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Time of India
08-05-2025
- Business
- Time of India
Compressed Biogas: A game changer in India's energy transition
India's successful energy transition hinges on the ability to diversify the energy mix. More importantly progressive energy transition depends on the indigenous economically viable clean energy solutions available to large sections of users. Often, the promising and emerging domestic clean energy solutions struggle to make meaningful impact due to other competing clean energy options. Some of the extremely promising clean energy solutions get policy backing but fail to convert intentions into groundbreaking actions. Occasionally such options remain at the epicentre of media coverage and policy briefing. For instance, the National Biofuel Policy highlighted the increasing role of compressed biogas (CBG) to strengthen indigenous bioenergy generation, distribution, and consumption. Considering the critical role of CBG in reducing India's energy import dependency, especially imported Liquefied Natural Gas (LNG), the government launched Sustainable Alternative Towards Affordable Transportation (SATAT). As per SATAT website, SATAT scheme received 2227 active letters of intent (LOI). Under SATAT, 94 CBG plants sold 31422 tons of CBG in 2024-25, with an average sales of 334.26 tons per annum per plant, which means average sales of 0.91 ton per day (tpd). Government continues to enhance adoption of CBG by creating the enabling ecosystem for CBG production, transmission, and consumption. To facilitate CBG business, the government introduced a scheme for procurement of biomass aggregation machinery , with a financial outlay of ₹564.75 crore (FY 2023-24 to FY 2026-27). Under this scheme, the government can grant financial assistance of ₹1.8-9.0 crore to a project with plant capacity of 4tpd. Also, the government allocated ₹994.50 crore (FY 2024-25 to FY 2025-26) to create pipeline infrastructure to inject biogas produced from CBG plants into the City Gas Distribution (CGD) networks. The scheme aims to provide financial assistance to 100 CBG plants, 50 each in FY 2024-25 to FY 2025-26. As per this scheme, the minimum plant capacity should be 2 ptd. To encourage installation of large scale CBG plants, the scheme gives preference to plant capacity above 5 tpd. This scheme offers a maximum financial assistance of ₹28.75 crore per project for constructing pipelines (Steel/MDPE) up to 75 km. In addition, the CBG-CGD synchronisation scheme facilitates higher penetration of CBG through obligatory blending in compressed natural gas (CNG) and piped natural gas (PNG). To ensure greater integration of CBG into the gas grid, the government targets to achieve CBG blending obligation (CBO) of 1 per cent by financial year 2025-26. Gradually CBO to reach 5 per cent by FY 2028-29 and subsequently upto 10 per cent . The CBO mandates obligations on the part of CGD entities to ensure adequate off-take of CBG. GAIL (India) Limited - the nodal organization for the CBG-CGD synchronisation will continue to play a major role in improving CBG penetration in the market. Further, the CBG due to its green origin is eligible for green certification for trading purposes. These provisions create a supporting environment for greater integration of CBG into the economy. Despite government support for promoting CBG, the CBG industry continues to face financial bottlenecks. To improve better access to funds from the scheduled commercial banks, Reserve Bank of India places CBG under priority lending sector. Government has directed banks to facilitate loans for the SATAT and other CBG linked schemes. Initially SATAT targeted 5000 CBG plants across the country. Considering the market scenario, setting up 1000-1200 large size CBG plants by 2030 could be more realistic. Assuming ₹65 crore average investment per plant, the CBG industry will require deploy ₹58,500-₹71,500 crore for setting up additional 900-1100 large size CBG plants by 2030. The CBG industry can offer 15000-17000 direct jobs for plant operations & maintenance and 45,000-50,000 indirect jobs in the CBG value chain. For the CBG market development the PSUs like Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Oil India Limited, ONGC, and GAIL (India) Limited are stepping up investment. Increasing investment from the private sector will complement the public investment and boost market growth. In the CBG value chain farmers play an important role in supplying the raw material for CBG plants. Educating the farmers about the potential benefits of waste-to-energy can help better implementation of government schemes. The CBG industry can help the income enhancement of millions of farmers through valorization of agri-waste material. New CBG plant commissioning requires improved market dynamics which include better affordable technologies, easy financing, efficient supply chain, support of states and access to trained manpower. Technology development for feedstock optimization and efficient utilisation of CO2 from the CBG plants is very important for higher productivity. Cost effective and indigenous technology can improve the efficiency of CBG plants. Further, for waste based CBG plants, affordable technology for waste segregation and processing can help setting up more plants in urban areas. (The author is Professor, Department of of Management Studies Rajiv Gandhi of Petroleum Technology, Jais)
Time of India
08-05-2025
- Business
- Time of India
