Centre announces phased introduction of biogas blending for domestic use
26/11/2023
new delhi, nov 25: India will start blending compressed biogas with natural gas to boost domestic demand and cut reliance on natural gas imports, the government said in a statement on Saturday.
The mandatory phased introduction will start at 1% for use in automobiles and households from April 2025, it said. The share of mandatory blending will then be increased to around 5% by 2028.
India, which is one of the world's largest importers of oil and gas, ships in about half of its overall gas consumption and wants to cut its imports cost.
The government also aims to have 1% sustainable aviation fuel (SAF) in aircraft turbine fuel by 2027, doubling to 2% in 2028. The SAF targets will initially apply to international flights, the statement said.
The National Biofuels Coordination Committee (NBCC), chaired by the Union Petroleum Minister, anticipates considerable investment of approximately Rs 37,500 crores and the establishment of 750 CBG projects by the fiscal year 2028-29.
The CBO will initially be voluntary until the fiscal year 2024-2025, with mandatory blending obligations commencing from the fiscal year 2025-26. The initial blending percentages for CNG/PNG consumption are set at 1 per cent, 3 per cent, and 4 per cent for fiscal years 2025-26, 2026-27, and 2027-28, respectively, read the press release.
Starting from fiscal year 2028-29, the CBO will be fixed at 5 per cent.
The Central Repository Body (CRB) will oversee and implement the blending mandate based on operational guidelines approved by the Minister for PNG. This initiative not only promotes environmental sustainability but also has the potential to transform the energy landscape by reducing dependence on conventional fuels, read the press release.
Additionally, discussions were held to promote the production of ethanol from maize. Collaboration with the Department of Agriculture and the Department of Food and Public Distribution (DFPD) aims to establish maize as a prominent feedstock in the coming years.
Efforts are underway to develop high-starch-yielding varieties, improve the quality of maize DDGS (Dried Distillers Grain Solids), and expedite the registration of new seed varieties with high starch content. Training programs for distillers in partnership with seed companies have also been initiated.
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