BIOGAS Presenatation
BIOGAS Presenatation
BIOGAS Presenatation
SATAT Initiative
SATAT’ (Sustainable Alternative Towards Affordable Transportation) scheme on Compressed Bio Gas (CBG) was launched by Hon'ble Minister,
Petroleum & Natural Gas on 1.10.2018. The scheme envisages to target production of 15 MMT (million tons) of CBG by 2023, from
5000 Plants. The CBG Plants shall be set up by independent entrepreneurs. The CBG Plant Owner shall be responsible for planning,
preparation, engineering and execution of the project, including storage of raw material, operation and maintenance of the plant,
maintaining final product output quantity and quality and managing the by-products & wastes from the plant as per existing
central / state norms. The SATAT initiative has potential to boost availability of more affordable transport fuels, better use of agricultural
residue, cattle dung and municipal solid waste, as well as provide additional revenue source to farmers. It will also benefit vehicle-
users as well as farmers and entrepreneurs. Under it, Expression of Interest (EoI) have been invited from potential entrepreneurs to set
up Compressed Bio-Gas (CBG) production plants and make available biogas in market for use in automotive fuels.
Benefits
It will boost availability of more affordable transport fuels and enable better use of agricultural residue, cattle dung and municipal
solid waste. It will pave way for efficient municipal solid waste management and help in tackling problem of polluted urban air
due to farm stubble-burning and carbon emissions.
It will boost entrepreneurship, rural economy and employment and provide additional source of revenue to farmers. It will also help achieve
nation’s climate change goals and bring down dependency on natural gas and crude oil imports and act as a buffer against crude oil and gas
price fluctuations.
It will also help to integrate with existing networks such as city gas distribution (CGD) networks to boost supplies to domestic and retail users
in existing and upcoming markets. Besides retailing from OMC fuel stations, CBS can at later date be injected into CGD pipelines
too for efficient distribution and optimized access of cleaner and more affordable fuel.
Let's Know CBG
Biogas
Biogas is an energy-rich gas produced by anaerobic decomposition or thermochemical conversion of biomass. Biogas is composed
mostly of methane (CH4), the same compound in natural gas, and carbon dioxide (CO2). The methane content of raw (untreated) biogas may
vary from 40%–60%, with CO2 making up most of the remainder along with small amounts of water vapor and other gases. Biogas can be burned
directly as a fuel or treated to remove the CO2 and other gases for use just like natural gas. Treated biogas may be called renewable
natural gas or biomethane.manure, municipal waste, plant material, sewage, green waste or food waste.
Purification
Production of biogas could be a continuous process. The utilization of biogas as an efficient energy source depends strongly on its
methane concentration. Therefore, biogas purification is essential in order to have more energy per unit volume of compressed biogas and to get
rid of the corrosive effect of H2S. This can be done by compressing the gas into the cylinders, which is possible only after removing carbon
dioxide (CO2), hydrogen sulfide (H2S) and water vapour. Biogas purification increases the concentration of methane in biogas, in order to
have fuel of higher calorific value. This can be achieved by decreasing the concentration of carbon dioxide. Elimination of carbon dioxide from
the biogas helps to increase its calorific value as well as to eliminate the greenhouse gas.
Compression
It is possible to compress raw biogas, a mixture of CO2 and methane, between 150-250 bar, and transport it in composite gas cylinders
(cascades).
Compressed Biogas (CBG)
CBG can be produced from waste, including municipal solid waste, sludge from wastewater treatment plants, market residues,
agricultural residues, cattle dung, sugarcane press mud, sago waste, etc.
The Union government had launched the Sustainable Alternative to Affordable Transport (SATAT) in October 2018 to promote the technology.
The scheme targeted production of 15 million metric tonnes (MMT) of CBG by 2023.
Public sector undertakings oil marketing companies (OMCs),IndianOil, BPCL, HPCL , GAIL and IGL have partnered with potential
entrepreneurs under this initiative to set up plants and supply CBG to them for sale as automotive and industrial fuels.
Enablers of Scheme
Assured Long term Pricing
An Expression of Interest (EOI) to procure CBG by IndianOil was released under the SATAT scheme on 1.10.2018. As per the EOI, the
following price was offered for CBG
Unit Price
Basic Price of CBG meeting IS 16087 : 2016 standard, compressed at 250 bar Rs./kg 46
and delivered at IndianOil Retail Outlets in cascades
GST at 5% Rs./kg 2.3
Total supply price (incl. GST) to be paid to party Rs./kg 48.3
Long term off-take pricing with Commercial agreement for 10/15 years
- Price 1.10.2018 – 31.03.2024 : ₹46+ Applicable Tax
- Floor Price 1.04.2024 – 31.03.2029 : ₹46+ Applicable Tax
Facilitation by OMCs through LOI
1.IndianOil shall facilitate Plant owners in design, erecting, construction, commissioning of the CBG Plants.
2.IndianOil has entered into MoU with Government of Punjab and Government of Haryana for facilitating setting up of CBG Plants. Execution of
similar MoUs are also being explored with State Governments of Chhattisgarh, Uttar Pradesh and Andhra Pradesh.
3. IndianOil will off-take and market the CBG produced.
4.IndianOil will also facilitate marketing of Bio-manure produced from the CBG Plants. For facilitating the same, IndianOil has entered into MoU
with National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED).
Priority Sector lending
The Reserve Bank has expanded the scope of priority sector lending to include start-ups funding up to Rs 50 crore, and loans to farmers
for installation of solar plants and compressed biogas plants.
PSL guidelines will enable better credit penetration to credit deficient areas; increase the lending to small and marginal farmers and weaker
sections; boost credit to renewable energy, and health infrastructure.
Loans for setting up Compressed Bio Gas (CBG) plants have been included as fresh categories eligible for finance under priority sector.
Central Financial Assistance provided by MNRE
The Ministry of New and Renewable Energy, Government of India, launched the programme “Energy from Urban, Industrial,
Agricultural Wastes/Residues and Municipal Solid Waste” with the following objectives:
To promote setting up of projects for recovery of energy in the form of Biogas / BioCNG / Power from Urban, Industrial and Agricultural Waste and
Captive Power and Thermal use through Gasification in Industries.
To promote setting up of projects for recovery of energy from Municipal Solid Waste (MSW) for feeding power into the grid and for
meeting captive power, thermal and vehicular fuel requirements.
To promote Biomass Gasifier for feeding power into the grid or meeting captive power and thermal needs of rice mills/other industries
and villages.
To create conducive conditions and environment, with fiscal and financial regime, to develop, demonstrate and disseminate utilization of wastes
and residues for recovery of energy.
The programme offers Central Financial Assistance (CFA) in the form of capital subsidy and Grants-in-Aid in respect of the following
activities:
Installation of plants of Biogas production from Industrial Waste, Sewage Treatment Plants, Urban & Agricultural Waste/ Residue
through Biomethanation
Installation of plants of Power generation or production of BioCNG/enriched Biogas from Biogas produced from Industrial Waste,
Sewage Treatment Plants, Urban & Agricultural Waste/ Residue.
Installation of Biomass Gasifier for feeding power into the grid or meeting captive power and thermal needs of rice mills/other industries
and villages.