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Bio-CNG Business Opportunity – Innovative Partnerships for Business Growth & Expansion



evnext-logo-v-smallThis post is a part of BioBiz’s Bio-CNG Perspectives.

BioBiza division of EAI, is a leading market intelligence & strategic consulting firm for the Indian bio-based sectors.


Bio-CNG is an emerging business opportunity and early movers could have a competitive advantage through innovative business partnerships. Following are some of the emerging partnership opportunities:

  • Offtake by the big firms – One recommended partnership for the client will be with large corporates that have the potential to be a large offtaker of RNG in future. It will take some time to form such partnerships; in addition, these corporates could require that the client be of a certain size and scale before they can procure RNG. All the same, starting to cultivate partnerships with such clients and providing them with some value over a period of time until the client reaches the threshold scale could be richly rewarding. 
  • Logistics partnerships – The client has the option to own the entire logistics assets and network (both inbound and outbound) or arrive at outsourcing partnerships with 3PL (3rd party logistics firms). While the client could, in the beginning use his own transport owing to small scales, as the scales and the complexity of logistics increase, it is recommended for the client to explore effective 3PL partnerships. 
  • R&D partnerships – Natural gas can be used as a starting point to produce valuable products. For instance, natural gas can be converted into syngas (a mixture of CO2 and H2). Syngas is the starting point for the production of a wide variety of biofuels and chemicals, including hydrogen. In future, the client can consider producing these through effective R&D partnerships with Indian or international firms. 
  • Partnerships with NGOs and associations – Partnerships with NGOs and associations can play a significant role in enhancing the brand and credibility of the client, as well as provide excellent connections for business development
  • Investment partnerships – With sustainable energy being on the radar of almost every type of investor, developing effective partners in the investment community will assist the client in his expansion plans. Such partnerships could be either informal (providing intelligence assistance to the investment community on RNG and related domains) or formal (getting some of the key investment stakeholders on board).
  • Sales channel partnerships – This will be a critical component in business development. While the client could have a direct sales strategy in the initial stages as he is likely to be serving a few customers within a restricted geography, having a better designed sales channel strategy that utilizes both direct and indirect sales channels will be useful in later stages when the client is considering expanding his customer base within the commercial and industrial sectors, or looking at targeting select B2C sectors.

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Categories: Bio-CNG /renewable natural gas, Business Partnerships

Author - Narasimhan Santhanam


Thank you for reading this post – hope it was helpful. You can connect with me at narsi@eai.in. My detailed profile here and my LinkedIn profile here

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About EAI and BioBiz for Bio-CNG

BioBiz for bio-CNG, EAI's specialized consulting division for bio-CNG, provides assistance in market research, strategy consulting, technology vendor/supplier finder assistance and more for the complete bio-CNG value chain – feedstock sourcing, logistics, pre-processing techniques, anaerobic digestion, biogas scrubbing, biogas upgradation, end user markets for bio-CNG and digestate, and more. Send a note to consult@eai.in if you wish to take BioBiz’s assistance for the Indian bio-CNG market.

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