Compressed Biogas

The sugarcane industry powers India's compressed biogas (CBG) initiatives by converting waste into high-energy fuel. With extensive biomass projects and government-backed schemes, it significantly contributes to sustainable transportation, reduces greenhouse gas emissions, and supports the nation’s shift towards cleaner, renewable energy sources.

CBG: Moving the Nation Towards a Greener Tomorrow

Compressed Biogas (CBG) is a sustainable product derived from sugarcane, transforming organic waste into a high-energy fuel that can replace conventional fossil fuels in vehicles.

Through the process of anaerobic digestion, organic waste such as cattle dung and municipal solid waste is converted into biogas. When this biogas is compressed, it produces CBG with a calorific value of approximately 52,000 KJ/Kg, making it a viable alternative to petrol and diesel with necessary engine modifications.

India’s CBG Landscape & Ambitious Energy Goals

India currently imports nearly 77% of its crude oil requirements and about 50% of natural gas requirements. The Government of India has set a target of reducing this import by at least 10% by 2022.

Further, it has set a target of increasing the contribution of gas in India’s energy mix from existing 6.5% to 15% by 2022 (global average is 23.5%). According to estimates, the country has potential to produce 32 million tonnes of CBG of which currently, only 0.06% of CBG is being produced. The research on biogas purification and its utilisation as a vehicular fuel and power production is getting focused attention.

Strategic Steps

Compressed Biogas Goals

Immediate Goals (1-2 Years)

Within the next 1-2 years, the focus is on reducing India's dependency on imported crude oil and natural gas. The government aims to cut crude oil imports by at least 10% and increase the contribution of gas in India's energy mix from 6.5% to 15%. Achieving these targets will enhance energy security and reduce the vulnerability from heavy import reliance.

Mid-Term Goals (3-5 Years)

Over the next 3-5 years, the goal is to significantly increase Compressed Biogas (CBG) production. This involves establishing 5,000 CBG plants with an investment of ₹1700 billion under the SATAT scheme, aiming for an annual production of 15 million metric tonnes of CBG and 50 million metric tonnes of bio-manure. Efforts will also be made to utilise agricultural residue, cattle dung, and municipal solid waste for CBG production, improving waste management and addressing air quality issues by providing a green solution to stubble burning.

Long-Term Vision (5+ Years)

The long term vision focuses on achieving environmental and economic sustainability. This includes reducing pollution and carbon emissions, contributing to climate change goals, providing additional revenue sources for farmers, creating rural employment opportunities, and enhancing energy security. Research in biogas purification and its use in fuel and power production will be promoted. The aim is to develop a green energy corridor in the transport sector by promoting bio-CNG as an alternative to CNG, fostering sustainable transportation and generating employment opportunities.

Acts & Orders

The Indian government has enacted measures to support CBG and bioenergy growth. The SATAT scheme promotes CBG use in transportation, while an upcoming 5% CBG mandate will require natural and biogas marketers to include CBG. Tax relief on CBG prevents tax cascading by exempting excise duty on GST-paid CBG. Bio Manure from CBG is classified under the fertiliser category for retail sale. The National Mission on Biomass in Thermal Power Plants aims to reduce air pollution and support the energy transition by using biomass in power generation.

Campaigns

India's commitment to bioenergy is evident in several campaigns. Mission Innovation 2.0, in collaboration with the US, focuses on innovating sustainable aviation fuel, including biofuel. The development of hydrogen-blended CNG (HCNG) as a transition technology includes trial runs of 50 buses. ISMA’s engagement with the World Biogas Association accelerates CBG and pressmud development through participation in global forums.