Bio CNG
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Overview of Bio-CNG
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Bio-CNG, also called compressed biogas (CBG), is an upgraded and purified form of biogas made from organic waste materials
like agricultural residues, animal manure, municipal waste, sewage sludge, etc. through anaerobic digestion. -
It has a high methane content of 92-98% and is chemically similar to fossil-based compressed natural gas (CNG). It can be
used as a direct replacement for CNG as a vehicular fuel or in other applications. -
Bio-CNG is considered a renewable, sustainable, and low carbon alternative to conventional fuels. Producing and using
bio-CNG can help reduce greenhouse gas emissions and air pollution.
Setting up a Bio-CNG Production Plant
- The anaerobic digestion process produces biogas which then needs to go through desulfurization, upgrading/purification and compression to produce bio-CNG.
- Key equipment needed include feedstock pre-treatment systems, anaerobic digesters, biogas storage tanks, H2S removal systems, gas upgrading and purification systems, compressors, dispensers, etc.
- Sourcing consistent feedstock supply and site selection are important considerations. Approvals from pollution control boards are also required.
- Indicative capital cost for a small-scale plant producing 4.8 tonnes of bio-CNG per day is around Rs. 4 crores. Financial incentives under government schemes can help improve project viability.
Bio-CNG Retail Outlet/Pump Dealership Requirements
Eligibility Criteria
Minimum age | 18 years |
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Nationality | Indian national, company registered in India, or Non-Resident Indian (NRI) |
Business experience | Preference given to candidates with experience in similar businesses or ownership of suitable land |
Land Requirements
Land area | Varies depending on franchisor's requirements, typically around 2,000 square meters |
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Location | Major highway or industrial area with good traffic flow |
Land ownership | Clear title to the land or a long-term lease agreement |
Investment
Investment range | Rs.1 crore to Rs. 5 crore |
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Factors affecting amount | Franchisor, outlet size, and location |