Ministry of New and Renewable Energy Government of India

ISSUE 2 – DEC 2009


Page 14

Page 28

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Field Review of Grid Connected Biomass Power Plants

Briquetting of Pine Needles – A Viable Entrepreneurship Model

UNDP MNRE Initiative: Access to Clean Energy


am delighted to place before you the second issue of the “Bioenergy India” magazine. I hope you would have enjoyed reading its inaugural issue. It would be my endeavour to bring before you as much value added information as possible on topical issues of primary interest to the stakeholders besides expert opinions of those belonging to academic, research, industry and non-governmental organizations, etc. We are no less interested in disseminating information on all the important issues confronting the field implementation aspects of biomass power projects. This issue contains an article on key issues, challenges and opportunities as evidenced through a field evaluation study of biomass power plants in three southern states of our country. Likewise, an initiative on extracting power through pine needle based briquettes by an Uttarakhand based NGO finds a special mention here. The Ministry of New and Renewable Energy (MNRE) is trying to enhance the market outreach of biomass and bagasse based cogeneration power in all possible forms. This issue features a Request for Proposal under the demonstration project namely,” Establishment of fuel supply linkages in existing biomass/bagasse cogeneration power plants”. The immdiedate purpose is to overcome the existing barriers as well as to make optimum use of the new technology advances in small capacity systems. It will also be our constant endeavour to include the international scenario of this emerging sector and this issue presents a brief glimpse into the European policy initiatives specific to biomass energy projects. Summary conclusions of our current understanding of the biomass energy area as presented through two important forums under the auspices of UNDP and Independent Power Producers (IPPs) find a mention here. Finally, I urge all of you to share your feedback, views, experiences, information, etc., related to this key sector for a wider benefit of the Renewable Energy community. Such an interaction will add further value to this publication and will help in ensuring that each issue is interesting, informative and relevant for our readers.


(K.P. Sukumaran)
Adviser & National Project Director

Magazine on Biomass Energy

December 2009


Electricity generation from rice husk – initiatives by MNRE in Eastern states
Paddy growing areas in the eastern parts of the country namely Bihar, Orissa, West Bengal and eastern parts of Uttar Pradesh are amongst the most backward areas which also have the lowest per capita electricity consumption. This brings out immense possibility for producing electricity from rice husk, i.e residues produced in rice mills in a decentralized mode in these States to meet subsistent as well as productive needs of electricity. A few initial projects supported by the Ministry in West Bengal, Orissa, UP and Bihar have successfully demonstrated that biomass gasifiers have the potential to produce electricity form rice husk, which is available abundantly in these States. The rice husk based gasifiers in rice mills are found to be reducing diesel consumptions by about 60-70%. As a result, payback period of the investment for such rice mills could be even between 9–12 months. There are more than 15,000 rice mills in Bihar, Orrisa, West Bengal and Eastern U.P Gasifier manufacturing facilities also exist in these States. Samta Smraddhi . Foundation, an NGO, which was an initiative by Mr. Gynaesh Pandey, an US based NRI, had taken up a few projects of rice husk based biomass gasifiers for providing electricity to remote and unelectrified villages in the West Champaran District of Bihar. Under these projects electricity is being provided for lighting to (4-6 hrs.) to 500-700 households from one system of rice husk based gasifier system of 32 kW capacity. A fixed amount is charged from each household depending upon the numbers of CFL used by the household. The Project has been running successfully based on a sustainable revenue model. Considering this potential, a detailed study was sponsored by the Ministry to a Professional Consultancy Organization namely M/s Ernst and Young Ltd. in order to assess the potential, identify barriers and also suggest improvements in the implementation strategy for promoting gasifiers. The Ministry, thereafter, initiated an intensified programme for promotion of biomass gasifiers in the rice mills as a part of its “Biomass Gasifier Programme”, which has been modified to achieve an improved and faster implementation of biomass gasifiers both for industries as well as for village based projects. In order to facilitate preparation of projects proposals and to have interface with financing institutions, the Ministry has retained the services of M/s. Beltron Telecommunications Limited, Patna. State Bank of India and Punjab National Bank have come forward to finance such projects. A series of interactive meetings were organized in the States of Bihar, Orissa and UP during the last three months involving biomass gasifier manufacturers, rice mill owners, financing institutions, non-governmental organizations, etc. in order to generate viable proposals in rice mills, villages, cold storages. These interactions have generated considerable interest amongst all stakeholders. Efforts are also being made to link powering mobile powers, irrigation pump sets, horticulture mission activities, etc. along with Gasifier Projects. One village level project has been initiated in February, 2010 in Village Mahada, District Buxar, Bihar to provide electricity for lighting and also to energise pump sets for irrigation.

Gasifier system installed at West Champaran District of Bihar

Program Manager Urvashi Dogra. Secretary.winrockindia. MNRE Field Review of Grid Connected Biomass Based Power Plants in South India Biomass Briquetting: An Overview WINROCK EDITORIAL TEAM Sobhanbabu P . Magazine on Biomass Energy December 2009 . Meshram. IREDA J. Director. MNRE 10 PATRON Gauri Singh.R. Program Officer Suneel Email : wii@winrockindia. Adviser & NPD. 14 21 ASSOCIATE EDITOR V.P Sukumaran. Consultant Jaison Jose. Lodi Road. New Delhi Publisher : Ministry of New and Renewable Energy. Panchsheel Park New Delhi – 110 017 Tel: 28 30 32 34 35 37 39 40 Briquetting of Pine Needles – A Viable Entrepreneurship Model IREDA Financing of Biomass Power Projects UNDP MNRE Initiative: Access to Clean Energy Major Events Policy Incentives for IPPs and Investors for Wind & Biomass Power Generation News Snippets on Biomass Power European Policy on Biomass Energy Book Information v PRODUCED BY Winrock International India (WII) S-212. Email : jainvk@nic. CGO Complex. 14. Jain. MNRE EDITOR K. Fax: 91-11-26013876 Website : www.K. UNDP K.. Director (Technical).R.mnre. New Delhi DISCLAIMER The views expressed by authors including those of the Editor in this magazine are not necessarily the views of MNRE or WII. MNRE EDITORIAL BOARD Sudhir Mohan.K. MNRE Preeti Soni. Head (E&E Unit).org PRINTED AT Printer : Premier Fime P P Ltd. New Delhi 110 003 Telefax : 011-24369788 Website : www. Adviser. Program Associate EDITORIAL OFFICE Project Management Cell Ministry of New and Renewable Energy Block No. Sr. MNRE . Joint Secretary.ISSUE 2 – DEC 2009 contents INDIA 06 Biomass based Power Generation at Tail-end of the Grid – A new initiative by MNRE Biomass Gasification – Current Status & Prospects CHIEF PATRON Deepak Gupta. Director & NPC. 2nd Floor.

