HPCL Plans to Set Up Rs 159 Crore CBG Plant in Bihar’s Bhagalpur; Wet Waste to Produce Green Fuel – Indian PSU
Hindustan Petroleum Corporation Limited (HPCL) is set to establish a Rs 159 crore compressed biogas (CBG) plant at Kankaithi in Bhagalpur, Bihar, to convert municipal wet waste into green fuel and organic manure. The proposed project will process 135 tonnes of segregated organic waste daily, offering a waste-management solution alongside renewable energy production.
The memorandum of understanding (MoU) between HPCL and Bhagalpur Municipal Corporation is nearing finalisation. A high-level team from the civic body is expected to visit Patna to complete the agreement process.
The project is part of Bihar’s efforts to strengthen urban waste management and promote the conversion of organic waste into renewable energy.
Plant to Process 135 Tonnes of Wet Waste Daily
The proposed facility at the Kankaithi dumping ground will have the capacity to process 135 tonnes of segregated organic waste per day.
Wet waste collected from households, hotels, vegetable markets and fruit markets will be processed to produce compressed biogas and organic manure.
The biogas can serve as an alternative to conventional compressed natural gas (CNG) in vehicles and other suitable applications. Organic manure produced during the process can also be used in agriculture.
HPCL to Invest in Construction and Operations
Under the proposed arrangement, Bhagalpur Municipal Corporation will provide 10 acres of land at the Kankaithi dumping ground complex to HPCL free of charge for 25 years.
The land will remain under the ownership of the municipal corporation.
HPCL will bear the capital expenditure for constructing the plant and installing the necessary machinery, as well as the operational expenditure during the agreed period.
At the end of the 25-year agreement, the fully operational facility will be handed over to Bhagalpur Municipal Corporation without additional cost.
Civic Body to Provide Supporting Infrastructure
Bhagalpur Municipal Corporation will arrange essential infrastructure for the project, including an approach road, electricity connection, water supply, sewerage facilities and surface water drainage.
The Bihar Urban Infrastructure Development Corporation (BUIDCO) is expected to coordinate the technical assessment and cost estimation of the required infrastructure.
The availability of these facilities will be crucial for the construction and smooth operation of the plant.
Boost to Bihar’s Waste-to-Energy Initiatives
The proposed Bhagalpur facility is expected to help reduce the volume of organic waste accumulating at dumping grounds while generating commercially useful renewable fuel.
The project will combine municipal waste processing with clean energy production, potentially improving the efficiency of the city’s solid waste management system.
For Bhagalpur Municipal Corporation, the arrangement offers an opportunity to develop a major waste-processing facility without bearing the primary construction and operating costs.
The finalisation of the MoU and completion of the necessary preparatory work will determine the next steps towards implementation.
Once operational, the plant is expected to strengthen Bhagalpur’s waste-processing capacity and contribute to Bihar’s broader efforts to promote compressed biogas and sustainable urban waste management.
