New Delhi: Oil marketing companies (OMC) and gas marketing companies (GMC) have awarded Letter of Intent (LoI) for 344 plants for production and supply of Compressed Bio Gas (CBG) a government release quoting the Union Minister of Petroleum & Natural Gas, Dharmendra Pradhan said.
The LoIs were received till June, the release said.
On 1 Oct, oil public sector units (PSUs) launched ‘Sustainable Alternative Towards Affordable Transportation’ (SATAT) to promote the use of CBG as an alternative green transport fuel for efficient management of biomass and organic waste.
The initiative is expected to give benefits to vehicle-users, farmers and entrepreneurs. The CBG plants have been proposed to be set up mainly through independent entrepreneurs. CBG produced at these plants will be transported through cascades of cylinders to the fuel station networks of OMCs for marketing as a green transport fuel alternative.
Biomass and organic waste sources like paddy straw, farm stubble, agricultural residue, cattle dung, sugarcane press mud, distillery spent wash, municipal solid waste, sewage treatment plants waste offer huge potential for biogas production.
SATAT has the potential of addressing environmental problems including emissions from landfills and farm stubble burning.
This is also likely to bring down India’s dependency on oil and gas imports.