17 July 2024 – The Hindu

Bio CNG Usage in India

• A few years ago, the Kaira District Co-operative Milk Producers Union Limited, also known as Amul Dairy, started the first fully automated bio-CNG generation and bottling plant in India’s food business, using the energy from its waste to generate the gas.
• With an expenditure of ₹230 crore, Amul is now considering the construction of four more of these new units in Banaskantha after finding success with its Bio CNG pilot project at Banas Dairy, Gujarat. Amul’s bio CNG programmes will usher in a paradigm change in favour of a circular economy.

What is Bio CNG?

• A clean-burning, sustainable transportation fuel made by converting biogas to natural gas purity is called bioCNG, or biomethane.

It is basically biogas that has been refined, produced from organic wastes such as:

• Farm waste includes manure, straw, and crop leftovers.
• Food waste: leftover scraps and spoiled food.
• Solid waste from wastewater treatment facilities is called sewage sludge.

What Advantages Does Bio CNG Offer?

• High Calorific Value: Compared to other fuels, Bio CNG may provide more energy per unit volume due to its high calorific value. This increases its economy and efficiency for a range of uses, including cooking, heating, power generation, and car fuel.
• Additionally, liquefied petroleum gas (LPG), which is more expensive and has a lower calorific value, can be substituted with bio CNG.
• Clean Fuel: Because it reduces air pollution, bio CNG is a clean fuel. Compared to petrol or diesel, it produces fewer carbon monoxide, nitrogen oxides, and particulate matter emissions.
• Because they contribute to smog, acid rain, respiratory issues, and climate change, these pollutants are bad for both the environment and human health.
• No Smoke or Residue: Bio CNG is a non-polluting fuel because it produces no smoke or residue. It doesn’t produce any carbon, tar, or ash deposits, which could harm the engine and lower its efficiency.
• Thus, compared to other conventional fuels, bio CNG is a safer and cleaner fuel.
• Economical: Since bio CNG can be manufactured locally from waste sources, it is inexpensive.
• In addition to lowering storage and transportation expenses, this can generate cash and jobs locally.
• Given that over 85% of India’s crude oil needs are imported, bio CNG can help lower the cost of energy imports.
• Because it’s less expensive and cleaner than LPG, bio CNG can also be utilised as a cooking fuel in commercial and home kitchens.
• Bio-Fertilizers: The production of bio-fertilizers using bio CNG can enhance crop productivity and soil quality. Bio-fertilizers are organic fertilisers that have added helpful microorganisms, like fungi, bacteria, and algae, to improve the availability and absorption of nutrients by plants.
• After Bio CNG is created, the slurry or digestate left over can be used to make bio-fertilizers.

How does the government see bio CNG?

• The government announced in October 2023 the implementation of a CBG mixing Obligation (CBO), which calls for the gradual mixing of compressed biogas (CBG) in the compressed natural gas (CNG) and piped natural gas (PNG) segments of the City Gas Distribution (CGD) sector.
• The nation’s production and consumption of compressed biogas will be encouraged by the CBG Blending Obligation (CBO).
• A 5% combination of biogas and natural gas will result in a USD 1.17 billion decrease in LNG imports.
• Up to FY25, the CBO will be optional; starting in FY26, blending will be required.
• CBO will continue to make up 1%, 3%, and 4% of the total amount of CNG and PNG consumed in FY26, FY27, and FY28, respectively.
• Starting in 2028–2029, CBO will be 5%.

Execution:

