Ananzoo Techlogies India Pvt. Ltd.

BioCNG

Analysis of
BioCNG in
India
2023/2024

+91- 97523 22364

Written By contact@ananzoo.com
Team Ananzoo www.ananzoo.com
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INDIA'S ENERGY CONTEXT
India is among the fastest growing economy in the world and its energy
consumption is expected to increase rapidly.It is the third largestprimary
energy consumerin the world after the US and China, having recordeda
Compounded Annual Growth Rate (CAGR) of 4% in its energyconsumption over
thelast decade.

it is one of the major petroleum

OIL AND GAS DEMAND
products that is imported. India
AND IMPORT
consumed 27.6 MMTPA of LPG in 2020-
DEPENDENCE 21, out of which 16.6 MMTPA was
imported.
From April 2020 to March 2021, India’s
total consumption of petroleum India also imported~25 MMTPA of
products was 194.6 million metric Liquefied Natural Gas (LNG) to meet its
tonnes per annum (MMTPA) and the 45.8 MMTPA demand, in 2020-
total import of petroleum productswas 21. The demand and supply trend of
43.5 MMTPA with a total import value of LNG and the estimated carbondioxide
USD 14.2 billion. Due to high (CO2) emission from it is presented in
consumption demand of Liquefied Figure 11. In 2019-20, India’s LNG import
Petroleum Gas (LPG) in the transport, value was USD 8.7 billion which means
industrial and domestic sectors of India, the cost of imported LNG per kilogram
is USD 0.34 (~INR 25).

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 LNG DEMAND & SUPPLY TREND

FIGURE 1: DEMAND AND SUPPLY TREND OF LNG AND ESTIMATEDCO2 EMISSION FROM IT

The CNG vehicles have increased this fuel. This clearly establishes an
from about 1.47 million in March2014 opportunity for BioCNG to be an
to ~3.4 million in March 2020. Thus, alternative or additional fuel for the
with more than 33,75,718 CNG vehicles. Figure 2 represents the top
vehicles in India, the automobile 10 states with a high number of CNG
sector has a heavy demand for vehicles 2.

FIGURE 2: TOP 10 STATES WITH A HIGH NUMBER OF CNG VEHICLESIN INDIA

NUMBER OF CNG VEHICLES IN TOP 10 STATES IN INDIA

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 Import Reduction Target
India’s import dependence on crude
oil, natural gas and large share of
carbon intensive energy sources
necessitates action to ensure energy
security and environment
sustainability. As a result, the
Government of India (GOI) has set a
target of reducing crude oil import
dependence by at least 10% by 2022.
Furthermore, the GOI has set a target
of increasing the share of naturalgas
in India’s energy mix to 15% by 2030.

Energy Security
The Government of India is engaged
INTERNATIONAL in several initiatives to designand
COMMITMENTS implement energyefficiency and clean
energy programs. India has made
India’s energy strategy is to move significant progress in realizing energy
towards a low carbon economy, saving throughadoption of new
thereby contribute in achieving technologies, policies and
Government’s ambitious energy programmatic reforms,and consumer
target of 450 GW of renewable sensitization. India is working on
capacity, reduce energy emissionsby national strategic plan for energy
33- 35% and to scale up the share of efficiency to realize the immense
non-fossilfuel based capacity in the energy saving potential in the various
electricity mix above 40%, among demand sectors such as industry and
others by 2030. transport among others.

As India progresses towards a clean energy ecosystem, Compressed Biogas

(CBG) or BioCNG is expected to play an instrumental role in promoting energy
security and environment sustainability. BioCNG has calorific value and other
properties similar to CompressedNatural Gas (CNG) and can be utilized as green
renewable automotive fuel. Thus, BioCNG can replace CNG in automotive,
industrial, and commercial sectors.

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The GOI has created an enabling ecosystem to increase the share of BioCNG in
the total energy matrix. National level programs /policies/ schemes have been
prepared to decarbonize the transport sector and meet the emission targets that
will further help in promoting the Circular Economy. The brief details of the
relevant policy landscape, and programs and schemesfor BioCNG in India are
outlined in this section.

Rules and Policy Landscape

Enabling policies such as the National Policy on Biofuels 2018 and the Auto Fuel
Vision and Policy 2025 alongwith the provisions under the Solid Waste
Management Rules are some of the key drivers for BioCNG in India. Details of the
rules and policy are provided in the Table 1 below.

