The Centre recently announced a roadmap for mandatory blending of compressed biogas (CBG) in the transportation and domestic segments of the city gas distribution (CGD) sector in a phased manner.

Decision by National Biofuels Coordination Committee (NBCC)

  • In a meeting on Friday, the National Biofuels Coordination Committee (NBCC) gave its nod to mandatory blending of CBG with compressed natural gas (CNG) for transportation and piped natural gas (PNG) for households starting 2025-26 (FY26).
  • The compulsory blending obligation will be 1 percent of total CNG and domestic PNG consumption for FY26, 3 per cent for FY27, and 4 percent for FY28. 
  • The obligation mandates 5 per cent blending from FY29. 
  • A Central Repository Body (CRB) will be responsible for monitoring and implementing the blending mandate.

Objectives of CBO (compulsory blending obligation)

  • To stimulate demand for CBG in the 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.”

Need for the biogas blending

  • India, which is one of the world’s largest importers of oil and gas, ships in about half of its overall gas consumption and wants to cut its import bill.
  • The government also aims to have 1% sustainable aviation fuel (SAF) in aircraft turbine fuel by 2027, doubling to 2% in 2028. The SAF targets will initially apply to international flights.
  • The steps are aimed at helping India achieve net zero emissions targets by 2070.

About National Bio-Fuel Coordination Committee (NBCC)

  • It is headed by the Prime Minister and has been constituted for providing High-level co-ordination and policy guidance / review on different aspects of biofuel development.
  • To implement the National Policy on Biofuels,2018, NBCC has been set up with representatives of 14 ministries/ departments. 

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