Government Makes Blending Of Compressed Bio- Gas in CNG, PNG Segments Mandatory
The government mandates compressed bio-gas blending in CNG and PNG segments, with blending targets for Sustainable Aviation Fuel
The government announced the mandatory blending of compressed biogas in the compressed natural gas (transport) and piped natural gas (domestic) segments of the city gas distribution sector on Saturday.
"The CBG Blending Obligation will promote production and consumption of compressed biogas in the country," said Shri Hardeep Singh Puri, Minister of Petroleum & Natural Gas and Housing & Urban Affairs.
The key objectives of the CBO are to stimulate the demand for compressed bio-gas in the city gas distribution sector, provide for an import substitution for liquefied natural gas, save forex, and assist in achieving the country's target of net zero emissions.
Shri Puri stated that the CBO will encourage a Rs 37500 crore investment and will facilitate the establishment of 750 CBG projects by 2028–29.
The inter-alia decisions were the following:
CBO will be voluntary till FY 2024-2025 and will turn into a mandatory blending obligation from FY 2025–26.
CBO shall be kept at 1%, 3%, and 4% of total CNG/PNG consumption for FY 2025–26, 2026–27, and 2027–28, respectively. The contribution will be 5% from 2028–29.
A Central Repository Body will monitor and implement the blending mandate based on the operational guidelines approved by the Minister, PNG.
Aviation Turbine Fuel
In line with promoting greater biofuels in the country, the government has also set indicative blending percentage targets for sustainable aviation fuel.
Based on the comments received from stakeholders like Niti Aayog, the oil marketing companies, etc., the capacities of upcoming sustainable aviation fuel plants, and projected ATF sales, the following targets were approved:
1% sustainable aviation fuel indicative blending target for 2027
2% Sustainable Aviation Fuel blending target in 2028
Both targets were initially set for international flights.
Ethanol Production
Discussion regarding the promotion of maize-produced ethanol also took place with stakeholders, especially the Department of Agriculture and the Department of Food and Public. The aim is to make it a prominent feedstock in the coming years.
In the last few years, discussions on increasing maize cultivation area, yield per hectare and production have taken place. Accordingly, work has been initiated by the ministry in consultation with the Department of Agriculture and the DFPD to further develop high-starch-yielding varieties, improve the quality of maize grains, and more.
