Compressed biogas & natural gas blending must from 2025

New Delhi, November 25

It will be compulsory to blend compressed biogas with natural gas for use in automobiles and household kitchen from financial year (FY) 2025-26, the government said today, announcing a move that aims to cut dependence on oil and natural gas imports and save foreign exchange.

Compressed Bio-Gas Blending Obligation (CBO) will promote production and consumption of Compressed Bio-Gas (CBG) in the country with blending to remain voluntary till FY 2024-2025 before being made mandatory from FY 2025-26.

Initially, CBO shall be kept as 1 per cent, 3 per cent and 4 per cent of the total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28 respectively. From 2028-29 onwards, CBO will be 5 per cent.

Petroleum Minister Hardeep Puri made the announcement on Saturday, saying a Central Repository Body (CRB) shall monitor and implement the blending mandate based on the operational guidelines which will be approved. The decision was taken after a meeting of the National Biofuels Coordination Committee, chaired by Puri.

The key objectives of the CBO are to stimulate demand for CBG in CGD sector, the government said.

The decision outcomes include import substitution for liquefied natural gas (LNG), saving in Forex, promotion of circular economy and assistance in the achievement of the target of net zero emission.

Highlighting the key outcomes of the CBO, the Petroleum Minister said it would encourage investment of around Rs 37,500 crore and facilitate establishment of 750 CBG projects by 2028-29.

Rs 37.5K cr investment

This will encourage investment of Rs 37,500 crore and facilitate establishment of 750 CBG projects by 2028-29. — Hardeep Puri, Petroleum Minister