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Revolutionizing Transportation: SATAT initiative launched by Former Petroleum Minister promoting Compressed Bio-Gas for sustainable transport
The Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, an innovative step to encourage the adoption of Compressed Bio-Gas (CBG) as an eco-friendly transportation fuel, was introduced by the then Hon’ble Union Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship on October 1, 2018. This ground-breaking SATAT initiative involved Oil Marketing Companies (OMCs) inviting Expression of Interest (EoI) from potential entrepreneurs to establish CBG Production Plants and make CBG available in the market for automotive fuel use. The EoIs can be accessed on the websites of the Hindustan Petroleum Corporation Limited (www.hindustanpetroleum.com under Procurement - Public Tenders) and other OMCs.
During his address, Hon’ble Petroleum Minister underscored the nationwide observance of the Swachhta fortnight and stated that SATAT is a pivotal stride in this noble endeavour. Stressing on the clean and cost-effective nature of Biogas as a fuel, he highlighted the government's efforts to support its production and usage. The government's ambitious plan to set up 5000 CBG plants in the next 5 years includes providing production offtake guarantees for these plants. Additionally, the government is investing Rs 75,000 Crore in capital expenditures to develop infrastructure for City Gas Distribution networks. The establishment of Compressed Bio Gas Plants not only holds the promise of enhancing the availability of cost-effective transportation fuels but also signifies a transformative approach in utilizing agricultural residue, cattle dung, and municipal solid waste. This innovative initiative aims to empower farmers by offering them an additional stream of revenue while concurrently creating a substantial workforce through the generation of 75,000 direct job opportunities and contributing to the creation of numerous indirect employment opportunities, benefiting lakhs of individuals.
Hon’ble Petroleum Minister said that the SATAT initiative is open to various technological choices, welcoming participation not only from OMCs but also from gas distribution companies and other concerned departments. He also said that presently 42 lakh households receive PNG supply, with a commitment to cover 2 crore households in 300 districts by suppliers after the 9th round of CGD bids.
Named SATAT, this initiative aims to offer a Sustainable Alternative Towards Affordable Transportation, benefitting vehicle-users, farmers, and entrepreneurs alike. It holds tremendous potential in efficient municipal solid waste management, combating urban air pollution caused by farm stubble burning, and reducing carbon emissions. The utilization of CBG will decrease reliance on crude oil imports, aligning with the Hon’ble Prime Minister's vision to bolster farmers' income, rural employment, and entrepreneurship.
Compressed Bio-Gas - New revolution #SATAT
Expressions of Interest-Compressed Bio-Gas (CBG):Last date: 30.06.2021 for Download & Submission of EOI
Background
In a significant stride toward enhancing the accessibility of more cost-effective transportation fuels and leveraging agricultural residue, cattle dung, and municipal solid waste, the Hon’ble Union Minister of Petroleum and Natural Gas, Skill Development & Entrepreneurship initiated an innovative program alongside PSU Oil Marketing Companies (OMCs), comprising IOC, BPCL, and HPCL. They invite Expression of Interest (EoI) from potential entrepreneurs to establish Compressed Bio Gas Production Plants. These efforts aim to make CBG readily available in the market for use in automotive fuels.
This pioneering initiative, aptly named the SATAT Scheme, stands as a developmental endeavour that promises mutual benefits for vehicle users, farmers, and entrepreneurs alike.
Launched during the ‘Swachhta Hi Seva’ fortnight, this SATAT Initiative holds immense promise for streamlined municipal solid waste management and addressing the challenges of polluted urban air resulting from farm stubble burning and carbon emissions.
The utilization of CBG not only supports a reduction in dependency on crude oil imports but also aligns with the Prime Minister’s vision of augmenting farmers’ income, rural employment, and fostering entrepreneurship.
The SATAT Scheme, offering subsidies, specifically targets the Bio-CNG sector and aims to encourage the production and utilization of biofuels. This comprehensive approach underscores the significance of the SATAT Initiative in promoting sustainable and affordable transportation alternatives.
This forward-thinking Bio Fuel policy extends its reach through the EoI for CBG, encouraging expressions of interest for the development and utilization of Compressed Bio Gas as a viable alternative fuel source in the automotive sector.
What is Compressed Bio-Gas (CBG)?
Biogas is produced naturally through the anaerobic decomposition of various organic sources such as agricultural residue, cattle dung, sugarcane press mud, municipal solid waste, and sewage treatment plant waste. This raw bio-mass undergoes purification and compression, resulting in CBG, distinguished by its high methane content. Notably, CBG, also known as Bio-CNG or Bio CNG, shares an identical composition and energy potential with commercially available natural gas. Its calorific value and properties mirror those of Compressed Natural Gas (CNG), rendering it a promising renewable alternative for automotive, industrial, and commercial fuel applications.
Given the wealth of biomass resources within the country, CBG possesses immense potential to substitute CNG across diverse sectors in the forthcoming years gradually. The SATAT Initiative stands as a pivotal scheme advocating the utilization of CBG as a sustainable bio-fuel. The SATAT Scheme has introduced subsidies to support the Bio-CNG sector's growth, offering opportunities through EoI for CBG production.