its availability is seasonal and there are competitive uses. This would require a four-fold increase in energy supply with a six-fold increase in power generation installed capacity.000 MW of grid quality power can be generated with the presently available technologies. Principal agricultural residues include rice husk. In addition. By using these surplus agricultural residues. along with grid interactive. groundnut shells. cotton stalks. A further boost to this sector has come with the implementation of Electricity Act 2003. The States of Andhra Pradesh. at the rate of 89 per cent during the next 25 years. The Electricity Act 2003 and the National Electricity Policy 2005 has put in place a highly liberal framework for power generation. It has been estimated that about 70-75% of these wastes are used as fodder.NATIONAL PROGRAM Biomass based Power Generation at Tail-end of the Grid – A new initiative by MNRE Background The “National Action Plan on Climate Change (NAPCC)” released on 30th June 2008 inter-alia includes specific action points for promoting deployment. holds considerable promise for India. Chhattisgarh. However. a number of technologies for converting biomass into power have been successfully developed. mustard stalks. which is a Carbon neutral fuel source for production of electricity. Karnataka. Present level of Biomass Utilization for Power Generation Keeping in view this vast potential. about 100 MWe equivalent biomass gasifier systems have been deployed for thermal applications in industries and about 10 MW biomass gasifier systems are being used for meeting electricity needs of rural areas. about 16. Apart from providing a much needed relief from power shortages. biomass based power generation would not only help in meeting the energy needs in rural areas but also help in reduction of transmission & distribution losses and ensuring sustainable energy supply to the industries. agro industry. power projects based on biomass would generate employment in our rural areas. demonstrated and are techno-economically viable. etc. Estimated Biomass Potential Biomass. which is a positive step towards development of renewable energy in the country. About 800 MW projects are under implementation. Punjab. Maharashtra. Availability of biomass in India is estimated at about 540 million tonnes per year. Biomass combustion and bagasse cogeneration based power generation capacity of 2000 MW has been established in the country. fuel for domestic cooking and for other economic purposes thus leaving behind 120 – 150 million tonnes of usable agro industrial and agricultural residues per year. which lays emphasis on use of renewable sources of energy for power generation. resolving the barriers to development and commercial deployment of biomass amongst other renewable energy technologies and promoting biomass combustion and biomass gasification technologies. trash. rice straw. forestry and plantations. it is expected 6 Magazine on Biomass Energy December 2009 . CERC has recently issued guidelines for tariff determination including biomass. bagasse. Policy Support India faces formidable challenges in meeting its energy needs of providing requisite quantities of energy of desired quality for sustained growth. The Government of India has initiated several reform measures to create a favorable environment for addition of new generating capacity in the country. In the context of energy security and necessity to reduce greenhouse gas emissions there is urgent need for accelerated harnessing of all renewable energy sources especially biomass based energy. all the potential is not realizable as the biomass is available in a dispersed manner. So far. covering residues from agriculture. Considering the present status of biomass based power generation and / or thermal applications. Promotion of distributed / decentralized. Rajasthan and Tamil Nadu have taken lead role in this sector. which could be made available for power generation. feeding power to the grid and off-grid applications. sugar cane tops and leaves. 14 biomass potential states have announced preferential tariff as well as renewable energy purchase obligations.

