Paras Dairy and KIS Group to invest US$105.9M to construct BioCNG Plants

INDIA – Paras Dairy and KIS Group have signed a Memorandum of Understanding (MoU) to jointly develop 10 BioCNG (CBG) plants across Uttar Pradesh, Madhya Pradesh, Maharashtra and other states in India, with an estimated investment of around INR 1,000 crore (US$105.85 million)

The complete project pipeline is expected to be developed by 2029. Under the partnership, KIS Group will be responsible for technology, construction and operation of the plants.

Paras Dairy will be responsible for feedstock arrangement, land and approvals, noted a joint statement by the two companies, further adding that they will also form a joint venture (JV) for the proposed BioCNG plants.

Once operational, each project is expected to replace 8–10 metric tonnes of natural gas per day and generate approximately 40,000–50,000 carbon credits annually, the statement noted.

The initiative is expected to create around 500 direct and indirect jobs while integrating farmers into the BioCNG value chain through feedstock supply arrangements.

Farmers will participate in the projects as feedstock partners, supplying cattle dung and agricultural residues including paddy straw, wheat straw, maize waste and vegetable waste.

Fermented Organic Manure (FOM) generated by the Biogas plants will, in turn, be supplied for use on farms and fields to enrich the soil. In addition to BioCNG, the plants will produce BioCO2 and solid/liquid FOM fertilisers as by-products, meeting the organic fertiliser needs of the country.

According to KR Raghunath, Founder and CEO, KIS Group, India generates an estimated 555 million tonnes of cattle dung alone and that the next phase of BioCNG growth will depend on solving for feedstock aggregation and technology together.

Vaibhav Nagar, Vice President, Paras Dairy, remarked, “Paras Dairy is associated with farmers across villages in UP, MP and Maharashtra and handles over 15 Lakh litres per day. At this scale, we believe the dairy industry has an opportunity to look beyond milk procurement and create greater value across the agricultural value chain. This partnership allows us to put dairy and farm waste to productive use, while creating an additional avenue for farmers to participate in the growing BioCNG economy.”

The development comes amid the growing prominence of biogas as an alternative to conventional CNG and natural gas and India’s clean energy ambitions.

In August, the Union Cabinet approved GOBARdhan, the National Circular Bioenergy program, with an outlay of US$2.5 billion to expand compressed biogas production in India.

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