SATAT Initiative

SATAT stands for Sustainable Alternatives to Affordable Transportation, and it is a development project that will benefit vehicle users, farmers, and businesspeople. Read On!

SATAT – Sustainable Alternative Towards Affordable Transportation.

On October 1, 2018, the Honourable Minister of Petroleum and Natural Gas introduced the ‘SATAT’ (Sustainable Alternative Towards Affordable Transportation) scheme on compressed biogas (CBG). The initiative aims to achieve a target of 15 MMT (million tonnes) of CBG output from 5000 plants by 2023. Entrepreneurs must set up CBG plants, produce CBG, and supply CBG to OMCs for sale as automotive and industrial fuels under the SATAT system. Compressed Biogas produced at these plants will be transferred to OMC fuel-station networks; via cascades of cylinders, for commercialization, as a green transportation fuel alternative. It increases profits on investment. Coming from that, the entrepreneurs might market the additional by-products from these plants independently. These products are such as bio-manure, carbon dioxide, and relative products. This project is planned; to employ 75,000 people directly and produce 50 million tonnes, of bio-manure, for crops. It is proposed that compressed biogas plants be put up, primarily, by independent entrepreneurs. 

Objectives Of SATAT Initiative.

The effort seeks to manufacture compressed biogas from waste, and biomass sources, such as; agricultural leftovers, bovine manure, sugarcane press mud, municipal solid waste, and waste from sewage treatment plants. 

Compressed biogas is identical to commercially available; natural gas in terms of composition and energy potential. Agriculture residue, cow dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, and other waste or biomass sources; produce biogas naturally through anaerobic decomposition. It is compressed after purification and labelled CBG, which contains over 95% pure; methane. The goal of compressed biogas production is to bring the various benefits of CBG to a commercial scale: 

1. Environmentally friendly waste management and a reduction in carbon emissions and pollutants.
2. Entrepreneurship, the rural economy, and employment are fired up; for a better economy.
3. Farmers have a new source of income through agricultural waste,
4. It provides support for national commitments to meet climate change objectives.
5. Imports of natural gas, and crude oil, are being reduced, cutting import requirements.
6. Protect yourself from price swings in crude oil and natural gas.

The government intends to promote compressed biogas (CBG); as a green, alternative transportation fuel. The SATAT initiative’s introduction brings its applications to life. Furthermore, PSU Oil Marketing Companies (OMCs) seek Expressions of Interest (EoI) from potential entrepreneurs interested in establishing CBG plants under the SATAT scheme and supplying CBG, to OMCs, for sale as an automotive and industrial fuel is their business. 

Products Of SATAT Initiative.

For developing countries like India, science and technology breakthroughs and their applications and effects in everyday life require a programme, like the SATAT Initiative. The major purpose is to build; a waste-to-energy facility. There are two products in production; under these facilities, across our countries, such as compressed biogas and organic fertilizers. 

Compressed Biogas.

Biogases are gases; produced by the anaerobic fermentation, of biological components, in the absence of oxygen. Methane, and carbon dioxide, are the two primary components. Anaerobic fermentation, agricultural and organic waste (biogas), sludge digestion in sewage treatment plant tanks, sewage gas, and organic residues in rubbish tips produce significant amounts of biogas, also known as the ‘landfill gas.’

Compressed Bio-Gas is a renewable vehicle fuel that can be used as an alternative. Compressed Bio-Gas has the potential to replace CNG in automotive, industrial, and commercial applications in the next years, owing to the quantity of biomass in the country. 

Organic Fertilizers.

Organic fertilizer is an essential source of soil minerals and nutrients for plants. Organic fertilizers are different from chemical fertilizers in that they supply nutrients to your plants while also improving the soil’s health. They are thought to be a more environmentally; friendly solution. Organic matter-rich soils are loose and light, retain more water and nutrients and encourage the growth of soil microbes, all of which improve plant health and root development. “Organic manure” is another name for organic fertilizer. A quick-release fertilizer can help to promote soil health, fertility, and plant growth. Nitrogen; is released immediately, encourages flowering, and serves as a natural pest deterrent. Over-application might cause the plant root to be burned, therefore, use and apply sparingly. 

Plants and vegetables will benefit; from a balanced, nutrient-rich ecosystem; that can function; according to natural expectations when organic fertilizer is used. Organic fertilizers can help; grow a bumper harvest of veggies or flowers, making neighbours; who do not use organic fertilizers jealous. 

Scheme’s Processes & Entities After The Process.

Compressed Biogas production, potential in India, is estimated; to be around 62 million tonnes per year from various sources. Compressed Biogas networks can be linked, with city gas distribution (CGD) networks, in the future to increase supply to household and retail customers in present and emerging markets. CBG can be put into CGD pipelines, at a later point, in addition to retailing from OMC fuel stations, enabling efficient distribution and improved access to a cleaner and more cheap fuel. 

Expression Of Interest

Every month, oil and gas companies; issue an Expression of Interest. Each EOI will be open, for a duration, of 30 days. After an EOI is closed, a new EOI; is floated the following month. The applicant must include the proposed; or existing plant’s location and the projected CBG production capacity in the application. Applicants are permitted to submit multiple CBG Plant proposals in one application. A single CBG Plant’s minimum designed capacity to participate in the SATAT programme is 2.0 Tonnes Per Day (TPD) of CBG. Because the application will be submitted using an e-tendering portal, the applicant must have a valid Digital Certificate to enter information into the portal. 

Letter of Intent.

Following the submission of an EOI, the EOI is evaluated. The evaluation is carried out against predetermined criteria with qualified applicants. This is done upon receiving a Letter of Intent from the applicants. This letter is submitted through the particular Oil & Gas Company to which the business is intended. 

Eligibility & Selection Of Retail Outlets.

• Existing Biogas / CBG plants; that have applied for the LOI must provide a bank guarantee of Rs. 1 lakh per CBG plant, within one month, of receiving the LOI.
• Plants require a bank guarantee of Rs. 5 lakhs per CBG Plant, which must be achieved within one month.
• Following the successful submission of the Bank Guarantee, the corresponding state office is notified of the LOI Holder and Retail Outlets, which are finalized, with mutual consent, between the LOI Holder and the concerned Office.
• The number of Retail Outlets (RO) assigned is determined by the proposed CBG plant’s capacity, and the location of RO (s) assigned is determined by the proposed CBG plant’s location.

Signature of a Commercial Contract.

Following the RO, the Oil & Gas Company and the LOI Holder; sign a commercial agreement. The Commercial Agreement specifies the size of the plant, starting production capacity, RO allocation, and the pricing methodology to be used. 

CBG is sold via RO.

The RO infrastructure is being built according to the CBG Plant’s expected commissioning date. First, CBG is delivered, by the LOI Holder, to the Allocated RO (s) via cascades; once the CBG Plant is commissioned and CBG sales begin. 

Contact Form & Helpful Links.

The Compressed Bio Gas (CBG) ‘SATAT’ initiative promotes entrepreneurs to build CBG plants, generate CBG, and sell it to Oil Marketing Companies (OMCs) for automobile and industrial fuels. Following are the resources of the SATAT Initiative. If you have a question that is not answered in the FAQs, use the form and let the officer contact you as soon as possible.