Climate Fund Managers backs $32.2m Uttar Pradesh biogas project

The biogas produced will be injected into the city's gas distribution network.

Climate Fund Managers has committed $32.2m to Akaia Green Fuels for a waste-to-biogas facility in Uttar Pradesh that aims to curb stubble burning and convert agricultural waste into fuel and fertiliser.

The project will process about 94,000 tonnes of agricultural and organic waste a year, including paddy straw, press mud from sugar mills, and cow dung, into about 20 tonnes a day of compressed biogas and about 123 tonnes a day of fermented organic manure.

Once operational, the facility is expected to avoid more than 100,000 tonnes of carbon dioxide equivalent emissions annually and improve air quality for about 700,000 people across 640 villages, whilst also creating income for farmers supplying crop residue.

Climate Fund Managers said the investment from its EU-supported Climate Investor Two Construction Equity Fund builds on $3.3m of early-stage development funding provided in 2023. Construction began in February 2026, with full commercial operations targeted for H1 2027.

The biogas produced will be injected into the city gas distribution network under long-term offtake agreements with GAIL India and Hindustan Petroleum Corporation, whilst GPS Renewables will deliver the facility under a fixed-price engineering, procurement, and construction contract and a multi-year operations and maintenance agreement.

The project is also expected to create about 480 construction jobs and 110 permanent operations and maintenance roles, alongside additional employment across feedstock supply and logistics.