How to Set Up a CBG Plant ;-Under the SATAT Scheme: Complete Process for Entrepreneurs

India is progressively utilising clean and renewable energy sources in place of traditional energy sources, and a CBG Plant Under SATAT scheme is one of those sources, which plays a vital role. The Government of India initiated the Sustainable Alternative Towards Affordable (SATAT) scheme in 2018 for Compressed Biogas Plant production through the utilisation of agricultural residue, cattle dung, municipal waste, food processing waste, etc. OMCs call upon entrepreneurs to set up CBG Plant Under SATAT Scheme and sell their Gas.

What is CBG Plant Under SATAT Scheme?

SATAT means Sustainable Alternative Towards Affordable Transportation. This scheme was introduced by the Ministry of Petroleum & Natural Gas (MoPNG) on 1 October 2018 to use Government Scheme for CBG Plant as a viable alternative fuel source for transportation. Under this scheme, OMCs issue Expressions of Interest (EoIs) to entrepreneurs and make arrangements for CBG procurement.

This scheme ensures an important marketing avenue through Compressed Biogas Plant offtake agreements. Policy support for the government scheme for CBG Plant Under SATAT Scheme has been given in terms of priority sector lending and other such products offered by the banking industry.

Who can establish a CBG plant under SATAT Scheme?

Those entrepreneurs, private organizations, or project developers that have the ability to provide land, biomass/feedstock, technology, and funding of the project can consider establishing Government scheme for CBG Plant Under SATAT Scheme. It will be the responsibility of the entrepreneur to arrange necessary funds and develop the project as per EOI and business considerations.

There needs to be a reliable supply of biomass/feed stock for the project.

Steps to Start a CBG Plant Under SATAT Scheme

1. Identify Suitable Feedstock

Identify the suitability of feedstocks like cattle dung, poultry manure, agricultural waste, food waste and other biodegradable wastes which are available locally in terms of quantity, quality, seasonability and transportation cost.

2. Conduct Feasibility Study

Conduct techno-commercial feasibility study for a Government scheme for CBG Plant Under SATAT Scheme including plant capacity, technology, land requirement, availability of feedstock, expected Compressed Biogas Plant production, investment and cost of production and revenue.

3. Respond to SATAT EOI

Entrepreneurs can bid in EOI issued by the OMCs based on SATAT. Important details regarding the supply of the compressed biogas plant, quality, and other commercial aspects will be defined in the EOI and further commercial arrangements will be made through SATAT. SATAT OMCs have traditionally given long-term offtake arrangements.

4. Receive LOI

Following evaluation and selection, the entrepreneur can receive LOI (Letter of Intent) from the concerned OMC, subject to the terms of the EOI.

5. Finance the Project & Select Technology

Arrangement of project finance through equity, loan or any other source shall be made by the entrepreneur. CBG projects fall under priority sector lending of banks, and many banks have developed special schemes for compressed biogas plant projects.

6. Construct and Commission the Plant

The next stage includes civil construction, anaerobic digesters, gas purification systems, compression equipment, storage, dispensing/loading infrastructure and other required systems. After installation and testing, the plant can be commissioned and prepared for commercial CBG production.

Documents & Approvals Needed for a CBG Plant Under SATAT Scheme

The requirement may be different in terms of State-wise, Site-wise, and Plant configuration-wise. Some of the common documents and approvals include:

• Registration and PAN / GST documents of company/firm

• Land ownership/lease documents

• Detailed Project Report (DPR) and feasibility report

• Feedstock Supply Agreement or evidence of availability

• SATAT EOI/LOI and Commercial Agreement, if any

• Financial documents/bank related documents

• Consent/Approval from the concerned Pollution Control Board

• Land-use/building permission in case of local body

• Fire and Safety Permission, wherever applicable

• Factory and Labour Registration, wherever applicable

• Electrical and Utility Permissions

• Permissions required in case of pressure vessels, Gas Storage and Gas Compression Systems

• Quality & Testing Documents required for CBG

It is noteworthy that a CBG project producing FOM/LFOM and satisfying certain criteria can fall under the "White Category" Classification system of CPCB. However, entrepreneurs need to check the current requirement for their specific project.

Why should entrepreneurs invest in the CBG plant under SATAT scheme?

The CBG plant can be used for managing waste as well as producing renewable energy and commercial fuel simultaneously in the same project. SATAT can assist in getting access to a structured CBG market in view of OMC procurement. On the other hand, the Government Scheme for CBG Plant can receive financial assistance and other initiatives.

Moreover, the plant would produce useful by-products like organic manure along with reducing the organic waste. The Waste-to-Energy programme under the National Bioenergy Programme also gives central financial assistance to selected Bio-CNG projects.

Frequently Asked Questions

1. Define CBG Plant under SATAT Scheme?

A CBG plant under SATAT scheme is a plant where biodegradable waste/biomass is processed into biogas and is further purified and compressed to form Compressed Biogas. The CBG Plant Under SATAT Scheme was launched to build a system where CBG Plant Installation can be manufactured and used as a clean fuel for transport. Private individuals can participate in OMC procurement bids based on EOIs and commercial terms.

2. Who can establish CBG plant under SATAT scheme?

Entrepreneurs, companies and project developers having appropriate feedstock, land availability, technical expertise and funds can consider CBG plant under SATAT scheme. The precise criteria for this would be dependent on OMC EOIs and commercial terms. Entrepreneurs are expected to develop such a project along with necessary finances. 

3. Do you need any government approval for a CBG Plant Installation?

Yes. CBG Plant Installation must comply with all relevant laws and regulations of central government, states and municipalities. These may include Pollution Control Act, Land Use, Construction Act, Fire Safety, Factory Act, Electrical Act and Gas/Pressure Equipment Regulations.

Domestic Biogas  , Commercial Biogas , BioGas , Sewage Water Treatment Plant , Effluent Water Treatment Plant , Zero Liquid Discharge Water Treatment Plant 

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