Bio-CNG

SATAT, the initiative is aimed at providing a Sustainable Alternative Towards Affordable Transportation (SATAT) as a developmental effort that would benefit both vehicle-users as well as farmers and entrepreneurs. This initiative holds great promise for efficient municipal solid waste management and in tackling the problem of polluted urban air due to farm stubble-burning and carbon emissions. Use of CNG will also help bring down dependency on crude oil imports and in realizing the Prime Minister’s vision of enhancing farmers’ income, rural employment and entrepreneurship. CNG produced at these plants will be transported through cascades or through pipelines to the fuel station networks of Oil Marketing Companies (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 vehicle. As part of the SATAT scheme, Indian Oil has issued LOIs to prospective entrepreneurs for setting up 325 plants for production & supply of 0.78 MMTPA of CNG.

Under the SATAT scheme, IOCL has issued the company  4 LOIs  which on commissioning the first phase of the project will produce 58 TPD of CNG. In accordance with the terms of LOI’s issued by IOCL, the entire production will be purchased by IOCL from the plants at a predetermined price and marketed through their existing retail network. Hence, no special marketing effort is envisaged to market this product for the present. In the second phase, the marketing strategy of the company for this product will be to install  captive CNG stations in partnership with local entrepreneurs.