In a major step towards enhancing use and adoption of Compressed Bio-Gas (CBG), the National Biofuels Coordination Committee (NBCC) announced the introduction of phase wise mandatory blending of CBG in CNG (Transport) & PNG (Domestic) segments of CGD sector.
- The NBCC is chaired by Union Petroleum Minister.
- The key objectives of the CBG Blending Obligation (CBO) are to stimulate demand for CBG in CGD sector, import substitution for Liquefied Natural Gas (LNG), saving in Forex, promoting circular economy and to assist in achieving the target of net zero emission etc.
- It will encourage investment of around Rs. 37500 crores and facilitate establishment of 750 CBG projects by 2028-29.
CBG phase out plan
- CBO will be voluntary till FY 2024-2025 and mandatory blending obligation would start from FY 2025-26.
- CBO shall be kept as 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026- 27 and 2027-28 respectively.
- From 2028-29 onwards CBO will be 5%.
- A Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines approved by Minister, PNG.
What is Compressed Bio-Gas?
- Bio-gas is produced naturally (through a process of anaerobic decomposition) from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc.
- After purification, it is compressed and called CBG, which has high methane content.
- Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential.
- With similar calorific value and other properties similar to CNG, Compressed Bio-Gas can be used as an alternative, renewable automotive fuel.
- Given the abundance of biomass in the country, Compressed Bio-Gas has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.
