NDDB to set up 15 biogas plants to convert cow dung to energy
The National Dairy Development Board (NDDB) has announced plans to establish 15 biogas plants, each with 100 tonnes per day (TPD) dung processing capacity, across six Indian states. Under the scheme, farmers supplying cow dung to these plants will be paid up to ₹1 per kilogram of supplied dung. The move, part of NDDB’s push to transform cow dung from a waste product into clean fuel and bio-manure, is expected to generate renewable energy, support farmer incomes, and help manage cattle waste more effectively.
Industry Insight:
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Renewable energy + circular economy angle: These biogas plants will yield compressed biogas (CBG) or biogas which can be cleaned / upgraded for cooking, transport, or electricity generation. The residual slurry after digestion is a valuable organic fertilizer. This dual output ensures environmental and economic returns.
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Farmer income diversification: Payment for dung supply (~₹1/kg) offers dairy/cattle holders extra income streams. Even small-scale dairy farmers who produce modest dung outputs can benefit proportionally.
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Feedstock/fodder competition is unaffected: Importantly, this initiative should reduce waste disposal costs for farms and curb environmental pollution, but it does not directly compete with maize or other feed grains. Cow dung as feedstock is separate from feed grain supply chains. Thus, this policy is unlikely to affect maize demand directly, though indirectly it could free up capital or farmer effort that might otherwise go into feed inputs.
Estimates of energy created through Biogas
Key results (summary):
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Total dung processed: 1,500 t/day (15 plants × 100 TPD).
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Biogas production (conservative → optimistic): 37,500 → 45,000 m³/day (annual 13.7 → 16.4 million m³).
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Electricity potential (approx): 75,000 → 90,000 kWh/day → 27.4 → 32.9 GWh/year (using 2 kWh per m³ biogas).
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Digestate (organic fertilizer) output: 1,200 t/day → ~438,000 t/year (assuming 0.8 t digestate per tonne input).
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Farmer payments for dung: ₹1,500,000/day → ₹547,500,000/year (₹1 per kg = ₹1,000 per tonne; 1,500 t/day).
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Digestate revenue (annual) — scenarios:
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Low price (₹2,000/t):
(₹87.6 crore) per year. -
Mid price (₹3,500/t):
(₹153.3 crore) per year. -
High price (₹5,000/t):
(₹219.0 crore) per year.
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Notes & caveats:
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Figures are illustrative estimates based on standard industry assumptions (biogas yield per tonne, conversion efficiency, digestate output). Actual values will vary by dung moisture, feed mix (cow vs buffalo), plant technology, retention times, and operational efficiency.
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Farmer payment total assumes all dung fed into plants is purchased at the stated rate; in practice, some dung will be from captive cattle owners supplying directly and farmer incomes will vary by dung availability and collection logistics.
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Digestate revenue depends on market acceptance, nutrient content, and logistics. Selling raw digestate vs processed compost impacts pricing.
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Electricity potential assumes conversion via gensets at ~2 kWh/m³ biogas; using biogas upgrading to biomethane or biogas-to-grid pathways will change economics.