8-Dec-2022: Targets under SATAT Scheme

Sustainable Alternative Towards Affordable Transportation (SATAT) initiative launched in October, 2018 envisages setting up of 5000 Compressed Biogas (CBG) plants for production of 15 Million Metric Ton (MMT) per annum of CBG by 2023-24.

As on 31st October 2022 Oil and Gas Marketing Companies participating in SATAT have issued 3694 Letters of Intent (LoI) to entrepreneurs for procurement of CBG produced by them. Further, 38 CBG/biogas plants with installed capacity around 225 MT per annum have been commissioned by LoI holders.

Phase I Umbrella scheme of National Bioenergy Programmes of the Ministry of New and Renewable Energy which inter-alia provides subsidy/Central Financial Assistance to all kinds of biogas plants has been extended upto 31.03.2026.

In order to reduce import dependency of the country in fossil fuels, Government has taken multiple steps / launched various policy initiatives to increase the domestic production of crude oil & natural gas and adopted strategies for promotion of biofuels, gas based economy, energy efficiency & energy conservation, improvement in refinery process and increasing renewable energy generation capacity.

25-Jul-2022: 35 CBG/biogas plants have been commissioned so far under SATAT initiative

The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Rajya Sabha today informed that the Ministry of Petroleum and Natural Gas has launched “Sustainable Alternative Towards Affordable Transportation (SATAT)” initiative 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. Under SATAT initiative Oil and Gas Marketing Companies (OGMCs) are inviting Expression of Interest (EOI) to procure CBG from potential entrepreneurs.  So far 35 CBG/biogas plants have been commissioned under SATAT initiative.

Under this initiative various enablers like assured price for off-take of CBG with long term agreements by OGMCs; inclusion of bio manures produced from CBG plants as Fermented Organic Manure and Liquid Fermented Organic Manure under Fertilizer Control Order 1985; inclusion of CBG projects under ‘White Category’ by CPCB on case-to-case basis; inclusion of CBG projects under Priority Sector Lending by RBI; loan products from various Banks for financing of CBG projects; directions from Department of Fertilizers for mandatory offtake of FOM by Fertilizer companies etc.  have been provided to promote CBG sector.

Further, Ministry of Petroleum and Natural Gas has issued guidelines for co-mingling of domestic gas for supply for Compressed Natural Gas (Transport) & Piped Natural Gas (Domestic) segments of City Gas Distribution (CGD) Networks for synchronization of CBG with CNG in CGD Network to enhance use of CBG.

4-Aug-2021: 13 plants under SATAT have initiated supply of CBG

The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Rajya Sabha today informed that as on 22.7.2021, supply of Compressed Bio Gas (CBG) initiated from 13 CBG plants under Sustainable Alternative Towards Affordable Transportation (SATAT) initiative. So far Oil and Gas Marketing Companies participating in SATAT have procured about 1957 ton CBG from entrepreneurs.

Under SATAT initiative Oil and Gas Marketing Companies are continuing to invite Expression of Interest from potential entrepreneurs for production and supply of CBG.

1-Jun-2021: Shri Dharmendra Pradhan presides over a slew of initiatives around Compressed Bio Gas to give filip to SATAT scheme

Union Minister of Petroleum and Natural Gas & Steel Shri Dharmendra Pradhan today presided over a virtual ceremony in which a number of initiatives were launched to provide major fillip to the SATAT initiative, and help India leap ahead towards a greener tomorrow.

This included signing of a Cooperation Agreement by Oil and Gas majors including Indian Oil, HPCL, BPCL, GAIL and IGL, for the promotion and development of the SATAT (Sustainable Alternative Towards Affordable Transportation) scheme. The SATAT scheme aims to set up Compressed Bio-Gas production plants and make CBG available in the market for use as a green fuel. 'SATAT’, launched on 1.10.2018, envisages to target production of 15 MMT of CBG from 5000 plants by 2023.Besides the potential to boost availability of more affordable transport fuels, better use of agricultural residue, cattle dung and municipal solid waste, the 5000 CBG plants will provide an investment of 1.75 lakh crore, an additional revenue source to farmers, and 75,000 direct job opportunities and lakhs of indirect jobs.

