Government Makes Biogas Blending Mandatory
Compressed biogas will encourage investment of around Rs 37,500 crore, a government statement said.
The government on Saturday announced compulsory blending of compressed biogas, which is extracted from municipal and agriculture waste, in natural gas to cut reliance on imports.
Initially, 1% of biogas will be blended in gas used in automobiles and household kitchens for cooking from April 2025, a government statement said. The share will be increased to around 5% by 2028.
The government also plans to have 1% sustainable aviation fuel in aircraft turbine fuel by 2027, doubling to 2% in 2028. The SAF targets will initially apply to international flights, the statement said.
This is in line with the aim of achieving net zero emissions targets by 2070. "CBG Blending Obligation will promote production and consumption of Compressed Biogas in the country," it said.
The key objectives of the CBO are to stimulate demand for CBG in the city gas distribution sector, import substitution for liquefied natural gas, 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 crore and facilitate establishment of 750 CBG projects by 2028–29, the statement said.
The CBG blending will be voluntary till financial year 2025 and the mandatory blending obligation will start from fiscal 2026.
"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%," the statement said.
A Central Repository Body shall monitor and implement the blending mandate based on the operational guidelines. Also, sustainable aviation fuel initial indicative blending percentage targets were set.
"Based on the comments received from the stakeholders, the capacities of Sustainable Aviation Fuel plants coming up in the country and projected ATF sales, the following initial indicative blending percentages of SAF in ATF are approved—1% SAF indicative blending target in 2027 (initially for international flights), 2% SAF blending target in 2028 (initially for international flights)," the statement said.
