Uttar Pradesh leads in compressed biogas potential

Uttar Pradesh holds a remarkable position in India's renewable energy landscape, with the potential to generate 24 percent of the nation’s compressed biogas (CBG), according to a report by the Delhi-based think tank Centre for Science and Environment (CSE).

Key-highlights of the Symposium

• CBG Potential: Uttar Pradesh could potentially install 1,000 CBG projects from the 5,000 plants envisioned nationwide under the Sustainable Alternative Towards Affordable Transportation scheme.
• Feedstock Availability: Western UP, particularly Muzaffarnagar, Meerut, Saharanpur, Bijnor, Bulandshahar, and Aligarh, is rich in feedstock availability and houses the majority of the state’s functional and upcoming CBG plants.
• Supportive Policies: Uttar Pradesh has an ambitious bioenergy policy, allocating Rs 750 crore (2022-27) for CBG, while providing subsidies, land for lease, and other incentives.

Reason behind UP’s significant growth

• Potential and Policies: Uttar Pradesh's significant potential for CBG production is supported by its bioenergy policy, which includes financial incentives and infrastructural support.
• Feedstock Abundance: The state’s agricultural and industrial landscape offers abundant feedstock, essential for CBG production.
• Strategic Location: Proximity to feedstock sources and existing CBG plants facilitates the state’s leadership in this sector.

Challenges Faced

• Limited Offtake of Bioslurry: Bioslurry, a by-product of CBG production, is often viewed as a disposal problem rather than a revenue source.
• Partial Gas Offtake: Oil and gas marketing companies' inconsistent purchasing leaves many plants operating below capacity.
• Lack of Skilled Personnel: Operational inefficiencies stem from a shortage of trained technical personnel in biogas systems.
• Financing Difficulties: Banks are hesitant to finance CBG projects due to perceived risks and low margins, requiring high collateral and offering high interest rates.

Required Measures

• Enhanced Awareness and Utilization of Bioslurry: Educate farmers and other stakeholders about the benefits of bioslurry to transform it into a valuable resource.
• Consistent Gas Purchasing: Establish agreements with oil and gas companies to ensure consistent offtake of CBG, improving plant viability.
• Training Centres for CBG Operations: Establish dedicated training centres to develop skilled personnel for the biogas sector.
• Government-Backed Financing: Introduce a government-backed guarantee programme to ease financing hurdles and encourage investment in CBG projects.
• Diversification of Feedstock Sources: Encourage the use of varied feedstock sources, including liquid effluents like spent wash from distilleries, to enhance sustainability.

Mains Practice Question

Q: “Discuss the potential and challenges of compressed biogas (CBG) production in Uttar Pradesh, and suggest measures to overcome these challenges to maximize the state’s bioenergy capabilities.”