EconomicsGS-III
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SATAT Scheme, GS-III , Economy,Energy

Oil and Gas Marketing Companies (OGMCs) are inviting potential entrepreneur to procure Compressed Bio Gas (CBG) under the SATAT scheme.

About

  • SATAT stands for Sustainable Alternative Towards Affordable Transportation.
  • It is an initiative aimed at setting up Compressed Bio-Gas production plants and makes them available in the market for use in automotive fuels by inviting Expression of Interest from potential entrepreneurs.
  • The initiative was launched in October 2018 by the Ministry of Petroleum & Natural Gas in association with the PSUs- Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd.

Its implementation

  • CBG plants are proposed to be set up mainly through independent entrepreneurs.
  • CBG produced at these plants will be transported through cascades of cylinders to the fuel station networks of OMCs for marketing as a green transport fuel alternative.
  • The 1,500-strong CNG stations network in the country currently serves about 32 lakh gas-based vehicles.
  • The entrepreneurs would be able to separately market the other by-products from these plants, including bio-manure, carbon-dioxide, etc., to enhance returns on investment.
  • So far 9 CBG plants have been commissioned and started supply of CBG under the scheme.
  • These plants are located in Andhra Pradesh (1No.), Gujarat (3 No.), Haryana (1 No.), Maharashtra (3 No.) and Tamil Nadu (1No.).

Benefits of the programme

  • There are multiple benefits from converting agricultural residue, cattle dung and municipal solid waste into CBG on a commercial scale:
  • Responsible waste management, reduction in Back2Basics: Compressed Bio Gas (CBG)
    Biogas is produced naturally through a process of anaerobic
  • Additional revenue source for farmers
  • Boost to entrepreneurship, rural economy and employment
  • Support to national commitments in achieving climate change goals
  • Reduction in import of natural gas and crude oil

Buffer against crude oil/gas

  • price fluctuation
  • decomposition from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc.
  • After purification, it is compressed and called CBG, which has a pure methane content of over 95%.
    CBG is exactly similar to the commercially available natural gas in its composition and energy potential.
    With calorific value (~52,000 KJ/kg) and other properties similar to CNG, CBG can be used as an alternative, renewable automotive fuel.
  •  Given the abundance of biomass in the country, CBG has the potential to replace CNG in automotive, industrial and commercial uses in the coming years.carbon emissions and pollution
Tags: Economics, GS-III

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