India Expands Clean Energy Push with New Biofuel Plants and Oil Exploration
India is making significant strides in its energy strategy, focusing on both cleaner alternatives and traditional domestic production. Recent government announcements highlight progress in biofuel production and new opportunities for oil and gas exploration.
Biofuel Initiative Gains Momentum with 132 Operational Plants
The country now has 132 operational Compressed Bio Gas (CBG) plants nationwide. These facilities have a combined production capacity of 920 tonnes per day. This fuel is chemically similar to the fossil-based natural gas used in vehicles and kitchens but is made from organic waste.
This growth is driven by the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative. Launched in 2018, SATAT aims to build a market for CBG by encouraging entrepreneurs to set up plants. The program offers a guaranteed offtake for the gas by oil marketing companies, providing a stable market for producers.
Turning Waste into Wealth and Cleaner Fuel
The process behind CBG is a powerful example of the circular economy. Plants use agricultural residue, cattle dung, municipal solid waste, and sewage treatment plant waste as feedstock. This waste, which might otherwise be burned or left to decompose, is processed through anaerobic digestion to produce biogas. The gas is then purified and compressed to create CBG.
This approach delivers multiple benefits. It provides a clean cooking fuel and a transportation fuel that can help reduce India’s large import bill for liquefied natural gas (LNG). It also helps manage waste, reduces greenhouse gas emissions from open burning, and creates new revenue streams for farmers and rural communities. The government estimates the SATAT initiative has the potential to generate billions of dollars in investment and hundreds of thousands of jobs.
The current output of 920 tonnes per day represents a solid start, but significant potential remains. The government has identified a potential to produce 15 million tonnes of CBG annually from the waste sources available in India. Many more plants are under development to tap into this resource.
Parallel Push for Domestic Oil and Gas Exploration
Alongside its biofuel expansion, the government is also working to boost domestic production of conventional hydrocarbons. In a related move, it has offered 50 new exploration and production blocks to companies. These blocks are being offered under a liberalized policy regime designed to attract investment from both domestic and international energy firms.
The goal is to enhance India’s domestic energy output and reduce its dependence on imported crude oil, which accounts for over 85% of its needs. Increasing domestic production is seen as crucial for long-term energy security and economic stability.
Taken together, these developments outline a dual-track energy strategy. India is actively promoting cleaner, homegrown alternatives like CBG to address environmental concerns and create rural economic opportunities. Simultaneously, it is seeking to unlock more of its own traditional oil and gas resources to meet immediate energy demands and improve its trade balance. For investors, these moves signal growing opportunities in India’s entire energy sector, from renewable biofuels to conventional exploration.
