Economy·

India aims for 3% CBG blending in D-PNG & CNG by FY24, 4% by 2027‑28 and 5% thereafter

Summary

  • Blending of Compressed Bio‑Gas (CBG) in D-PNG and CNG stood at 1.7% in the first half of FY2024.
  • The government has set a target of 3% CBG blending by the end of the current fiscal year.
  • Subsequent targets are 4% by FY2027‑28 and 5% by FY2028‑29.
  • Achieving these targets hinges on expanding pipeline connectivity to transport CBG from production hubs to dispensing points.
  • Higher blending is expected to reduce diesel and natural gas import bills and cut carbon emissions.

Key Facts

  • · Current H1 2024 CBG blending: 1.7%
  • · Target for FY2024‑25: 3% blending
  • · Target for FY2027‑28: 4% blending
  • · Target for FY2028‑29: 5% blending
  • · Blending applies to both D-PNG (Diesel‑Powered Natural Gas) and CNG (Compressed Natural Gas)
  • · Pipeline infrastructure is identified as the critical bottleneck
  • · Policy aligns with India's renewable energy and emission reduction goals
  • · Potential savings in diesel import expenditure

Why it matters

Increasing CBG blending reduces dependence on imported fossil fuels, lowers greenhouse gas emissions, and supports India's renewable energy and energy security objectives, making it a key element of the country's economic and environmental policy framework.

#CBG#blending#D-PNG#CNG#energy policy#renewable fuels