The Cooperation agreement provides for establishing a strong network for marketing the entire produced quantity of CBG Plants through various channels. The agreement also has provision for associate implementers to join the SATAT movement. As per the agreement, Indian Oil shall act as coordinator under the SATAT scheme and liaison with the Government and other agencies on behalf of Industry members. GAIL shall serve as the coordinator for the implementation of the CBG-CGD synchronization scheme.

During the event, the Ministry of Petroleum & Natural Gas also signed MoUs with Essar Capital Limited, XEMX Projects, Knowledge Integration Services, and Global Green Growth Institute, Seoul to set up new CBG Plants across the country.

Shri Pradhan laid the foundation stones of 5 upcoming CBG Plants. These plants are being set up across Gujarat(2), Uttar Pradesh(2)and Punjab(1) by CNM Energy Solution Pvt Ltd, Carboneu Pvt Ltd, Cities Innovative Biofuels Private Limited and CEF Budhana Energy Private Ltd.

Shri Pradhan also dedicated to the nation the newly commissioned CBG plants of Solika Energy Pvt. Ltd. in Hyderabad and T R Mega Foods and Beverages LLP in Ludhiana. He also dedicated new CBG selling retail outlets at Hyderabad (Masab Tank Service Station), Bengaluru (Jai Bheem) and Ludhiana (Sharma Filling Station) to the nation.

During the landmark event, Union Petroleum Minister also inaugurated the first injection of CBG into the CGD pipeline network at Govardhannathji Energies into Gujarat Gas CGD network at Nadiad Kheda Distt., Gujarat. This is in line with the recently issued policy guidelines by the Ministry of Petroleum & Natural Gas on CBG injection in the CGD network.

A website to provide a digital boost to the SATAT programme was also unveiled during the event. The website www.satat.co.in shall be a resource centre for new and existing CBG Plants providing details on CBG & SATAT, enablers under the SATAT scheme and FAQs. The portal also contains a section on the learning modules where handy presentations and videos have been made accessible.

Speaking on occasion, Union Petroleum Minister Shri Dharmendra Pradhan said that the Government of India is committed to harnessing the full potential of biofuels to realize the Hon'ble Prime Minister's vision of reducing import dependence and ensuring a sustainable energy future for the nation. He said that steps taken by India for containing the global warming as per the commitment made in COP-21 have been well appreciated. These included providing LPG connections to 8 crore people, surge in the Ethanol blending to almost 9% in the current Sugar year, progress in Bio-diesel programme, Aluminium Air battery.

Shri Pradhan said that the CBG programme under the SATAT has gained momentum, but the growth has to be exponential, not incremental. He said that this requires Oil and Gas PSUs to play more responsible role, debottlenecking, setting up of infrastructure, handholding of small entrepreneurs, and convincing the big companies to set up mega-clusters for the CBG. The Minister said that India should play a global leadership role in energy conversion, as we convert agro-residues/municipal wastes and other green wastes into energy, and make the farmers and rag-pickers important stakeholders in the process. He said that this will help in reducing oil imports, improving environment, saving foreign exchange, enriching our poor, and also brand building.  The Minister said that there is a large potential of harnessing usable Hydrogen from CBG in an economically-viable manner.

Speaking on occasion, Secretary Petroleum Shri Tarun Kapoor said that the agreement among Govt PSUs will inspire confidence among the entrepreneurs putting up CBG plants, and remove doubts about the marketing responsibility of gas from these plants. He said that injection of CBG into the CGD pipeline network is an important milestone. He said that the Government is in discussion with the state governments to sort out various issues concerning these plants, and also with the Fertilizer department for the marketing of manure produced in these plants. Shri Kapoor called for quick installation of SATAT plants.

8-Feb-2021: Compressed Biogas Plants

Government of India has launched Sustainable Alternative Towards Affordable Transportation (SATAT) initiative on 1.10.2018 to promote Compressed Bio Gas (CBG) as an alternative, green transport fuel for efficient management of biomass and organic waste including municipal waste as well as from forest and agricultural waste including animal-husbandry and marine waste. This initiative envisages establishment of large number of CBG plants by private entrepreneurs. As part of the SATAT scheme, Oil and Gas Marketing Companies are inviting Expression of Interest (EoI) for procurement of CBG on long term basis. Reserve Bank of India (RBI) has included CBG plants in Priority Sector Lending.

