IBA’s commitment towards leapfrogging the prospect in the biogas/bio-CNG industry

- Period: January- March, 2023

Webinar on Biogas & CBG: Understanding the subtleties of financing

On February 15, 2023, the Indian Biogas Association (IBA) organized a webinar titled "Biogas & CBG: Understanding the subtleties of financing" for the Biogas industry. The event was attended by prominent speakers from various organizations, including the Ministry of New & Renewable Energy (MNRE), GAIL India Ltd, Small Industries Development Bank of India (SIDBI), Indian Renewable Energy Development Agency Limited (IREDA), and

SouthPole.

The webinar aimed to educate industry professionals on the intricacies of financing biogas projects and Compressed Biogas (CBG) plants. The discussion covered topics such as project financing, subsidies, risk assessment, and business models for biogas and CBG projects.

The webinar was well received by attendees, who expressed their appreciation for the insights provided by the experts. Many participants noted that financing can be a significant challenge for biogas and CBG projects, and the webinar helped to clarify the various financing options available.

Industry experts believe that the development of biogas and CBG projects is critical to India's renewable energy goals, as they offer a sustainable alternative to fossil fuels. The webinar provided valuable information and insights into how biogas and CBG projects can be financed, which is essential for their successful implementation.

Overall, the webinar was a significant step forward in promoting the development of the biogas industry in India, and attendees left with a better understanding of how financing can be used to support this important sector.

Budget 2023-24: Due importance given to Biogas sector

The recently announced Indian Budget for 2023 has been lauded for its sharp focus on green growth, which is expected to provide a much-needed boost to the biogas and bioenergy sector in the country. The budget has allocated significant funds for various renewable energy initiatives, which is expected to accelerate the growth of the bioenergy sector.

In particular, the following measures were announced for biogas:

“The country's compressed biogas (CBG) market will grow as the budget announces plans for new plants as well as the intention to require natural gas marketers to sell biogas. The budget has also emphasized that "in due course, a 5% CBG mandate would be established for all businesses marketing natural and biogas." India imports over half of its natural gas consumption and hopes to replace some of it with indigenous biogas.

The budget also announced a central excise duty exemption for CBG when blended with natural gas. In the erstwhile era, CBG was subject to the goods and services tax (GST), but enterprises were also paying central excise duty when they blended biogas with compressed natural gas (CNG) for onward sale because natural gas is under excise/VAT regime. This used to result in double taxes, which the budget has sought to eliminate.

The budget has also been well proposed, with several measures aimed at promoting the development of biogas and bioenergy, including the establishment of a National Bio-energy Mission and the provision of financial support for biogas projects. The government has also announced plans to create a network of biogas plants across the country, which will generate renewable energy from agricultural waste. ”

Industry experts have welcomed the budget's initiatives for the biogas and bioenergy sector, noting that they will provide a much-needed boost to the industry. The increased investment in renewable energy is expected to create new jobs, promote sustainable development, and help India achieve its ambitious renewable energy targets.

Overall, the budget's sharp focus on green growth is expected to have a positive impact on the biogas and bioenergy sector in India, providing much-needed support for the sector's growth and development.

BIS standards for the Biogas Plants

The standards committee was headed by Dr. A. R. Shukla, President of the Indian Biogas Association, and supported by other members from prestigious organizations like MNRE, NIBE, and the Renewable Energy Sources Sectional Committees from BIS.

The main focus of the standards is to ensure the quality of different sizes of biogas plants that will be introduced in the country. The standards are expected to play a crucial role in promoting the growth of the biogas industry in India by ensuring that the plants are of the highest quality and operate efficiently. This will not only improve the performance of the biogas plants but also help maintain safety standards for the environment and the public.

The standard IS 9478 : 2023 is now available publicly. A webinar dated 22nd March 2023 was organized to acknowledge the public launch and contributions from all the committee members involved in the formulation of the standards. Overall, the standards published by BIS is a step towards promoting sustainable development and promoting the use of Biogas as an alternative source of energy in India.