Chandigarh set to get first compressed biogas plant

The city is all set to get its first segregated organic municipal solid waste-based compressed biogas (CBG) plant soon as Indian Oil Corporation Limited (IOCL) has sent a memorandum of understanding (MoU) for the project to the Municipal Corporation for consideration.

The IOCL sent the MoU after the MC General House approved the agenda for allotting work to a public sector company at its meeting held in August. This initiative is aligned with the Government of India’s Sustainable Alternative Towards Affordable Transportation scheme, which mandates oil marketing companies to support the development of CBG plants across the country.

Sources said the IOCL had offered to invest in both capital expenditure and operational expenditure for the plant. This includes the construction of infrastructure, installation of utilities and ongoing operational costs.

The plant will process segregated organic municipal solid waste, primarily wet trash, and cow dung to produce CBG and other useful by-products.

The company says the plant will process the waste to produce gas as well as other by-products such as fermented organic manure, liquid fermented organic manure, etc. Land measuring 10 acres at the Dadumajra dumping ground and development of green cover is required for the project. The MC shall ensure daily supply of waste (average 200 tonne per day) and cow dung (average 30 tonne per day) to the plant with provision for supplemental feedstock as required. The segregated organic municipal solid waste will be supplied to the plant free of cost, while the cow dung transportation cost will be borne by Indian Oil at a mutually agreed rate.

The company will design, finance, construct, operate and maintain the plant and associated infrastructure. The consultation charges for design, execution etc. shall be borne by Indian Oil.

The MC will lease out identified land for 15 years at the rate Rs 1 per acre per month.

Indian Oil shall also reimburse expenditure on account of development and maintenance of green cover mandatorily to be provided as per CPCB guidelines, i.e. 33% of the project land, which will be developed as green belt. Maintenance charges shall be paid to the MC on a monthly basis at a mutually agreed rate.

The plant will not only support sustainable waste disposal but also contribute to the city's environmental and energy goals.

Indian Oil is India’s flagship Maharatna oil company with business interest straddling the entire hydrocarbon value chain — from refining, pipeline transportation and marketing to exploration of crude oil and gas.