Bharat Petroleum Corporation Ltd (BPCL) and the Centre for Science and Environment (CSE) signed a Memorandum of Understanding (MoU) in New Delhi on 2 September 2026 to establish a collaborative framework for sustainable energy and environmental initiatives. The partnership will focus on biofuels, biomass utilisation, waste-to-resource solutions and circular economy value chains, with Compressed Biogas (CBG) as a central pillar. It brings together a Maharatna oil marketing company and a leading environmental think tank at a time when India is scaling clean fuel production under its national bioenergy programmes.
What Is the BPCL CSE MoU for Sustainable Energy?
A Memorandum of Understanding (MoU) is a formal agreement that sets out a shared intent and framework for cooperation between two organisations. It is not a binding contract for a single project, but a statement of how the parties will work together, exchange knowledge, and take up specific projects through separate follow-on agreements.
On 2 September 2026 in New Delhi, Bharat Petroleum Corporation Ltd (BPCL) and the Centre for Science and Environment (CSE) signed such a framework to collaborate on sustainable energy and environmental initiatives. Sustainable energy refers to energy produced from sources that can be replenished naturally and that reduce environmental harm, such as biofuels, biomass, solar and wind, while supporting long term energy security.
The MoU was exchanged between Subhankar Sen, Director (Marketing), BPCL, and Sunita Narain, Director General, CSE. It creates a broad platform for cooperation on biofuels, biomass utilisation, waste-to-resource solutions and circular economy initiatives. Under this umbrella, the two organisations will identify opportunities, share expertise, and develop scalable models that can be replicated across India. Specific work will be taken up case by case through separate agreements that define scope, responsibilities and implementation mechanisms.
Who Are the Partners?
What Is Bharat Petroleum Corporation Ltd?
Bharat Petroleum Corporation Ltd (BPCL) is one of India’s largest public sector oil and gas companies. It is a Maharatna central public sector enterprise under the Ministry of Petroleum and Natural Gas, with headquarters at Bharat Bhavan, Ballard Estate, Mumbai. The company was originally incorporated as Burmah Shell Refineries on 3 November 1952. After the nationalisation of Burmah Shell’s operations on 24 January 1976, it was formed as Bharat Refineries Ltd and renamed Bharat Petroleum Corporation Ltd in 1977. It was granted Maharatna status in September 2017, which gives it greater financial and operational autonomy.
BPCL is the second largest oil marketing company in India and a Fortune Global 500 company. It operates refineries at Mumbai, Kochi and Bina with a combined refining capacity of about 35.3 million metric tonnes per annum (MMTPA). Its marketing network includes more than 20,000 fuel stations, LPG distributorships, aviation service stations, depots and installations. In recent years BPCL has expanded beyond traditional refining and marketing into cleaner energy. It has set a target to achieve net zero for Scope 1 and Scope 2 emissions by 2040, plans to build 10 GW of renewable capacity by 2035, and is investing in green hydrogen, Compressed Biogas (CBG), Sustainable Aviation Fuel (SAF), bioethanol plants and renewable power. Key recent moves include a 5 MW green hydrogen electrolyser at Bina refinery, a joint venture with GPS Renewables for CBG plants, and a joint venture with Sembcorp for green hydrogen and green ammonia.
BPCL is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). A frequently asked question is whether BPCL is a government company. It remains a government-owned Maharatna PSU, where the Government of India is the majority shareholder. It is distinct from Indian Oil Corporation (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL), the other two major public sector oil marketing companies.
What Is the Centre for Science and Environment?
The Centre for Science and Environment (CSE) is a not-for-profit public interest research and advocacy organisation based in New Delhi. It was founded in January 1980 by environmentalist Anil Agarwal, with its office initially in South Delhi and later moved to the Tughlakabad Institutional Area, New Delhi in 1994. Since 2000, it has been led by Director General Sunita Narain, who joined CSE in 1982.
CSE functions as a think tank on environment and development issues. Its work spans air pollution, water and wastewater management, waste management, climate change, renewable energy and sustainable food systems. It combines field research, laboratory monitoring through its Environment Monitoring Laboratory, and policy advocacy. It publishes the fortnightly magazine Down To Earth, launched in 1992, and the biennial State of India’s Environment reports. CSE is known for its campaigns on clean air, including its report Slow Murder in 1996 that contributed to the Supreme Court’s direction to convert Delhi’s public buses to Compressed Natural Gas (CNG). In 2018, CSE received the Indira Gandhi Prize for Peace, Disarmament and Development.
The organisation describes its approach as knowledge-based activism, using research to push for policy change and better implementation. It runs the Anil Agarwal Environment Training Institute (AAETI) near Delhi for capacity building. Its headquarters and registered office remain in New Delhi, and it operates as an independent civil society organisation registered under the Societies Registration Act, 1860, not as a government department.
What Will the Collaboration Cover?
The MoU outlines a wide set of joint activities across clean energy and resource efficiency. Rather than a single project, it provides a menu of areas where the partners will assess potential, test models, and then scale workable solutions.
