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5 Percent Biogas Blend to Cut USD 1.17B in LNG Imports: IBA

The CBO scheme is expected to attract investments of around INR 37,500 crore, facilitating the establishment of at least 750 compressed bio gas (CBG) projects by 2028-29.

December 04, 2023. By Abha Rustagi

A recent study conducted by the Indian Biogas Association (IBA) suggests that implementing a 5 percent blending of biogas with natural gas supplies in the country could result in an annual reduction of LNG imports by USD 1.17 billion. This proposal aligns with the government's compressed biogas blending obligation (CBO) scheme, which mandates a 1 percent biogas blend with piped natural gas (PNG) supplies starting April 1, 2025.

The IBA's analysis indicates that extending the biogas blending to 5 percent by the fiscal year 2028-29 could not only achieve substantial savings but also contribute to a 2 percent decrease in per capita CO2 emissions, based on 2019 figures.

The study highlights that preventing organic waste from reaching landfills can have numerous positive outcomes. The CBO scheme is expected to attract investments of around INR 37,500 crore, facilitating the establishment of at least 750 compressed bio gas (CBG) projects by 2028-29.

By blending biogas with PNG and CBG, the dependence on imported natural gas can be significantly diminished.

Furthermore, the study suggests a positive correlation between biogas blending and agricultural income growth. Large-scale biogas plants can convert nearby areas into organic agriculture, potentially benefiting farmers and stakeholders involved in biogas production.

The IBA emphasises that a smoother market for biofuels will foster increased investor confidence, ultimately benefiting the entire ecosystem.

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Compressed biogas plant

Indian Biogas Association