Three biomethanation plants: Delhi plan to use fuel from waste to run vehicles

The facility is part of the corporation’s plan to set up three biomethanation-based plants in the city – at Ghogha Dairy, Okhla and Ghazipur

The Municipal Corporation of Delhi’s (MCD) first compressed biogas (CBG) plant to process dairy waste in northwest Delhi’s Ghogha Dairy area (Narela-Bawana Road) is set to become operational by the end of this month, senior civic officials said.

The largest one is coming up in Okhla, where 300 tonnes of municipal waste will be converted into fuel every day.

The facility is part of the corporation’s plan to set up three biomethanation-based plants in the city – at Ghogha Dairy, Okhla and Ghazipur -- that together will process an estimated 750 tonnes of wet waste daily and generate compressed biogas, a clean fuel that can be used to run vehicles.

A senior MCD official said several biogas and CBG plants are at various stages of development. “We will see commissioning of two of these plants at the end of this month, including a 200 TPD biogas plant at Nangli-Sakrawati this weekend and the 100 TPD compressed biogas plant at Ghogha Dairy on September 26,” the official said.

The three projects combined mark a major shift in the capital’s waste-to-energy strategy, aiming not only to reduce landfill pressure but also to provide cheaper, cleaner fuel alternatives.

The largest of these is coming up in Okhla, where 300 tonnes of municipal waste will be converted into fuel every day.

“The plant is spread over an area of seven acres and the project was awarded in January 2023 with a deadline of July 2024. It is now likely to be made operational by December 2025,” the MCD official cited above said.

Monitored by the Union ministry of housing and urban affairs (MoHUA), the Okhla plant may eventually expand to 500 TPD. For this, MoHUA roped in IIT Delhi to assess the land requirement. IIT recommended that the operator run the 300 TPD facility successfully for three years before expansion is considered.

Officials said the model is inspired by Indore, where Prime Minister Narendra Modi inaugurated a 550 TPD Bio-CNG plant in February 2022. That plant generates 17,000-18,000 kg of Bio-CNG and 10 tonnes of organic manure daily, fuelling 150 city buses at a rate ₹5 cheaper than commercial CNG.

The third project -- a compressed biogas plant at Ghazipur with an expected capacity of 350 TPD -- is being developed by Indraprastha Gas Limited (IGL). An MoU was signed with IGL on November 26, 2024, and the change of land use for the site was notified by MoHUA on June 30, 2025. Work is expected to begin by October 15, with commissioning targeted for December 2026.