assumes greater importance. SHGs. are facing problems in their operation due to the shortage of biomass available within a reasonable distance. especially in those states where captive biomass is available and availability of electricity is a major constraint. including operation of agriculture pumps to evenings. both biomass gasifier and Boiler-Turbine-Generator (BTG) based. due to shortage of power in the rural grid. NGOs. are now available commercially in the country upto MW scale. SHGs. in rural areas is being contemplated by the Ministry. NGOs. there is also a need to utilize biomass for small capacity project in a decentralized mode. large Biomass projects become commercially unsustainable. Panchayats. Biomass thus becomes a tradable commodity and its price varies as per the market. Promotion of gasifiers for providing decentralized energy and power for lighting. Biomass based grid connected Boiler-TurbineGenerator (BTG) projects. 7 . manufacturers. more than 300 districts in India have biomass potential between 10100 MW. NATIONAL PROGRAM Need for small capacity Biomass Power Plants Large biomass projects. The program envisages implementation of such projects with involvement of Independent Power Producers (IPPs). This is because the biomass is finding a variety of competitive uses in the wake of increasing price of conventional fuel. Co-operatives. and having a decentralized Magazine on Biomass Energy December 2009 The program envisages implementation of such projects with an active involvement of Independent Power Producers (IPPs). significant development has been achieved in India and India is the leader in this technology. Energy Service Companies (ESCOs). promoters & developers. Panchayats. Energy Service Companies (ESCOs). the Biomass Gasifier technology. to provide electricity in the rural areas at the tail end of the grid. In the area of biomass gasification technology. There is a large gap in the demand and supply of electricity in the country especially in rural areas. Bangalore. contributing to the evening time load peaking. In that event. etc. Biomass gasifiers of a few kilowatts upto several megawatts have been successfully developed indigenously. of late. mainly diesel. which is being substituted by biomass both in small and medium scale boilers and for other such applications.. Support for Biomass based capacity upto 2 MW Power Projects The Ministry is promoting the following biomass based systems: Biomass gasifier based MW level grid connected power plants with 100% producer gas engines. Biomass power generating systems. which is more efficient at this scale. often electricity is either not available for extended hours during the day time or the grid voltage is very low. mobile tower charging. The problem of providing power to rural areas would be critical even when infrastructure under RGGVY becomes ready. entrepreneurs. In this context. manufacturers or entrepreneurs. While a sustainable and organized biomass fuel linkage can make the Biomass projects a successful venture. Biomass based power plants using the locally available biomass resources for off grid / distributed and grid connected power generation of 250 kW to 2 MW capacity have been recently introdued in the Biomass Gasifier Program.that only about 30-35 million tonnes of surplus woody or non-woody biomass is being used annually for the existing and ongoing biomass projects. Co-operatives. This results in shifting of several productive activities. such as water pumping. distribution component would not only stabilize the grid but also reduce the T&D losses and ensure sustainable supply of electricity near the biomass production and electricity consumption points. especially at the tail-end of the grid. captive requirements of industries and productive purposes. Setting up of such projects preferably at tail end of the grid. etc. promoters & developers etc. preferably at tail end of the grid and having a decentralized distribution component would also be supported. According to the Biomass Resource Atlas prepared by Indian Institute of Science. The maximum installed capacity of each such project would be 2 MW.

e. 15. 1.50 lakh Rs. Special category states and islands Rs.00 lakh per km). 10.000/.NATIONAL PROGRAM Pattern of Central Financial Assistance (CFA) Pattern of Central Financial Assistance (CFA) for various components is given below: Items Pattern of CFA Distributed / off grid power projects in rural areas and grid connected power Rs. Rs. business meets.5000/per project to the banks / FIs.00 lakh per course Maximum upto Rs.3.per site Support towards project formulation Service charges for Verification and Certification Preparation of Detailed Project Reports (DPRs) for centralized distributed / grid connected / captive power generation projects: . .500 per kW Captive power projects (captive power less than 50%) and / or feeding surplus Rs. have been set up in one district / region.Gasifier Entrepreneur Development Course .Awareness promotions such as organization of seminars.00 lakh per project (@ Rs.1.00 lakh (One-time funding) 20% higher CFA Magazine on Biomass Energy December 2009 8 . consultants & service providers for developing firmed up and bankable proposals for a minimum of 10 projects or above. Rs. 3. 2.per 100 kW. provision of collection.50 lakh per 50 kW Financial support limited to a maximum of 3 km i.O&M Technicians’ Course .00 lakh per course @Rs. HRD & Training . workshops.DPR is not required for the projects below 100 kW capacities. 10.000 per kW projects with 100% producer gas engines or biomass based combustion projects Biomass gasifier systems retrofitted with dual fuel mode engines Rs. minimum 10. 10.000 per kW power to grid in rice mills (with 100% producer gas engines or biomass based combustion projects).00 lakh for a project of 1 MW capacity. Support for gasifier manufacturers / suppliers for establishing service centers in areas where cluster of systems. 2. 0.00 lakh Rs. 5. subject to maximum of Rs.Projects between 100-500 kW capacities . processing and storage and operation & maintenance including compulsory AMC for 5 years after the guarantee period Support towards lighting devices and distribution network Rs. manufacturers. etc. 3. 10.00 lakh @Rs. Projects involving installation of 100% gas engines with an existing gasifier Biomass gasifier projects for distributed / off-grid for rural areas and grid connected power projects for ensuring regular availability of biomass.000/. A minimum service charge would be Rs. promoters. 1. 1. Financial incentives of Rs.Projects above 500 kW capacities.00 lakh per 100 kW Rs.

1. Only those grid interactive projects would be supported which have envisaged fuel linkage mechanisms to ensure regular supply of the required quantity of biomass feed stock and provision of collection. demonstration of cold storage or ice making units would also be taken up at feasible locations using waste heat for chilling / cold storage through VAM and steam generating systems.e. i. In addition.Grid connected project proposals should contain Detailed Project Reports (DPRs) covering salient features as per a format. replacing steam engines / boilers with biomass gasifiers coupled with 100% producer gas engines for power generation along with provision for meeting the entire thermal requirement through waste heat recovery. fiscal incentives such as accelerated depreciation. For the purpose. copies of all clearance from statutory angle along with loan agreement or supporting documents for meeting balance funds.http://www. Besides financial incentives. tax holidays for ten years. Technology Demonstration on Waste Heat Utilization for Cooling / Chilling & Steam Generation Biomass gasifiers and engines produce waste heat. Loan is available through the Indian Renewable Energy Development Agency (IREDA). it is proposed that the technology suitable for biomass gasifiers be demonstrated. The projects based on BTG route should have a reasonable provision in relation to the project locations for decentralized distribution component and details should be provided in the project proposal. Magazine on Biomass Energy December 2009 Details of the program and guidelines can be viewed at the MNRE website . These projects would be taken up under Technology Demonstration Projects as per RD&D policy of the Ministry for Technology Demonstration. Adviser & D K Khare. financial assistance upto Rs. Vapor Absorption Machine (VAM) for cooling / chilling system and steam generating system from waste heat would be provided. which is presently dissipated to the atmosphere.000/. In addition. financial assistance upto 50% of the cost of plant and machineries.per kW for grid connected power projects with 100% producer gas engines or biomass based combustion projects as given in the biomassgasifier. tax holidays for ten years and capital subsidy for biomass power projects are also being provided. capital subsidy for biomass power project are also being provided. Director Ministry of New & Renewable Energy Email: kpsukumaran@nic. Biomass power projects can also avail benefit of concessional custom duty and excise duty exemption for equipments and machinery. the existing level of subsidy will be provided for the gasifier with 100% producer gas engine components. The Ministry provides Central Financial Assistance (CFA) @ Rs. dkkhare@nic.pdf K P Sukumaran.. Waste heat based cooling / chilling and steam generating systems are available in the country. etc. Financial assistance would not be provided for land & building. on 50:50 cost sharing basis. The project developer should enter into agreement with the utilities for sale of power or 3rd party sale and furnish copies of the lakh would also be available for preparation of Detailed Project Report (DPR) of grid connected / captive power generation projects. In order to use the waste heat and to increase the commercial / economical 9 . Under some of these projects. NATIONAL PROGRAM Besides financial incentives. Biomass power projects can also avail the benefit of concessional custom duty and excise duty exemption for equipments and machinery. CFA as applicable under the scheme will be disbursed post-commissioning through one installment directly to the promoters or lending institutions / FIs after receipt of commissioning and verification reports and requisite documents. It is planned that 25 demonstration projects be taken up in rice mills. fiscal incentives such as accelerated depreciation.nic.15. processing and storage of biomass.mnes.

