VA Tech Wabag and PEAK Sustainability Ventures have announced the development of their first Bio-CNG plant in Ghaziabad, Uttar Pradesh, marking a major milestone in their waste-to-energy partnership announced in January 2024.
The upcoming Bio-CNG facility will be developed at the 70 MLD Sewage Treatment Plant (STP) in Dundaheda, Ghaziabad, under a Build-Operate-Transfer (BOT) model on a Public-Private Partnership basis. The project will be executed through a newly incorporated special purpose vehicle, Ghaziabad Bioenergy Private Limited, jointly formed by Wabag and PEAK Sustainability Ventures.
The project is part of the companies’ larger vision to establish 100 Bio-CNG plants at sewage treatment facilities across India and international markets. The initiative aims to convert sewage-generated biogas into clean renewable fuel, helping reduce methane emissions and dependence on fossil fuels.
According to the companies, the Bio-CNG plant will capture raw biogas generated at the sewage treatment facility and upgrade it into high-quality renewable Bio-CNG fuel. The clean fuel will be used in mobility and industrial applications, replacing conventional fuels such as LNG and CNG.
The project is expected to significantly reduce greenhouse gas emissions by preventing methane release into the atmosphere. Methane has nearly 28 times higher global warming potential than carbon dioxide. Over the project lifecycle, the plant is estimated to reduce nearly 250,000 metric tons of carbon emissions.
Commercial operations of the Bio-CNG facility are expected to commence within one year. The initiative is also expected to improve local air quality and create employment opportunities in the region.
Under the agreement, Wabag will lead project execution and handle operations and maintenance for a period of 15 years. PEAK Sustainability Ventures will support the initiative through strategic guidance, global energy technology expertise, and assistance in raising capital from climate-focused investors.
The companies stated that all major equipment for the project will be sourced domestically, supporting the Government of India’s Atmanirbhar Bharat initiative. Additionally, the project company will pay a reverse tipping fee to the Ghaziabad Nagar Nigam for purchasing biogas generated at the sewage treatment plant.