Neutral impactSector
EVs, CNG and CBG: Why India’s clean mobility transition also needs an agricultural lens
BusinessLine 14 hrs ago·30 Oct 2026, 3:31 pm
India's push for clean mobility is increasingly focusing on agricultural waste, specifically straw, which is currently burned by farmers. This practice creates severe air pollution and hinders the adoption of electric vehicles (EVs). The solution lies in converting this biomass into Compressed Biogas (CBG), a renewable fuel that can power vehicles and generate electricity.
For investors, this shift presents a significant opportunity. The demand for CBG is rising as it offers a cleaner alternative to CNG and helps reduce pollution. Companies involved in setting up CBG plants and those producing the necessary technology are likely to benefit from this growing sector. It connects the agricultural sector with the energy and transport markets.
Investors should watch for government policies that support biofuel adoption and the progress of new CBG plants. The success of this transition depends on making CBG cost-competitive with fossil fuels. Keeping an eye on the expansion of biofuel infrastructure will be key to understanding the sector's future growth.
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