Government prepares to blend bio-CNG with regular CNG; consequences for vehicles being discussed

August 9, 06:04

Amid ongoing discussions about adding ethanol to gasoline, the government has made a significant decision regarding CNG: it plans to gradually blend regular CNG with Bio-CNG, which is gas derived from biogas. The central cabinet recently approved the 'National Circular Bioenergy Scheme – GOBARdhan.' This scheme allocates 23,731 crore rupees to incentivize the production of compressed biogas (CBG).

The government stated that the GOBARdhan scheme will be operational until 2036. The program's goal is to increase domestic production of compressed biogas by approximately tenfold. To achieve this, conditions such as assured offtake, fixed prices, capital subsidies, pipeline infrastructure, and simplified access to financing will be provided.

Compressed biogas (CBG) will be produced using organic agricultural waste, animal manure, sugar industry waste (such as bagasse), and municipal organic waste. This biogas will then be blended with CNG used in vehicles and piped natural gas (PNG).

According to the government, this will promote the development of local fuel and reduce dependence on imported fuel. However, the main question arises regarding the impact on owners of regular CNG vehicles: will they need to change anything, and how will this affect fuel consumption and performance?

Bio-CNG is also known as compressed biogas (CBG) and is produced from organic waste. Raw materials can include crop residues, manure, sugar mill bagasse, and municipal waste. After processing these wastes, a gas is obtained whose structure is very similar to regular CNG. This is why Bio-CNG can be delivered to consumers through existing gas pipelines and the CNG network. That is, the refueling method at CNG stations for regular customers will not change.

Gradually, the share of Bio-CNG will increase in regular natural gas, similar to how ethanol was added to gasoline.

In contrast, CNG (compressed natural gas) is produced from natural gas extracted deep underground. It consists mainly of methane. After extraction from gas wells, the gas is purified and then compressed under high pressure to fill cylinders. This gas is delivered to gas stations via pipelines and cylinders.

Under the GOBARdhan program, the government mandates that City Gas Distribution (CGD) companies purchase and integrate a certain volume of Bio-CNG into the gas network. These companies supply CNG for transport and PNG for household needs. The share of Bio-CNG will increase gradually. A target of 3 percent is set for the fiscal year 2026-27. Then, in 2027-28, the share of Bio-CNG will rise to 4 percent, and starting from 2028-29, it will reach 5 percent, representing an annual increase of about 1 percent.

It is important to note that this target applies not only to CNG used in transport but also to the total volume of gas supplied through the CGD network, including both CNG and PNG for home use.

To ensure such a large volume of Bio-CNG in the country, the construction of many new CBG production plants will be required. The government is working on various support measures for this. The advantage is that companies producing Bio-CNG will not have to search for a market for their fuel. CGD companies will provide buyers for Bio-CNG, guaranteeing stable prices and predictability. Furthermore, financial assistance will be provided for building new facilities, necessary infrastructure for connection to gas pipelines, and credit guarantees for projects. In fact, the government aims to increase the volume of CBG produced in the country by approximately ten times in the coming years, allowing waste to be used for fuel production and reducing dependence on natural gas.

The most important question concerns CNG vehicle owners: will they need to make any modifications? According to available information, the chemical structure of Bio-CNG is very similar to regular CNG, so existing CNG vehicles will not require engine, fuel tank, or other equipment replacement to run on blended gas. Thus, owners will simply need to refuel at the usual CNG station, and the driving experience will remain the same. Changes related to the increased share of Bio-CNG will concern the gas supply system, not the vehicle itself.

This eases the situation for CNG vehicle owners, as Bio-CNG is designed to be compatible with the existing natural gas network and vehicles. According to Indian Oil, CBG...

www.aajtak.inAugust 7, 16:07

Government approves GOBARdhan plan to blend biogas with CNG after ethanol in gasoline

Following the introduction of ethanol blending in gasoline, the government has begun preparations for blending biogas into CNG. The Central Cabinet approved the GOBARdhan scheme worth 23,731 crore rupees. The goal of this program is to increase compressed biogas production and reduce dependence on imported fossil fuels.

GOBARdhan, which stands for Galvanized Organic Bio-Agroresources Dhan, represents a significant step for the bio-CNG sector in India. This scheme will be effective from the financial year 2027 to 2036. Compressed biogas (CBG) is planned to be produced from organic waste such as dung, agricultural residues, municipal and food waste, and sugar mill waste.

After purification, CBG becomes very similar to natural gas and will then be supplied through existing CNG and PNG networks. This means no changes will be required in the current infrastructure or vehicles. The government hopes that the new program will increase domestic bio-CNG production, and it is expected that bio-CNG production will increase tenfold over the next decade, reducing reliance on natural gas imports.

According to the new initiative, city gas distribution companies will need to carry out biogas blending. According to the government's set targets, the blending will be 3 percent in the financial year 2026-27, planned to increase to 4 percent next year, and to 5 percent starting from the financial year 2028-29.

This announcement comes at a time of active transition to CNG-based vehicles. The share of CNG vehicles has grown in recent years; as of July 2026, the share of passenger cars running on CNG reached 24.67 percent.

Since bio-CNG is chemically very close to natural gas, it will not affect existing CNG vehicles. Unlike the case with gasoline, where ethanol blending requires the use of E20 standard compliant engines, no such hardware changes will be required for bio-CNG, and people can use it without any consequences for their vehicles.

business-standard.comJuly 26, 09:01

Maruti Suzuki aims to sell 900,000 CNG vehicles in the current fiscal year

Maruti Suzuki India Ltd (MSIL) intends to sell approximately 900,000 Compressed Natural Gas (CNG) vehicles during the current fiscal year. This figure represents an increase of nearly 30% compared to the previous period, attributed to rising demand for such vehicles following the outbreak of the war in the Middle East.

Growth in Demand for CNG Vehicles

According to company senior executive Marto Banerjee, the demand for CNG vehicles has expanded beyond just small passenger cars and vans, showing growth even in the company's SUV segment. Banerjee told PTI that 220,000 units of CNG vehicles were sold in the first quarter of the current fiscal year, which is 58% more than in the same quarter last year.

Reasons for Growth and Sales Targets

Banerjee explained that the sharp rise in demand for CNG vehicles is due to the increase in fuel prices following the war in the Middle East. Considering the sales pace in the first quarter, the company has set a target of approximately 900,000 units for the entire year.

Model Portfolio Diversification

Currently, Maruti Suzuki India offers 15 CNG models on the domestic market, including light commercial vehicles. In the 2025-26 fiscal year, the company sold over 700,000 CNG vehicles. Banerjee noted that the demand for CNG is not limited to small cars, vans, and the utility vehicle Ertiga; there is also high demand for CNG in the SUV segment.

Innovations in Models

He added that in their Victorisv SUV, over 50% of sales are for the variant equipped with an underbody CNG tank. Taking this trend into account, the company has also introduced an 'underbody CNG' system in the recently launched updated version of the compact crossover Brezza. The new Brezza S-CNG is equipped with idle start-stop technology and a new six-speed manual transmission, ensuring improved fuel efficiency of 26.9 km/kg. Furthermore, last month, the share of CNG vehicles in the company's total sales volume was 42%.

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