The Government has assured supply of domestic gas for CNG (Transport) purpose. Expansion of CGD network throughout the country is a continuous process to ensure adequate availability of cleaner transport fuel like Compressed Natural Gas (CNG). In this regard, Petroleum & Natural Gas Regulatory Board (PNGRB) is the authority to grant authorization to the entities for the development of City Gas Distribution (CGD) network in Geographical Areas (GAs) as per PNGRB Act, 2006. So far PNGRB has authorized 232 GAs for across the country up to 10th CGD Bidding Round covering more than 400 districts in the country in 27 States/Union Territories (UTs). There are about 2,543 operational CNG Stations in the country as on 30.11.2020.

Government has notified the ‘National Policy on Biofuels-2018’ on 04 June, 2018. Government is adopting a multi-pronged approach to promote and encourage use of biofuels by blending ethanol in petrol through Ethanol Blended Petrol (EBP) Programme using ethanol derived from multiple feedstock, development of Second Generation (2G) ethanol technologies and its commercialization for augmenting ethanol production and blending biodiesel in diesel through Biodiesel Blending Programme.

Further, a scheme of Sustainable Alternative Towards Affordable Transportation (SATAT) on October 01,  2018 to promote Compressed Bio-Gas (CBG) as an alternative and green transport fuel has also been launched.

15-Jul-2019: Bio-Gas Production

Biomass and organic waste sources like paddy straw, farm stubble, agricultural residue, cattle dung, sugarcane press mud, distillery spent wash, municipal solid waste, sewage treatment plants waste, etc. offer huge potential for biogas production.

Government is promoting the use of Compressed Bio Gas (CBG) as an alternative green transport fuel for efficient management of biomass and organic waste. In this direction, Oil PSUs have launched ‘Sustainable Alternative Towards Affordable Transportation’ (SATAT) initiative on 1st October 2018.  SATAT initiative has the potential of addressing environmental problems arising from landfill emissions, farm stubble burning, etc. and also bring down dependency on oil/gas import. Till June, 2019, Oil Marketing Companies and Gas Marketing Companies have awarded Letter of Intent (LoI) for 344 plants for production and supply of CBG.

27-Feb-2019: Shri Dharmendra Pradhan hands over 100th Letter of Intent under SATAT scheme

Minister of Petroleum and Natural Gas & Skill development and Entrepreneurship Shri Dharmendra Pradhan handed over the 100th Letter of Intent (LOI)  to the Compressed Bio-Gas(CBG) Entrepreneur (producer) under the SATAT scheme. SATAT is an initiative aimed at providing a Sustainable Alternative Towards Affordable Transportation as a developmental effort that would benefit both vehicle-users as well as farmers and entrepreneurs.

Spreading the gas grid fed by CBG from thousands of such plants across the country would significantly reduce India's import burden and provide an economical and environment-friendly alternative to conventional petroleum fuels. It is a waste to wealth venture. The scheme is lucrative for the prospective entrepreneurs, as it provides guaranteed rate of return, assured take-off by Oil marketing companies, there is availability of abundant raw material, and with no condition of any technology. The banks are ready to provide support to such projects due to their good viability. The Government is in talks with the UN environment Fund and Japanese Government for providing soft loans for such projects.

CGD system will be available in 400 districts, providing ready market for the Compressed Bio-gas. Within 5 months of its launch, over 100 LOIs have been issued. Within a short period, thousands of such plants will be operational in the country, providing employment, reducing import dependence, helping in garbage management, and also enhancing the income of farmers.

SATAT was launched with a four-pronged agenda of utilising more than 62 million metric tonnes of waste generated every year in India, cutting down import dependence, supplementing job creation in the country and reducing vehicular emissions and pollution from burning of agricultural / organic waste.

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 pure methane content of over 90%.

Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential. CBG can be used as an alternative, renewable automotive fuel. Given the abundance of biomass in the country, CBG has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.