fear of climatological changes. but a small niche industry is slowly developing here with a number of gasifier systems being exported from India to various countries. substantial progress has only been made in a few countries. fibre and as an energy source. radiation and other hazards of nuclear energy. feedstock. However. air and water pollution. and last (but not the least). This substitution has further resulted in a widely prevalent impression that continued heavy reliance on bio-resources implies lack of modernization and economic development of a nation. Such an impression has been particularly strong in the case of use of bio-resources for energy purposes and. need for empowerment of rural people and for an increased self-reliance. The driving forces behind such a move cover a wide range of human concerns including the exhaustibility of fossil fuels. thereby opening massive avenues both for employment generation and economic development in rural areas. even though major efforts of the technology developers and manufacturers alike have been focused on the downdraft design. production of energy/generation of electricity. While substantial technology development efforts have been made all over the world during the last three decades (many with extensive international and multilateral funding). Biomass Gasification Of the various technologies for effective utilization of biomass. particularly global warming. with India unquestionably being the leader in the field. fibre or energy (amongst others). have both been developed in the country. particularly for small and medium scale power generation. gasification has long been seen as a technology with tremendous potential and promise. This design is seen to be more suitable for direct. be it food. Developments over the last decade or so would seem to signal that the wheel is almost coming a full circle. including Magazine on Biomass Energy December 2009 Technology Status The two most popular gasifier types i. environmental degradation. because of various new energy sources that are seen to be very cheap and convenient for use. fodder. to a large extent justifiable. as technology development for efficient and convenient utilization of bio-resources has assumed very low priority. ‘Updraft’ (or counter-current) and ‘Downdraft’ (or co-current). ‘Updraft’ gasifiers have significant multi-fuel capability. each design has its own set of strengths and weaknesses. but suffer from relatively large quantities of tar in the gas stream. the ability of gasification technology to be deployed over a wide range of output ratings makes it ideal for distribution. closely coupled thermal applications since power 10 . simpler design and hence lower investments. to a point where an increasing use of bio-resources (particularly for energy) is being seen as imperative and in the larger interest of mankind. Biomass gasification has not only reached a reasonable level of commercialization in India.T E C H N O L O G Y Biomass Gasification – Current Status & Prospects Introduction Bio-resources have perennially met a very wide spectrum of human needs.e. Developments during the last couple of centuries (with the discovery of coal and the beginning of the Industrial Revolution) have resulted in an increased use of synthetic materials and fossil fuels (followed by nuclear energy) as substitutes for bioresources in some important areas of both thermal and electrical applications.e. but a small niche industry is slowly developing here with a number of gasifier systems being exported from India to various countries. the technology is equally suitable for a wide range of thermal applications. society or people at large. the risk of its clandestine use in the proliferation of weapons of mass destruction. i. Of course. building materials. Biomass gasification has not only reached a reasonable level of commercialization in India. As biomass resources are dispersed widely (with generally low bulk densities). The shift away from bio-resources and their derivatives has been particularly dramatic in the developed world and in their utilization as chemical feedstock.

