In a major step towards enhancing the use and adoption of CBG, the National Biofuels Coordination Committee (NBCC), chaired by Union Petroleum Minister Hardeep Singh Puri, has announced the introduction of phase-wise mandatory blending of CBG in CNG (transport) and PNG (domestic) segments of the City Gas Distribution (CGD) sector.

The key objectives of the CBG Blending Obligation (CBO) are to stimulate demand for CBG in the CGD sector, import substitution for Liquefied Natural Gas (LNG), saving in forex, promoting circular economy and assist in achieving the target of net zero emission etc, Ministry of Petroleum and Natural Gas said in a statement.

Highlighting the key outcomes of the CBO, Minister Puri said that it will encourage investment of around Rs 37500 crore and facilitate the establishment of 750 CBG projects by 2028-29.

A few key decisions were made in regards to the CBO by the ministry such as CBO will be voluntary till FY 2024-2025 and mandatory blending obligation would start from FY 2025-26.

CBO shall be kept as 1 pc, 3 pc, and 4 pc of total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5 pc, the ministry said.

A Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines approved by Minister, PNG.

Discussions also took place for promoting production of ethanol from maize with all stake holders especially with Department of Agriculture and Department Food and Public distribution (DFPD) to make it a prominent feedstock in the coming years.

It was discussed that in the last few years there is an increase in Maize cultivation area, yield per hectare and production. Work has been initiated by this ministry in consultation with Department of Agriculture and DFPD to further develop high starch yielding varieties, improve quality of maize DDGS (Dried Distillers Grain Solids) by removing aflatoxins, faster registration of new seed varieties with high starch.

To further promote maize training program for distillers with seed companies has also been initiated.

SAF indicative blending target

Another important announcement was made for promoting biofuels was in connection with the Sustainable Aviation Fuel (SAF/Bio-ATF) initial indicative blending percentage targets were set by the committee.

Based on the comments received from the stakeholders, like MoCA, Niti Aayog, OMCs, etc., the capacities of Sustainable Aviation Fuel plants coming up in the country and projected ATF sales, ministry said the initial indicative blending percentages of SAF in ATF are approved as 1 pc SAF indicative blending target in 2027, and 2 pc SAF blending target in 2028. Both are for the international flights initially.