Table 1: Details of Rules and Policy Related to BioCNG

S. No. Policy Details

1. National Policy on The National Policy on Biofuels 2018 aims to develop and
Biofuels promote domestic feedstock, and its utilization to
produce biofuels including BioCNG. This would increase
substitute fossil fuels and contribute to National Energy
Security, climate change mitigation, apart from creating
employment opportunities. The policy aims to make
possible 20% blending of ethanol in petrol and 5%
blending of biodiesel in diesel by 2030. However, the
target of 20% blending of ethanol in petrol has been
advanced by five years to 2025.

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S. No. Policy Details

The strategy to achieve the goal is by- reinforcing

ongoing ethanol/biodiesel supplies through increasing
domesticproduction, setting up Second Generation (2G)
bio refineries, creation of new feedstock for biofuels,
development of new technologies for conversion to
biofuels, and build an environment for integration of
biofuels with the main fuel.

The policy advocates scaling up of advanced biofuels

including BioCNG using lignocellulosic feedstocks (i.e.
agricultural and forestry residues, e.g. rice & wheat
straw/corn cobs & stover/bagasse, woody biomass),
industrial waste, animal dung, food/vegetable
waste,municipal solid waste(MSW) and sewagewaste.

2. Solid Waste The Ministry of Environment, Forests and Climate Change

Management Rules (MOEF&CC), had issued the Solid Waste Management
(SWM) (SWM) Rules, 2016. These rules replaced the MSWs
(Management and Handling) Rules, 2000. The SWM Rules
are applicable to all urban local body outgrowths in urban
agglomerations, special economic zones, stateand
central government organizations, and all domestic,
institutional, commercial or any non-residential solid
waste generator, among others.The SWM Rule converges
multiple government ministries to manage and derive
value out of solidwastes. These ministries involved are
Ministry of Environment, Forest and Climate Change,
Ministry of Housing Urban Development, Department of
Fertilizers, Ministryof Chemicals and Fertilizers, Ministry
of Agriculture, Ministry of Power, and Ministry of New and
Renewable Energy Sources.

2. Auto Fuel Vision and Auto Fuel Vision and Policy, an initiative by MOPNG, is
Policy 2025 envisaged to promote the use of alternative fuels and
encourage the switch over from liquid fuel to CNG/LNG.
The policy proposes to lower road tax and encourages tax
incentives/disincentives and subsidies for vehicles using
alternative fuels.

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Programs and Schemes
The number of programs and schemes has been formulated to accelerate the
deployment of BioCNG projects in India. Sustainable Alternative Towards
Affordable Transportation (SATAT), MNRE’s Waste- to-Energy program, Swachh
Bharat Mission (SBM), and Galvanizing Organic Bio-Agro Resources (GOBAR) –
DHAN scheme are some of the programs and schemes havingvarious provisions
for BioCNG promotion in India. Detailed provisions under the programs and
schemesare provided in Table 2 below.

Table 2: Details of Programs and Schemes for BioCNG Projects

S. No. Programs/Schemes Details

1. Sustainable Alternative The MOPNG has launched SATAT Scheme to promote the
Towards Affordable production and utilization of BioCNG as an alternative,
Transportation (SATAT) green fuel for the transport segment and reduce
India’sdependence on oil and gas imports by producing
BioCNGusing agricultural residues, cattledung,
sugarcane pressmud, municipal solid waste, and sewage
treatment plant waste. MOPNG has envisaged the target
production of BioCNG from 5000 plants at 15 MMTPA by
2024 (which is ~32% of the current LNG demand). Under
SATAT, the industry players are expected to invest ~ USD
24 billion (INR 175,000 crore) in infrastructure
development for BioCNG distribution. It is anticipated
that this initiative will generate employment for 75,000
people and produce 50 million tonnes(MT) of Biomanure
for crops.

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S. No. Policy Details

2. MNRE program on The MNRE, GOI, through its waste-to-energy program, is

Waste-to- Energy promoting setting up of Biogas/BioCNG/Power projects
using Urban, Industrial, Agricultural Waste and MSW. The
program offers Central Financial Assistance (CFA) in the
form of back- ended subsidyfor installation of waste to
energy projects, for instance, CFA of
~USD 0.54 million (INR 4 crore) can be provided to setup
a 4.8 TPD BioCNG plant and a maximum CFA of ~USD 1.33
million (INR 10 crore) can be granted per project.