Compressed Biogas: A game changer in India's energy transition, ET EnergyWorld
Advt Advt By , ETEnergyWorld Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETEnergyworld App Get Realtime updates Save your favourite articles Scan to download App India's successful energy transition hinges on the ability to diversify the energy mix. More importantly progressive energy transition depends on the indigenous economically viable clean energy solutions available to large sections of the promising and emerging domestic clean energy solutions struggle to make meaningful impact due to other competing clean energy options. Some of the extremely promising clean energy solutions get policy backing but fail to convert intentions into groundbreaking actions. Occasionally such options remain at the epicentre of media coverage and policy instance, the National Biofuel Policy highlighted the increasing role of compressed biogas (CBG) to strengthen indigenous bioenergy generation, distribution, and consumption. Considering the critical role of CBG in reducing India's energy import dependency, especially imported Liquefied Natural Gas (LNG), the government launched Sustainable Alternative Towards Affordable Transportation (SATAT).As per SATAT website, SATAT scheme received 2227 active letters of intent (LOI). Under SATAT, 94 CBG plants sold 31422 tons of CBG in 2024-25, with an average sales of 334.26 tons per annum per plant, which means average sales of 0.91 ton per day (tpd).Government continues to enhance adoption of CBG by creating the enabling ecosystem for CBG production, transmission, and consumption. To facilitate CBG business, the government introduced a scheme for procurement of biomass aggregation machinery , with a financial outlay of ₹564.75 crore (FY 2023-24 to FY 2026-27). Under this scheme, the government can grant financial assistance of ₹1.8-9.0 crore to a project with plant capacity of the government allocated ₹994.50 crore (FY 2024-25 to FY 2025-26) to create pipeline infrastructure to inject biogas produced from CBG plants into the City Gas Distribution (CGD) networks. The scheme aims to provide financial assistance to 100 CBG plants, 50 each in FY 2024-25 to FY per this scheme, the minimum plant capacity should be 2 ptd. To encourage installation of large scale CBG plants, the scheme gives preference to plant capacity above 5 tpd. This scheme offers a maximum financial assistance of ₹28.75 crore per project for constructing pipelines (Steel/MDPE) up to 75 addition, the CBG-CGD synchronisation scheme facilitates higher penetration of CBG through obligatory blending in compressed natural gas (CNG) and piped natural gas (PNG). To ensure greater integration of CBG into the gas grid, the government targets to achieve CBG blending obligation (CBO) of 1 per cent by financial year 2025-26. Gradually CBO to reach 5 per cent by FY 2028-29 and subsequently upto 10 per cent .The CBO mandates obligations on the part of CGD entities to ensure adequate off-take of CBG. GAIL (India) Limited - the nodal organization for the CBG-CGD synchronisation will continue to play a major role in improving CBG penetration in the the CBG due to its green origin is eligible for green certification for trading purposes. These provisions create a supporting environment for greater integration of CBG into the government support for promoting CBG, the CBG industry continues to face financial bottlenecks. To improve better access to funds from the scheduled commercial banks, Reserve Bank of India places CBG under priority lending sector. Government has directed banks to facilitate loans for the SATAT and other CBG linked SATAT targeted 5000 CBG plants across the country. Considering the market scenario, setting up 1000-1200 large size CBG plants by 2030 could be more realistic. Assuming ₹65 crore average investment per plant, the CBG industry will require deploy ₹58,500-₹71,500 crore for setting up additional 900-1100 large size CBG plants by CBG industry can offer 15000-17000 direct jobs for plant operations & maintenance and 45,000-50,000 indirect jobs in the CBG value chain. For the CBG market development the PSUs like Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Oil India Limited, ONGC, and GAIL (India) Limited are stepping up investment. Increasing investment from the private sector will complement the public investment and boost market the CBG value chain farmers play an important role in supplying the raw material for CBG plants. Educating the farmers about the potential benefits of waste-to-energy can help better implementation of government schemes. The CBG industry can help the income enhancement of millions of farmers through valorization of agri-waste CBG plant commissioning requires improved market dynamics which include better affordable technologies, easy financing, efficient supply chain, support of states and access to trained manpower. Technology development for feedstock optimization and efficient utilisation of CO2 from the CBG plants is very important for higher effective and indigenous technology can improve the efficiency of CBG plants. Further, for waste based CBG plants, affordable technology for waste segregation and processing can help setting up more plants in urban areas.(The author is Professor, Department of of Management Studies Rajiv Gandhi of Petroleum Technology, Jais)
Zawya
24-02-2025
- Business
- Zawya
UAE Ministry of Energy and Infrastructure launches initiative in collaboration with 'Lootah Biofuels' to collect used cooking oil and convert it into clean fuel
