An initiative launched by Ministry of Petroleum and Natural Gas and Ministry of Skill Development and Entrepreneurship, under which PSU Oil Marketing Companies (OMCs) invite Expression of Interest (EoI) from potential entrepreneurs to set up Compressed Bio-Gas (CBG) production plants and make available CBG in the market for use in automotive fuels.
Gas is clean and cheaper mode of fuel and the Government has taken several steps to promote its production and usage. Government is keen to set up 5000 CBG plants in next 5 years, and for this purpose, production offtake guarantee is being given for such plants. There will be no restriction on the technology choice and Government is incurring Rs 75,000 Crore capital expenditure for setting up infrastructure for City Gas distribution network.
Titled SATAT, the initiative is aimed at providing a Sustainable Alternative Towards Affordable Transportation as a developmental effort that would benefit both vehicle-users as well as farmers and entrepreneurs. This initiative holds great promise for efficient municipal solid waste management and in tackling the problem of polluted urban air due to farm stubble-burning and carbon emissions.
Bio-gas is produced naturally through a process of anaerobic decomposition from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc. After purification, it is compressed and called CBG, which has pure methane content of over 95%. Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential.
There are multiple benefits from converting agricultural residue, cattle dung and municipal solid waste into CBG on a commercial scale:
- Responsible waste management, reduction in carbon emissions and pollution
- Additional revenue source for farmers
- Boost to entrepreneurship, rural economy and employment
- Support to national commitments in achieving climate change goals
- Reduction in import of natural gas and crude oil
- Buffer against crude oil/gas price fluctuations