Compressed Bio-Gas Blending Obligation

CBG Blending Obligation (CBO) aims to promote production and consumption of Compressed Bio-Gas (CBG) in the country. In a major step towards enhancing use and adoption of CBG, the National Biofuels Coordination Committee (NBCC) during November 2023 announced the introduction of phase wise mandatory blending of CBG in Compressed Natural Gas (CNG) (Transport) & Piped Natural Gas (PNG) (Domestic) segments of City Gas Distribution (CGD) sector.

Key objectives

The key objectives of the CBO are to stimulate demand for CBG in CGD sector, import substitution for Liquefied Natural Gas (LNG), saving in Forex, promoting circular economy and to assist in achieving the target of net zero emission etc. It will encourage investment of around Rs. 37500 crores and facilitate establishment of 750 CBG projects by 2028-29. 

Targets

It was, inter-alia, decided that:

• CBO will be voluntary till FY 2024-2025 and mandatory blending obligation would start from FY 2025-26.
• CBO shall be kept as 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026- 27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5%.
• A Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines approved by Minister, PNG.

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, the following initial indicative blending percentages of SAF in ATF are approved:

• 1% SAF indicative blending target in 2027 ( Initially for International flights) 
• 2% SAF blending target in 2028 (Initially for International flights )

Source : Ministry of Petroleum & Natural Gas