3. Swachh Bharat Mission The focus of GOBAR-DHAN scheme is not only to keep the
(SBM) and Galvanizing villages clean, but alsoto increase the income of rural
Organic Bio-Agro households, and generate energy from cattle waste. It is
Resources (GOBAR) - one of the key sub-programs under Swachh Bharat
DHAN Mission (SBM Gramin). The focal point of this scheme is to
scheme manage the bio-waste like cattle waste by converting
them into biogas and organic manure. This scheme has
improved the lives of villagers, particularly farmers, by
providing them economic benefits.

Additionally, the expression of interest notified by oil and

gas companies to procurebiofuel (i.e. Bioethanol and
BioCNG) at pre-defined guaranteed prices has given a
fillip and increased the participation of investors and
project developers. It is now possible to sell BioCNG
directly to the users at higher prices depending upon the
states.

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 Roles of Various Ministries
in Promotion of Bioenergy
Bioenergy being the cross-sectoral
domain would require the
participation of various line ministries/
departments for promotion and the
effective implementation of the
bioenergy projects. The brief detail
regarding the roles of some of the
relevant ministries is presented below
in Table 3.

Table 3: Relevant Ministries and their Roles in Promotion of Bioenergy in India

S. No. Programs/Schemes Details

1. Ministryof Petroleum Formulates and monitors the implementation of policy,

and Natural Gas program and schemes of Biofuels/BioCNG.

2. Ministry of Monitors the implementation of SWM Rules

Environment, Forest and
Climate Change

3. Ministry of Housing Formulates national policy and strategy on SWM

Urban Development including policy on waste-to-energy.

4. Department of Provides market development assistance for compost

Fertilizers, Ministry of generated in cities and ensures promotion of co-
Chemicals and marketing of compost with chemical fertilizers.
Fertilizers

5. Ministry of Agriculture Implements Fertilizer Control Order for manufacturing

and sale of compost and propagate utilization of compost
on farmland. It sets up laboratories to test quality of
compost.

6. Ministry of Power Determines tariff of the electricity generated from the

waste-to-energy plants; ensures mandatory purchase of
power generated from waste- to-energy plants by
DISCOMs

7. Ministry ofNew and Facilitates infrastructure development for waste-to-

Renewable Energy energy plants, and provides appropriate subsidies or
incentives for such plants.

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BioCNG is produced from biogas through a process of desulphurization,
upgradation and compression. Biogas is first desulphurized to reduce the
hydrogen sulphide content below 20 part per million (ppm). The desulphurized
gas is then upgraded to increase the methane content to ~92-98% and calorific
value to ~47-52 mega joules (MJ) per kilogram (kg). The gas is then compressed to
more than 250 bar pressure and stored in cascades/bottles or injected to the gas
pipelines. The chemical composition of biogas and BioCNG is presented in Table 4.

Table 4: Chemical Composition of Biogas and BioCNG

S. No. Composition Biogas BioCNG

1. Methane 55% – 65% >90%

2. Carbondioxide 30% – 40% <4%

1. Hydrogen sulfide 0.1 – 4% <16 ppm

1. Ammonia Z 0.1% ~0%

1. Nitrogen 3% <0.5%

1. Oxygen 0.1 – 2% <0.5%

1. Moisture 1 – 2% ~0%

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BioCNG/Biogas can be generated sludge and 4% for vegetable waste-
using various organic waste/biomass based plants. Biomanure is the
like agricultural residue, fruits and byproduct of biomass-to-BioCNG
vegetable waste, sugarcane press conversion process. A 100 TPD fruit
mud among others. However,the and vegetable market waste-based
biomass-to-BioCNG conversion plant can produce around 4 TPD
efficiency varies with input BioCNG, which can provide fuel for
feedstockand technology used. The ~57 buses (70 kg per fill) or 400 cars
biomass-to-BioCNG conversion (10 kg per fill) or ~600 rickshaws (06
efficiency from agriculture waste- kg per fill) daily6. It is estimated that
based plants is ~10%, while 500 such plants can produce 7.3 lakh
conversionefficiency from sugar tonnes of BioCNG per annum and ~3
press mud is ~5%, it is 5% from waste million tonnesof Bioslurry perannum.
sewage treatment plants (STP)

