SATAT (Sustainable Alternative Towards Affordable Transportation)

SATAT (Sustainable Alternative Towards Affordable Transportation), scheme was launched on 1st October 2018, with the aim of establishing an ecosystem for production of Compressed Bio Gas (CBG) from various waste/ biomass sources and for promoting its use along with Natural Gas by the Ministry of Petroleum and Natural Gas (MoP&NG). It aims to promote the production and utilization of CBG as an alternative to traditional fossil fuels. CBG is a biofuel produced using feedstock such as paddy straw, municipal solid waste, press mud from the sugar industry and cattle dung or poultry litter. It is chemically similar to natural gas and can be used for automotive and industrial applications.

With a vision to reduce dependence on imported fossil fuels, tackle pollution, and create economic opportunities, SATAT serves as an essential step toward achieving India's broader goal for energy sustainability and environmental protection.

The scheme entails inviting Expression of Interest (EoI) by PSU Oil Marketing Companies (OMCs) from potential entrepreneurs to set up Compressed Bio-Gas (CBG) production plants and make available CBG in the market for use as an automotive and industrial fuel. The EoI is available on the website of IndianOil (iocletenders.nic.in) and other OMCs.

SATAT's objectives extend beyond just offering an alternative to traditional fuels. By promoting CBG, the initiative seeks to reduce India's carbon footprint, promote the effective utilization of organic waste, and create rural employment opportunities. In the context of India's commitment to the Paris Agreement, SATAT also plays an important role in contributing to the country’s carbon reduction goals.

What is Compressed Bio-Gas (CBG)?

Bio-gas is produced naturally (through a process of anaerobic decomposition) from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc. After purification, it is compressed and called CBG, which has high methane content. Further, Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential. With similar calorific value and other properties similar to CNG, Compressed Bio-Gas can be used as an alternative, renewable automotive fuel. Given the abundance of biomass in the country, Compressed Bio-Gas has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.

Benefits of Compressed Bio-Gas (CBG)

There are multiple benefits from converting agricultural residue, cattle dung and municipal solid waste into CBG on a commercial scale:

• Responsible waste management, reduction in carbon emissions and pollution
• Additional revenue source for farmers
• Boost to entrepreneurship, rural economy and employment
• Support to national commitments in achieving climate change goals
• Reduction in import of natural gas and crude oil
• Buffer against crude oil/gas price fluctuations

Government Support Schemes

The National Policy on Biofuels 2018 emphasized active promotion of advanced bio-fuels, including CBG. The Government of India had launched the GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) scheme to convert cattle dung and solid waste in farms to CBG and compost.

• The Ministry of New and Renewable Energy notified Central Financial Assistance (CFA) of Rs. 4 crore per 4,800 kg of CBG per day generated from 12,000 cubic metres of biogas per day, with a maximum of Rs.10 crore per project.
• To assist financing to CBG projects, Reserve Bank of India categorized CBG plants in “priority sector” for lending and State Bank of India has already come out with a specific policy to finance CBG projects and other banks are also adopting similar policies for financing.
• To ensure promotion of organic farming in India and enhance revenue from sale of bi-products of CBG plants such as “Fermented Organic Manure” and “Liquified Fermented Organic Manure”, Ministry of Agriculture has included them in Fertilizer control Order, thus facilitating marketing of Organic manure throughout India.
• The Government of India has also introduced the “Market Development Assistance” (MDA) scheme in the form of Rs 1500 per MT to support marketing of organic fertilizers, viz., Fermented Organic Manures (FOM)/Liquid FOM/Phosphate Rich Organic Manures (PROM) produced as by-product from Bio- gas Plants/Compressed Biogas (CBG) Plants set up under umbrella GOBARdhan initiative. This initiative will promote circular economy, by increasing the viability of the CBG plants.
• Ministry of Petroleum & Natural Gas has also issued detailed guidelines for procurement of Biomass Aggregation Machinery (BAM) on 2nd February 2024. The Scheme envisages financial support to the CBG producers fo r procuring Biomass Aggregation Machineries.
• For a seamless offtake of CBG produced by the plants, the Ministry of Petroleum & Natural Gas has also introduced the CBG-CGD Synchronisation Scheme (Synchro Scheme) for synchronisation of Biogas/Compressed Biogas (CBG) in CGD networks. GAIL has been mandated to operationalize the CBG-CGD Synchronisation Scheme and supply Biogas/CBG co-mingled with domestic gas at Uniform Base Price (UBP) to all CGD entities for use in CNG (T) and PNG (D) segments.
• A scheme for the development of pipeline infrastructure (DPI) for injection of CBG into the City Gas Distribution (CGD) network has been launched to provide financial support for extending pipeline connectivity from CBG plant to the city gas distribution grid.
• In order to promote the production and consumption of CBG in the country National Biofuels Coordination Committee (NBCC) has approved, the introduction of phase wise mandatory blending of CBG in CNG (Transport) & PNG (Domestic) segments of CGD sector. Mandatory blending obligation starts from FY 2025-26. CBO will be 1%, 3% and 4% of total CNG/PNG consumption for FY 2025-26, 2026-27 and 2027-28 respectively. From 2028-29 onwards CBO will be 5%. These steps would help in enhancing the availability of CBG in the country for promoting a gas based and circular economy, saving of forex and achieving the target of net zero emission.
• In addition to Govt. of India’s efforts, Individual states have also come forward to promote CBG initiatives, in this direction several states such as Haryana, Punjab, Uttar Pradesh and several other States have formed State Level Committee for implementation and monitoring of SATAT Scheme.