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Have you ever thought that the waste we throw away every day could become a powerful, clean fuel? Well, it can!
 
Welcome to the world of Compressed Biogas (CBG). It’s a special kind of fuel made from things we usually discard, such as cow dung, kitchen leftovers, farm waste, and even sewage.
 
Think of CBG as the “green” version of the CNG (Compressed Natural Gas) you might see powering vehicles. Both are mostly made of methane and can be used for things like cooking, fueling cars, and running machines.
 
The big difference? CBG is renewable because it comes from organic waste that can be regrown or reproduced. This means it helps reduce pollution and offers a smart way to protect nature, support rural income, and build a better future.
 
In India, there’s a massive potential to create around 25 million tonnes of CBG each year from various waste materials like farm leftovers, animal waste, and city garbage. This makes CBG a highly demandable bio-fuel business and a key step towards India becoming more energy self-reliant.

What is Compressed Biogas (CBG)?

Imagine turning everyday waste into a powerful, clean fuel! That’s exactly what Compressed Biogas (CBG) is all about.
 
It’s a special type of fuel made from things we usually throw away, like cow dung, kitchen scraps, farm waste, and even sewage.
 
Think of it as a “green” twin to CNG (Compressed Natural Gas). Both are mostly methane and can power vehicles, cook food, and run machines. The big difference? CBG is renewable because it comes from organic waste, while CNG is a fossil fuel dug from the earth.

How is CBG Made (in Simple Steps)

Making CBG is like giving waste a new life. Here’s a super simple breakdown of the process:
 
Waste Collection and Prep: First, waste like cow dung or agricultural leftovers is collected and cleaned. Large pieces are removed, and the waste is chopped and mixed.
 
The “Digester” Tank: This prepared waste then goes into a large, sealed tank called a “digester.” Inside, tiny microbes (like good bacteria) break down the waste without any oxygen.
 
Biogas Production: As the waste breaks down, it creates raw biogas. This gas is about 50-60% methane, but it also has carbon dioxide, moisture, and other bits.
 
Cleaning and Compression: This raw biogas isn’t ready yet! It’s put through a “purification” process to remove impurities like carbon dioxide and water, leaving behind almost pure methane (90-98% pure!). Then, it’s compressed at high pressure (200-250 bar) and stored in special cylinders called cascades, just like CNG.
 
Useful Leftovers: The best part? After making the gas, there’s a nutrient-rich liquid leftover called digestate or slurry. This digestate is an excellent natural fertilizer, helping farmers grow healthier crops and reducing the need for chemical fertilizers.

Why is CBG So Important?

CBG offers many benefits, making it a “smart way to protect nature, support rural income, and build a better future”:
 
Cleaner Air: It helps reduce pollution by turning waste into clean energy that burns efficiently. Using CBG in vehicles and factories means fewer harmful emissions compared to petrol, diesel, or coal.
 
Waste Management: It tackles the problem of growing waste by effectively converting organic garbage into a valuable resource. This supports initiatives like the Swachh Bharat Mission.
 
Boosts Rural Economy: Farmers and people in villages can earn extra money by selling their agricultural waste and animal dung to CBG plants. This creates jobs and supports local economies.
 
Reduces Import Dependency: India has a huge potential to produce around 25 million tonnes of CBG annually. By using locally produced CBG, India can reduce its reliance on expensive imported fossil fuels like petrol, diesel, and LPG, which makes the country more energy self-reliant.
 
Stable and Affordable Fuel: Since CBG is made locally from low-cost or free waste materials, its price is more stable and often cheaper than fossil fuels, which are subject to international market fluctuations.

Why is CBG So Important?

CBG is incredibly versatile and can be used in many aspects of daily life:
 
Vehicle Fuel: Just like CNG, it can power cars, buses, auto-rickshaws, and delivery vehicles, making transportation cleaner.
 
Cooking Gas: It can replace LPG for cooking in homes, hotels, and restaurants.
 
Industrial Use: Factories can use it to run their machines and boilers, saving money and reducing their environmental impact.
 
Electricity Generation: It can even be used to generate electricity, especially for remote or rural areas.

Government Support for CBG in India

The Indian government is strongly backing CBG through schemes like:
 
SATAT Scheme (Sustainable Alternative Towards Affordable Transportation): Launched in 2018, this scheme aims to set up 5,000 CBG plants by 2030. It guarantees that Oil Marketing Companies (OMCs) like Indian Oil, Bharat Petroleum, and Hindustan Petroleum will buy CBG from producers at a fixed price, giving confidence to investors.
 
National Bioenergy Programme (MNRE): The Ministry of New and Renewable Energy offers significant financial assistance (subsidies) for setting up new CBG plants or converting existing biogas plants to CBG, with a maximum subsidy of Rs. 10.0 Crore per project.
 
Agriculture Infrastructure Fund (AIF): CBG projects are also covered under AIF, providing benefits like a 3% interest subsidy on loans up to Rs. 2 crore for up to 7 years.
 
In conclusion, CBG is a highly demandable bio-fuel business. It’s a key part of India’s move towards a greener, self-reliant, and sustainable energy future.

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KIP Financial Consultancy Pvt. Ltd.

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