Infistar and Arciplug Launch Joint Venture to Expand Small Compressed Biogas Market

In August 2026, Infistar Renewables Pvt. Ltd. entered into an exclusive joint venture with Finland’s Arciplug Oy to manufacture factory-built modular plug-flow reactors for small-scale Compressed Biogas (CBG) plants in India. The partnership aims to capitalize on the rapidly growing demand for green fuels as India accelerates the expansion of its domestic biogas production capacity under its clean energy and circular economy initiatives.

The joint venture, Arcistar Bioenergy Pvt. Ltd., will manufacture advanced modular plug-flow reactor systems designed specifically for small CBG plants. These factory-built modular units are expected to simplify plant installation, reduce project timelines, and improve operational efficiency, making compressed biogas production more accessible for small and medium-sized developers.

As part of the initial phase, the joint venture will invest approximately ₹50 crore to establish a demonstration project in the Gandhinagar district, Gujarat. The facility will also showcase the technology and serve as a reference plant before the companies expand commercial deployment across India. Arcistar Bioenergy also plans to market its modular reactors for compressed biogas plants with methane production capacities of less than three tons per day. By focusing on this segment, the company aims to provide cost-effective and scalable technology solutions that support decentralized biogas production while enhancing operational efficiency.

Impact on the Chemical Market

India’s Compressed Biogas (CBG) market, currently valued at approximately ₹8,000–9,000 crore, is witnessing strong growth, driven by increasing investments in renewable energy, sustainable waste management, and the Government’s clean fuel initiatives. The partnership between Infistar Renewables and Arciplug is well-positioned to tap into this expanding market by offering innovative reactor technology that can accelerate the development of smaller CBG projects nationwide.

The joint venture reflects the growing collaboration between Indian and international technology companies to advance sustainable energy solutions. As reported by thehindubusinessline.com, by combining Infistar’s local market expertise with Arciplug’s advanced reactor technology, Arcistar Bioenergy aims to strengthen India’s compressed biogas ecosystem, promote indigenous green fuel production, and contribute to the country’s long-term renewable energy and carbon reduction goals.

Impact on the Biogas Market

The global biogas market size was accounted for USD 170.89 billion in 2025 and is anticipated to reach around USD 261.10 billion by 2035, growing at a CAGR of 4.33% from 2025 to 2035. The market is growing due to increasing demand for renewable energy, supportive government policies, and the rising utilization of organic waste for sustainable fuel production.

According to Precedence Research, the market is experiencing steady growth due to the growing emphasis on waste management, greenhouse gas emission reduction, and the production of renewable energy. As a sustainable substitute for traditional fossil fuels, biogas, which is created by the anaerobic digestion of organic waste, including food waste, animal dung, and agricultural residues, is becoming increasingly popular. The market is also expanding due to increasing government support in the form of incentives, targets for renewable energy, and investments in circular economy projects. Furthermore, the market's long-term growth in both developed and emerging economies is being supported by the growing demand for biomethane in industrial transportation and power generation applications, as well as by developments in biogas upgrading technologies.

The market has enormous growth potential due to the increasing use of biomethane as a low-carbon fuel in the industrial and transportation sectors. Technological developments in biogas upgrading are increasing end-use applications and improving fuel quality. Additionally, it is anticipated that growing investments in waste-to-energy and circular economy projects will create a new source of income for market players. In a number of nations, the integration of biogas into natural gas grids is also gaining traction. Additionally, industries are being encouraged to invest in renewable gas solutions to lower their carbon footprint due to growing corporate sustainability commitments.

Impact on the Green Power Market

The global green power market size accounted for USD 75.26 billion in 2025, and is anticipated to hit around USD 84.06 billion by 2026, and is predicted to reach around USD 212.08 billion by 2035, growing at a CAGR of 10.92% from 2026 to 2035.

According to Precedence Research, accessible renewable resources and favorable government policies are driving exponential growth in the market. The perks of investments benefiting both new and existing businesses make it a sustainable choice to expand energy and unveil new job categories as per individuals' expertise. The Green Power market is helping in declining technology costs, ambitious government policies, and increasing corporate sustainability commitments. The record deployments of solar and wind energy, coupled with significant investments in energy storage to enhance grid reliability and efficiency.

Sustainability trends focus on the ethical sourcing of critical minerals and minimizing land use impacts on biodiversity through innovative practices like agrivoltaics. Furthermore, the market is driven by ambitious corporate ESG commitments and the development of sustainable energy storage solutions and green hydrogen to decarbonize hard-to-abate sectors.

The advantages of green projects to the vast commercial and industrial sector are cost-effectiveness and quick acceptance in the highly modernized world. The government has been a constant support, a backbone for the green ideas to reduce carbon emissions and help companies to align with the environmental regulations. Sustainable commercial buildings and energy-efficient infrastructure are the power pillars for the eco-conscious ideas.