etc. However. applications and output ratings. the gasifier systems are now available with output ratings as low as 3 kWe and 10 kWth. currently being met with the multiple gasifier units). Of course. Related biomass processing rates go well above two tonnes per hour through single large gasifiers (with applications requiring even larger overall outputs. cardamom drying. but have a lower fuel flexibility as compared to the updraft designs. without and with throat). and vice versa. weeds like lantana camara. Different designs of woody biomass gasifiers could either accept uniform wood chips or a wide range of sizes in either chipped form or in cut. etc. Thermal Applications Once biomass is converted to producer gas. Within the downdraft concept..generation through internal combustion (IC) engines would require elaborate gas cleaning systems. However. mainly from gasifiers.e. other applications with a higher temperature requirement have been met through the dual-fuel operation. ceramic tile baking. In the recent past. many others have been replicated on a relatively large scale including those in sericulture. A wide variety of gasifier systems are being commercially offered using different feedstocks and covering a spectrum of applications and output ratings. An amazing array of thermal applications are now being met through biomass gasifiers. such designs have been developed that allow a quick change-over from wood-like materials as feedstock to fines like rice husk. coupled with total control and convenience that goes with the use of gaseous fuels. Over 200 such systems are likely to be added this year with exports likely to cover over twenty five countries. 11 Feedstock Capability Starting with wood as a feedstock. at least one manufacturer in the country has been offering the updraft gasifier systems for power generation.. Other residues and wastes used as gasifier feedstocks include bamboo. is briefly covered below: T E C H N O L O G Y Biomass gasifier designs available that have greater multi-fuel capability. coconut shells. etc. There are other designs that largely work with the agricultural and agro-industrial residues including rice husk and other similar fine biomass materials. operating in a downdraft mode that could work on a variety of feedstock materials. maize cobs. Downdraft gasifiers.C. The status in terms of feedstock capability. cotton stalks. CO2 production. duly registered with the Ministry of New and Renewable Energy (MNRE). the work over the last decade has resulted in a wide range of feedstock becoming acceptable in different gasifier designs. Output Ratings Depending on the feedstock type. groundnut shells and sun-flower husks. generally produce cleaner gas (though still requiring further gas cleaning for power generation application using I. as mentioned earlier. etc. Some of these designs can also accept briquettes of various agricultural and agro-industrial residues.). This is because of the excellent combustion characteristics of the gas. etc. on the other hand. systems have been developed in both the open core mode and also in a closed top mode (i. The country today boasts of having more than 10 active manufacturers of Biomass Gasifiers. as can be seen from the partial list given below: CO2 Production Ceramic Tile Making Steel Annealing Aluminium Melting Steel Rolling Sericulture Gluten Drying Industrial Drying Spray Drying Cardamom Drying Rubber Drying Pulse Drying Precipitate silica drying Institutional Cooking Boilers Hot Air Generators Crematoria Thermic Fluid Heaters Though some of these applications have been one of a kind. maize stalks. most of these gasifier designs do not accept the woody biomass as a feedstock. engines. This is being seen as a step forward in the direction of development of a “Universal” gasifier. crumb rubber drying. round pieces. threshed mustard stalks. a wide range of thermal applications can be handled. While applications requiring temperatures of upto 1100 oC have been handled with the producer gas alone. while the largest unit ratings go upto about 2 MW (electrical) and over 6 MW. the updraft designs are already Magazine on Biomass Energy December 2009 .

However.T E C H N O L O G Y FBG-250 at M/s Jasoriya Rice Mill.) in the power range of a few tens of kilowatts to a few hundred of kilowatts.0 – 1. Burdwan Power Generation in Dual-Fuel Mode The entire cycle of biomass gasifier technology development in the country was started initially to save diesel in the commonly used diesel pumpsets and gensets through dual-fuel mode operation. commercial option. This program is receiving substantial financial support from the MNRE in terms of Central Financial Allocations (CFA). Karnataka Various gasifier models and designs have been connected to the commercially available natural gas gensets. captive power (with a variety of users) as well as grid feeding. Over the last couple of years. TERI and Ankur Scientific. Coimbatore Magazine on Biomass Energy December 2009 . These developments have indeed opened up the possibility of biomass power packs being seen as one of 12 Power Generation in 100% Gas Mode With power generation in a dual fuel mode becoming increasingly unviable on account of very high HSD prices (even if. etc. so that rural electrification / distributed generation through this route is no more viable. However. A wide range of output ratings (from 4 kWe to 100 kWe) are now commercially available with the following attractive features: Totally stand-alone systems. greater success was achieved in dual-fuel mode operation through a number of rural electrification projects/decentralized generation projects (taken up by IISc. Installations in the recent past have covered rural electrification. the application never really caught on as a regular.5 kg /kWh) Built-in systems for biomass preparation (including exhaust based drying) Low initial investments Simple to operate and maintain If compared to the Solar Photovoltaic (PV) power packs. While hundreds of these systems were set up as demonstration projects mainly for irrigation pumping. sharp spurt in oil / HSD prices have made the cost of generation too high even in dual fuel mode. it is only 25% of the total energy provider). with output ratings as small as 4 kWe (separately covered in the next section) to projects generating upto a few megawatts of useful power. A large number of these installations are taking place in the Central and Eastern parts of the country. emphasis has shifted to the biomass based power generation systems based on 100% gas utilization.) and also for the captive power requirements in the industry. the initial investments are about one tenth per kW of installed capacity (and as low as one eigth per kWh of generation capacity – due to low PLF of the solar systems). etc. Inauguration of 250 kWe Power Plant at AIMS. duly modified to operate on producer gas. The available range of output ratings and the list of suppliers have grown substantially during the last few years. with a built-in start-up Automation of gasifier and engine genset startups (without manual blowers / cranking) Excellent variable load response Attractive specific fuel consumption (around 1. Desi Power. Small Rating Systems for Remote Applications Technology Development in this area during the last few years has indeed been extremely significant. 1 MWe Power Plant. a large number of gasifier systems have also been installed in industrial units that still use diesel / furnace oil generating sets (in situations where power supply is totally unreliable.

Latvia. including orders from various UN agencies. stand-alone power needs in remote areas. However. A partial list of countries having purchased biomass gasifier systems from India is given here: USA Chile. and. mainly for technology demonstration purposes. Italy and USA. Multiple installations have already taken place in some countries indicating a slow acceptance of Gasifier for a Co-Gen System. 4 kW Mobile Demonstration System Trailer Mounted System in the US Magazine on Biomass Energy December 2009 13 . market dissemination of these systems has been sporadic inspite of tremendous potential – mostly on account of somewhat ineffective policy initiatives. Over a hundred installations have been made during the last couple of years.g. Brazil. Malaysia.e. Vietnam. Sri Lanka. Indonesia Russia. Ukraine. Many of these exports have been one of a kind. Export Market Potential Technology leadership of the country in small and medium size gasifiers clearly comes through in terms of exports being made to a large number of countries. Italy. Madagascar. Myanmar. i. Sweden. Vietnam. New Zealand Sri Lanka. Russia Australia.. Madagascar Contd on page 31. Germany. etc. A number of systems have also been exported to countries like Colombia. Export orders have also come to the Indian companies through a competitive international funding mechanism. Cambodia. difficult terrains and forest villages. islands. table-top demonstration models (demonstrated at various meetings and conferences) Mobile power packs of a few kilowatt ratings Combined heat and power systems (e. Colombia Switzerland. Significant business relationships are also starting to develop (for international business development) between entities from different countries and Indian organizations active in the field of biomass gasification. Cambodia. on a tea estate in Uganda). etc. just a few are being mentioned here: Development of kilowatt level operating.Special Developments While various technology developers and manufacturers have come up with a number of exciting initiatives and developments. Poland Mozambique. However. Uganda the technology from India. Uganda. A trailer-mounted 200 kWe gasifier system used for the testing of Micro-Turbines in the US T E C H N O L O G Y 9 kW System at Odenthurai the most cost-effective and serious options for meeting the small scale.. Guatemala. some have been part of an overall business endeavour to develop the overseas markets.

