Harnessing the Power of Compressed Biogas (CBG): Revolutionising India's Energy Landscape

In the global pursuit of sustainable and clean energy alternatives, Compressed Biogas has emerged as a frontrunner. Commonly known as CBG, Compressed Biogas is a type of biofuel produced through the anaerobic digestion or biomass gasification of residue materials such as agricultural waste, and municipal waste etc. Generated from organic waste, CBG presents a viable solution to the burgeoning environmental crisis i.e. Mountains of Municipal Solid Waste and its impact on climate change. The production and utilisation of CBG is expected to contribute significantly towards mitigating climate change. The climate-positive impact and CBG’s potential to reduce emissions have been highlighted in multiple discussions on global environmental strategies. Even the organic waste used in CBG production, which are transformed into a valuable energy resource, would have otherwise decomposed and emitted methane, a potent greenhouse gas.
 
In India, CBG production will play an important role, going forward. The organic waste used in CBG production are abundant in the country and when harnessed effectively, can significantly contribute to reducing carbon and other emissions. The combustion of CBG is also known to result in lower emissions of pollutants compared to traditional fossil fuels. The potential role of CBG in India's Nationally Determined Contributions (NDCs) against climate change is evident. This aligns with India's overarching strategy to transition towards cleaner energy sources while ensuring energy security.
 
It is imperative to understand that one of the primary applications of CBG lies in the transportation sector, which has been in conversation, due to its extensive dependence on fossil fuels. CBG can be used as an alternative to conventional fuels like petrol and diesel, helping reduce the carbon footprint of vehicles. The biofuel potential of CBG especially holds exceptional promise for India's transportation sector, and we can envision a future where CBG will play a significant role in reducing the carbon footprint of vehicles.
 
In addition, CBG is a versatile energy source that has myriad other uses. In the Indian agricultural sector, energy generated through CBG can be used to power machinery and equipment, providing a clean energy alternative for farming operations. Industries can leverage CBG as an energy source for various processes, fostering more sustainable production methods. CBG's versatility makes it suitable for a range of industrial applications. CBG can play a crucial role in Indian households by providing a cleaner option for cooking and heating. And lastly, but not the least, CBG can be harnessed for power generation, offering a clean energy source for electricity production and aligning with India’s push towards a diversified energy mix, while addressing the country’s growing energy demands.
 
Furthermore, the benefits of CBG are not limited to just being environment friendly, its production fosters economic growth and social well-being globally. In India, the economic advantages associated with CBG can range from job creation, income generation and local development, to becoming an answer to India’s chronic waste problem, including both agriculture and municipal waste.
 
In 2018, Government of India launched the Sustainable Alternative Towards Affordable Transportation (SATAT), towards promotion and adoption of CBG in the country. Earlier this year, Union Minister of Petroleum & Natural Gas and Housing & Urban Affairs Shri Hardeep Singh Puri shared an update on India’s growth, with 46 CBG plants under SATAT being commissioned and 100 outlets currently dispensing CBG across India.
 
The Government of India has been proactive in promoting CBG as a key component of its sustainable energy strategy. The Union Budget 2023 included CBG as an important aspect and announced 200 CBG plants that included 75 plants in urban areas, as well as 300 community plants while allocating INR 10,000 crore towards the same. The Government’s commitment towards compressed biogas was further emphasised when it introduced a 5% CBG mandate for all natural gas and bio-gas marketing companies in India. It also mandated City Gas Distribution (CGD) companies to include blending of CBG with Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in a phased manner between FY 2025 – 26 till FY 2028 – 29.
 
As per report by International Renewable Energy Agency (IRENA), the biogas industry generated 85,000 jobs in India in 2022.
 
While the potential of CBG as a clean energy source is significant, challenges exist. Technical, financial and regulatory barriers may hamper the widespread adoption of CBG in India. Other challenges that have raised cause of concern are scaling of production and inclusivity of stakeholders. There is need of a holistic approach by the Government, which involves active and long-term collaboration between the Government and the public & private sectors.
 
Compressed Biogas (CBG) is poised to be at the forefront of the shift in India’s energy landscape, and with its environmental friendliness and diverse applications of biofuel, CBG presents a convincing case. As we navigate the complexities of energy transition, CBG is not just a fuel source but stands as a symbol of India's determination and commitment towards creating a greener, more resilient, and energy-secure tomorrow. With a robust regulatory framework, Government mandates and schemes, and a focus on indigenous technological innovations, CBG can embody India's vision for a cleaner and more sustainable energy future. It is not merely a technological innovation but can become a catalyst for positive environmental, economic, and social change in the country.
 

- Sanjay Shende, Deputy Managing Director, Mahanagar Gas Limited