Ministry of Petroleum and Natural Gas unveils compulsory compressed bio-gas blending, heralding a shift towards sustainable energy, cost savings, and a circular economy, impacting gas consumption
In a decisive move towards sustainable energy practises, the Ministry of Petroleum and Natural Gas announced the mandatory blending of Compressed Bio-Gas (CBG) in the CNG (transport) and PNG (domestic) segments of the City Gas Distribution (CGD) sector.
The Ministry's press release asserts that introducing the CBG Blending Obligation (CBO) could revolutionise the usage and adoption of CBG, marking a significant step towards substituting Liquefied Natural Gas (LNG) imports and achieving a circular economy.
Hardeep Singh Puri, the Minister of Petroleum and Natural Gas and Housing and Urban Affairs, underscored the pivotal role of CBO in stimulating CBG demand, saving Forex, and contributing to achieving net-zero emissions.
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.
The CBO will initially be voluntary until the fiscal year 2024-2025, with mandatory blending obligations commencing from 2025–26. According to the press release, the initial blending percentages for CNG/PNG consumption are set at 1 percent, 3 percent, and 4 percent for fiscal years 2025–26, 2026–27, and 2027–28.
From the fiscal year 2028–29, the Ministry for PNG will fix the CBO at 5 percent. The Central Repository Body (CRB) will oversee and implement the blending mandate according to 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.
Simultaneously, there were discussions to promote the production of ethanol from maise. The aim of the collaboration of the Department of Agriculture and the Department of Food and Public Distribution (DFPD) is to establish maise as a prominent feedstock in the coming years.
Efforts are underway to develop high-starch-yielding varieties, improve the quality of maise DDGS (Dried Distillers Grain Solids), and expedite the registration of new seed varieties with high starch content. Training programmes for distillers, in partnership with seed companies, are also underway.
In a parallel announcement, the committee set initial indicative blending percentage targets for Sustainable Aviation Fuel (SAF/Bio-ATF). These targets align with the country's commitment to biofuel promotion.
The approved targets include a 1 percent SAF indicative blending target for international flights in 2027, escalating to a 2 percent SAF blending target in 2028 for international flights. These targets signify a strategic move towards greener aviation practises, reflecting India's commitment to sustainable, eco-friendly air travel.
As India aims to add 500 GW of clean energy to its output by 2030, the renewable gas revolution is also stepping up a green roadmap for the country.