(LiveMint)
State-run oil marketing companies Indian Oil Corporation (IOC); Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) plan to spend nearly Rs10,000 crore to set up Bio-CNG plants across India to promote clean fuel and reduce the country’s fuel import bill, two people aware of the development said.
The Bio-CNG plan will be detailed in the national biofuels policy to be released this month, the people added. The policy will detail a Rs1 trillion investment opportunity under Waste-to-Wealth projects.Bio-CNG is a purified form of biogas with over 95% pure methane. It is similar to natural gas in its composition (97% methane) and energy potential.
While natural gas is a fossil fuel, Bio-CNG is a renewable form of energy produced from agricultural and food waste. “IOCL is taking the lead in terms of setting up plants for generation of Bio-CNG so that farmers can supply biomass instead of burning it. IOCL will buy back Bio-CNG and sell the same,” said one of the people aware of the development, the first person quoted above.
