Govt makes phased blending of compressed bio-gas with CNG, PNG mandatory
The National Biofuels Coordination Committee chaired by the Union Petroleum Minister has announced the introduction of phase-wise mandatory blending of Compressed Bio-Gas (CBG) in CNG (transport) and PNG (domestic cooking) segments of the city gas distribution sector.
Petroleum and Natural Gas Minister Hardeep Singh Puri said on Saturday that the decision would encourage investment of around Rs. 37,500 crores and facilitate establishment of 750 CBG projects by 2028-29.
The key objective is to stimulate demand for CBG which will lead to reduced imports of costly Liquefied Natural Gas (LNG) and saving in foreign exchange while assisting in achieving the target of net zero emission.
It has been decided that CBG blending obligation will be voluntary till financial year 2024-2025 and mandatory blending obligation would start from 2025-26.
CBG blending obligation will be kept as 1 per cent, 3 per cent and 4 per cent of total CNG/PNG consumption for FY 2025-26, 2026- 27 and 2027-28 respectively. From 2028-29 onwards CBG blending obligation will be 5 per cent.
A Central Repository Body (CRB) will monitor and implement the blending mandate based on the operational guidelines approved by the Minister for Petroleum and Natural Gas.
Discussions also took place for promoting production of ethanol from maize with all stakeholders especially with the Department of Agriculture and Department Food and Public distribution (DFPD) to make it a prominent feedstock in coming years. It was discussed that in the last few years there has been an increase in Maize cultivation area, yield per hectare and production.
Work has been initiated by this ministry in consultation with the Department of Agriculture and DFPD to further develop high starch yielding varieties, improve quality of maize DDGS (Dried Distillers Grain Solids) by removing aflatoxins, faster registration of new seed varieties with high starch.
On Friday another important announcement was made for promoting biofuels in the country. Sustainable Aviation Fuel (SAF/Bio- ATF) initial indicative blending percentage targets were set by the committee.
Based on the comments received from the stakeholders, like MoCA, Niti Aayog and oil companies OMCs, the capacities of Sustainable Aviation Fuel plants coming up in the country and projected aviation turbine fuel sales, the following initial indicative blending percentages of SAF in ATF are approved: 1 per cent SAF indicative blending target in 2027 (Initially for International flights); 2 per cent SAF blending target in 2028 (Initially for International flights).