Typical Stepsof BioCNG Project

A typical Biogas/BioCNG production of the Biomass-to-BioCNG conversion
plant has pre- treatment, reactor process are given in Table 5.
(anaerobic digestion), upgradation & Schematics of BioCNG plant is
purification, and storage & presented in Figure 3.
distribution sections. Details of each
Table 5: Steps for Biomass-to-BioCNG ConversionProcess

Mechanical pre-treatment grinds the solid particles of

the feedstock and increases the specific surface area.
Step 1: Feedstock Screw press, shedder, etc. are some of the
pre- treatment machineries conventionally used in biogas industries.
Thermal pre-treatment thermally degrades the
feedstock. Based on quality of feedstock, the
temperature range of the pre-treatment unit is
decided.
Chemical pre-treatment destructs organic
compounds by means of strong acids, alkalis or
oxidants. Such treatments are used in wastewater
sludge, lignocellulosic biomass etc.
•Biological pre-treatment includes both anaerobic
and aerobic methods; specific enzymes may also be
used to enhance the degradation rate of feedstock.
Combination of various pre-treatments uses thermo-
chemical pre-treatment and thermo-mechanical pre-
treatment.

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 Anaerobic digestion (AD) is a processof degradation of
organic matterby micro- organisms in an oxygen-free
Step 2: Anaerobic environment, which producesraw biogas. Biogasis
Digestion produced using waste/bio-mass sources like agriculture
residue, fruits and vegetable waste, cattle dung,
sugarcane press mud, municipal solid waste, sewage
treatment plant waste, etc. The biogas mainly constitutes
of 40–65% methane and 35–55% CO2 with a calorific
value of 19.5 MJ/kg. Micro-organisms, reactor/digester
design, and operating conditions are key factors in
anaerobic digestion.

•Micro-organisms: Four groups of microbes are most

frequently used in biogas production plants—
hydrolytic bacteria, acidogenic bacteria, acetogenic
bacteria, and methanogenic groups.
•Reactor Design: Different kind of reactors are used
for the anaerobic digestion process, like batch,
continuous one-stage, and continuous two- stage
systems, Continuously Stirred Tank Reactor (CSTR),
tubular reactor, anaerobic sequencing batch reactor
(ASBR), Upflow Anaerobic Sludge Blanket (UASB),
among others. The technology of anaerobic digestion
in multiple stages is considered a viable optionto
control variables, optimize operations, assure solid
removal and production of methane. The continuous
two-stage anaerobic digestion technology is reported
to be a suitable technology for conversion of fruits
and vegetable waste and agricultural residues to
produce biogas/BioCNG.
•Operating Conditions: Conditions for the operationof
AD system favors methanogenic bacteria
growth,improves the separation of liquid and solid
fractions, helps degradation of the substrate, and
provides higher biogas yield. Temperature – 35 °C, pH
– 7.0, FeedstockC/N ratio – 20 to 30, and Retention
Time – 10 to 30 days are optimum operating
conditions for Biogas/BioCNGproduction.

Removal of CO2 and H2S from biogas needs to be

Step 3:
done to improve the quality (calorific value) of the gas
Upgradation &
in the fuel. Scrubbing, chemical absorption, pressure
Purification
swing adsorption, membrane purification, and
cryogenic separation are some of the technologies
used for absorption, adsorption and membrane
separation for upgradation and purification of biogas.

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 Calorific value of BioCNG is in the range of 47 to 52 MJ
per kg. BioCNG is stored at gas filling stations using
Step 4: Storage two common systems i.e. buffer and cascade storage
and Distribution systems.In buffer storage system, the pressure of
BioCNG is maintained at 250 bar for all the
reservoircylinders, whereas, in cascade storage, the
reservoir cylinders are maintained at low, medium
and high pressures. It can be distributed through
pipelines—at low (~ 40 bar), medium (~160 bar) and
high (~250 bar) pressures.

