Compressed Bio-Gas blending with Compressed Natural Gas

The Government of India has initiated a policy to blend Compressed Bio-Gas (CBG) with Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in City Gas Distribution (CGD) areas. This policy was announced by the Union Minister of Petroleum and Natural Gas and Housing and Urban Affairs, Hardeep Singh Puri.

Here’s a simplified overview of the plan:

1. Voluntary Blending in 2024-25: Initially, in the financial year 2024-25, the blending of CBG with CNG and PNG will be voluntary. This means that gas distributors can choose to blend CBG with CNG and PNG, but it’s not a requirement.

2. Mandatory Blending from 2025-26: Starting from the financial year 2025-26, it will be mandatory for distributors to blend CBG with CNG and PNG. This obligatory blending will begin with a 1% blend in the initial year.

3. Gradual Increase in Blending Percentage: Over the following years, the mandatory blending percentage will increase gradually. It will be 3% in 2026-27, 4% in 2027-28, and reach 5% in 2028-29.

4. Objectives of CBG Blending Obligation (CBO): The CBO policy aims to promote the production and use of CBG in India. The objectives include increasing the demand for CBG, saving foreign exchange by reducing import dependency, promoting a circular economy, and contributing to the goal of net-zero emissions.

5. National Biofuels Coordination Committee’s Role: The decision for mandatory blending was taken by the National Biofuels Coordination Committee, which is chaired by Union Minister Hardeep Singh Puri. The committee’s announcement came on November 24.

This policy reflects India’s ongoing efforts to transition to cleaner energy sources and its commitment to environmental sustainability and energy self-sufficiency.