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26-11-2023
Bureau Report + Agencies
NEW DELHI: The Indian government has announced a strategic plan for the phased introduction of biogas blending in the domestic sector in a bid to adopt cleaner energy sources and reduce reliance on traditional fossil fuels. This initiative is a significant move towards a greener energy future for the nation and is in line with India’s commitment to sustainable development and its targets under international climate agreements.
Phased Approach to Biogas Blending
The Ministry of Petroleum and Natural Gas is set to mandate the blending of Compressed Bio-Gas (CBG) in the CNG (Transport) and PNG (Domestic) segments of the City Gas Distribution (CGD) sector. This introduction of the CBG Blending Obligation (CBO) aims to revolutionize the usage and adoption of CBG, marking a milestone in import substitution for Liquefied Natural Gas (LNG) and achieving a circular economy.
The initial phase of this plan will be voluntary until the fiscal year 2024-2025, with mandatory blending obligations commencing from 2025-26. The 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. From 2028-29 onwards, the CBG blending obligation will be 5 per cent.
Implications for India’s Energy Sector
Biogas, a renewable form of energy that can be produced from agricultural waste, sewage, and food waste, has the potential to lower greenhouse gas emissions and manage waste more effectively. The phased blending approach allows for a gradual transition, providing consumers and infrastructure the necessary time to adapt to the change.
Moreover, the introduction of biogas blending could potentially boost the rural economy by creating opportunities for local biogas production. The National Biofuels Coordination Committee (NBCC), chaired by the Union Petroleum Minister, anticipates a substantial investment of approximately Rs 37,500 crores and the establishment of 750 CBG projects by the fiscal year 2028-29.
In conclusion, the implementation of this plan not only aligns with India’s sustainability goals but also presents an opportunity for economic growth and a pathway to a green energy future.
