Compulsory Blending Obligation (CBO) of CBG

The National Biofuels Coordination Committee (NBCC) gave its nod to mandatory blending of compressed biogas (CBG) with compressed natural gas (CNG) and piped natural gas (PNG) from 2025-26.

Biogas - It is an energy-rich gas produced by anaerobic decomposition of biomass.
Sources include Agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, and sewage treatment plant waste, among others.
It can be burnt directly as a fuel, or purified and upgraded by removing carbon dioxide, hydrogen sulfide, and then compressed to make compressed Biogas (CBG).
CBG – It has more than 90% of methane, which is similar to commercially available natural gas in composition and energy potential.

Sustainable Alternative Towards Affordable Transportation (SATAT) scheme was launched in 2018, under which 5,000 CBG plants were envisaged by 2023 to produce 15 million tonnes of CBG.

Compulsory blending obligation – It will be
- 1 % of total CNG and domestic PNG consumption for FY26
- 3 % for FY27
- 4 % for FY28
- 5 % blending from FY29
A Central Repository Body (CRB) will be responsible for monitoring and implementing the blending mandate.

Objectives – It aims to

- Stimulate demand for CBG in city gas distribution sector
- Import substitution for liquefied natural gas (LNG) thus saving forex
- Promote circular economy for achieving the target of net-zero emission, etc

Picture of India’s Gas Sector

India is a major consumer of natural gas and depends on imports to meet around half of its requirement.
It aims to increase the share of natural gas in the primary energy mix to 15% by 2030 from a little over 6% at present.

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