Across the Biofuels Value Chain
The primary focus is the biofuels value chain, with special attention to Compressed Biogas (CBG). CBG is purified biogas compressed to the same quality as natural gas. It is produced from organic feedstocks such as paddy straw, cattle dung, press mud from sugar mills, municipal organic waste and other biomass, and can be used for transport and industrial fuel in the same way as natural gas.
Under the MoU, BPCL and CSE will work on feedstock assessment and supply chain development, which includes mapping availability of agricultural residue and organic waste and organising collection and transport, as well as biomass and waste resource management to ensure steady and sustainable sourcing. They will also undertake technology assessment and pilot and demonstration projects to test pathways and optimise costs, and focus on by-product utilisation covering Fermented Organic Manure (FOM), digestate, Bio-CO2 and Distillers Dried Grains with Solubles (DDGS), which can be used as organic fertilisers, soil conditioners, industrial inputs or animal feed. The scope also covers other biofuels including bioethanol, biodiesel and Sustainable Aviation Fuel (SAF). SAF is fuel for aircraft made from renewable feedstocks such as agricultural waste, used cooking oil and non-food crops, which lowers lifecycle greenhouse gas emissions. BPCL plans to commission its first SAF facility by the end of 2026 at its refineries in Mumbai, Kochi and Bina.
Waste to Resource and Circular Economy Models
The second pillar is waste-to-resource and circular economy solutions. A circular economy is a system where waste is treated as a resource and materials are reused, recycled or converted into new products, so that value is retained and landfill and pollution are reduced.
In this area the partners will explore waste-to-resource solutions that convert municipal biodegradable waste and agricultural residue into CBG and manure, turning a disposal problem into energy and income, and work on strengthening circular value chains by linking waste collection, processing plants, fuel distribution and manure marketing into one connected system. They will also pursue market development, capacity building and knowledge sharing to help municipalities, cooperatives and rural entrepreneurs adopt workable models. CSE brings experience in working with municipalities and understanding the CBG ecosystem at the ground level, while BPCL brings industrial capability and execution strength to scale plants and distribution.
The collaboration will also examine sustainable value chains and potential carbon credit opportunities. When bioenergy projects replace fossil fuels and avoid methane emissions from unmanaged waste, they can generate verifiable emission reductions that may be eligible for carbon credits under national and international frameworks.
Why Was the MoU Signed Now?
The timing aligns with a sharp policy push to make Compressed Biogas a major pillar of India’s energy mix.
On 6 August 2026, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved GOBARdhan, India’s National Unified Scheme for Compressed Biogas, with an outlay of ₹23,731 crore. The scheme will run from FY 2026-27 to FY 2035-36 and is administered by the Ministry of Petroleum and Natural Gas. It aims to achieve nearly ten-fold growth in domestic CBG production, mobilise large-scale private investment and build a vibrant circular bioeconomy. GOBARdhan consolidates earlier efforts under SATAT (Sustainable Alternative Towards Affordable Transportation), launched on 1 October 2018, the Market Development Assistance (MDA) scheme for Fermented Organic Manure, the Biomass Aggregation Machinery (BAM) scheme, the Development of Pipeline Infrastructure (DPI) scheme and Central Financial Assistance under the National Bioenergy Programme.
Under GOBARdhan, six engines will operate together, including assured CBG offtake, a stable administered price, capital assistance, pipeline connectivity, credit guarantee support for MSMEs, and a CBG Ecosystem Challenge Fund for feedstock mapping and local planning. A key demand signal is the Compressed Biogas Blending Obligation (CBO), which requires City Gas Distribution (CGD) entities to blend CBG into CNG for transport and PNG for domestic use at 3 percent in FY 2026-27, 4 percent in FY 2027-28 and 5 percent from FY 2028-29 onwards. Earlier, the National Biofuels Coordination Committee had mandated 1 percent in FY 2025-26.
For BPCL, the MoU also fits its own transition plans. BPCL already operates 10 CBG plants through partner networks with supply at over 100 stations, has 26 more plants in the pipeline, commissioned a plant in Kochi in February 2026 that processes 150 tonnes per day of biodegradable municipal waste into 5.6 tonnes of CBG and 28 tonnes of organic manure, and is pursuing SAF, green hydrogen and renewable power to meet its 2040 net zero goal. For CSE, the partnership offers a route to translate its municipality-level research on waste and CBG into industrial scale execution.
India imports about 50 percent of its natural gas, and recent disruptions in the Strait of Hormuz, which carries 55 to 60 percent of LNG imports, have underlined the need for domestic renewable gas. Converting agricultural residue, cattle dung and municipal wet waste into CBG also addresses stubble burning, landfill pressure and methane emissions, while creating rural income from feedstock supply and manure sales.
How Will the MoU Work and What Are the Next Steps?
The MoU is an overarching framework for cooperation and knowledge exchange. It does not by itself commit either party to a fixed investment or a specific plant location.
Specific projects will be taken up through separate agreements that are mutually agreed. Each such agreement will define the scope of work, responsibilities, timelines, resource contributions and mechanisms for implementation. This structure allows the partners to start with assessments and pilots and then scale what works.
