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  • Context (PIB): To promote the CBG in the country, the National Biofuels Coordination Committee (NBCC) approved the introduction of phase-wise mandatory blending of CBG in CNG (Transport) and PNG (Domestic) segments of the City Gas Distribution (CGD) sector.

Compressed Biogas (CBG)

  • Biofuels are fuels (solid, liquid, and gaseous) that are derived from biomass/organic matter.
  • As biofuels emit less CO2 than conventional fuels, they can be blended with existing fuels to reduce CO2 emissions.
  • Biogas is a type of biofuel that is produced by anaerobic digestion of organic matter.


  • The biogas is purified to eliminate hydrogen sulfide (H2S), carbon dioxide (CO2), and water vapour and then compressed into CBG.
  • CBG has a methane (CH4) content of more than 90%.
  • CBG has a calorific value and properties akin to Compressed Natural Gas (CNG).
  • It can replace CNG, leveraging the abundant biomass resources in the country.
  • Calorific value is the amount of heat released by a unit weight or unit volume of a substance during complete combustion.

Compressed Natural gas (CNG) and Piped Natural gas (PNG)

  • Natural gas is a fossil fuel that primarily consists of methane.
  • It contains small amounts of other hydrocarbons, such as ethane, propane, butane, and pentane.
  • It also contains nonhydrocarbon gases, such as carbon dioxide and water vapour.
  • It burns cleaner than other fossil fuels, emitting fewer air pollutants and greenhouse gases.
  • CNG is natural gas compressed to a pressure of 200-250 kg/cm2 and is used as a vehicular fuel.
  • PNG is natural gas distributed through a pipeline with safety valves to maintain pressure for domestic cooking and heating/cooling applications.

Implementation of CBG Blending Obligation (CBO)

  • CBG Blending Obligation (CBO) will be voluntary until FY 2024-2025 & mandatory from FY 2025-26.
  • CBO will be 1% of total CNG/PNG consumption for FY 2025-26 and increase to 5% in 2028-29.

Advantages of CBG Blending Obligation (CBO)

  • Circular economy: A circular economy minimises waste and pollution, prolongs resource use, and regenerates natural systems in the production and consumption model.
  • Achieving net zero emission: India’s target to achieve net zero emission is 2070.
  • Protecting the environment
  • Saving of forex

National Biofuels Coordination Committee (NBCC)

National Policy on Biofuels 2018

Sustainable Alternative Towards Affordable Transportation (SATAT)

  • The SATAT initiative was launched in 2018 by the MoPNG in association with Public Sector Undertaking (PSU) Oil Marketing Companies (OMC).
  • Aim: To establish Compressed Bio-Gas production plants and make biogas available for automotive fuels by inviting Expression of Interest (EOI) from potential entrepreneurs.
    • EOI: A declaration by a company or investor expressing their intent to become involved in a business.
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