India's CBG Mandate Powers Green Energy Agenda

This strategic initiative aims to boost the production and consumption of Compressed Bio-Gas across the country.

November 27, 2023. By Abha Rustagi

The National Biofuels Coordination Committee, chaired by Union Petroleum Minister Hardeep Singh Puri, has announced the introduction of the CBG Blending Obligation (CBO). This strategic initiative aims to boost the production and consumption of Compressed Bio-Gas (CBG) across the country, with a focus on the CNG (Transport) and PNG (Domestic) segments of the City Gas Distribution (CGD) sector.

The CBO will transition from voluntary to mandatory blending starting from the fiscal year 2025-26.

The blending obligation will be phased in at 1 percent, 3 percent, and 4 percent of total CNG/PNG consumption for the fiscal years 2025-26, 2026-27, and 2027-28, respectively. From 2028-29 onwards, the blending obligation will be fixed at 5 percent.

The CBO aims to stimulate demand for CBG in the CGD sector, reduce reliance on Liquefied Natural Gas (LNG), contribute to Forex savings, promote a circular economy, and assist in achieving the target of net-zero emissions.

Puri highlighted that the CBO is expected to attract investments of approximately INR 37,500 crores, paving the way for the establishment of 750 CBG projects by 2028-29.

Furthermore, a significant step was taken to boost biofuels with the announcement of indicative blending percentage targets for Sustainable Aviation Fuel (SAF/Bio-ATF). These targets include 1 percent SAF blending in 2027 and a subsequent increase to 2 percent in 2028, initially focusing on international flights.

Tags:

Biomass

National Biofuels Coordination Committee

Union Petroleum Minister

Hardeep Singh Puri

CBG Blending Obligation

CNG

PNG

LNG

Sustainable aviation fuel

Biogas

Green energy