December 7, 2023. CBG Blending Obligation (CBO) will promote production and consumption of Compressed Biogas (CBG) in the country, said Shri Hardeep Singh Puri, Minister of Petroleum & Natural Gas and Housing & Urban Affairs. In a major step towards enhancing use and adoption of CBG, the National Biofuels Coordination Committee (NBCC), chaired by Union Petroleum Minister announced the introduction of phase wise mandatory blending of CBG in compressed natural gas (CNG) and piped natural gas (PNG) segments.
The key objectives of the CBO are to stimulate demand for CBG in city gas distribution (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. Highlighting the key outcomes of the CBO, Shri Puri Said that it will encourage investment of around Rs. 37500 crores and facilitate establishment of 750 CBG projects by 2028-29.
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.
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 coming years.
