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Government makes biogas blending mandatory

  • Category
    Economy
  • Published
    3rd Dec, 2023

Context:

Government initiative on making Biogas blending mandatory with an aim of achieving net zero emissions targets by 2070.

Government Policy on Biofuel:

  • The government announced compulsory blending of compressed biogas, which is extracted from municipal and agriculture waste, in natural gas to cut reliance on imports.
  • Biogas Blending: Initially, 1 per cent of biogas will be blended in gas used in automobiles and household kitchens for cooking from April 2025. The share will be increased to around 5 per cent by 2028.
  • Sustainable aviation fuel (SAF): The government also plans to have 1 per cent sustainable aviation fuel (SAF) in aircraft turbine fuel by 2027, doubling to 2 per cent in 2028. The SAF targets will initially apply to international flights.
  • CBG Blending Obligation (CBO): It will promote production and consumption of Compressed Biogas (CBG) in the country.

The key objectives of the CBO

  • To stimulate demand for CBG in city gas distribution 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.
  • The CBO will encourage investment of around Rs 37,500 crores and facilitate establishment of 750 CBG projects by 2028-29.
  • The CBG blending will be voluntary till FY 2024-2025 and the mandatory blending obligation will start from FY 2025-26
  • A Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines.

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