Climate Fund Managers has committed USD 32.2 million from its EU-supported Climate Investor Two Construction Equity Fund to Akaia Green Fuels, a commercial-scale waste-to-biogas facility in Uttar Pradesh, northern India. The investment reflects the European Union’s partnership with India to accelerate decarbonisation, support industrial transition, and expand renewable energy. The project converts approximately 94,000 tonnes of agricultural and organic waste annually into compressed biogas and organic fertiliser, reducing reliance on imported fossil gas while generating new income streams for rural communities.
Once operational, the facility is expected to produce around 20 tonnes per day of compressed biogas and 123 tonnes per day of fermented organic manure. It will avoid more than 100,000 tonnes of CO₂ equivalent emissions per year, improve air quality for over 700,000 people in 640 villages by reducing open-field residue burning, and support significant job creation, including construction, operations, and supply chain employment. Farmers will benefit from selling biomass and accessing cost-effective organic fertilisers that improve soil health and reduce dependence on chemical inputs.
This construction equity investment follows USD 3.3 million in early-stage development funding in 2023 from the Climate Investor Two Development Fund, which supported land acquisition, feedstock agreements, and technical and financial structuring. Construction began in February 2026, with full commercial operation expected in the first half of 2027. The facility will collect agricultural residues from local farmers and sugar mills, convert them through anaerobic digestion, and upgrade the resulting biogas for injection into city gas distribution networks under long-term offtake agreements with GAIL India and HPCL, enhancing energy security.
GPS Renewables will deliver the facility under a fixed-price engineering, procurement, and construction contract, with multi-year operations and maintenance oversight. Independent European advisors Fichtner and TÜV will ensure compliance with international engineering, environmental, and safety standards. The project also includes a community development programme, informed by an independent needs assessment, focusing on rural development, education, and climate-resilient livelihoods. Early activities have supported medical check-ups and access to medication for nearby communities.
The initiative demonstrates a scalable model for India’s compressed biogas sector, providing clean energy, organic fertiliser, and socio-economic benefits to rural communities, while contributing to national objectives of reducing emissions, improving air quality, and strengthening energy security.