In practice, joint work is expected to follow a clear sequence. It will begin with resource and feedstock assessment, mapping where biomass and organic waste are available, their seasonality and logistics costs. This will be followed by supply chain development to organise aggregation, storage and transport so plants have reliable input, and technology evaluation to compare conversion routes and by-product handling for CBG, bioethanol, biodiesel and SAF. The partners will then take up pilot and demonstration projects to test models with municipalities and at BPCL linked sites before wider rollout, and finally pursue market development and capacity building, including training, knowledge products and support for local entrepreneurs and urban local bodies on segregated waste collection and manure marketing.
As on 6 August 2026, the GOBARdhan Unified Registration Portal showed 1,908 CBG or Bio-CNG plants registered across India, with 217 commissioned producing 0.4 MMSCMD and 339 under construction. This registered pipeline gives the BPCL CSE framework a ready base for pilots that can plug into assured offtake through CGD networks and pipeline infrastructure supported under GOBARdhan.
Significance for India’s Clean Energy Goals
The partnership touches several national priorities at once, which is why it matters beyond the two signatories.
Energy security. CBG is chemically similar to natural gas and can be injected into existing gas pipelines and used in CNG and PNG networks without new engine technology. Domestic production reduces dependence on imported Liquefied Natural Gas (LNG) and buffers against price volatility. India’s natural gas demand is rising across transport, households and industry, and CBG can meet a growing share from domestic waste.
Sustainable energy development. Sustainable energy means energy that meets current needs without harming the ability of future generations to meet theirs, by using renewable sources and lowering pollution. Biofuels such as CBG, bioethanol and SAF reduce lifecycle greenhouse gas emissions compared to fossil fuels because they reuse carbon already present in biomass and prevent methane release from decaying waste.
Circular economy and waste management. Each CBG plant creates a local loop. Farmers supply residue, municipalities supply segregated wet waste, the plant produces gas for sale to the gas company, and organic manure returns to farms. This improves waste collection, cuts landfill load, reduces open burning of crop residue, and keeps nutrients in the soil. The Fermented Organic Manure (FOM) and Liquid FOM are covered under the Fertilizer Control Order, and the Market Development Assistance of ₹1,500 per tonne helps make manure marketing viable.
Rural livelihoods. Feedstock supply, transport, plant operations and manure value addition create income for farmers, cooperatives, self-help groups and rural entrepreneurs. This supports the goals of Atmanirbhar Bharat and Viksit Bharat by making villages centres of clean energy production.
Environmental management. By capturing organic waste, the system lowers methane, a potent greenhouse gas, and reduces air pollution from burning. Life cycle emission savings can also open carbon credit opportunities for bioenergy projects, adding a revenue stream that improves plant viability.
The MoU also reinforces the policy architecture under the National Policy on Biofuels 2018, which actively promotes advanced biofuels including CBG, and the Compressed Biogas Blending Obligation, which creates a predictable market. For BPCL, which aims for net zero by 2040 and 10 GW renewable capacity by 2035, and for CSE, which seeks to scale municipal waste solutions, the framework combines industrial scale with field knowledge. If executed well, it can turn a waste problem into a dependable energy supply.
| Stakeholder | What Changes |
|---|---|
| Farmers and rural entrepreneurs | New income from biomass and dung supply, jobs in aggregation and transport, earnings from manure sales |
| Urban local bodies | Scientific disposal of biodegradable municipal waste, lower landfill costs, cleaner cities |
| Energy system | More domestic renewable gas, stable supply for CGD networks, progress toward net zero by 2070 |
| Environment | Lower greenhouse gas and air pollution, productive use of waste under a circular economy model |
Key Takeaways
- Bharat Petroleum Corporation Ltd (BPCL) and the Centre for Science and Environment (CSE) signed an MoU in New Delhi on 2 September 2026 for a collaborative framework on sustainable energy and environmental initiatives.
- The MoU covers the biofuels value chain with focus on Compressed Biogas (CBG), bioethanol, biodiesel and Sustainable Aviation Fuel (SAF), plus feedstock assessment, supply chain development and pilot projects.
- Partners will also work on waste-to-resource and circular economy solutions, including utilisation of by-products such as Fermented Organic Manure (FOM), digestate, Bio-CO2 and DDGS, and potential carbon credit opportunities.
- BPCL is a Maharatna PSU under the Ministry of Petroleum and Natural Gas, headquartered in Mumbai, incorporated as Burmah Shell Refineries on 3 November 1952 and granted Maharatna status in September 2017, with refineries at Mumbai, Kochi and Bina (35.3 MMTPA).
- CSE is a not-for-profit think tank founded in January 1980 by Anil Agarwal, headquartered in New Delhi, and led by Director General Sunita Narain since 2000, publisher of Down To Earth (1992).
- The MoU aligns with GOBARdhan, approved on 6 August 2026 with outlay ₹23,731 crore (FY 2026-27 to 2035-36), and the CBO trajectory of 3 percent in FY 2026-27, 4 percent in FY 2027-28 and 5 percent from FY 2028-29 for CNG and PNG segments.