000 to 22. the leading states are Andhra Pradesh. six plants 14 .R E V I E W Field Review of Grid Connected Biomass Based Power Plants in South India Introduction Biomass has been and is still one of the major energy sources within an agrarian developing country like India. The three districts of Krishna. The remaining power potential needs to be exploited from distributed farm level and distributed agroprocessing activities throughout the country. a majority of the plants (almost 75%) were installed during 2004 to 2005.75 MW from the 40 plants. which would be validated through the field visits. Prakasam and Guntur have 16 plants installed with a cumulative installed capacity of 89. and Tamil Nadu) are amongst the top four leading states in the field of biomass power plant implementation in India. While in the area of biomass power. In addition. So far. some power can be produced from the fast growing energy plantations on over 70 million hectares of wastelands spread over different states. The defined objective of the current project is to accelerate adoption of environmentally sustainable biomass power technologies by removing the barriers identified. almost 25% can come from the agro-processing based industries. A significant objective of this study was to carry out an extensive review. analysis. synthesis of information/data collected. non-edible oil seeds and other degradable biomass. Deloitte Touche Tohmatsu India Private Limited (DTTIPL) was awarded a study dealing with the biomass power plants installed in the southern states of Andhra Pradesh and Tamil Nadu. (Table 1) Growth Pattern of Installations in Southern India As mentioned earlier.677 MW installed capacity have been commissioned in the different states of the country till November 2008. Andhra Pradesh and Maharashtra respectively. where huge quantities of biomass are produced as a by-product during various processes. like rice mills. there are in all 63 biomass power plants.70 MW (12 units) Andhra Pradesh took an early lead and presently has almost 33% of the total installed biomass power plant capacity in the country with installed capacity of 219. with a cumulative installed capacity of 81 MW. In the targeted region of south India. about 203 plants aggregating about 1. After deducting the amount used as fodder and domestic cooking fuel besides other local uses. for feeding power into the national grid.5 MW (more than 40% of state). These have a cumulative installed capacity of 434. Tamil Nadu and Karnataka. sugar mills and oil mills.45 MW and have been commissioned so far in the following three states covered under the present study (Figure 1 on the next page). Out of the total 11 plants.00 MW (11 units) Tamil Nadu 133. There are about 171 plants based on the use of both biomass and bagasse cogeneration at various stages of implementation with an aggregated capacity of 1. Out of this.75 MW (40 units) Karnataka 81. agro-residues. In Karnataka.950 MW. Tamil Nadu. MNRE is implementing the UNDP/GEF assisted project on “Removal of Barriers to Biomass Power Generation in India”. Magazine on Biomass Energy December 2009 F I E L D Progress of Biomass Power Plant Installations Since the mid-nineties. thereby laying the foundation for large scale commercialization of biomass power through an increased access to financing. Chhattisgarh. about 120 to 150 million tonnes of the surplus biomass supply is available annually. It is estimated that over 500 million tonnes of agro-residues are produced annually in India. This exercise was supplemented with meetings with key stakeholders for identifying major barriers and putting forth suggestions to overcome them.000 MW. Presently. MNRE is implementing a program related to biomass based combustion and cogeneration power plants. Leading states in the installation of bagasse based cogeneration are Uttar Pradesh. Various biomass energy resources comprise fuel wood from the forest and wasteland. Andhra Pradesh 219. the three states covered under this study (namely Andhra Pradesh. Karnataka. It transforms into an estimated biomass power production potential of the order of 17. A majority (by more than 75%) of plants got commissioned during the period 2000 to 2004. Karnataka.

