As per reports, Jio-BP all set to offer compressed biogas (CBG) and bio-CNG (B-CNG), which can be utilized in CNG-powered cars in place of compressed natural gas. The business will initially sell CBG and B-CNG through its shops in western India before expanding to other locations. Jio-bp is aggressively striving to establish CBG/bio-CNG retail at its co-located gasoline stores, with the first station scheduled for opening soon. Jio-BP is a joint venture in the fuel retail industry between British oil company BP and Reliance Industries.
Bio-CNG is a purified and compressed type of biogas that contains more than 90% methane. Biogas purification is required to maximize its energy potential. It is a clean renewable type of fuel with equal calorific value and other qualities like CNG.
On the other hand, waste/bio-mass sources, such as agricultural residue, municipal solid waste, sugarcane press mud, sewage treatment plant waste, and so on, produce Bio-Gas by anaerobic decomposition. CBG also has the same calorific value and other qualities as CNG and may thus be used as a green renewable car fuel. India currently operates almost 30 CBG facilities.
As Jio-BP all set to offer compressed biogas (CBG) and bio-CNG (B-CNG), the tariffs will be defined by contracts with all CBG suppliers, along with the various factors in the value chain.
One of the most important elements in CBG pricing is how easily the raw materials are available at reasonable rates on a long-term basis. Presently, CBG is marketed at the same price as CNG in many regions of the nation, which is consistent with the SATAT initiative, or Sustainable Alternative to Affordable Transport.
Finance Minister Nirmala Sitharaman stated in the FY24 budget that the government will impose a 5% CBG mandate on all firms trading natural gas and biogas. When combined with natural gas, CBG is also free from central excise duty. The adoption of 5% CBG is a positive measure by the government to increase energy security, and limit imports of fossil fuel-based energy, building an Atmanirbhar Bharat.
According to this joint venture of Jio and BP, following its sustainability principles, the firm would convert an increasing number of users to B-CNG. The government has also proposed an ambitious goal under the SATAT program to create 15 million metric tons of CBG per year or around 40,000 tons per day.