Figure 3: Schematics of BioCNG plant

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 List of BioCNG Plant
Machinery and Components
1. Feeding and Pre-treatment
2. Anaerobic Digester
3. H2S scrubber
4. Co2 recovery unit
5. Biogas balloon
6. BioCNG purification and recovery
unit
7. BioCNG compressor unit
8. BioCNG cascade
9. BioCNG piping network toinject into
gas grid
CHALLENGES 10. BioCNG injection system to
ASSOCIATED WITH tankers/dispensers firefighting
THE BIOCNGPLANTS systems
11. Slurry Processing Unit (Solid liquid
AND ITS PRODUCTION separator, compost sewing machine,
The GOI has formulated various
turners, earth mover etc.)
policies and schemes to promote
12. Balance of plant (electrical,
and mitigate challenges
instrumentation)
associated with the BioCNG sector.
There are still some operational
Varied chemical composition
and technological challenges such
of feedstock (carbon/nitrogen
as sensitivity towards biomass
ratio) - Unavailability of desired
quality, biogas upgradation
quality of feedstock
process among others which are
throughout the year. This
impeding the uptake of BioCNG
impacts the yield of
projects. Following is the list of
Biogas/BioCNG.
challenges associated with the
•Selection of Biogas/BioCNG
BioCNG plants.
technology (including reactor
and pre-treatment process)
Supply of desired quantity and
suitable for available and
quality of feedstock (mainly
multi-feedstocks.
vegetable waste) which are
•Adoption of biogas
segregated at source.
upgradation process based on
•Requirement of significant
operational efficiency and
storage space for biomass and
economic feasibility.
associated safety risks such as
Maximizing the utilization of
propensity to catch fire in dry
plant equipment such as
state.
compressor.

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 TECHNOLOGY DEVELOPERS,
OEMS AND EPCS

Under SATAT Scheme, around13 companies which are technology

BioCNG projects have already begun developers, Original Equipment
supply of BioCNG and several other Manufacturer (OEMs), and
projects are in different stages of Engineering, Procurement, and
development. Some of the projects Construction (EPC) for BioCNG/
undertaken are by Leafiniti Bioenergy projects.
Bioenergy, Solika Energy Pvt. Ltd., T R
Mega Foods and Beverages LLP, CNM
Energy Solution Pvt Ltd, Carboneu
Pvt Ltd, Cities Innovative Biofuels
Private Limitedand CEF Budhana
Energy Private Ltd among others.
Several domestic and international
firms are involved in the value chain
of BioCNG projects. Annexure A has
the list of global and Indian

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 OVERVIEW OF GROWTH OF
BIOENERGY IN INDIA
India’s journey of bioenergy started was initiated and it has resulted in
in 1982 when GOI launched the the deployment of around 180
Biogas program under which over 5 projects since then till now. Around
million cattle dung-based family 75% of these are captive projects for
type biogas plants (2- 6 cubic meter power and thermal applications. A
biogas generationcapacity) were brief information about the
setup for cooking and other Biogas/BioCNG projects in India is
applications. In 2002, a program on given in Table 7.
energy from urban, industrial,
agricultural waste/residues and MSW

Table 7: Type of Biogas Projects in India

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A large number of these projects were GOI has also set an ambitious target of
installed mainly in distilleries, starch, 175GW renewable energy capacityby
paper and solvent extraction plants 2022, comprising 100 GW from solar
etc., and it helped to meet ~75 % of power, 60 GW from wind power, 10
their energy demand through biogas. GW from bioenergyand 5 GW from
However, a large potential of small hydropower. Owing to the
implementing biogas projects is enabling policy and regulatory
observed in sugar, milk processing, framework , bioenergy projects with
cattle farming, poultry and food, fruits more than 10 GW successfully started
and vegetable processing industries. functioning by the end of 2020.
Meanwhile, the distribution of biogas
projects across industrial sectors is
presented in Table 8 and details of
bioenergy capacity from various
industrial effluents are presented in
Table 9.

Table 8: Distribution of Biogas Projects Across Industrial Sectors

S. No. Industrial Secotor Number of Projects

1. Solvent Extraction Plant 6

2. Starch Industries 70

3. Slaughter House 2

4. Distillery Industries 40

5. Poultry Industries 12

6. Pharmaceuticals 2

7. Leather Industries 5

8. Yeast Industries 2

9. Food and Fruit Processing 6

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 Table 8: Distribution of Biogas Projects Across Industrial Sectors

S. No. Industrial Secotor Number of Projects

10. Paper Industries 10

11. Municipal Solid Waste 4

12. Vegetable Market 2

13. Sewage /Sludge Plant 3

14. Cattle Dung 8

15. Dairy 1

16. Agriculture Waste 1

17. MSW 6

Total number of Projects 180

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