The concept of making compressed biogas is becoming popular. The licensing of Compressed Biogas Plant requires various things including obtaining a business license, GST registration, environmental clearance from the State Pollution Control Board, permission for storing gas from the Petroleum and Explosives Safety Organization (PESO), fire permission, construction permission, and LoI from the Oil Marketing Company under SATAT (Sustainable Alternative Towards Affordable Transportation). The licensing of Compressed Biogas Plant involves various permits and order is vital in this regard.
Benefits of a Biogas Plant
Off-take arrangement: Off-take agreement is made with Oil Marketing Companies for fifteen years through SATAT.
Subsidies: CFAs from MNRE, together with subsidies for biomass equipment, lower the total cost of the project.
Priority Sector Lending: Compressed Biogas projects come under Priority Sector Lending Norms of RBI.
Fermented Organic Manure (FOM) is generated as a by-product to give double earnings to the producer.
Eligibility to setup a Compressed Biogas Plant
Entrepreneurs, partnership firms, LLPs, Private/Public Limited Companies in India, FPOs and Cooperative Societies are all eligible applicants.
Land availability, feedstock availability, financial capability for executing the project is more important than any other factor.
Documents Needed for Compressed Biogas Plant
Some important documents include the company's incorporation documents, PAN of the entity, proof of ownership/lease agreement for land, Detailed Project Report (DPR), Board Resolution, Environmental Impact Assessment (wherever required) and financial statements/sanction letter from the bank. Good DPR is critical - Subsidies, financing and Oil Marketing Companies evaluation all depend on it.
Process for Compressed Biogas Plant Setup
Feasibility studies & site selection based on availability of feedstock and proximity of CGD networks
DPR for technology and finance
Expression of Interest(EoI) & Letter of Intent (LOI) from OMC through SATAT
Statutory clearances – PCB environmental clearance, PESO Explosive safety clearance, fire NOC & building plan approval
Closure of Finance with subsidies and Priority Sector Landing (PSL) funding
Construction and commissioning
Commercialization and start of gas supply