The government has mandated the integration of compressed biogas (CBG) into the natural gas network starting from the fiscal year 2024-2025. The initiative aims to stimulate demand in the city gas distribution (CGD) sector and advance the country’s objectives towards achieving Net Zero emissions.
According to the ministry of petroleum and natural gas, CGD entities will progressively increase CBG blending obligations. Initially, blending will be voluntary in the fiscal year 2024-2025, transitioning to mandatory from the fiscal year 2025-2026 onwards, commencing at 2.5% and gradually rising to 5% by the fiscal year 2028-2029.
The memorandum emphasizes the promotion of CBG as a green fuel, ensuring its renewable origin and advocating for its monetization through a tradable green certificate system. The Petroleum Planning and Analysis Cell (PPAC) is designated as the Central Repository Body responsible for overseeing the implementation guidelines for this blending obligation.
As reported by ETEnergyworld.com, the directive from the ministry underscores its dedication to enhancing sustainable energy resources and aligning with environmental objectives. Additionally, the initiative is viewed as a strategic measure to diminish the nation’s reliance on imported fuels, thereby bolstering energy self-sufficiency and supporting the ‘Make in India’ initiative.
