Policies announced to steer sector ahead

Rahul Jain

According to India's Second National Communication to the United Nations Framework Convention on Climate Change (UNFCCC), approximately 20 per cent of its anthropogenic methane emissions come from agriculture (manure management), coal mines, and municipal solid waste, natural gas and oil systems. To help meet its potential to reduce GHG emissions, India is investing heavily in a national strategy to increase bioenergy production. This includes various policy initiatives, as well as capacity building and public-private partnerships.

The year 2022 was a significant one as far as the bioenergy sector is concerned. Several schemes were announced not only by the Centre, but state governments as well. Some of the major landmarks that this sector achieved include:

10% Ethanol Blending Target Achieved, 20% target preponed to 2025: The Ethanol Blended Petrol (EBP) Program allows Oil Marketing Companies (OMCs) to sell petrol that has been diluted with ethanol. By 2022 and 2030, the government had aimed for ethanol blends with petrol at 10% and 20%, respectively. The target of 10% blending under the program has been achieved---ahead of the targeted timeline of November 2022. Additionally, the goal of 20% ethanol blending was preponed from 2030 to 2025–2026, owing to the enhanced performance by the sector. According to Hardeep S. Puri, Union Minister of Petroleum and Natural Gas, “The number of petrol pumps selling biofuels has increased three folds---from 29,897 in 2016-17 to 67,641 in 2021-22. Achieving E20 blending with petrol by 2025 would help save foreign exchange for India, by about Rs 30,000 crores per annum”.

Hardeep S. Puri, Union Minister of Petroleum and Natural Gas, speaks at the international conference on ‘Biofuels-A pathway towards sustainable future’ at New Delhi. (Picture: Rahul Jain)

Roadmap of the Mission Integrated Bio-refineries announced: The Mission's objective is to improve international collaboration and funding for energy research, development, and demonstration (RD&D) during the next five years through public-private partnerships. By 2030, the goal is to replace 10% of fossil fuels, chemicals, and materials with bio-based alternatives. Union minister Dr Jitendra Singh said, “The mission aims to fill the void by identifying gaps and challenges in the current bio-refining value chains. It provides policymakers with a strategic framework to establish a rising RD&D portfolio, specific financing proposals across the entire spectrum of vital bio-refinery technologies, and rapid action suggestions”.

Launch of the National Bioenergy Program 2022: On November 2nd, 2022, the MNRE notified the National Bioenergy Programme with an outlay of Rs 858 crores under Phase-1. The scheme that will be operational from April 1, 2021 to March 31, 2026, has three sub-components:

a) Waste to Energy Programme: To generate energy from urban, industrial, and agricultural waste.

b)Biomass Programme: A scheme to support the manufacturing of briquettes & pellets and promotion of biomass (non-bagasse) based co-generation in industries.

c) Biogas Programme: This scheme entails the setting up of small and medium biogas plants ranging from 1 m3 to 2500 m3 biogas generation per day.

Dinesh Jagdale, Joint Secretary, MNRE, speaks at the launch of the ‘National Bioenergy Programme’ in New Delhi. (Picture: Rahul Jain)

Minimum Procurement Price Fixed and Slabs Defined for CBG Procurement: The minimum procurement price of compressed biogas (CBG) purified as per IS 16087: 2016 standards, compressed at 250 bar pressure and delivered to oil marketing company (OMC) retail outlets in cascades (up to 25 km one-way distance from CBG plant) was fixed at Rs 46/kg + applicable taxes for the period from 1.10.2018 to 31.03.2024 under the "Sustainable Alternative Towards Affordable Transportation" (SATAT) scheme. It was also announced that the minimum procurement price would not be lower than Rs 46/kg + applicable taxes up to 31.03.2029. The CBG prices, it was decided, will be indexed to the prevalent retail selling price (RSP) of CNG in the market, and the complete slab for CBG procurement price has been provided.

Slabs for the CBG procurement price released by the oil marketing companies (Source: SATAT website)

Installation of India’s largest paddy-based Bio-CNG plant in Punjab: Verbio India Private Limited commissioned India’s largest paddy-based Bio-CNG plant at the Bhuttal Kalan village in Sangrur district of Punjab. The plant has a total capacity of 33 tonnes (of CBG production on a daily basis) and deploys its own biomass collection machinery imported from Germany.  It began commercial production in October 2022 and is currently operating at 5 TPD capacity due to low CBG off-take demand nearby. Punjab Energy Development Agency (PEDA) has also authorized 42 more CBG projects with a total capacity of 492.58 tonnes per day (TPD) based on paddy straw and other agro-residue to establish a long-term and sustainable solution to the stubble-burning problem while also enhancing the rural economy.

