India and Japan are set to establish a new framework to promote biogas-powered compressed natural gas (CNG) vehicles by expanding methane production plants across India. The initiative, expected to be formalised through an MoU during Japanese Prime Minister Sanae Takaichi’s visit to India, aims to strengthen clean mobility, energy security and sustainable transportation.
Key Highlights
✅ India and Japan to sign an MoU to promote biogas-powered CNG vehicles.
✅ Both countries plan to establish around 1,000 methane production plants across India.
✅ Suzuki Motor will support biogas production and expansion of CNG mobility.
✅ Initiative aims to strengthen clean mobility, energy security and reduce crude oil dependence.
New Delhi, June 28: India and Japan are poised to strengthen their clean energy partnership by establishing a new framework to promote biogas-powered compressed natural gas (CNG) vehicles, marking a significant step towards sustainable mobility and enhanced energy security.
According to a report published in The Japan Times, the two countries are expected to exchange a Memorandum of Understanding (MoU) during the upcoming three-day visit of Japanese Prime Minister Sanae Takaichi to India. The agreement will focus on expanding the production and use of methane-based biogas as an alternative transportation fuel.
Under the proposed collaboration, India and Japan plan to increase the number of methane production plants in India to approximately 1,000. These facilities will produce methane through the fermentation of cow dung, which can be processed into compressed biogas and used as fuel for CNG-powered vehicles.
The initiative supports both countries’ efforts to accelerate the transition towards cleaner transportation while reducing greenhouse gas emissions and dependence on conventional fossil fuels.
A key partner in the initiative will be Suzuki Motor Corporation, which holds the largest share of India’s passenger vehicle market. The Japanese automobile manufacturer has already initiated biogas production projects in India with financial assistance under Japan’s Global South support programme.
Suzuki is expected to play an important role in expanding the use of CNG-powered vehicles by integrating renewable biogas into India’s transportation ecosystem. The company has been actively promoting CNG vehicles as a cleaner and more economical mobility solution for Indian consumers.
The initiative comes at a time when CNG vehicles account for more than 20 percent of new passenger vehicle sales in India, reflecting growing consumer preference for cleaner and cost-effective fuel alternatives. Rising fuel prices, increasing environmental awareness and government support for cleaner fuels have contributed to the steady growth of the CNG vehicle market.
India’s rapidly expanding energy demand and its continued dependence on imported crude oil have prompted policymakers to diversify the country’s energy mix. Promoting domestically produced biogas aligns with the government’s broader objectives of enhancing energy security, reducing import dependence and supporting rural development.
The expansion of methane production plants is also expected to create new income opportunities for rural communities by utilizing agricultural waste and livestock residue to generate renewable energy. The initiative complements India’s ongoing efforts to promote a circular economy, sustainable agriculture and waste-to-energy solutions.
The proposed agreement is expected to feature prominently during the visit of Japanese Prime Minister Sanae Takaichi, who is likely to hold bilateral discussions with Prime Minister Narendra Modi during her first official visit to India since assuming office in October 2025.
The visit forms part of the regular India-Japan reciprocal “shuttle diplomacy”, which aims to deepen strategic engagement between the two countries across trade, technology, infrastructure, security and clean energy sectors.
Apart from biogas cooperation, discussions are expected to focus on economic security, resilient supply chains, advanced manufacturing, green technologies, investment and economic growth.
Japan considers India an increasingly important strategic partner amid evolving geopolitical developments in the Indo-Pacific region and seeks to strengthen cooperation in areas critical to long-term economic resilience and sustainable development.
The proposed biogas partnership further reinforces the growing India-Japan collaboration in renewable energy, clean mobility and climate action while supporting both countries’ commitment to achieving lower carbon emissions and sustainable economic growth.
Conclusion
The proposed India-Japan partnership on biogas-powered CNG vehicles represents an important milestone in bilateral cooperation on clean energy and sustainable mobility. By expanding methane production infrastructure, promoting renewable transport fuels and encouraging technology collaboration, both countries aim to strengthen energy security, reduce carbon emissions and support the transition towards a greener and more self-reliant transportation ecosystem.
