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A study by the Indian Biogas Association (IBA) has stated that the proposed 5 per cent blending of biogas with natural gas supplies in the country can cut LNG imports worth $1.17 billion annually. The study comes against the backdrop of the government's recent mandate to blend one per cent biogas with piped natural gas (PNG) supplies in the country from April 1, 2025 under the compressed biogas blending obligation (CBO) scheme. The biogas blending is proposed to be further increased to 5 per cent by fiscal year 2028-29.

According to the study, this blending initiative gels well with the government's macro-level move to make India a gas-based economy, with a target to increase the current share of gas in the energy mix from 6 per cent currently to 15 per cent by 2030. The IBA estimates show that 5 per cent blending of biogas with natural gas can reduce LNG imports worth $1.17 billion. This can also bring down per capita CO2 emissions by two per cent, benchmarked to the 2019 figure, which was 1.9 metric tonne of CO2 per person in India.

Additionally, the body said preventing organic waste going to landfills can bring innumerable benefits. The CBO scheme shall encourage investment of around Rs 37,500 crore and facilitate the establishment of at least 750 compressed bio gas (CBG) projects by 2028-29, as per government estimates. This is going to improve India's energy security, as it is currently heavily reliant on imported natural gas to meet its energy needs. Blending biogas with PNG and CNG can help reduce this dependence, which is invaluable. Blending of biogas with natural gas will streamline the market for biofuels, making it more investor-friendly by reducing capital and operational costs. It also emphasized that selling biofuels in the market will become smoother, and the ecosystem will benefit from increased investor confidence.