Advantages of Compressed Bio-Gas (CBG)
CBG offers a multifaceted solution that contributes significantly to responsible waste management, curbing carbon emissions, and alleviating pollution. Under the SATAT Scheme, this sustainable alternative promotes eco-friendly waste management and emerges as an additional revenue stream for farmers. Some of its advantages are mentioned below -
Production & Marketing Plan
Setting up of Compressed Bio Gas plants are primarily led by independent entrepreneurs. The produced CBG is transported through cascades or pipelines to OMCs' existing fuel station networks, offering a green and sustainable alternative for transportation fuel. The country's 1,500 CNG stations currently serve approximately 32 lakh gas-based vehicles.
Apart from marketing CBG, entrepreneurs can market other by-products like bio-manure and carbon dioxide, thus enhancing the return on their investments.
It is planned to deploy 5,000 CBG plants across India over the next four years in a phased manner. As part of the SATAT Initiative, HPCL has issued Letters of Intent (LOIs) to potential entrepreneurs for establishing 151 CBG plants. This will facilitate the production and supply of 0.31 Million Metric Tonnes Per Annum (MMTPA) of CBG. Furthermore, HPCL is prepared to issue numerous additional LOIs in the near future under the SATAT Scheme.
This initiative supports the Bio Fuel policy by inviting Expression of Interest for CBG, encouraging entrepreneurship for sustainable energy solutions in the biogas industry.
Government Support Schemes
The National Bio Fuel Policy 2018 places significant emphasis on actively promoting advanced biofuels, particularly CBG. Earlier this year, the Government of India introduced the GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) scheme aimed at converting cattle dung and farm solid waste into Compressed BioGas and compost. This ambitious scheme aims to encompass 700 projects across the country during the 2018-19 period. The initiative will receive funding under the Solid and Liquid Waste Management (SLWM) component of the 'Swachh Bharat Mission-Gramin (SBM-G)', benefitting households in identified villages through Gram Panchayats.
The Ministry of New and Renewable Energy has announced a Central Financial Assistance (CFA) of Rs. 4 crores for every 4,800 kg of CBG generated daily from 12,000 cubic meters of Biogas per day, with a maximum allocation of Rs. 10 crores per project.
To facilitate financing for CBG projects, the Reserve Bank of India has categorized CBG plants as a part of the "priority sector" for lending purposes. Financial institutions such as the State Bank of India, Bank of Baroda, and Canara Bank have already developed specific policies to finance CBG projects, with other banks also adopting similar financing strategies.
Furthermore, to promote organic farming in India and augment revenue from the sale of CBG plant by-products, such as "Fermented Organic Manure," the Ministry of Agriculture has included these products in the Fertilizer Control Order. This inclusion facilitates the marketing of organic manure across India.
In addition to the Government of India's endeavors, various states have also stepped forward to promote CBG initiatives. States like Haryana, Punjab, Uttar Pradesh, and others have formed state-level committees to oversee the implementation and monitoring of the SATAT Scheme.
Future Potential
CBG serves as an eco-friendly energy source derived from a diverse range of biomass and waste materials. These resources encompass agricultural residue, municipal solid waste, sugarcane press mud, distillery spent wash, cattle dung, and sewage treatment plant waste. Moreover, certain other waste streams, such as rotten potatoes from cold storages, spoiled vegetables, dairy plants' waste, poultry litter, food scraps, horticulture and forestry residues, and treated organic waste from industrial Effluent Treatment Plants (ETPs), can be effectively utilized to produce biogas.
Looking ahead, the integration of Compressed Bio Gas networks with City Gas Distribution (CGD) networks presents an avenue to amplify supplies to domestic and retail users across established and emerging markets. In addition to retailing at OMC fuel stations, the possibility of injecting CBG into CGD pipelines offers a promising approach for efficient distribution, thereby enhancing access to a cleaner and more cost-effective fuel.
The utilization of CBG aligns with the SATAT Initiative, promoting the adoption of biofuels under the SATAT Scheme for Biogas Sector.This initiative emphasizes the significance of Bio-CNG as a sustainable alternative to conventional fuels. It also underscores the benefits of the SATAT Scheme Subsidy, driving the growth of the biofuel policy by encouraging the EoI for CBG production.
Conclusion
In the contemporary landscape, what may be regarded as waste holds the potential to evolve into a valuable energy resource in the near future. Every fragment of biomass possesses the inherent capability to be harnessed for the production of Biogas and Bio-manure. This transformative approach not only propels India towards energy self-sufficiency but also serves as a robust strategy to combat global warming and alleviate the effects of climate change. The Government of India remains steadfastly committed to the vision of fostering a 'Sasya-Syamala Bharat' and a 'Sujala-Suphala Bharat', endeavoring to manifest this reality.
This paradigm shift encapsulates the essence of the Sustainable Alternative Towards Affordable Transportation. SATAT is not merely an acronym; it symbolizes a movement toward a sustainable future. It is an initiative designed to empower the nation by converting diverse forms of waste, including CBG, into a potent energy source. The SATAT Scheme for Biogas Sector serves as a pivotal step in this direction.
We invite stakeholders and enthusiasts to actively participate in the Expression of Interest (EoI) for CBG within the framework of the SATAT Scheme. By engaging in this EOI, contributors can play a pivotal role in advancing India's Bio Fuel Policy and enhancing the utilization of bio-gas resources.
To partake in the Expression of Interest (EoI) for "Production & supply of Compressed Bio Gas (CBG)" to HPCL, kindly visit https://www.hindustanpetroleum.com/ under Procurement - Public Tenders.
SATAT
Existing SATAT LOI holders