Sustainability and net-zero have now become global goals, and several countries are aiming for net-zero emissions. India, in particular, has charted out a 2070 deadline for reaching net-zero. Going sustainable, wherever possible, is the only way out. The Union Budget 2026 has proposed reforms along these lines, especially when it comes to cutting down on GHG (Green House Gases) emissions.
Honourable Finance Minister, Nirmala Sitharaman, proposed mandating and promoting a mixture of Biogas and CNG (Bio-CNG), wherein the entire value of biogas while calculating Central Excise Duty (tax levied on the manufacture and production of goods in India) payable on biogas-blended CNG will be exempted.
The Crux
The auto sector is a major contributor to GHG emissions, and the same warrants the use of cleaner fuels. While we discussed the government’s decision to exempt duties on lithium for batteries, another blend follows. We’ve witnessed ethanol-petrol blending, with parallel concerns of corrosion and lower fuel efficiency.
Benefits
To begin with, Bio-CNG produces lower lifecycle emissions compared to pure fossil fuels, CNG being one of them. Since biogas is produced from organic residue, the emitted methane is captured and used instead of simply letting it loose in the atmosphere. This reduces the overall GHG impact.
India imports LNG, and given that biogas can be produced locally (scaling is a challenge), blending only makes sense. It holds a potential in reducing energy imports, and as a result, should soften the blow induced by fluctuating fuel costs. Biogas production demands residue, and the same encourages agricultural waste to be directed to sustainable use, thereby creating a circular economy.
As mentioned earlier, Bio-CNG takes methane, a GHG, into use. Given that this mix can be used with existing fuel stations, it results in immediate implementation, resulting in a rapid transition to clean energy. Engines, within a reasonable blend range, do not risk knocking, lower power delivery, or NVH penalty. Lower GHG emissions and creation of a circular economy come in as brownie points.
Challenges
Since Bio-CNG involves the converting residue to fuel via microbes, the residue itself isn’t high-quality, mainly because of improper segregation. Couple this with higher initial investment for setting up Bio-CNG plants and mobilising this blend to reach the end-consumer, scaling becomes a challenge. Lack of awareness also contributes to its limited reach.
Another bottleneck lies on the implementation front. While on-paper policies are clear and have a direction, ground-level implementation is often delayed or improperly executed.
Mixtures go big on quality control (QC), and poor QC (even after purification) means corrosion of key engine components, resulting in earlier wear and tear, preceded by higher maintenance. Even if the fuel goes cheap, the benefit barely makes it to the end-consumer, case in point, ethanol-blended petrol.
Verdict
While Bio-CNG is a solid vision, QC and implementation need to be equally on par, so that the country can realise true fuel independence without burning a hole in the consumers’ pockets. Keeping costs in control, coupled with long-term viability (no major change in the vehicle’s longevity), especially in a price-sensitive market like ours, will play part in the new blend’s success.
Images: PIB
