Blending of Compressed Bio-Gas in CNG made mandatory

In a major step towards enhancing use and adoption of CBG Blending Obligation (CBO), the National Biofuels Coordination Committee (NBCC), chaired by Union Petroleum Minister Hardeep Singh Puri has announced the introduction of phase wise mandatory blending of CBG in CNG (Transport) and PNG (Domestic) segments of CGD sector.

The minister said that CBG Blending Obligation will promote production and consumption of Compressed Bio-Gas (CBG) in the country.

As per the ministry, the key objectives of the CBO are to stimulate demand for CBG in CGD sector, import substitution for Liquefied Natural Gas (LNG), saving in Forex, promoting circular economy and to assist in achieving the target of net zero emission etc.

Highlighting the key outcomes of the CBO, Puri said that it will encourage investment of around Rs. 37500 crores and facilitate establishment of 750 CBG projects by 2028-29.

The committee has decided that CBO will be voluntary till FY 2024-2025 and mandatory blending obligation would start from FY 2025-26.

CBO shall be kept as 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026- 27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5%. Also, a Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines approved by Minister, PNG.

It was stated that discussions also took place for promoting production of ethanol from maize with all stake holders to make it a prominent feedstock in coming years. It was discussed that the last few years there is increase in Maize cultivation area, yield per hectare and production.

The government will 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. To further promote maize training program for distillers with seed companies has also been initiated.

As per the ministry, another important announcement was made for promoting biofuels in the country. The government has set 1% Sustainable Aviation Fuel (SAF) indicative blending target in 2027 and then 2% blending target in 2028 (Initially for International flights).