The proposed five percent blending of biogas with natural gas in India, as suggested by the Indian Biogas Association (IBA), has the potential to result in an annual reduction of LNG imports amounting to $1.17 billion, according to a recent study. This recommendation aligns with the government’s initiative to mandate a 1% biogas blend with piped natural gas (PNG) starting April 1, 2025, under the compressed biogas blending obligation (CBO) scheme, with plans to increase the blending to 5% by the fiscal year 2028–29.
The study highlights that this blending strategy is consistent with the government’s broader goal of transitioning India into a gas-based economy, aiming to raise the current 6% share of gas in the energy mix to 15% by 2030. The IBA’s estimates indicate that a 5% blending of biogas with natural gas could lead to a substantial reduction in LNG imports, saving $1.17 billion annually. Additionally, this initiative has the potential to decrease per capita CO2 emissions by 2%, based on the 2019 benchmark of 1.9 metric tons of CO2 per person in India.
The study emphasises the manifold benefits of diverting organic waste away from landfills. The CBO scheme is expected to drive investments of approximately ₹37,500 crore and foster the establishment of at least 750 compressed bio gas (CBG) projects by 2028–29, as per government projections.
This move is poised to enhance India’s energy security, particularly given its current heavy reliance on imported natural gas to meet energy demands. The integration of biogas with PNG and CBG offers a promising avenue to reduce this dependence.
Furthermore, biogas blending could positively impact agricultural income growth, akin to the case of ethanol. Each additional large-scale biogas plant has the potential to convert nearly 1,000 acres of nearby biogas plant area into opportunities for organic agriculture. As reported by ZEEBUSINESS, biogas production from diverse organic waste sources, including agricultural waste, municipal solid waste, and food waste, opens up new economic prospects for farmers, waste management companies, and other stakeholders involved in the biogas production chain.
