Launched by the Ministry of Petroleum and Natural Gas (MoPNG), the SATAT (Sustainable Alternative Towards Affordable Transportation) scheme is the driving force behind India's CBG revolution, providing the critical commercial framework needed to make waste-to-energy projects bankable.
The Vision
The SATAT initiative was launched with an ambitious national target: the establishment of 5,000 CBG plants across India to produce 15 Million Metric Tonnes (MMT) of CBG annually. This aligns with national goals to reduce crude oil imports, manage urban and agricultural waste, and cut carbon emissions.
Assured Offtake via LOI
The biggest challenge for any energy developer is securing a buyer. SATAT solves this through a guaranteed offtake mechanism. Developers can secure a Letter of Intent (LOI) from major Oil Marketing Companies (OMCs) including IOCL, BPCL, HPCL, GAIL, ATGL, and GGL.
Under this LOI, the OMC commits to purchasing the entire CBG production of the plant. This guarantee transforms a risky venture into a highly secure, bankable infrastructure project.
Long-Term Pricing Security
SATAT offers long-term commercial agreements spanning 10 to 15 years. The pricing structure is fixed and indexed, shielding developers from the volatile fluctuations of the global energy market. This predictable cash flow is exactly what lenders and investors look for when funding greenfield EPC projects.
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