Pradhan: New CBG offers an attractive rate of return
India is exploring global funds to finance Compressed Bio-Gas projects while a new package for MSMEs is to assist in setting up new plants, Petroleum and Natural Gas Minister Dharmendra Pradhan said on 23 June 2020.
“We are also exploring global funds to fund CBG projects. A new package for MSME shall also assist to fund CBG Plants across India,” he said at the online inauguration of the CBG Plant at Namakkal and CBG Fuel Stations at various places in Tamil Nadu.
Central Financial Assistance or Subsidy for setting up CBG plants has been extended to 2020-21 to promote new projects, said Pradhan, assuring that CBG projects are viable and have an attractive rate of return for new entrepreneurs.
The Government is also in the process of including CBG under Priority Sector Lending, he informed.
The government has taken steps to ensure the success of the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme on CBG which was launched on 1 October 2018 targeting production of 15 MMT of CBG from 5,000 plants by 2023.
Elaborating, he said Oil Marketing Companies have offered long-term pricing on CBG to make projects bankable and have agreed to execute long term agreements on CBG.
The Minister said that Bio-manure, an important by-product of CBG Plants, is also in the process of being included in Fertilizer Control Order 1985. This will make it easier to market and provide an opportunity for organic farming across the country as the 5,000 CBG Plants are expected to produce 50 MMT Biomanure.
On the CBG potential of Tamil Nadu from existing waste and biomass sources, Pradhan said that utilizing about 2.4 MMTPA of it shall result in setting up around 600 Plants across the State which would result in the investment of about Rs.21,000 crore and direct employment potential of about 10,000.
The Minister said the 15 TPD capacity IOT Biogas Plant at Namakkal can fuel more than 1,000 vehicles per day in Salem–Namakkal region.
The Biogas Plant will also fuel 2 industries with green alternative fuel.
Under the SATAT scheme, IOT Biogas decided to divert part/full biogas production to CBG generation. The Compressed Biogas procured from the IOT Biogas plant shall be sold through Retail Outlets (ROs) and Institutional Business (IB).
This is the first time an alternative to natural gas is being sold by Oil Marketing Companies. The numbers are to increase manifold in the coming years. The Minister said that it is for the first time that “we are inaugurating facilities that provide an environment-friendly gaseous fuel from natural sources in Tamil Nadu, as regular CNG fuel stations are not yet available in this State”.
The Minister said that there is immense potential in India’s Oil and Gas sector and the projects that have been initiated in the recent past would go a long way in ensuring India’s energy security.
Biogas production is growing steadily, as more people are setting up biogas plants to produce biogas.
Biogas is a renewable, as well as a clean, source of energy. The gas generated through bio-digestion is non-polluting and it reduces greenhouse emissions.
“Harnessing the full potential of biofuels to generate alternative energy in various forms, including CBG, ethanol, 2G ethanol, and biodiesel will help ensure a sustainable energy future in the country.” fiinews.com
