Compressed Bio-Gas (CBG) is emerging as a key pillar of India's energy transition, with industry leaders highlighting its role in enhancing energy security, reducing import dependence, and addressing infrastructure challenges critical for the sector's growth.
Strategic importance of CBG for energy security
On the sidelines of a CII conference, Bharat Petroleum Corporation Limited (BPCL) Business Head (Gas) Rahul Tandon underscored the strategic importance of domestically produced bio-gas in strengthening the country's energy ecosystem. Tandon stated, "Given the recent situation, our gas procurement actually came under a lot of vulnerability... Our government has been very closely working on creating CBG as one very important imperative and a molecule which can help us in improving our own security because it is indigenized, it is produced within the country, and it helps us replace the imported molecule."
Collaborative efforts needed for sustainable energy
Highlighting the need for collaborative efforts, Tandon added, "The forum is gathered here to see how we can work together along with industry, academia, institutions, ministry, and regulatory bodies, how we can all get together and come to a point where this does not remain just a lending obligation, but something which is serving the national cause and our commitment towards sustainable energy."
Off-take challenges hinder CBG sector expansion
Meanwhile, GAIL India Limited Executive Director (CBG) Sachchidanand Yadav noted that ensuring gas off-take remains one of the biggest hurdles for scaling up the CBG sector in the country. Yadav said, "The challenge of the off-take is one of the biggest issues for the expansion of the CBG sector in India. Off-taking of the gas is an issue which can be addressed by laying the pipeline either by CBG producers or CGD entities. CBG producers largely have no experience with the standards of oil and gas. Certainly, the responsibility lies with the CGD entity, the National Gas Read Operator. But laying the pipeline is very costly... Even the incentive from the Development of Pipeline Infrastructure (DPI) scheme under the Ministry..."
Infrastructure and investment needs
Industry stakeholders have been focusing on expanding CBG production and strengthening the supporting infrastructure to accelerate adoption of the clean fuel. The high cost of pipeline infrastructure and lack of experience among CBG producers with oil and gas standards are significant barriers. The DPI scheme provides some incentives, but stakeholders argue that more comprehensive support is needed.
Role of CBG in India's clean energy goals
The sector is expected to play a significant role in India's efforts to improve energy security, promote sustainable mobility, and advance its clean energy goals. By replacing imported natural gas with indigenously produced CBG, India can reduce its import dependence and enhance energy self-sufficiency.