25 MW capacity in Coimbatore district.05 2. 60 58 200 Annual Installed Capacity (MW) 50 47 44.50 952. with the commissioning of three new plants with a cumulative capacity of 48.00 352. Tirunelveli and Madurai with more than 80% share in the total installed capacity. biomass supply is still an unorganized affair. In Tamil Nadu the real impetus came recently in 2006. linkages between the biomass 15 .83 F I E L D R E V I E W 70 250 Types of Fuel Used The main source of biomass being used in most of the power plants in Karnataka and Andhra Pradesh is rice husk. in most of the biomass based power plants.00 23.05 Bagasse cogeneration (as on 30-06-2008) No of units Installed capacity (MW) 18 1 16 20 2 17 26 100 124.5 26. a majority of the plants were found mainly using biomass with negligible amounts of coal usage.5 1 0 7.30 133.30 0.00 81. Though.5 20 12 10 2. which is a by-product of sponge iron cluster in Raichur region and is available at a low cost of Rs 1200 to 1500 per tonne) is being used in some plants upto the permitted quota.5 40 32 30 30 150 28.50 12.2 10 50 Year of installation AP Installed (MW) AP Cumulative Capacity (MW) KK Installed (MW) KK Cumulative Capacity (MW) TN Installed (MW) TN Cumulative Capacity (MW) Figure 1: Growth of installed capacities of biomass cogeneration plants in three states are located in the rice bowl area of Tungabhadra. Similarly. in Tamil Nadu.00 179.5 100 20.75 146.70 637.5 48.00 180. which is supported by other wide ranging variety of locally available seasonal biomass sources. Pudukkottai.78 102.5 4 8 6 6 18 14. it is yet to become a commercial commodity. A majority of these plants are located in the southern districts of Sivaganga. though biomass is and likely to remain a major source of primary energy in the near future. It is still collected and used in the domestic sector and then sold in an unorganized market within the small and medium (SME) enterprises. In Tamil Nadu.5 4. Thoothukudi. Ramanathpuram. Prosopis juliflora is the most widely used biomass resource for the power plants supported by other wide ranging varieties of locally available seasonal biomass sources (Table 2 presented on next page). There is also a lone biomass gasifier based grid connected power plant of 1.5 MW. However. During field visits to the selected sites it was observed that in Karnataka. Magazine on Biomass Energy December 2009 Cumulative Installed Capacity (MW) Fuel Supply In India.00 11. Bellary and Raichur districts with cumulative capacity of 40.50 16.00 1. coal (especially dolachar. in a cluster in Koppal. over time.75 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 4.Table 1: Installations of biomass power and cogeneration plants in India State Andhra Pradesh Chhattisgarh Gujarat Haryana Karnataka Madhya Pradesh Maharashtra Punjab Rajasthan Tamil Nadu Uttar Pradesh Total Biomass power (as on 30-06-2008) No of units Installed capacity (MW) 40 18 1 1 11 1 2 2 3 12 91 219.50 4.5 MW. In Andhra Pradesh plants use minimal quantities of coal (maximum upto allowed quota) from the Singareni coal fields to cover any shortage of biomass availability or to substitute relatively high priced biomass (higher than coal).

Normally. Other residues such as mustard stalk. as a by-product of the agro-processing units). In many cases. Saw dust) F I E L D Karnataka Generally upto allowable limit. These are normally available in bulk quantities at reasonable prices in comparison to field obtained residues as the logistics of harvesting the field residues on a large scale has not been established so far. Bengal Gram. Sunflower. Bajra.R E V I E W Table 2: Summary of fuel usage State Andhra Pradesh Coal usage Generally below allowable limit from Singareni coal field Main biomass Paddy husk Paddy straw Other biomass types used Stalks (Maize. the farmer or individual biomass collector-supplier fetches the biomass to the power plant and delivers it on a cash basis. Red Gram. sawdust and coffee husk are available and procured in a ready-to-use form. Sometimes. Ragi) Sugarcane tops and leaves Paddy straw Jowar husk-stalks-cobs Groundnut shell Wood waste Coconut fronds Paddy straw. Loose biomass is normally procured from the surrounding region within a radius of 50-80 kms. Bajra. etc. sawdust and groundnut shell. a shift from one type of residue to the other also happens. farmers or individuals. Sunflower) Groundnut shell Cobs (Maize. etc. On an average. Fuel Storage Generally fuel is stored at the plant site partly in an open yard and partly in closed sheds so as to ensure availability of stock for the plant operation even during the monsoon or rainy season. Magazine on Biomass Energy December 2009 Fuel Costing Biomass (agro-residue) prices are relatively dynamic in nature as compared to prices of fossil fuel and woody 16 . By and large. husk Stalks (Cotton. there is still no long-term supply contract or agreement between them. cotton. because of economic considerations. need to be pulverized before use especially in fluidized boilers. Woody biomass is also procured to supplement the agro-residue as and when required and often has to be procured from relatively longer distances. which is equivalent to roughly 30-50 days of regular operation. Maize. husk Stalks (Gram. Tur. Jowar. Bengal Gram) Cobs (Maize. who in turn procure the biomass from the units producing biomass residue (i.e. biomass is procured through the local biomass traders/suppliers. It has been observed that plants have adopted their own combination of residues owing to a variety of technical and economic reasons. plants stock fuel to the tune of 300-500 tonnes. Jowar) Groundnut shell Coconut shell Wood waste Coconut shell. tractor/trucks are used for the transportation of this fuel. Jowar. Recently cheap dolachar is being used Paddy husk Coffee wastes Maize cobs-stalks Cotton Stalks Coconut frond Tamil Nadu Negligible coal Prosopis juliflora Tapioca stalks suppliers and plant promoters has been established informally. cotton stalk and groundnut shell. coffee waste. Red Gram. many plants seem to rely only on the selective “mill residues” such as rice husk. Jowar cobs Wood waste. This results in a higher transportation cost per tonne. Jowar. High density woody biomass is procured from a 50-150 km radius and sometimes even as far as 200-300 kms. Fuel Processing Residues such as rice husk. Ragi. Normally.

