Feedstock forms the backbone of every compressed biogas (CBG) project, directly influencing plant utilisation, operating costs and long-term commercial viability. Although the country has abundant agricultural residues and biomass resources, ensuring that these are accurately assessed, efficiently aggregated and supplied consistently to biofuel plants remains a significant challenge. With investments in CBG projects gathering momentum, the focus is shifting towards building robust feedstock supply chains that can support sustained industry growth.
Bridging the biomass data gap
Every CBG project begins with one fundamental question: Will sufficient feedstock be available throughout the plant’s operating life? In many cases, this assessment is made during the initial stages of project development using estimates of biomass availability within the surrounding region. However, biomass availability is far from static. Cropping patterns change, seasonal variations influence residue generation and new buyers entering the market can alter local supply dynamics.
This makes reliable data one of the most important components of feedstock planning. Digital platforms capable of mapping agricultural residues and other biomass resources across regions are helping developers make better informed decisions. Instead of relying on one-time assessments, these platforms continuously track biomass availability and use artificial intelligence to forecast future supply and pricing trends.
Such assessment becomes particularly important because feedstock conditions can change considerably between project conceptualisation and commissioning. Therefore, developers require visibility not only into current biomass availability but also into how supply may evolve over the next five to seven years, when projects are expected to recover their investments and achieve stable operations.
Technology is being applied beyond resource assessment. Organised aggregators have started combining digital mapping with field-level operations by deploying collection equipment and capturing agricultural residues directly from farms. This ensures that identified biomass resources are effectively channelled into the CBG supply chain instead of remaining unused.
Strengthening biomass aggregation and supply chains
Feedstock management does not end with identifying biomass resources. An equally important challenge lies in collecting, transporting and delivering agricultural residues to processing facilities in an efficient and economical manner. As biomass has relatively low bulk density, transportation costs can quickly become uneconomical over long distances. As a result, CBG supply chains are typically designed around well-defined catchment areas. Feedstock for CBG projects is typically sourced from within about 50 km of the plant, while briquette and pellet manufacturers can procure biomass from larger radii of nearly 150 km. Feedstocks used for liquid biofuels can be transported over longer distances, depending on the economics of individual projects.
Supply chain planning is closely linked to project viability. Rather than depending on spot purchases, organised biomass procurement relies on monthly, quarterly or annual contracts that provide visibility to both suppliers and buyers. Such long-term arrangements reduce uncertainty, improve logistics planning and enable CBG plants to operate with greater confidence regarding feedstock availability.
An organised aggregation system also helps recover agricultural residues that would otherwise remain scattered across farms or be disposed of through open burning. As collection networks expand and become more efficient, larger volumes of biomass can be brought into commercial use, strengthening the overall feedstock ecosystem.
Diversifying feedstocks for greater resilience
The CBG sector is gradually moving away from dependence on a limited number of conventional agricultural residues. While materials such as sawdust, wood chips, rice husk, groundnut shell and cashew shell continue to play an important role, the range of feedstocks entering the value chain has expanded considerably. Today, residues such as paddy straw, maize stover, cotton stalk and sugarcane trash are being utilised for CBG production. Feedstocks are also being supplied for ethanol and biodiesel manufacturing, including used cooking oil. In addition, several agricultural wastes that previously had little commercial value, including mango seeds, guava seeds, chilli waste and turmeric residues, are now finding applications in the biofuel industry.
This broader feedstock basket provides greater flexibility to project developers. Instead of relying heavily on one or two biomass types, producers can utilise multiple feedstocks depending on regional availability and prevailing market conditions. The diversification of biomass resources also creates opportunities to commercialise agricultural waste that previously remained outside organised supply chains. As more categories of biomass enter the market, the overall resource base available for biofuel production continues to expand. This improves supply resilience and also creates additional opportunities for farmers to monetise agricultural residues that were once treated as waste.
Managing price volatility through market development
Feedstock pricing remains one of the key concerns for the biofuel industry, particularly as demand continues to increase across multiple applications. Certain biomass residues, including sawdust and groundnut shell, have experienced considerable price fluctuations over time due to competing demand from different industries.
Expanding the overall biomass market offers one of the most effective ways of addressing this challenge. As more categories of agricultural waste become commercially viable and a larger volume of biomass enters organised supply chains, dependence on individual feedstocks gradually declines. Producers also gain greater flexibility to substitute one type of residue with another, helping moderate price pressures.
Long-term procurement models further contribute to price stability. Well-established aggregation systems, transparent operating costs and closer engagement with farmers enable biomass suppliers to minimise fluctuations while maintaining predictable supply arrangements. At the same time, market expansion encourages the utilisation of additional waste streams, increasing overall biomass availability and supporting a more balanced relationship between supply and demand. Although new biofuel projects will inevitably increase competition for biomass resources, the availability of a much wider range of agricultural residues suggests considerable scope for expanding supply alongside demand.
Creating farmer-centric aggregation models
Farmers remain at the centre of India’s biomass economy, making their participation essential for building sustainable feedstock supply chains. Aggregation models are being designed not simply around biomass procurement but around creating additional income opportunities at the farm level. One approach involves enabling farmers to participate directly in aggregation activities as entrepreneurs. Agricultural land awaiting the next cropping season can also be utilised as temporary storage areas, allowing residues to be collected and transported much more efficiently.
Equipment support has emerged as another important element of these models. The availability of machinery such as rakers, trailers and transport vehicles simplify residue collection while generating additional employment opportunities during the agricultural off-season. Also, field-level awareness programmes are helping farmers recognise the economic value of agricultural residues that were previously considered to have little commercial worth. A well-organised aggregation network ultimately benefits every stakeholder in the value chain. Farmers gain an additional source of income, aggregators secure a more predictable supply base and CBG developers reduce procurement risks through structured and reliable feedstock sourcing.
As India’s CBG sector continues to scale up, feedstock management will shape the commercial viability of future projects going forward. Reliable biomass assessment, technology-enabled planning, organised aggregation, diversified feedstock utilisation and stronger farmer participation are gradually laying the foundation for a more resilient biomass ecosystem. Strengthening these building blocks will be essential for ensuring that the country’s growing biofuel ambitions are matched by equally robust and dependable feedstock supply chains.
Based on a discussion among Kishan Karunakaran, Chief Executive Officer, Buyofuel; and Sqn Ldr Ankur Naik, Director, Corporate Affairs, Punjab Renewable Energy Systems Private Limited, at Renewable Watch’s “Compressed Biogas in India” conference
