The National Biofuels Coordination Committee has introduced a phased mandatory blending of compressed bio-gas (CBG) into compressed natural gas (CNG) for the transport sector and piped natural gas (PNG) for domestic use in the city gas distribution sector.
Hardeep Singh Puri, minister of petroleum and natural gas and housing and urban affairs, asserted that the CBG blending obligation (CBO) aims to boost the production and consumption of compressed bio-gas in the country. The government envisions greater adoption of CBG, emphasising key objectives such as stimulating demand in the City Gas Distribution (CGD) sector, reducing reliance on imported liquefied natural gas (LNG), forex savings, promoting a circular economy, and contributing to the goal of achieving net-zero emissions.
The minister anticipated that the CBO will attract investments of approximately ₹37,500 crore and support the establishment of 750 CBG projects by 2028-29. The CBO will initially be voluntary until 2024-2025, with mandatory blending obligations beginning in FY26.
The obligation percentages will be 1%, 3%, and 4% of total CNG/PNG consumption for FY26, FY27, and FY28, respectively, increasing to 5% from FY28-29 onwards. The Central Repository Body (CRB) will oversee and enforce the blending mandate based on operational guidelines approved by the minister.
The announcement also included discussions on promoting ethanol production from maize, with a focus on involving stakeholders such as the Department of Agriculture and Department of Food and Public Distribution (DFPD). The government has advanced its 20% ethanol blending target in petrol to 2025 from the previous goal of 2030, diversifying feedstock sources to include sugar, maize, food waste, broken food grains, and bamboo.
As reported by FORTUNE INDIA, India has achieved a 10% ethanol blending rate five months ahead of the November 2022 target. Ethanol blending in India has significantly increased, from 1.53% in 2014 to around 11.5% as of March 2023, resulting in savings in import bills and a reduction in carbon emissions.
