In a bid to promote clean fuel, the union oil ministry is planning to set up bio-CNG (compressed natural gas) plants and allied infrastructure at a cost of Rs7,000 crore.
Quoting sources, a report in livemint.com said the ministry will be working with state-run oil and gas retailers to set up the plants over the next two years.
Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd are the state-run oil marketing companies that the oil ministry will team up with to implement the plan, it said.
Bio-CNG is a purified form of biogas with over 95% pure methane gas. It is similar to natural gas in its composition (97% methane) and energy potential. While natural gas is a fossil fuel, bio-CNG is a renewable form of energy produced from agricultural and food waste. It is being looked at as an environment-friendly alternative to diesel.
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