Government mandates blending of CBG in CNG and PNG

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 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.