The Current Contours of the Compressed Biogas

Compressed Biogas (CBG), which is similar to compressed natural gas, can play an important role in the energy mix as it has got multi-fold benefits. It can not only help in decreasing crude oil and natural gas imports for India but, at the same time, contribute to waste management from the Swacch Bharat Mission perspective. The utilization of agricultural waste, animal waste, and MSW in the manufacturing of CBG reduces emissions and pollution. Thus, in addition to providing energy security and mitigating the price volatility of fossil fuels, biogas helps to improve the rural economy by creating rural jobs and providing farmers with new sources of income. A clear political push is needed to further draw more investments into the sector and unlock compressed biogas full potential.

Technically, when organic feedstock like cattle dung, press mud, sewage waste (solid and liquid), agri-residue, etc., is subjected to anaerobic digestion, then biogas is formed, which consists of methane along with carbon dioxide and trace amounts of other gases. The biogas so produced usually has a 60% methane content and is saturated with water vapour, which is purified to a methane content of more than 90%. The resulting gas is then compressed and called “Compressed Biogas (CBG)”. It is like Compressed Natural Gas (CNG) in terms of energy content and can be similarly injected, transported, and utilized. At present, the sector is facing a few challenges like heavy investment for an economically viable plant size; lack of subsidies from the government; offtake price of CBG offered by OMCs is much lower than that of CNG; lack of an aggregator network for smooth feedstock supply chains and lack of a ready market for bulk organic fertilizer.

It is important to note that biogas plants also produce organic fertilizer, which is termed as “Fermented Organic Manure” (FOM) by the Fertilizer Corporation of India. There is often a discussion about environmental challenges and risks around biogas, like toxicity, deforestation, etc., and how we can tackle them. In fact, it is the other way around. Biogas plants treat organic waste that would otherwise end up in landfills, emitting harmful GHGs and polluting ground and surface water from the leachate. There might be issues with odours emitting from a biogas plant, but that is manageable with appropriate treatments. Concerning microbial contamination from biogas plant effluent, the anaerobic process kills the pathogens in the organic manure, and sometimes an extra pre-treatment is also thought of to make sure it is safe enough to meet FCO standards.

The present scenario depicts the participation of large industry players like Adani and RIL, which could result in the biogas sector to see over $2.5 billion in investments in the next five to seven years. There is an increasing feeling of urgency to attract investments and ensure that biomethane plants are constructed across the nation. Additional push apart from subsidy, like the SATAT Initiative, demonstrate the industry’s users, producers, and other significant businesses throughout the value chain’s interest in the immediate deployment of this renewable gas. Supporting the rapid expansion of biomethane requires lowering reliance on external gas sources, promoting climate change mitigation, and coping with an unprecedented rise in natural gas prices. Long-term investments in the introduction of sustainable biomethane will have certainty thanks to a defined legal framework.

The biogas industry can not only help reduce waste landing at landfill sites by almost 50 per cent but also help India save over 130 USD billion imports of fossil fuels after the SATAT target is achieved. The per capita generation of waste in India goes up to 0.6 kg, out of which roughly 50 per cent is organic in nature and can be potentially diverted to biogas plants. CBG can be a boon for the Government, Farmers as well as for the citizens of the country. It offers huge environmental benefits and health to the natives of the country.

- Dr. A R Shukla, President, Indian Biogas Association