With recent trends emphasising the need for energy transition, biogas has emerged as a promising prospect. In India, biogas is already in production. Positive initiatives, including those from the government, provide an impetus to the use of biogas. Further, owing to pull factors such as rising gas prices and increasing demand for organic fertilisers, biogas is at the forefront of the energy transition. The implementation of projects should be carried out taking into consideration key aspects such as the technical, financial and social dimensions.
Uses of biogas
The production and usage of biogas provide various environmental, social, energy and waste treatment benefits. Being a natural waste treatment process, it aids in waste management. Given the nature of the inputs required for biogas, it also promotes recycling. This process produces a by-product, which is a nutrient-rich fertiliser. In addition, the net energy-producing process leads to the generation of high quality renewable fuel. Biogas has various end-use applications as an alternative fuel, including for cooking and producing electricity.
Biogas consists of methane and carbon dioxide, along with other minor components. It can also be upgraded to become a compressed natural gas (CNG)-equivalent gas, which is one of the standards floated by the Bureau of Indian Standards. Thus, compressed biogas (CBG) is a premium CNG, and it can be used in CNG vehicles as an automotive fuel.
Addressing challenges such as crop residue burning and tapping into its potential as a biogas feedstock could contribute to the growth of the industry.
CBG plants
Biogas plants can be household-based, community-based or large-scale. They make use of various technologies depending on their size. Many biogas plants in India employ Khadi and Village Industries Commission technology. Centralised solutions for biogas are also gaining recognition, offering a profitable perspective. Apart from the technical, financial and social aspects, various environmental, social and other relevant factors must be taken into consideration when setting up these plants. The biogas produced can be sold by the individual through a gas station, or to an industry. The energy produced by biogas plants can be fed into the gas grid as well. It has been observed that not all biogas plants in the country are operational, with social issues being among the contributing factors. This can be attributed to the availability of liquefied petroleum gas in rural areas at highly subsidised prices, or the ease of access to other energy sources.
Current status
Biogas plants have been established in the country early on, and notably, India is home to one of the world’s first biogas plants – a small sewage-based plant that was built in Mumbai. Under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, approximately 46 CBG plants have been commissioned. In addition, several oil marketing companies (OMCs) have also begun selling CBG through their outlets. However, clarity around taxation is still required, as bio-CNG or CBG falls under the goods and services tax regime, while natural gas is still under the value added tax regime. Looking at the positive side, the OMCs have declared that biogas prices will be indexed with CNG prices in the market, and have established a minimum procurement price for CBG. This is a big factor in biogas pricing dynamics.
Biofertilisers
In the production of biogas, one of the by-products is fertiliser. The organic matter is separated into liquid and solid fermented organic manure (FOM), and the fertiliser is then upgraded, depending on the demand. Recent trends show an increase in the demand for organic food, resulting in the simultaneous need for organic fertilisers. Hence, organic fertiliser obtained through the process of biogas could potentially serve as an opportunity to ensure the bulk availability of these fertilisers. This is also a significant opportunity for organic fertiliser companies.
Driving factors
The CBG industry is benefiting from various initiatives, including the establishment of a CBG procurement price indexed with the current CNG price. Market linkages for FOMs are also being created. The existence of the umbrella scheme called the National Bioenergy Programme further adds to this. Moreover, in many states, CBG plants that produce FOM are categorised under the white category.
Across the value chain, several enablers have been identified that can help in understanding the intrinsic risks of the entire value chain. At the upstream level, significant differences have been observed between the availability of feedstock and its utilisation. Therefore, there is a need for effective crop residue management to ensure availability in the long run. At the midstream level, the development of standards is crucial. Other enablers include capacity building and government support through relaxed categorisation. At the downstream level, SATAT is one of the schemes under which OMCs procure bio-CNG, including FOMs. Further, Petroleum and Explosives Safety Organisation clearance is required for CBG sales. There are also enablers in the potential revenue stream, as both CBG and organic manure can be sold. Given the recent trends in the carbon market, biogas is seen as a promising area for carbon credits as well.
Future scope
When setting up a biogas plant, technical, financial and social factors are important aspects to be considered. Further, given the diversity of situations, analysis or decision-making should be localised and project-specific. Identifying what can be done and assessing limitations is essential. Moreover, there is a need to understand supply availability by examining the quality, quantity, timing and cost-effectiveness. Hence, a thorough feasibility study is crucial before implementing the actual project, while keeping in mind the potential challenges, especially from a social perspective. Furthermore, given that biogas is produced using biomass, there is a need to ensure that the “food versus fuel” argument does not exist.
According to the Indian Oil Corporation Limited data, there is a potential of approximately 60 million metric tonnes of CBG across various sources, including cattle dung, agricultural residue and municipal solid waste. Given this potential, India’s imports of liquefied natural gas could potentially be replaced. However, ambiguity persists regarding the amount that can be harnessed. Issues such as crop residue burning can be viewed as an opportunity for conversion of waste into biogas, in the most scientific manner. Further, approximately 4,100 letters of intent have been issued under SATAT. The distribution is generally uniform across the country, except for a few areas.
Conclusion
Taking into consideration the current status of biogas in India, there is immense potential for its widespread adoption. The country’s experience, in addition to recent developments, has spurred an increased utilisation of biogas. Further, the advantages and external factors acting as catalysts have enhanced the use case of biogas. Addressing challenges such as crop residue burning and harnessing the potential of this residue as biogas feedstock could further contribute to the growth of the industry. Looking ahead, conducting a thorough feasibility study for new biogas plant projects before implementation is crucial.
Based on a presentation by Gaurav Kedia, Chairman, Indian Biogas Association, at a recent India Infrastructure conference