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

Compressed Bio-Gas plants are proposed to be set up mainly through independent entrepreneurs. CBG produced at these plants will be transported through cascades of cylinders to the fuel station networks of OMCs for marketing as a green transport fuel alternative.

28-Sep-2018: SATAT initiative to promote Compressed Bio-Gas as an alternative, green transport fuel

Dharmendra Pradhan, Union Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship will kick off an innovative initiative in New Delhi on 1st October, 2018, with PSU Oil Marketing Companies (OMCs ,i.e. IOC, BPCL and HPCL) inviting Expression of Interest (EoI) from potential entrepreneurs to set up Compressed Bio-Gas (CBG) production plants and make available CBG in the market for use in automotive fuels. This significant move has the potential to boost availability of more affordable transport fuels, better use of agricultural residue, cattle dung and municipal solid waste, as well as to provide an additional revenue source to farmers.

Titled SATAT, the initiative is aimed at providing a Sustainable Alternative Towards Affordable Transportation (SATAT) as a developmental effort that would benefit both vehicle-users as well as farmers and entrepreneurs.

To be launched on the penultimate day of the ongoing Swachhta Hi Seva fortnight, a mass movement to fulfil Mahatma Gandhi's vision of a Clean India, this initiative holds great promise for efficient municipal solid waste management and in tackling the problem of polluted urban air due to farm stubble-burning and carbon emissions. Use of CBG will also help bring down dependency on crude oil imports and in realising the Prime Minister’s vision of enhancing farmers’ income, rural employment and entrepreneurship.

Background: 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 pure methane content of over 95%. Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential. With calorific value (~52,000 KJ/kg) 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.

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

The potential for Compressed Bio-Gas production from various sources in India is estimated at about 62 million tonnes per annum.

Compressed Bio-Gas plants are proposed to be set up mainly through independent entrepreneurs. CBG produced at these plants will be transported through cascades of cylinders to the fuel station networks of OMCs for marketing as a green transport fuel alternative. The 1,500-strong CNG stations network in the country currently serves about 32 lakh gas-based vehicles. The Working Group on Biofuels, set up under the National Policy on Biofuels 2018, is in the process of finalising a pan-India pricing model for Compressed Bio-Gas.

The entrepreneurs would be able to separately market the other by-products from these plants, including bio-manure, carbon-dioxide, etc., to enhance returns on investment.

It is planned to roll out 5,000 Compressed Bio-Gas plants across India in a phased manner, with 250 plants by the year 2020, 1,000 plants by 2022 and 5,000 plants by 2025. These plants are expected to produce 15 million tonnes of CBG per annum, which is about 40% of current CNG consumption of 44 million tonnes per annum in the country. At an investment of approx. Rs. 1.7 lakh crore, this initiative is expected to generate direct employment for 75,000 people and produce 50 million tonnes of bio-manure for crops.

The National Policy on Biofuels 2018 emphasises active promotion of advanced bio-fuels, including CBG. The Government of India had launched the GOBAR-DHAN (Galvanising Organic Bio-Agro Resources) scheme earlier this year to convert cattle dung and solid waste in farms to CBG and compost. The scheme proposes to cover 700 projects across the country in 2018-19. The programme will be funded under Solid and Liquid Waste Management (SLWM) component of Swachh Bharat Mission-Gramin (SBM-G) to benefit households in identified villages through Gram Panchayats. The Ministry of New and Renewable Energy has 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.

Compressed Bio-Gas can be produced from various bio-mass/waste sources, including agricultural residue, municipal solid waste, sugarcane press mud, distillery spent wash, cattle dung and sewage treatment plant waste. The other waste streams, i.e., rotten potatoes from cold storages, rotten vegetables, dairy plants, chicken/poultry litter, food waste, horticulture waste, forestry residues and treated organic waste from industrial effluent treatment plants (ETPs) can be used to generate biogas.

Going forward, Compressed Bio-Gas networks can be integrated with city gas distribution (CGD) networks to boost supplies to domestic and retail users in existing and upcoming markets. Besides retailing from OMC fuel stations, Compressed Bio-Gas can at a later date be injected into CGD pipelines too for efficient distribution and optimised access of a cleaner and more affordable fuel.