Context: Recently, the Ministry of Petroleum & Natural Gas recently introduced the phase wise mandatory blending of CBG in CNG (Transport) & PNG (Domestic) segments of City Gas Distribution (CGD) sector.

About the news

• In a major step towards enhancing the use and adoption of CBG, the Government announced the introduction of phase-wise mandatory blending of CBG in CNG (Transport) & PNG (Domestic) segments of the CGD sector.

• Aim and Objective: To stimulate demand for CBG in the city gas distribution sector, import substitution for Liquefied Natural Gas (LNG), save in forex, promote the circular economy, and assist in achieving the target of net zero emission.

It was, inter-alia, decided that:

• A Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines approved by the Minister.

• CBO will be voluntary till FY 2024-2025, and mandatory blending obligation will start from FY 2025-26.

Promoting of the biofuels

• Sustainable Aviation Fuel (SAF/Bio-ATF) initial indicative blending percentage targets were set by the committee. The following initial indicative blending percentages of SAF in ATF are approved based on the comments received from the stakeholders, like MoCA, Niti Aayog, OMCs, etc.

• 1% SAF indicative blending target in 2027 ( Initially for International flights)

• 2% SAF blending target in 2028 (Initially for International flights)

• Production of Ethanol: Promoting the production of ethanol from maize with all stakeholders to make it a prominent feedstock in the coming years.

• To develop high starch-yielding varieties: It was also decided to develop and improve the quality of maize DDGS (Dried Distillers Grain Solids) by removing aflatoxins, faster registration of new seed varieties, and further promoting the maize training programs for distillers with seed companies.

What is Compressed Bio-Gas (Fuel of the Future)?

• Compressed Bio-Gas (CBG) is a mixture of hydrocarbon gases and vapours that are produced by the decomposition of plant and animal waste. 

• It is purified and compressed for use as an automotive fuel and industrial application. 

The key objectives of the CBO

• To stimulate demand for CBG in city gas distribution 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.

• The CBO will encourage investment of around Rs 37,500 crores and facilitate establishment of 750 CBG projects by 2028-29.

• The CBG blending will be voluntary till FY 2024-2025 and the mandatory blending obligation will start from FY 2025-26.

• A Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines.

Benefits of CBG

• CBG has high calorific value and other properties similar to CNG and hence can be utilised as green renewable automotive fuel. 

• Thus, it can replace CNG in automotive, industrial, and commercial areas, given the abundance of biomass available within the country.

• It will reduce the higher costs due to natural gas and crude oil imports.

• It will reduce GHG emissions and pollution levels.

• It will provide a buffer for energy security and thus reduce crude/gas price fluctuations.

• Promote the Swachh Bharat Mission and help double the farmer's income through responsible waste management.

Initiatives for Promoting CBG Production

National Initiatives

• CBO initiative taken by the Petroleum Ministry:  CBG Blending Obligation (CBO) will promote the production and consumption of Compressed Bio-Gas (CBG) in the country.

Sustainable Alternative Toward Affordable Transportation (SATAT)

• Launched by: Ministry of Petroleum and Natural Gas.

• Aim to establish an ecosystem for producing Compressed Bio Gas (CBG) from various waste/ biomass sources and promote its use along with Natural Gas.

• National Policy on Bio-Fuels 2018:  The government of India has released the National Policy on Bio-Fuels 2018, emphasising the promotion of advanced Bio-Fuels, including CBG.

• The Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) scheme: Was launched by the Government of India to convert cattle dung and solid waste in farms to Bio-CNG (CBG) and compost.

• The New National Biogas and Organic Manure Programme (NNBOMP): It promotes using biogas produced from cattle manure and other organic wastes available in rural areas.

Global Initiatives

• Policies and Framework: Western countries like Germany, Italy, the UK, France, and Switzerland promote bio-gas usage by supporting legal frameworks, education schemes, and the availability of technology.

• The World Biogas Association: It is the global trade association for the biogas, landfill gas and anaerobic digestion (AD) sectors, dedicated to facilitating the adoption of biogas globally.