Bajaj Hindusthan Sugar, EverEnviro join hands to produce CBG in India

Indian sugar producer Bajaj Hindusthan Sugar and Gurugram-based compressed biogas (CBG) company EverEnviro have joined hands to set up CBG plants in the state of Uttar Pradesh, EverEnviro said on February 20.

Bajaj Hindusthan Sugar currently generates approximately 500,000 tonnes/year of press mud from its 14 operational sugar mills. This press mud can potentially be utilised to set up CBG plants with a total capacity of 70 tonnes/day.

"The steady supply of press mud from Bajaj Hindusthan's sugar mills will significantly boost the CBG production capacity of our plants. Furthermore, the fermented organic manure produced as a byproduct of CBG will promote regenerative agriculture, enhancing soil health and fertility in the region,” said Mahesh Girdhar, CEO, EverEnviro.

As part of the bilateral arrangement with EverEnviro, Bajaj Hindusthan Sugar will have the option to either sell press mud at predetermined long-term prices or take equity in the CBG plant project alongside EverEnviro.

Currently, EverEnviro is actively working on about 20 CBG projects in states such as Madhya Pradesh, Uttar Pradesh, Delhi, and Punjab, with a capital investment of nearly 20bn rupees ($240mn). These projects are expected to yield an output of 320 tonnes/day of CBG.

The initiative aligns with the Indian government's announcement on November 25, mandating the phased blending of CBG in compressed natural gas (CNG) and domestic piped natural gas (PNG) segments starting the fiscal year 2025-26. Experts suggest that this move will not only contribute to environmental sustainability but also result in a reduction of costly imported LNG, thereby helping India save precious foreign exchange.