Indian Oil plans to sell biogas at its retail outlets

IOC plans giving a big boost to the compressed biogas business by procuring biogas from across India and selling it at its retail outlets, as part of India’s strategy to reduce dependence on imported fuel and double farm income by 2022.

Biogas, produced naturally through anaerobic decomposition from waste or biomass sources like agriculture residue, cattle dung, sugarcane press mud and solid waste, also provides an additional source of income to farmers. The company has already issued 200 letters of intent out of 250 issued by all public sector undertakings put together for supply of gas in 250 kg cascades at a price of Rs 48/kg for a distance of 50 km.

The government plans to set up around 5,000 compressed biogas plants by 2022, producing 15 million tonne or 40 per cent of India’s current annual consumption of compressed natural gas of 44 million tonnes.

GET ACCESS TO OUR ARTICLES

Enter your email address