Page 43 - Banking Finance December 2022

ARTICLE

Biogas, a renewable fuel, constitutes mainly of methane future. This trend has huge implications for energy security
(60%), carbon dioxide (40%), and traces of hydrogen sulfide. of the country. Government of India has set a target of
It can be burned directly as a fuel or purified & upgraded reduction in import dependence by 10% from 2015 to 2022.
by removing carbon dioxide (CO2), hydrogen sulphide (H2S)
and compressed to make Compressed Biogas (CBG). The 'SATAT' (Sustainable Alternative Towards Affordable
CBG has methane content of more than 90%, which is Transportation) scheme on Compressed Biogas (CBG) was
similar to the commercially available natural gas in launched by Hon'ble Minister, Petroleum & Natural Gas on
composition and energy potential. 1.10.2018. The scheme envisages to target production of
15 MMT (million tons) of CBG by 2023, from 5000 Plants.
Compressed Biogas (CBG): Under SATAT scheme, entrepreneurs shall set up CBG plants,
produce & supply CBG to OMCs for sale as automotive &
CBG or Compressed Biogas consists of mainly methane
industrial fuels. The initiative aims to produce compressed
(more than 90%) and other gases like carbon dioxide (less
biogas (CBG) from Waste and Bio-mass sources like
than 4%), etc. CBG is produced by anaerobic digestion of
agricultural residue, cattle dung, sugarcane press mud,
biomass and waste sources like agricultural residue, cattle
Municipal Solid Waste (MSW) and sewage treatment plant
dung, sugarcane press mud, municipal solid waste, sewage
waste.
treatment plant waste, etc. This Biogas can be purified to
remove hydrogen sulphide (H2S), carbon dioxide (CO2),
PSU Oil Marketing Companies (OMCs) is inviting Expression
water vapor and when this purified biogas (methane content
of Interest (EoI) from potential entrepreneurs to set up CBG
more than 90%) is compressed to maximum 250 bar and
plants under SATAT scheme, and supply CBG to OMCs for
filled up in cascades (group of high pressure cylindrical
sale as automotive & industrial fuel. The CBG Plant Owner
vessels), it is called Compressed Bio Gas or CBG.
shall be responsible for planning, preparation, engineering
and execution of the project, including storage of raw
Ministry of Road Transport and Highways, Government of
material, operation and maintenance of the plant,
India had permitted usage of bio-compressed natural gas
maintaining final product output quantity and quality and
(bio- CNG) for motor vehicles as an alternate composition
managing the by-products & wastes from the plant as per
of the compressed natural gas (CNG).
existing central / state norms."
Compressed Biogas (CBG) produced from the CBG plant will
As a developing country, India requires more energy to
be retailed through the CBG dispensing unit set-up by the
progress as a nation and hence, it is important to meet the
Oil Marketing Companies within the radius of 25 kms. CBG
growing energy demand in a responsible manner. SATAT, by
supplied under SATAT scheme shall meet IS 16087:2016
producing CBG from wastes, would not only meet the
specifications.
growing energy demand in a responsible and eco-friendly
manner, but also contribute to India's commitment to GHG
Sustainable Alternative Towards Affor-
emission reduction.
dable Transportation (SATAT) Scheme:
It will also help to bring down nation's dependency on
'SATAT' scheme on Compressed Biogas (CBG) encourages
natural gas and crude oil imports and act as a buffer against
entrepreneurs to set up CBG plants, produce & supply CBG
crude oil and gas price fluctuations. The decentralized
to Oil Marketing Companies (OMCs) for sale as automotive
system also provides a huge opportunity to supply CBG in
& industrial fuels.
remote locations where the affordability and access to
modern energy is still a major challenge. CBG produced can
India is among the fastest growing economy in the world
be integrated with existing Gas networks such as city gas
and its energy consumption is slated to increase rapidly.
distribution (CGD) networks to boost supplies to domestic
India's dependence on fossil fuels for its energy needs has
and retail users in existing and upcoming markets.
two major concerns i.e. a growing import bill and the
Integrating with existing Gas network would further ensure
carbon emission. The country now imports close to 85 per
efficient distribution and optimised access to cleaner and
cent of crude which roughly translates to 45% of primary
more affordable fuel.
energy demand and this is only going to go up in the near
BANKING FINANCE | JANUARY | 2023 | 43