India’s largest compressed biogas plant based on paddy straw at Bhuttal Kalan village in Sangrur district of Punjab. Rahul Jain, Deputy Program Manager, Renewable Energy, Centre for Science and Environment (left), with Ashish Kumar, MD, Verbio India Private Limited.

UP’s Bioenergy Policy: Uttar Pradesh launched its Bioenergy Policy 2022 to boost the bio-economy and reduce dependence on fossil fuels. The policy highlighted four bioenergy constituents: Bio-CNG, Bioethanol, biodiesel, and bio-coal and has set an ambitious target--- of generating 1,000 tonnes per day (TPD) of Bio-CNG, 4,000 tonnes per day of bio-coal, and 2,000 kilolitres per day of bioethanol and biodiesel by 2026-27. In all, Rs 1,040.75 crores have been sanctioned with a contribution of Rs 750 crore towards Bio-CNG. The policy entails that each tehsil in the state must have at least one bioenergy plant, which means a minimum of 350 bioenergy units across UP. Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) is the nodal agency for implementing this scheme across the state.

2G Ethanol Bio-Refinery Commissioned at Panipat, Haryana: Prime Minister Narendra Modi unveiled Asia's first 2G ethanol bio-refinery, built by a central public sector undertaking, Indian Oil Corporation Ltd, in Panipat, Haryana, on August 10th, observed as World Biofuel Day. This 35-acre 2G ethanol bio-refinery can process two lakh tonnes of agricultural waste each year to produce nearly three crore liters of ethanol. Additionally, it will reduce pollution produced by stubble burning and eliminate around 320,000 MT of CO2 each year---equivalent to eliminating nearly 63,000 cars from the road. By itself, this 2G bio-refinery will save Rs 55 to Rs 60 crore on imported oil costs per year. Under the Pradhan Mantri JI-VAN (JaivIndhan-Vatavaran Anukool Fasal Awashesh Nivaran) Yojana, 12 commercial facilities and 10 demonstration plants of 2G bio-refineries (using agricultural waste as substrate) have been proposed to be built in places with adequate biomass supply.

Compressed Biogas Producer Forum Launched: With the goal of providing a strong platform to India’s Bio-CNG sector and for addressing/representing the industry’s issues  to the stakeholders concerned, the Indian Federation of Green Energy (IFGE) launched the ‘CBG Producer Forum’ on December 14th, 2022. The forum aims to work for the development and growth of the CBG sector and raise policy advocacy initiatives. On the occasion, Nitin Gadkari, Union Minister for Road Transport & Highways, spoke of being an advocate of green technologies, and how he believes that they are the future. “However, Bio-CNG investors must take certain factors into consideration while setting up their plants---these include selection of proven technology, estimation of available raw materials, marketability of the products, and overall economic viability of the plant.”

Nitin Gadkari, Union Minister for Road Transport & Highways, speaks to stakeholders at the launch of ‘Compressed Biogas Producer Forum’ at his residence in New Delhi (Picture: Rahul Jain)

India to Pitch for “International Biofuel Alliance” at G20: India is strongly emphasizing on global cooperation for energy security and improved development of new fuels like biofuel and hydrogen. It is also planning to launch an International Alliance on Biofuels, along with USA and Brazil, during India’s Presidency of G20, Union Minister of Petroleum and Natural Gas, Hardeep S. Puri, announced at SIAM's International Conference on Biofuels – “A Pathway Towards Sustainable Future”, in New Delhi.

Formulation of Carbon Market: On December 12th, 2022, the Rajya Sabha passed the Energy Conservation (Amendment) Bill, mandating non-fossil energy sources and establishing a domestic carbon market in India. According to the framework established by COP, any carbon credit sold outside the country cannot be utilized to meet the Nationally Determined Contributions (NDCs) of the original country. Carbon credits will be used first and foremost within the country to achieve India's NDCs. In specific cases, where high-tech, expensive assets generate carbon credits, they may be allowed to be externally marketed by the National Designated Authority established by the government, which shall exercise and perform functions such as receiving projects for evaluation and approval by the host party.