India is one of the fastest growing economies in the world. As a result, its energy consumption is slated to increase rapidly on the coming years. In 2018, the government announced the National Policy on Biofuels, with the aim of increasing biofuel consumption in the energy and transportation sector.
Currently, biofuel plays a strategic role in ‘Make in India’, ‘Atmanirbhar Bharat’ initiatives, offering great opportunities for reducing dependence on imported fuels while generating employment in rural areas. The adoption of biofuel creates wealth from waste, which is very crucial for sustainable development.
Compressed biofuel gas comprises approximately 90 per cent methane and high calorific value, which makes it a perfect green renewable automotive fuel. In comparison to fossil-fuels, compressed biofuel gas (CBG) produces 20-60 per cent less emissions. Along with ensuring a cleaner environment, it also saves the forex reserve by reducing our dependence on imported liquid natural gas. After extracting its energy, the bio-manure could also be used as a valuable manure for natural farming. Through this, the soil’s health and productivity could be improved.
Despite numerous benefits, its production levels are yet to hit sufficient levels in the country. In order to increase CBG production, the government has started an initiative – SATAT (Sustainable Alternative towards Affordable Transportation), that aims to produce 15 million metric ton of CBG by 2023-24.
This initiative would also increase farmer’s income, and enhance the infrastructure of rural areas. This will promote development and create employment. However, the country does not have enough domestic feedstock for the generation of biofuel production, which slows down the process. In order to achieve the targets, this issue needs to be addressed.
The government can allocate necessary resources for the development of a CBG trading market, wherein CBG certificates could be used towards carbon abatement in order to comply with the national carbon accounting standards (carbon scores for CBG). Reducing GST on the development of CBG plant could also be done by the government to further boost its production in India.
CBG can also be used to produce green hydrogen, which could replace Piped Natural Gas for domestic use. CBG and CNG can be sold through the same stations, at similar prices. Additionally, CBG can also be injected into CGD pipelines for efficient distribution at an affordable price. As a natural gas, CBG holds huge potential and its usage as a future fuel will make India self-sufficient in the long run, which would eventually help India meet its climate goals.
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