The Government of India has taken In a major step towards enhancing the use and adoption of biomethane aka renewable natural gas (RNG). The National Biofuels Coordination Committee (NBCC), chaired by the Union Petroleum Minister announced on November 24, 2023, the introduction of phase-wise mandatory blending of biomethane in compressed natural gas (CNG) for transportation as well as domestic segments of the City Gas Distribution (CGD) sector.
The key objectives of the CBG Blending Obligation (CBO) are to stimulate demand for bioCNG in the CGD sector, import substitution for Liquefied Natural Gas (LNG), saving on foreign exchange, promoting circular economy and assist in achieving the target of net zero emissions.
CBO will be voluntary till FY 2024-2025 and then become a mandatory blending obligation that would start from FY 2025-26.
CBO shall be kept as 1 percent, 3 percent, and 4 percent of total CNG/CGD consumption for FY 2025-26, 2026- 27, and 2027-28 respectively.
From 2028-29 onwards CBO will be 5 percent.
A Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines approved by the Minister.
The CBG Blending Obligation (CBO) will promote the production and consumption of Compressed Bio-Gas (CBG) in the country, said Shri Hardeep Singh Puri, Minister of Petroleum & Natural Gas and Housing & Urban Affairs.
Highlighting the key outcomes of the CBO, Minister Shri Puri said that it will encourage investment of around INR 30 billion (≈ US 359.8 million) and facilitate the establishment of 750 biomethane projects by 2028-29.
Promote ethanol production
Discussions also took place for promoting the production of ethanol from maize with all stakeholders especially with the Department of Agriculture and Department of 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 the quality of maize DDGS (Dried Distillers Grain Solids) by removing aflatoxins, faster registration of new seed varieties with high starch.
To further promote maize training program for distillers with seed companies has also been initiated.
Indicative blending of SAF
In a separate announcement, the committee approved initial indicative blending percentage targets for sustainable aviation fuel (SAF).
Based on the comments received from the stakeholders, like MoCA, Niti Aayog, OMCs, etc, the capacities of SAF plants coming up in the country, and projected aviation fuels sales, the following initial indicative blending percentages of SAF initially for international flights:
- 1 percent SAF indicative blending target in 2027
- 2 percent SAF blending target in 2028