The government has announced a number of initiatives to promote the production of ethanol from maize, including the development of high-starch yielding varieties, the improvement of the quality of maize DDGS (Dried Distillers Grain Solids) by removing aflatoxins, and the faster registration of new seed varieties with high starch. This announcement came during a meeting of the National Biofuels Coordination Committee (NBCC), chaired by the Union Petroleum Minister, Hardeep Singh Puri.
In addition, the government has set initial indicative blending percentage targets for Sustainable Aviation Fuel (SAF/Bio- ATF). A phase-wise mandatory blending of CBG in Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) will be implemented, starting voluntarily in FY 2024-25 and becoming mandatory from FY 2025-26. The blending percentage will gradually increase from 1% to 5% by 2027-28.
According to a press release by Ministry of Petroleum & Natural Gas, discussions have been held with stakeholders from the Department of Agriculture and Department of Food and Public Distribution (DFPD) to promote ethanol production from maize. Efforts will focus on developing high-starch yielding maize varieties, improving the quality of maize DDGS, and expediting the registration of new seed varieties. Training programs for distillers with seed companies will also be initiated.
The CBG Blending Obligation (CBO) aims to invigorate demand for CBG in the CGD sector, curbing the need for Liquefied Natural Gas (LNG) imports, saving foreign exchange reserves, fostering a circular economy, and contributing to the overarching goal of achieving net-zero emissions. Minister Puri highlighted that the CBO is expected to attract investments totaling approximately Rs. 37,500 crores and pave the way for the establishment of 750 CBG projects by the fiscal year 2028-29.
The CBO will initially be voluntary until the fiscal year 2024-2025, with mandatory blending obligations slated to commence from the fiscal year 2025-26. The blending percentages are set to be 1%, 3%, and 4% of total CNG/PNG consumption for the fiscal years 2025-26, 2026-27, and 2027-28, respectively. From the fiscal year 2028-29 onward, the mandatory blending obligation will be fixed at 5%. A Central Repository Body (CRB) will oversee and enforce the blending mandate based on operational guidelines approved by the Minister of Petroleum & Natural Gas.
