Boosting India's Energy Self-Reliance with Biogas: A Promising Green Path

Liquefied natural gas (LNG) imports into India are expected to rise significantly in 2024, according to forecasts, by a significant 7 to 8 percent annually. According to an internal study conducted by the Indian Biogas Association (IBA), the government of India recently proposed blending 5 percent of biogas with natural gas supplies in the country. This move could reduce the possibility of imports and help the country become self-reliant by cutting LNG imports worth USD 1.17 billion annually. Under the compressed biogas blending obligation (CBO) program, the government announced to mix one percent of biogas with piped natural gas (PNG) supply in the nation starting on April 1, 2025. It is suggested that the percentage of biogas mixing be raised to 5 percent by the fiscal year 2028–2029.

The government's macro-level strategy to transform India into a gas-based economy, which aims to raise the proportion of gas in the energy mix from 6 percent to 15 percent by 2030, is well aligned with this blending initiative. According to government estimates, the CBO initiative will assist the creation of at least 750 compressed biogas (CBG) projects by 2028–29 and promote investment of approximately INR 37,500 crore.

As is the case with bio-ethanol, biogas blending has the potential to show a favourable link with development in agricultural income too. Almost 1,000 acres of adjacent biogas plant territory can be turned into organic agriculture with each new large-scale plant, potentially lowering the need to import chemical fertilizer. Numerous organic waste sources, including food waste, municipal solid waste, and agricultural waste, can be converted into biogas. For farmers, waste management companies, and other stakeholders involved in the whole value chain, this means new financial potential!

The flagship scheme of MoPNG, named Sustainable Alternative Towards Affordable Transportation (SATAT), talks about the production of 15 Million Metric Tons Per Annum (MMTPA) of bio-CNG, whereas the total potential from feedstocks like cattle dung and chicken litter, agriculture residue, press mud, spent wash and bagasse, municipal solid waste, and others can boost the figure further to 60 MMTPA of bio-CNG.

A proper strategy is required to leverage biogas for self-reliance for resource mobilization, investment in R&D, and policy and economic support for the sector. The G20 summit concluded last year in New Delhi also saw the formation of the Global Biofuels Alliance, which is an India-led initiative. It aims to develop an alliance of governments, international organizations, and industry to promote the adoption of biofuels, including biogas. In other words, it also means that the traditional thought of imagining energy as an equivalent to electrical power is being changed to energy as a whole!

There are already quite important developments from the government side, including state-specific subsidies in addition to central financial assistance from MNRE, like in Uttar Pradesh, the indexing of the CBG price under the SATAT initiative, Market Development Assistance to Bio and Organic Fertilizers, including FOM, putting biogas under ‘Priority Sectors Lending,’ and relaxed recognition of the pollution control board, to name a few. 

India's commitment to bioenergy is growing, and the year 2024 is likely to play a crucial role in accelerating the country's transition to a renewable future.

Additionally, Incentives for energy efficiency programs to choose bioenergy, carbon pricing mechanisms to encourage the adoption of bioenergy, steps to address transmission and distribution problems for biogas through pipelines, and a SATAT-like scheme for biofertilizer are some other important areas that India needs to push/focus on to become self-reliance.

- Gaurav Kedia, Chairman, Indian Biogas Association