Context: Union Finance Minister Nirmala Sitharaman has allocated Rs 10,000 crore towards setting up 200 compressed bio-gas (CBG) plants and 300 community and cluster-based plants. Bio-CNG, also known as Compressed Biogas (CBG), came on the Government agenda only in 2018 when the Ministry of Petroleum and Natural Gas (MoPNG) launched Sustainable Alternative towards affordable transportation (SATAT).

About Bio-CNG

BIO CNG is the purified form of Biogas. Biogas is processed to get 95% pure methane gas. Bio CNG is exactly similar to the commercially available natural gas (CV: ~52000 KJ/Kg) in its composition and energy potential. The process residue is a high quality concentrated liquid fertilizer. Reasonably profitable due to multiple revenue streams for Bio-CNG , food grade CO2 and organic liquid as well as solid fertilizer.

What Needs to Done?

The successful deployment and functioning of the CBG plant need careful site selection or consideration of certain parameters. Which are listed below.

1. Feedstock Supply

The source of feedstock for CBG production plays a pivotal role. It can be categorize into agricultural waste, animal waste, industrial waste, and municipal waste. It’s essential to choose a location for the biogas plant within a 15-kilometer radius of readily available biomass. Long-term agreements with feedstock suppliers should be establishes to ensure a consistent supply of high-quality feedstock.

2. Feedstock Storage

A Bio-CNG plant requires ample storage space. Depending on the type of feedstock used, this storage space can be extensive and may demand additional logistics. Proper evaluation and management of storage facilities are essential, and utilizing storage facilities of farmer-producer units can be beneficial.

3. Site Selection

Choosing the right site is crucial for smooth project financing and operational efficiency. It should have clear land ownership, road access, soil stability, and proximity to power sources. Minimizing potential conflicts over emissions and odors by selecting a suitable location is also vital.

4. Product Market

CBG plants produce compressed natural gas and organic fertilizers. Market analysis should focus on ensuring the demand for CBG within a 15-20 km radius, mapping the presence of CNG pumps, gas distribution grids, and industries requiring CNG. Additionally, the market for digestate, a valuable soil conditioner, should be enhance.

5. Analyzing Competitors

Avoid direct competition by maintaining a minimum distance from other CBG plants using the same feedstock. This ensures market stability and fair pricing for agricultural feedstock.

6. Incentives

Several states in India offer incentives for installing Bio-CNG plants, making the regulatory clearance process more accessible. Incentives can include financial support, land allocation, electricity tariffs, tax exemptions, and more. Take advantage of these opportunities.

7. Institutional Support

Securing political and institutional support is vital for a successful Bio-CNG project. A transparent and sustained communication process highlighting the project’s economic and environmental benefits is key. Joint visits with central or regional institutes to CBG facilities can be beneficial in adopting best practices.

Government Initiative:

To accelerate the Bio-CNG plant installation across India, various sustainable initiatives and policies announced.

• Sustainable Alternative Towards Affordable Transportation (SATAT)
• The Ministry of New and Renewable Energy’s (MNRE) Waste-to-Energy program
• Swachh Bharat Mission (SBM)
• Galvanizing Organic Bio-Agro Resources (GOBAR) – DHAN

Progress of The Schemes

Around 6 Bio-CNG plants and more than 11,100 small biogas plants have been commissioned till July 2023 under National Bioenergy Programme (NBP). It includes three bio-CNG plants in Maharashtra, one each in Punjab, Tamil Nadu and Uttar Pradesh.
Meanwhile, 30 small bio gas plants are commissioned in Andhra Pradesh, 9 in Bihar, 118 in Chhattisgarh, 11 in Goa, 224 in Gujarat, 43 in Haryana, 2,488 in Karnataka, 683 in Kerala, 2,083 in Madhya Pradesh, 4,167 in Maharashtra, 96 in Odisha, 835 in Punjab, 20 in Rajasthan, 46 in Tamil Nadu, 126 in Uttar Pradesh and 164 in Uttarakhand.
The NBP promotes the utilisation of Surplus agricultural residue, agro based industrial residue, forest residue, industrial wood waste, energy plantation based biomass for energy generation.
In November 2022, the Ministry of New and Renewable Energy initiated NBP for providing central financial assistance for setting up of bio energy plants with investment outlay of Rs 17.15 billion. The programme is planned two implement in two phases. The first phase entails an investment of Rs 8.58 billion.

Conclusion:

Incorporating these factors into the setup of a Bio-CNG plant ensures its viability, long-term sustainability, and a significant contribution to India’s transition to cleaner and more sustainable energy sources.

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