India is exploring global funds and prioritising lending for compressed biogas (CBG) projects, Oil Minister Dharmendra Pradhan said on Tuesday, as the country looks to reduce its crude imports and increase its use of cleaner fuels.

 

"We are also exploring global funds to fund CBG projects," Pradhan said at the inauguration of a biogas plant in the southern state of Tamil Nadu.

 

India plans to invest $24 billion to produce 15 million tonnes of compressed biogas from 5,000 plants by 2023, and wants bio-manure, a byproduct, to contribute to the growth of organic farming.

 

"A new package for medium and small scale enterprises shall also assist to fund CBG plants across India," Pradhan said on Tuesday.

 

On the CBG potential of Tamil Nadu from existing waste and biomass sources, Pradhan said that utilizing about 2.4 MMTPA of it shall result in setting up of around 600 Plants across the state which would result in the investment of about Rs. 21,000 crore and direct employment potential of about 10,000.

 

Regarding the 15 TPD capacity IOT Biogas Plant at Namakkal, state of the art Plant inaugurated today, the Minister said that CBG produced from the Plant can fuel more than 1000 vehicles per day in Salem – Namakkal region. The Biogas Plant shall also fuel 2 industries with green alternative fuel. Under SATAT scheme, IOT Biogas decided to divert part/full biogas production to Compressed Biogas (CBG) generation. The Compressed Biogas procured from IOT Biogas plant shall be sold through Retail Outlets (ROs) and Institutional Business (IB). This is the first time an alternative to natural gas is being sold by Oil Marketing Companies. The numbers are to increase manifold in the coming years. The Minister said that it is for the first time that we are inaugurating facilities that provide an environment friendly gaseous fuel from natural sources in Tamil Nadu, as regular CNG fuel stations are not yet available in this State.

 

The minister said that there is immense potential in India's Oil and Gas sector and the projects that have been initiated in the recent past would go a long way in ensuring India’s energy security. Biogas production is growing steadily, as more people are setting up biogas plants to produce biogas. Biogas is a renewable, as well as a clean, source of energy. The gas generated through bio-digestion is non-polluting and it reduces greenhouse emissions. He said “Harnessing the full potential of biofuels to generate alternative energy in various forms, including Compressed Biogas or CBG, ethanol, 2G ethanol, and biodiesel will help achieve our PM Modi's vision of reducing import dependence of oil and ensuring sustainable energy future in the country.”