Context

• Petroleum Ministry has launched SATAT initiative to promote Compressed Bio-Gas (CBG) as an alternative, green transport fuel on 1^st October 2018.
• Launched in collaboration with PSU Oil Marketing Companies (OMCs), it paves way for setting up Compressed Bio-Gas (CBG) production plants by independent entrepreneurs.
• The Working Group on Biofuels, set up under the National Policy on Biofuels 2018, is in the process of finalising a pan-India pricing model for Compressed Bio-Gas.

About

The initiative is aimed at providing a Sustainable Alternative Towards Affordable Transportation.

Steps taken by government to promote this initiative:

• Government is keen to set up 5000 CBG plants in next 5 years, and for this purpose, production offtake guarantee is being given for such plants.
• There will be no restriction on the technology choice and Government is incurring Rs 75,000 crore capital expenditure for setting up infrastructure for city gas distribution network.
• The entrepreneurs would be able to separately market for other by-products from these plants, including bio-manure, carbon-dioxide, etc., to enhance returns on investment.

 Other Initiatives linked to CBG are:

• The National Policy on Biofuels 2018 emphasizes active promotion of advanced bio-fuels, including CBG.
• The Government of India had launched the GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) scheme earlier this year to convert cattle dung and solid waste in farms to CBG and compost.
• The scheme proposes to cover 700 projects across the country in 2018-19.
• The programme will be funded under Solid and Liquid Waste Management (SLWM) component of Swachh Bharat Mission-Gramin(SBM-G) to benefit households in identified villages through Gram Panchayats.
• The Ministry of New and Renewable Energy has notified Central Financial Assistance (CFA) of Rs. 4 crore per 4,800 kg of CBG per day generated from 12,000 cubic metres of biogas per day, with a maximum of Rs.10 crore per project.
  
  

  Bio-gas  • Bio-gas is produced naturally through a process of anaerobic decomposition from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc.  • After purification, Bio-Gas is compressed and called CBG, which has pure methane content of over 95%. Compressed Bio-Gas  • Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential.  • With calorific value (~52,000 KJ/kg) and other properties similar to CNG, Compressed Bio-Gas can be used as an alternative, renewable automotive fuel.  • Given the abundance of biomass in the country, Compressed Bio-Gas has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.  • Compressed Bio-Gas can be produced from various bio-mass/waste sources, including agricultural residue, municipal solid waste, sugarcane press mud, distillery spent wash, cattle dung and sewage treatment plant waste. The other waste streams, i.e, rotten potatoes from cold storages, rotten vegetables, dairy plants, chicken/poultry litter, food waste, horticulture waste, forestry residues and treated organic waste from industrial effluent treatment plants (ETPs) etc.

Significance

Present status and target:

• Currently 42 lakh households are getting PNG supply, and there is a commitment to cover 2 crore households in 300 districts by the suppliers after the implementation of 9^thround of CGD (City Gas Distribution) bids. 

Potential of CBG in India:

• The potential for Compressed Bio-Gas production from various sources in India is estimated at about 62 million tonnes per annum.

Benefits from converting agricultural residue, cattle dung and municipal solid waste into CBG on a commercial scale:

• It is a developmental effort that would benefit vehicle-users as well as farmers and entrepreneurs.
• Environmental benefit: This initiative holds great promise for efficient municipal solid waste management and in tackling the problem of polluted urban air due to farm stubble-burning and carbon emissions.
• Economic Benefit: Use of CBG will also help bring down dependency on crude oil imports and in enhancing farmers’ income, rural employment and entrepreneurship. 
• CBG is clean and cheaper mode of fuel.

• Support to national commitments in achieving climate change goals
• Buffer against crude oil/gas price fluctuations

Way forward:

• Compressed Bio-Gas networks can be integrated with city gas distribution (CGD) networks to boost supplies to domestic and retail users in existing and upcoming markets.
• Besides retailing from OMC fuel stations, Compressed Bio-Gas can at a later date be injected into CGD pipelines too for efficient distribution and optimised access of a cleaner and more affordable fuel.