availability and logistical arrangements to secure a steady supply of organic residues.

The partnership is aligned with national objectives of fostering a circular economy and reducing carbon emissions through indigenous technological solutions, and it seeks to strengthen the domestic bio-energy ecosystem. Authorities expect the project to contribute to waste management outcomes and promote local value chains in biofuel production. The initiative also aims to demonstrate scalable models for replication across regions with suitable feedstock profiles.

The collaboration comes as HPCL reported a quarterly profit rise of 35 per cent to Rs 40,720 mn on a refining margin boost, underscoring the company's strengthened financial position to support strategic investments. Observers said the move reinforces the role of public sector undertakings in driving innovation and environmental stewardship within the country's energy landscape. The partners have indicated plans to finalise project timelines and commence detailed engineering studies.

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