The Indian Biogas Association (IBA) has recommended that the Delhi Government consider blending up to 20% compressed biogas (CBG) with compressed natural gas (CNG) to accelerate the transition toward cleaner urban mobility. According to the industry body, such a move could significantly reduce emissions and bring Delhi’s gaseous transport segment close to carbon neutrality.
In its submission on the Draft Delhi Electric Vehicle Policy, the IBA emphasized that while electric vehicle (EV) adoption is gradually increasing, its overall penetration in the vehicle fleet remains limited. Today, CNG continues to be a practical and cleaner alternative, given its low particulate emissions and comparatively lower nitrogen oxide levels than diesel-powered vehicles.
IBA said that Delhi already has a well-established CNG ecosystem, including pipelines, fuelling stations, and a large base of vehicles. This existing infrastructure can be leveraged to scale up the use of CBG, a carbon-negative fuel derived from agricultural residue, municipal solid waste, cattle dung, and food waste.
The IBA noted that blending 20% CBG in CNG could substantially cut emissions. It added that 1 MMSCMD of CBG can fuel nearly 3.5 lakh vehicles. With around 7 lakh vehicles being added annually in Delhi, about 2 MMSCMD of CBG could meet the fuel demand of all new vehicles. However, current CBG capacity under development stands at only 0.07 MMSCMD, indicating a significant gap.
To address this, the IBA has proposed phased blending targets, starting from 5–10 per cent and gradually increasing to 20 per cent and beyond, alongside a systematic phase-out of high-emission diesel vehicles.
IBA Chairman Gaurav Kedia stated, “Delhi has a huge opportunity to develop one of the strongest and lowest-carbon urban mobility systems in the world, combining EVs with CNG and CBG fuels. In fact, replacing 20 per cent of imported CNG with domestically produced CBG in Delhi can result in foreign exchange savings of at least USD 63 million on equivalent gas imports.” The IBA Chairman added that it would also addressing stubble burning, enhancing energy security, and generating employment.
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