India approves $2.5 billion scheme to boost biogas output
India approved a $2.5 billion biogas programme to sharply expand domestic clean fuel production on Thursday, after Middle East war shortages underscored dependence on energy imports.
The South Asian nation, the world's third-largest importer of oil and the second-largest buyer of liquefied petroleum gas (LPG), has faced major disruptions due to restrictions on the Strait of Hormuz, driven by conflict between the United States and Iran.
India consumes more than 30 million tonnes of LPG annually, importing more than half its needs.
A government statement released on Thursday said the latest National Circular Bioenergy Scheme "marks a defining moment in India's clean energy journey".
It will back waste collection, manure processing and the expansion of existing biogas plants.
"It will transform the country's abundant agricultural residue, cattle dung, press mud (sugar cane waste), municipal organic waste and other biomass resources into clean fuel, organic manure, rural income and national economic value," the statement said.
India -- the world's most populous nation, and third-largest fossil fuel polluter -- has pushed large-scale biogas production as part of a bid to achieve carbon neutrality by 2070.
Since the 1980s, it has also promoted biogas as a low-cost rural energy source, subsidising more than five million "digester" units that convert farm waste into methane for cooking, and nitrogen-rich slurry for fertiliser.
The government last year required that biogas account for at least one percent of liquid gas fuelling vehicles and for domestic use -- rising to five percent by 2028.
India has also taken steps to reduce its heavy reliance on energy imports.
To cushion the impact of the Middle East conflict, New Delhi has expanded its pool of crude suppliers from 27 to 41 countries, including Venezuela, while increasing purchases from Russia and several African nations.
The government said last month it will provide $8.8 billion in financial support for offshore oil and gas exploration.
