A number of compressed bio-gas (CBG) plants, entailing a total investment of about ₹450 crore, will be set up in Tamil Nadu for the supply of green fuel in the State.

The first CBG plant has been established at Namakkal by IOT, a joint venture of Indian Oil Corporation with Oiltanking GmbH of Germany.

The unit along with five CBG stations for automobiles were remotely inaugurated on Tuesday jointly by Tamil Nadu Chief Minister Edappadi K. Palaniswami and Union Minister of Petroleum and Natural Gas & Steel, Dharmendra Pradhan.

The Namakkal plant will process 290 tonnes per day of feedstock to produce 15 tonnes per day of CBG, which shall be sold for use in vehicles from five petrol pumps in Namakkal and & Salem, besides two industrial units, according to a statement.

“CBG has properties similar to CNG and hence can be used in vehicles that run on CNG fuel without any modifications. It is also suitable for industrial and commercial sectors, given the abundance of bio-mass in our country. IndianOil has already begun marketing of CBG in a small way Maharashtra under the brand name IndiGreen , said Sanjiv Singh, Chairman, IndianOil.

The plant is among the first to take off under the Government’s of India’s SATAT scheme (Sustainable Alternative Towards Affordable Transportation)

“Indian Oil Corporation and Hindustan Petroleum Corporation Ltd have already awarded 13 Letters of Intent in Tamil Nadu for production and supply of 30 thousand metric tonnes per annum (TMTPA) of CBG. The estimated investment in these plants is likely to be about ₹450 crore and the plants are expected to generate direct employment of about 200 and indirect employment across the value chain,” according to Union Minister Pradhan.

He said the total CBG potential in Tamil Nadu from existing waste and biomass sources is estimated to be about 2.4 MMTPA. The utilisation of this entire potential shall result in the setting up of about 600 plants across the State, at an investment of about ₹21,000 crore, with the direct employment potential of about 10,000.