OIL Green Energy Limited, the renewable arm of Oil India Limited, has finalized agreements with four Haryana municipalities to process 5,000 tonnes of solid waste daily. The project, targeted to be operational by October 2028, will produce compressed biogas and 50 megawatts of electricity. Investors should monitor execution and revenue stability, as waste-to-energy projects often face operational challenges regarding waste quality and pricing.
OIL Green Energy Limited (OGEL), a subsidiary of the state-owned Oil India Limited, is making a significant move into the renewable energy sector with a large-scale waste-to-energy project in Haryana. The company has signed agreements with municipal authorities in Gurugram, Faridabad, Ambala, and Hisar to process 5,000 tonnes of municipal solid waste every day.
This initiative is part of a broader strategy by Oil India Limited to diversify its energy portfolio and move into the circular bioenergy market. By converting urban waste into energy, the company aims to support the central government’s GOBARdhan National Circular Bioenergy Scheme, which promotes the use of organic and solid waste to create clean fuel and electricity.
The project involves a tiered capacity model across the four cities. Gurugram will be the site of the largest facility with a capacity of 2,000 tonnes per day (TPD). Faridabad will host a 1,600 TPD plant, followed by Ambala at 900 TPD, and Hisar at 500 TPD. The company plans to use this total capacity to generate between 70 and 75 tonnes of Compressed Biogas (CBG) daily. Additionally, the non-recyclable dry waste will be used as fuel to generate 50 megawatts of green electricity. The company has set a target to have these facilities fully operational by October 2028.
For investors, this development represents a clear effort by Oil India to expand its presence in the green energy space. However, such projects come with specific operational risks that require close monitoring. Waste-to-energy plants in India have historically faced hurdles, including the challenge of ensuring consistent waste segregation at the source. If the incoming waste is not properly segregated, it can affect the quality of the feedstock, leading to lower efficiency in biogas and power production.
Furthermore, the long-term success of these plants will depend on the economic feasibility of the energy produced. The company will need to secure stable off-take agreements—contracts to sell the produced biogas and electricity at viable prices. Changes in government policy, raw material costs, or unexpected delays in project construction are other factors that could influence the timeline and financial impact of these investments. Investors may look for future updates on the project's construction progress, the signing of revenue-generating contracts, and management commentary on the financial model for these new facilities.