• The mandate’s execution will be supervised by the National Biofuels Coordination Committee (NBCC).
• The CGD firms will receive financial support and other forms of assistance from the Ministry of Petroleum and Natural Gas (MoPNG).
• It will be the duty of CGD firms to integrate CBG into their PNG and CNG networks.
• Goals: The CBO’s main goals are to increase the demand for CBG in the CGD sector, lower LNG imports, save foreign exchange, support the circular economy, and help achieve net zero emissions, among other things.
• What obstacles exist prior to the CBG Blending Obligation?
• Availability of Feedstock: Depending on the time of year, the location, and the state of the market, there may not always be a consistent and adequate quantity of raw materials available for the manufacture of CBG. The profitability and viability of CBG projects could potentially be impacted by feedstock costs.
• Under the SATAT programme, the government has established a number of incentives and subsidies for the purchase of feedstock; nevertheless, there are problems with implementation and oversight at the local level.
• Absence of Sufficient Infrastructure and Technology: It is extremely difficult to develop and implement the facilities and machinery required for the production of CBG, including as purifiers, compressors, and biogas digesters.
• Another difficulty is building and maintaining the pipelines, cylinders, dispensers, and other equipment needed for CBG distribution, storage, and transit.
• Under the SATAT scheme, the government has requested bids from investors and entrepreneurs to establish CBG facilities; nevertheless, there are obstacles to enter and exit, including high capital costs, legal requirements, technical difficulties, etc.
• Coordination and Cooperation among several Stakeholders: Creating a climate that is supportive and cooperative for the several actors—farmers, entrepreneurs, investors, regulators, consumers, etc.—involved in the CBG value chain presents challenges.
• In addition, it entails holding all parties accountable and transparent regarding matters like contractual duties, pricing policies, and adherence to quality standards.
• In order to oversee and carry out the blending mandate, the government formed the Central Repository Body (CRB). However, there might be problems with coordination and communication amongst the parties due to things like information asymmetry and conflicts of interest.
• Awareness of and acceptance of CBG as a workable alternative: The government has started a number of programmes and campaigns to inform and persuade the public and business community to adopt CBG, such as the Go Green campaign and the CBG logo. However, there may be perception and preference issues among consumers, such as mistrust, aversion to change, and inertia.

Actions the government has taken:

• Financial support from the central government to establish facilities for producing biogas or bio-CNG from waste from industry, agriculture, and cities.
• concession on customs taxes for the import of equipment and parts needed to set up pilot programmes for the production of power and bio-CNG.
• Under Swachh Bharat Mission Urban 2.0, additional Central Assistance for CBG plants based on Municipal Solid Wastes (MSW).
• Paying a fair price for CBG procurement and matching it to the CBG retail selling price.
• Guidelines for co-mingling natural gas and CBG in the CGD network to increase offtake.

What steps need to be taken in order to implement the CBG Blending Obligation (CBO) effectively?

Framework for Policy and Regulation:

• Clearly stated goals and deadlines: Make sure that the annual percentages of CNG and PNG blending are understood, and that CBG production and demand are stimulated by small increases in these percentages.
• Simplified Regulations: Make regulatory procedures for establishing CBG facilities and securing permissions more straightforward and quick.
• Financial Incentives: To encourage the production of CBG and the development of infrastructure, provide alluring subsidies, tax incentives, and feed-in tariffs.
• Developing Infrastructure and Increasing Capacity:
• Technical Support: Provide prospective CBG manufacturers with technical guidance and instruction on plant operation, quality control, and technology selection.
• Financial Support: To promote investment in CBG plants and infrastructure, provide grants and low-interest loans.
• system Integration: Provide the necessary infrastructure, including as compression and transportation facilities, to introduce CBG into the current gas system.
• Strict quality requirements should be put in place for CBG in order to guarantee its safe and effective use in PNG and CNG networks.

Conscience and the Growth of the Market:

• Campaigns for Public Awareness: Inform the public about the advantages of CBG for energy security and environmental sustainability.
• Industry Engagement: Work together to encourage the use of CBG with stakeholders such as CGD firms, automakers, and consumers.
• Technology Demonstration: To inspire trust in potential investors, highlight effective CBG projects and best practices.
• Extra Things to Think About:
• Emphasis on Rural Development: To increase income opportunities and enhance access to energy, encourage the production of CBG in rural regions.
• Encourage Feedstock Diversification: To guarantee sustainable CBG production, promote the use of a variety of feedstocks, including food waste, agricultural waste, and municipal solid waste.
• Handle Environmental Concerns: Put in place strategies to lessen the effects of CBG production on the environment, like cutting back on methane emissions and handling digestate in an environmentally friendly manner.