To cut gas imports, Cabinet gives nod to Rs 24K-cr biogas scheme ‘GOBARdhan’, Pg9

Key Highlights:

• The Union Cabinet approved GOBARdhan, the National Circular Bioenergy Scheme, with an outlay of Rs 23,731 crore.
• The scheme will be implemented over 10 years, from 2026-27 to 2035-36.
• Its primary goal is to increase domestic Compressed Biogas (CBG) production by nearly 10-fold.
• The Ministry of Petroleum and Natural Gas is responsible for implementing the scheme.
• The initiative aims to reduce India's dependence on natural gas imports and promote clean energy transition.

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Detailed Insights:

• GOBARdhan seeks to mobilize large-scale private investment in the CBG sector through assured offtake and stable administered pricing.
• CBG is a purified and compressed form of biogas, chemically similar to Compressed Natural Gas (CNG), suitable for vehicle and industrial fuel.
• The scheme addresses critical challenges in the CBG segment, including unorganized feedstock supply, high capital expenditure, and weak offtake.
• It leverages India's abundant agricultural residue, cattle dung, and municipal organic waste to produce clean fuel and organic manure.
• The scheme builds upon previous government initiatives such as the Sustainable Alternative Towards Affordable Transportation (SATAT) program.
• A dedicated CBG offtake assurance framework mandates blending obligations for City Gas Distribution (CGD) entities.
• CBG blending obligations are set at 3% (2026-27), 4% (2027-28), and 5% (2028-29 onwards) for CNG and Piped Natural Gas (PNG) segments.
• A stable administered CBG price of Rs 2,110 per Metric Million British Thermal Unit (MMBTU) ensures long-term revenue visibility for producers.
• Eligible greenfield CBG projects will receive capital assistance of up to Rs 2 crore per tonne per day of installed capacity.

Key Concepts Involved:

• GOBARdhan: A government initiative to convert organic waste into Compressed Biogas (CBG) and organic manure, promoting a circular bioeconomy.
• Compressed Biogas (CBG): A purified and compressed form of biogas, primarily methane, used as a renewable and clean fuel alternative to natural gas.
• Sustainable Alternative Towards Affordable Transportation (SATAT): An initiative launched in 2018 to establish a robust ecosystem for CBG production and its use as a green fuel.
• City Gas Distribution (CGD): The network and infrastructure responsible for supplying natural gas to domestic, commercial, and industrial consumers in specific geographical areas.