Climate Fund Managers (CFM) has committed $32.2 million from its EU-supported Climate Investor Two Construction Equity Fund to Akaia Green Fuels, a commercial-scale waste-to-biogas project in Uttar Pradesh, India.
The facility will convert about 94,000 tonnes of agricultural and organic waste annually—including paddy straw, press mud from sugar mills and cow dung—into around 20 tonnes per day of compressed biogas and 123 tonnes per day of fermented organic manure. Once operational, the project is expected to avoid more than 100,000 tonnes of CO₂ equivalent emissions annually and improve air quality for about 700,000 people across 640 villages by reducing crop residue burning.
Construction began in February 2026, with commercial operations targeted for the first half of 2027. The project is expected to create around 480 construction jobs and 110 permanent operational roles, alongside additional employment in feedstock supply and logistics.
The compressed biogas produced will be injected into the city gas distribution network under long-term offtake agreements with GAIL India and Hindustan Petroleum Corporation Limited (HPCL), helping displace imported fossil gas and strengthen India’s energy security.
Jirong Lim, Investment Director at Climate Fund Managers, said: “Agricultural residue burning remains one of the most persistent environmental challenges in northern India. Projects like Akaia Green Fuels show how this waste can be transformed into clean energy, organic fertiliser and new income streams for farmers, while delivering meaningful improvements in air quality and emissions.”
Rajkumar Roy, Project Co-Sponsor, said: “This project turns an everyday problem for farmers and sugar mills into a long-term opportunity. By securing feedstock, offtake and high technical standards from the outset, we are building a robust, scalable model for compressed biogas infrastructure in India.”
Mainak Chakraborty, Co-Founder of GPS Renewables, added: “Their commitment underscores the maturity and scalability of CBG as a climate and energy solution for India.”
