In an attempt to boost the utilisation and adoption of compressed biogas (CBG), the National Biofuels Coordination Committee has announced a phase-wise, compulsory integration of CBG into both, compressed natural gas (CNG) for transportation and piped natural gas (PNG) for domestic segments within the city gas distribution sector. The minister of petroleum and natural gas highlighted that the compressed biogas blending obligation (CBO) aims to encourage the generation and utilisation of CBG across the nation.
The main goals of the CBO include boosting CBG demand in the city gas distribution (CGD) sector, replacing imported liquefied natural gas, achieving forex savings, fostering a circular economy, and contributing to the attainment of net-zero emissions targets, among other objectives. This initiative is expected to attract investments totaling Rs 375 billion and pave the way for the development of 750 CBG projects by fiscal year (FY) 2028-29. The minister has further emphasised that CBO would remain optional until the FY 2024–2025 and that blending obligations will become mandatory beginning from FY 2025-2026. For the FYs 2026, 2027, and 2028, the CBO will be set at 1 per cent, 3 per cent, and 4 per cent of the overall consumption of CNG or PNG, respectively. The CBO will increase to 5 per cent starting from FY 2028-29. A Central Repository Body will oversee and enforce the blending mandate in accordance with the operational guidelines sanctioned by the minister.
Aiming to establish ethanol as a significant feedstock in the upcoming years, the Indian government is in discussions with all stakeholders, particularly the Department of Agriculture and the Department of Food and Public Distribution (DFPD), on encouraging the production of ethanol from maize. It was deliberated that in recent years, there has been a rise in the cultivation area, yield per hectare, and overall production of maize. The ministry, in collaboration with the Department of Agriculture and DFPD, has undertaken efforts to enhance the development of high-starch-yielding varieties, enhance the quality of maize dried distillers grain solids by eliminating aflatoxins, expedite the registration process for new seed varieties with high starch content. Additionally, a training programme for distillers in partnership with seed companies has been initiated to further promote maize.
To advance the adoption of biofuels in the nation, the committee established initial indicative blending percentage targets for sustainable aviation fuel (SAF). The government has sanctioned an indicative blending target of 1 per cent in SAF for international flights by 2027 and a 2 per cent SAF blending target for international flights by 2028.
