Compulsory bio gas blending in LNG, CNG from 2025

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The government on Saturday announced compulsory blending of compressed biogas extracted from municipal and agriculture waste, in natural gas. Initially, 1 per cent of biogas will be blended in gas used in automobiles and household gas from April 2025, a government statement said. The share will be increased to around 5 per cent by 2028. The government also plans to have 1 per cent sustainable aviation fuel (SAF) in aircraft turbine fuel by 2027, doubling to 2 per cent in 2028. The SAF targets will initially apply to international flights.  This is in line with the aim of achieving net zero emissions targets by 2070. “CBG Blending Obligation (CBO) will promote production and consumption of Compressed Biogas (CBG) in the country,” it said.

“The key objectives of the CBO are to stimulate demand for CBG in city gas distribution sector, import substitution for Liquefied Natural Gas (LNG), saving in forex, promoting circular economy and to assist in achieving the target of net zero emission.

The CBO will encourage investment of around Rs 37,500 crores and facilitate establishment of 750 CBG projects by 2028-29, the statement said.

The CBG blending will be voluntary till FY 2024-2025 (April 2024 to March 2025) and the mandatory blending obligation will start from FY 2025-26.

Also, Sustainable Aviation Fuel (SAF/Bio- ATF) initial indicative blending percentage targets were set. “Based on the comments received from the stakeholders, the capacities of Sustainable Aviation Fuel plants coming up in the country and projected ATF sales, the following initial indicative blending percentages of SAF in ATF are approved – 1 per cent SAF indicative blending target in 2027 (initially for international flights), 2 per cent SAF blending target in 2028 (initially for international flights),” the statement added. — PTI