The state cabinet approvedBihar Biofuels Production Promotion Policy, 2023, which will pave the way for production of compressed biogas (CBG) apart from ethanol in the state. Firms or individuals interested in setting up CBG units in Bihar can start applying for taking the benefits of the new policy after its notification and till June 30 next year.
CBG is produced from and waste sources like agricultural residue, cattle dung, sugar cane press mud, municipal solid waste and sewage treatment plant waste among others. As per Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme of the Centre, CBG has properties almost similar to CNG. Hence, a vehicle running on CNG can be filled with CBG without any modification.
C BG consists of methane (90%) and other gases like carbon dioxide (less than 4%). The Ministry of Road Transport and Highways, through a gazette notification in June, 2015, has permitted CBG for motor vehicles as CNG alternative. SATAT envisages setting up 5,000 CBG units in the country by 2024-25.
As per a study by IIT Guwahati, India has potential to produce 80,000 tonnes per day of compressed biogas, replacing 50% of the current diesel use in transport. Under the Ethanol Production Promotion Policy, 2021, incentives were being given to the units producing ethanol only.