Launched in October 2018 by the Ministry of Petroleum and Natural Gas, the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative marked an important moment in India’s pursuit of green energy solutions. This program aims to establish a network of Compressed Bio-Gas (CBG) production plants, to produce clean fuel from natural sources and participate in the sustainable transport sector.
As SATAT completes six years, it is a good time to reflect on its progress, impact, and the role it has played in shaping India’s green fuel landscape.
Early Progress and Milestones
SATAT’s early years were marked by increased enthusiasm from both entrepreneurs and investors, eager to tap into the potential of the emerging CBG sector. This led to the issuance of 4,090 Letters of Intent (LoIs) for the establishment of CBG plants, indicating a strong interest in establishing manufacturing facilities across the country. By June 2022, 35 CBG plants were successfully commissioned and operational, producing compressed biogas and contributing to the diversification of India’s energy mix.
This initial success, however, represents a fraction of the overall target of 5,000 plants envisioned by 2023-24, highlighting the challenges in translating initial interest into tangible results.
Despite falling short of initial targets, the Standing Committee on Petroleum and Natural Gas, which is responsible for overseeing the implementation of SATAT, has recognized the importance of the program in achieving India’s sustainable energy future. The committee views SATAT as an important step in establishing domestic natural gas production, thereby reducing the nation’s dependence on imported fuel.
This approach is consistent with the broader national goals of energy security, reduction of carbon emissions, and the promotion of a circular economy by using natural waste as an important resource. In addition, the committee highlighted opportunities for job creation and economic development in rural areas, as CBG plants can be established near livestock sources, such as agricultural farms and livestock operations.
Environmental Impact and Contribution to the SDGs
The primary objective of the SATAT program lies in reducing India’s dependence on imported fossil fuels and subsequently reducing the environmental impact associated with their extraction, processing, and combustion. Compressed Bio-Gas (CBG), derived from organic waste and boasting a methane content of more than 95 percent, presents a clean alternative to conventional fuels. By using agricultural residues, cow dung, and municipal waste as feedstock for CBG production, the program promotes responsible waste management practices. This, in turn, helps to limit the carbon emissions that can arise from the decomposition of these materials in landfills or through open burning. A study conducted by the Indian Institute of Technology, Guwahati, revealed that India has the potential to produce 80,000 tons of compressed biogas every day. This amount of CBG has the potential to replace 50 percent of the diesel currently used in transportation, significantly reducing the country’s carbon footprint.
Furthermore, the SATAT initiative is well aligned with India’s broader ambitions in the field of sustainable development and its commitment to achieving zero carbon emissions by 2070. By promoting the use of CBG in various sectors, including transport, this program contributes to a clear output. reduce greenhouse gas emissions. Apart from its direct impact on carbon emissions, SATAT also supports sustainable agricultural practices by producing bio-fertilizers, such as Fermented Organic Manure (FoM), as a product produced by CBG.
By promoting a circular economy approach, where natural waste is transformed into valuable resources, SATAT contributes to the Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption and Production), and SDG 13 ( Action Weather).
Success Stories and Entrepreneurial Spirit
The SATAT program has created a fertile ground for entrepreneurs to prove themselves as key players in India’s growing green fuel sector. People like Gaurav Kedia, Chairman of the Indian Biogas Association, have emerged as leaders, spearheading the establishment of large-scale CBG plants and actively promoting the wider adoption of biogas technology. They demonstrated the commercial viability of CBG production and played an important role in raising awareness of its benefits as a sustainable and environmentally friendly fuel source. Their efforts helped overcome initial doubts and demonstrated the feasibility of integrating biogas into India’s energy sector.
The growth of the biogas industry, fueled by initiatives such as SATAT, has also had a positive impact on job creation. According to the International Renewable Energy Agency (IRENA), the biogas industry in India has created an estimated 85,000 jobs by 2022. These job openings cover various aspects of the biogas value chain, from the collection and use of feedstock to the operation and maintenance of CBG. plants and the distribution and marketing of CBG as a fuel.
In addition, the establishment of CBG plants in rural areas has the potential to provide employment opportunities to local communities, contribute to rural economic development and reduce the migration of workers to urban areas in search of work. But much remains to be done.
Challenges and Future Outlook
Although SATAT has made significant strides in its first six years, it also faces challenges that must be addressed in order to realize its full potential. These include streamlining the feedstock supply chain, ensuring access to finance for CBG projects, and developing robust market mechanisms for CBG and its products. The Standing Committee on Petroleum and Natural Gas has made several recommendations to address these challenges, including the reintroduction of the Central Financial Assistance program for CBG projects, providing for generation-based incentives, and establishing a single window approval mechanism for approval.
The SATAT initiative stands as an important milestone in India’s ongoing transition to a more energy efficient environment. Although the journey over the past six years has not been without its challenges, the progress made so far speaks volumes for the effectiveness of CBG as a clean and readily available fuel. The program demonstrated the potential of CBG to be integrated into India’s energy mix, paving the way for a future where transportation and other sectors can rely less on imported fuel.
Moving forward, addressing existing challenges and implementing insightful recommendations proposed by various stakeholders will be key to unlocking the full potential of SATAT. Ensuring access to financing for CBG projects will be one of the biggest challenges, but it will also ensure acceleration in its adaptation. This, in turn, will contribute greatly to achieving our green energy goals, reducing dependence on imported fuels, and promoting a clean and healthy environment for future generations.