Smaller towns and cities struggle to manage this waste due to limited resources and infrastructure.
At the same time, people living in these communities face rising fuel costs, unreliable electricity, and declining soil health due to chemical-intensive farming practices.
What seem to be separate challenges — waste, energy, and agriculture — are in fact deeply connected and are rarely addressed together.
Carbon Loops, a climate-tech company based in Chennai, has created a decentralised waste-to-value model for small and mid-sized towns. They use modular biogas plants to turn organic waste into clean energy and nutrient-rich fertiliser.
Starting with a small 1-tonne-per-day plant at Loyola College, the model has expanded to over 30 installations across Tamil Nadu. These systems are sized to meet local needs, so towns and institutions can process waste efficiently, generate electricity, and support local farmers.
Each Carbon Loops plant keeps waste out of landfills and generates clean energy for local markets and public buildings. So far, the company has diverted 7,500 tonnes of waste and produced 55,000 cubic metres of biogas.
They also provide organic slurry to farmers as a natural fertiliser, improving soil health and reducing the need for chemical fertilisers. This circular system helps manage waste and supports local economies and jobs.
Carbon Loops is now working to scale this decentralised model across India’s underserved towns, aiming to show that waste can be a resource rather than a burden. With growing demand from municipalities and expanding processing capacity, the company is building a network of local systems to support communities in making their own clean energy, reducing environmental damage, and building stronger, more sustainable local systems.
Fund Support
IKEA Social Entrepreneurship has invested in Carbon Loops through the Take-a-Stake Fund, recognising its unique role in closing the loop between urban consumption and rural production.
This partnership will support the company in scaling its decentralised waste-to-energy solutions in underserved areas across India.