In a recent study conducted by the Indian Biogas Association (IBA), it is projected that a 5% blending of biogas with natural gas in India could result in an annual savings of USD 1.17 billion in liquefied natural gas (LNG) imports. The study gains significance amid the government’s directive to introduce a 1% biogas blend with piped natural gas (PNG) supplies starting April 1, 2025, under the compressed biogas blending obligation (CBO) scheme.
The IBA anticipates a further increase in biogas blending to 5% by the fiscal year 2028-29. This aligns with the government’s broader objective of transforming India into a gas-based economy, aiming to raise the current gas share in the energy mix from 6% to 15% by 2030.
According to IBA estimates, the proposed 5% biogas blending could not only lead to a substantial reduction in LNG imports but also decrease per capita CO2 emissions by 2%, measured against the 2019 figure of 1.9 metric tonnes per person in India. Additionally, preventing organic waste from reaching landfills is expected to yield various environmental benefits.
The CBO scheme is projected to stimulate investments of approximately Rs 37,500 crore and support the establishment of at least 750 compressed bio gas (CBG) projects by 2028-29, contributing to enhanced energy security in India, which presently relies heavily on imported natural gas.
The potential correlation between biogas blending and agricultural income growth is highlighted, paralleling the positive impact observed with ethanol. Each significant biogas plant could convert nearly 1,000 acres of nearby area into organic agriculture, fostering new economic opportunities for farmers, waste management entities, and other stakeholders involved in biogas production.
The IBA emphasizes that blending biogas with PNG and CBG not only reduces dependence on imported natural gas but also streamlines the biofuels market, making it more investor-friendly by curbing capital and operational costs. This move is expected to facilitate the smoother sale of biofuels in the market, instilling increased investor confidence in the ecosystem.
