Compressed Biogas, or CBG, is a renewable energy source produced from organic waste materials, including agricultural waste, municipal solid waste, and sewage. The primary component of CBG is methane, similar to natural gas, making it an excellent substitute for fossil-based gases.
How will the CBG Blending Obligation (CBO) be implemented?
The CBO will be phased in gradually, starting voluntarily until the fiscal year 2024-2025. From the fiscal year 2025-26, it becomes mandatory, with set percentages for blending CBG with CNG and PNG—1% in 2025-26, 3% in 2026-27, 4% in 2027-28, and 5% from 2028-29 onwards.
Why is the government implementing the CBO?
The CBO aims to reduce India’s dependence on imported Liquefied Natural Gas (LNG), promote the use of renewable energy, enhance the circular economy, and contribute to the nation’s commitment to achieving net-zero emissions. It’s also intended to stimulate investment in the CBG industry.
What are the expected benefits of CBG blending?
Blending CBG into CNG and PNG is expected to offer several benefits, including a reduction in greenhouse gas emissions, promotion of waste-to-energy projects, saving in foreign exchange by reducing LNG imports, and supporting the establishment of a domestic CBG industry.
How will CBG production be stimulated?
The Indian government plans to encourage the production and consumption of CBG by providing policy support and potentially financial incentives for new CBG projects. This includes the establishment of 750 CBG projects by 2028-29, stimulating investment and creating new employment opportunities in the sector.
Will there be any monitoring mechanism?
A Central Repository Body (CRB) will be established to monitor and implement the blending mandate. This body will ensure adherence to the prescribed blending percentages and facilitate the smooth integration of CBG into the nation’s gas network.
How does this initiative align with global environmental goals?
The CBG Blending Obligation aligns with global efforts to combat climate change and reduce carbon emissions. By promoting the use of renewable energy sources like CBG, India is taking a significant step towards sustainability and environmental protection.
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