In a significant move toward environmental sustainability, the Indian government has announced the mandatory blending of compressed biogas (CBG) in natural gas and set targets for sustainable aviation fuel (SAF) in aircraft turbine fuel. This initiative aims to curtail reliance on imports and reduce environmental impact by promoting renewable energy sources.
According to the government’s statement released on Saturday, there will be a compulsory blending of biogas derived from municipal and agricultural waste with natural gas used in automobiles and household kitchens. Initially set at 1 percent from April 2025, this blending will progressively increase to approximately 5 percent by 2028. This step is aligned with the broader goal of achieving net-zero emissions by 2070.
The government also intends to introduce SAF, aiming for 1 percent incorporation in aircraft turbine fuel by 2027, with a subsequent increase to 2 percent by 2028, specifically targeting international flights initially. These targets are in line with global efforts to combat climate change.
The initiative, termed as the CBG Blending Obligation (CBO), aims to bolster the production and consumption of compressed biogas across the country. It’s projected to foster a circular economy, promote import substitution for Liquefied Natural Gas (LNG), and ultimately contribute to substantial forex savings.
The implementation of CBO will encourage significant investments, estimated at around Rs 37,500 crores, and the establishment of 750 CBG projects by 2028-29. The blending obligation, initially voluntary until FY 2024-25, will become mandatory from FY 2025-26, starting at 1 percent and gradually scaling up to 5 percent by 2028-29.
A Central Repository Body (CRB) will oversee and ensure the execution of the blending mandate based on operational guidelines. Additionally, indicative blending percentage targets for SAF in aircraft fuel have been set for international flights, aiming at 1 percent in 2027 and 2 percent in 2028.
Sources By Agencies