Dubai – United Arab Emirates: The UAE Ministry of Energy and Infrastructure, in collaboration with Lootah Biofuels, a leader in the circular economy, has launched an initiative to collect used cooking oil in designated containers for conversion into biofuel. This initiative aligns with the Ministry's efforts to accelerate the transition towards renewable and clean energy sources and achieve the UAE's net-zero carbon goals. The initiative provides a strong push for encouraging sustainable practices by distributing specialized collection containers in various locations, facilitating the collection, transportation, and conversion of used cooking oil into biofuel. This process helps reduce the harmful environmental impact of disposing of used oils as waste while also minimizing its negative effects on sewage networks and public health. Additionally, the initiative raises community awareness about the importance of waste reduction, recycling, and the conversion of used cooking oil into clean and cost-effective biofuel. H.E. Eng. Sharif Salim Al Olama, Undersecretary for Energy and Petroleum Affairs at the Ministry of Energy and Infrastructure, stated: 'The UAE continues to launch innovative initiatives to achieve sustainable development goals and its Net-Zero 2050 Strategy. Our partnerships with the private sector stimulate innovation and employ advanced technology to accelerate the transition to sustainable solutions. The launch of this initiative to collect used cooking oil in designated containers and convert it into biofuel encourages greater participation from individuals and businesses in supporting clean energy initiatives.' H.E. also praised Lootah Biofuels for its pioneering efforts in producing biofuel from used cooking oil, which aligns with the UAE's vision. He highlighted the country's commitment to climate action through various strategies and policies, such as the UAE Energy Strategy 2050, the National Biofuel Policy, and the Circular Economy Policy, which aim to balance economic needs with environmental goals while enhancing institutional and individual energy efficiency. These efforts significantly reduce carbon emissions and promote environmental sustainability. This initiative aligns with the latest global best practices in encouraging individuals, families, and businesses to participate in sustainable activities by providing them with accessible means to contribute. Used cooking oil makes up a significant portion of wasted food that is often discarded, releasing methane gas, which has a more severe impact on global warming than carbon dioxide. Mr. Yousif Bin Saeed Lootah, Founder and CEO of Lootah Biofuels, emphasized: 'This new initiative by the Ministry of Energy and Infrastructure marks a significant step in advancing sustainability efforts, promoting the circular economy, and fostering innovation. It underscores the UAE's leadership in supporting sustainable solutions and raising awareness about the importance of preserving and utilizing available resources efficiently.' He added that the initiative expands the collection network for used cooking oil, ensuring it is repurposed for environmentally friendly and sustainable biofuel production. He urged individuals and organizations to take advantage of this initiative to support sustainable solutions. Additionally, he noted that this initiative serves as a strong motivator for Lootah Biofuels to accelerate and expand its efforts to achieve the objectives of the UAE's National Biofuel Policy, which was developed and supervised by the Ministry of Energy and Infrastructure to ensure the availability of clean and sustainable energy sources. The National Biofuel Policy aims to provide sustainable fuel alternatives and diversify energy sources within the energy mix, with a focus on increasing the share of biodiesel to 20% by 2050. It is worth noting that complete reliance on 100% biodiesel can reduce the carbon footprint of diesel-powered vehicles by up to 75%. As part of Lootah Biofuels' efforts to expand its network of cooking oil suppliers and encourage public participation in innovative green solutions and the circular economy, the company recently launched its smart application (Lootah Biofuels) on Android and iOS platforms. The app encourages individuals, businesses, and institutions in the UAE to contribute to disposing of used cooking oil responsibly and transforming it into a clean energy source, thereby reducing environmental and public health hazards. The smart app, available in both Arabic and English, allows users to request home collection services for used cooking oil, making it easy and safe for families and individuals to dispose of it. Additionally, participants in the collection program receive monetary rewards, which are credited to a digital wallet integrated within the app. The app also features a calculator, enabling users to track and monitor the amount of oil they have contributed, increasing awareness of their positive environmental impact. Lootah Biofuels aims to increase the recycling rate of used cooking oil in the UAE to over 80% in the coming years, compared to the current rate of less than 50%. Since its establishment in 2010, Lootah Biofuels has expanded its supplier network, which includes numerous entities, especially within the hospitality and restaurant sectors. The top 10 suppliers contribute a total of more than 300,000 liters of used cooking oil per month, which is then converted into sustainable biofuel.
