Obligatory biogas blending can lead to $1.7 billion import bill reduction, further investments: IBA

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A report from the Indian Biogas Association (IBA) indicates that the proposed 5% blending of biogas with natural gas in the country could result in an annual reduction of $1.17 billion in LNG imports. This recommendation aligns with the government’s recent directive to incorporate 1% biogas blending with piped natural gas (PNG) supplies starting April 1, 2025, under the compressed biogas blending obligation (CBO) scheme.

The plan is to elevate the biogas blending to 5% by the fiscal year 2028–29, in line with the government’s broader objective to transform India into a gas-based economy, aiming to increase the current 6% share of gas in the energy mix to 15% by 2030.

The IBA study highlights that a 5% blending of biogas with natural gas not only reduces LNG imports significantly but also contributes to a 2% decrease in per capita CO2 emissions compared to the 2019 figure of 1.9 metric tonnes of CO2 per person in India.

The IBA, representing the primary stakeholders in the biogas sector, anticipates foreign investments amounting to Rs 1,500 crore within a year. This optimism stems from the growing interest of international companies in forming technological and equipment-related partnerships. IBA Chairman Gaurav Kumar Kedia notes a substantial increase of 60-70% in the participation of companies in developing biogas plants in the current year compared to 2022. This surge is attributed to India’s accelerated transition to green energy to meet climate goals.

During the Renewable Energy India Expo 2023, the IBA reports investment deals totaling Rs 2,755 crore, nearly double the previous year’s amount. The IBA, encompassing operators, manufacturers, and planners of biogas plants, as well as representatives from public policy, science, and research in India, plays a pivotal role in promoting a greener future through biogas.

According to IBA, many companies are looking to set up big biogas projects in India and the association believes that Rs 1,500 crore worth of FDI will land up in India in less than a year.