India stands at the cusp of a transformative shift towards sustainable fuels, revolutionizing its automotive and energy landscapes. Propelled by ambitious government policies aimed at energy independence and emission reduction, the nation is witnessing rapid adoption of CNG, LNG, and a diverse portfolio of biofuels, including ethanol, biodiesel, Compressed Biogas (CBG), and the promising potential of Green Hydrogen.
India’s gas market is experiencing robust growth, underpinned by significant infrastructure investments and strong policy support. The CNG station network has nearly quadrupled since 2019 and is projected to double again by 2030, mirroring a 50% expansion of the gas transmission grid. This expansion is laying a strong foundation for cleaner vehicular fuels and enhanced energy security.
India is aggressively pursuing its 20% ethanol blending target by 2025, already achieving nearly 18% through increased production and strategic initiatives like the revised Pradhan Mantri JI-VAN Yojana. Biodiesel is crucial for energy diversification, with a 5% blending target by 2030 supported by GST reductions and promotion of sustainable feedstocks, leading to increased procurement by Oil Marketing Companies (OMCs). The Compressed Biogas (CBG) sector is gaining significant traction under the SATAT initiative, aiming for 5,000 plants by 2025. The CBG-CGD Synchronization Scheme and infrastructure development funding are streamlining biogas supply to city gas networks.
India’s National Green Hydrogen Mission aims to establish the
nation as a global hub for green hydrogen production, utilization,
and export. With a substantial outlay of ₹19,744 crore, the mission
focuses on:
• Strategic Interventions for Green Hydrogen Transition (SIGHT):
Incentivizing electrolyser manufacturing and green hydrogen
production with an allocation of ₹17,490 crore.
• Green Hydrogen Hubs: Developing at least two hubs with a
₹400 crore investment for large-scale infrastructure.
• Enabling Policies: Facilitating adoption through transmission
charge waivers, renewable energy banking, and open access.
• Infrastructure Development: Supporting hydrogen transport
and storage via pipelines and tankers.
• Research & Development (SHIP): Fostering innovation through
a public-private R&D fund.
Liquefied Natural Gas (LNG) plays a vital role in India’s cleaner energy transition. The government is focused on increasing the supply of affordable, domestically produced natural gas for transport. Simultaneously, strategic collaborations between Indian energy firms and international LNG producers are securing long-term supplies and fostering the growth of LNG infrastructure nationwide.