an effort was made to identify the various issues and challenges being faced by biomass power plants as well as the major barriers impeding an enhanced promotion of biomass power plants in the states covered under the study.000 900-1.400 1. As mentioned earlier.000 600-1.600-1. rice husk price has gone as high as Rs 2. The main reasons for the steep rise in rice husk price can be pointed down as Very close location(s) of the biomass power plants.800-2. The price also depends on the opportunity cost.350 1. stalks/cobs/shells. the agro-residue was considered as waste and was thus available at throwaway prices with landed price of about Rs 500-1.500-2. Guntur.500-1. Bellary districts) in Karanataka and Vijayawada (Krishna.200-1.biomass.800 1.500 700-1.500-2. However. Prakasam districts) cluster as well as Kurnool-Mehboobnagar in Andhra Pradesh. in the Gangavati belt of Karnataka. casurina. fuelwood.000-2.650 Loading-unloading Transportation Fuel processing 150-250 200-300 200-250 150-300 200-300 230-500 150-300 150-250 200-400 —100-200 100-150 —100-200 100-200 —50-100 150-250 Total 1. For instance. Table 3: Detailed break up of biomass cost (all figures in Rs) Fuel type Rice husk Stalks/shells/cobs Fuelwood Rice husk Stalks/shells/cobs Fuelwood Rice husk Stalks/shells/cobs Fuelwood Collection price 1. The main factors that affect the price of agro-residue include cropping pattern and variation in production due to the effect of several factors.800 1. which are relatively sluggish.200-1. depending on the cropping pattern of the region.350 1. Several other industries that require thermal energy inputs switching over from costly fossil fuels to relatively cheaper biomass fuels (to reduce fuel cost by almost 50-60%). other agro-residues such as.500 1.100 450-800 1.000 2. Biomass Scarcity and Rising Prices A majority of biomass plants are confronted with an increasing scarcity of biomass which has to be procured from longer distances resulting in increased transportation cost. while woody biomass (prosopis juliflora. The cost breakup of the landed price of selected major biomass (rice husk.800-2.900 1. rice husk is a major crop residue in the states of Andhra Pradesh and Karnataka.500 per tonne in the crowded biomass power plant clusters like Gangavati belt (Raichur.500-2. Koppal. The other major issue is rapidly rising biomass prices in the catchment area of the plant. as biomass is normally available in a limited span of time during the year in accordance with the flow of harvest or agro-processing activity. At the initial stages of plant installation. These are discussed briefly in the following few sections. Another factor that contributes to the landed price of agro-residues at the plant is the transportation cost due to low bulk densities.500 1.200 per tonne.350 1.200 900-1. etc. tapioca) is mainly used in Tamil Nadu along with a wide variety of agro-residues available locally. insight gained through field visits to the selected power plants and discussions with the key stakeholders.500-2.800-2. almost 6-7 plants in an area of one district (about 50km radius).800-2. woody biomass is procured from as far as the Chikmagalur area of south Karnataka.) resource types are summarized in Table 3. Several upcoming high biomass consuming industries like distilleries. F I E L D R E V I E W Issues and Challenges Based on the information and feedback gathered from secondary sources. in recent times (last 4-5 years) biomass prices have gone up very rapidly. During the current year.500 Andhra Pradesh 100-200 150-250 100-150 Karnataka 100-200 150-250 100-200 Tamil Nadu 100-150 100-150 100-150 Magazine on Biomass Energy December 2009 17 .

In fact. plants are facing problems in managing the biomass supply due to the competing industries in the neighbourhood and the major challenge is of managing the fuel cost with rising prices. some biomass power plants have started using relatively cheaper fossil fuels. During the last year or so. Grid stability has been mentioned as an issue by plants that are connected to 33kV grid because frequent tripping causes problems in restarting and results in higher fuel cost (fuel wastage) as well as loss of revenue due to plant (unplanned) outage. so as to maintain economic viability of the plant operation. Huge working capital investment is required to procure and store large quantities of biomass during the season when biomass is relatively cheaper. which is affected by the increasing rice husk prices. it was realized that biomass combustion based plant operations are now quite streamlined and have emerged out of the initial teething troubles with regard to smooth plant operations. 18 Working Capital Biomass power plants are relatively less capital intensive. The price rise is due to the competing usages which offer higher opportunity cost to biomass. In the Gangavati belt in Karnataka. to their seasonal availability. plants connected with 132kV lines face negligible problems due to grid tripping. rationalization of the feed-in-tariff for grid connected renewable power. The problem is due to the rising input biomass fuel prices and relatively lower feed-in-tariff offered. like dolachar (which is a by-product of the sponge iron units in the region) upto the maximum possible limit as per the prevailing regulation. which was earlier available as waste.F I E L D Overall view of a grid connected biomass combustion based power plant R E V I E W Economic Viability A majority of the biomass power plant operators expressed serious concern over the reduced margins required to ensure economic viability of the plants in the recent years. Plant Operations From field visits as well as discussions. but need a huge working capital owing to the manpower intensive nature of the operations and substantial fuel cost requirement. As mentioned earlier. many biomass power plants in Tamil Nadu had closed down their non-viable operations due to increase in fuel prices. However. Biomass prices fluctuate widely due Magazine on Biomass Energy December 2009 . is critical for ensuring the desired economic viability. especially biomass power plants.

but it is still traded individually in an unorganized manner. There is a need to systematically develop a reliable market for biomass supply. collecting and analyzing the extensive field level data. other technologies like biomass gasification can be more suitable. This will help set a trend and benefit the growers to get maximum opportunity cost. Manpower/worker/labour shortage during the harvesting season is quite a common problem. to tap the potential of high moisture content (or even slurry) by-product of a typical agro-processing sector. biomass is being sold for a price that is increasing rapidly with the rising demand for it as a cheap source of energy for a large number of process heat applications. stalk yield per hectare) for residue yield and prevailing consumption based on norms of per capita consumptions (based on available survey results) does tend to give a large biomass power potential. 19 Heap of corn cobs being used as biomass fuel Magazine on Biomass Energy December 2009 . such as tapioca. In recent times. coffee processing and rubber processing. In combustion based power plants too. Evolving Mechanism for Dynamic Realistic Assessment of Biomass Availability Presently biomass assessment. merely based on the agriculture production data. a majority of grid connected biomass power plants are either Rankine cycle based biomass combustion power plants or cogeneration plants. it could be useful to switch from wet water cooled surface condensers to dry air cooled condensers in all the future biomass power plants. which involved a massive operation of Appropriate Technology Selection for Matching Available Resource and Need Presently.Some plants in Karnataka and Andhra Pradesh also mentioned problems about the scarcity of skilled manpower. there can be a niche market for biomethanation based power plants for captive/grid connected power use. in a sustainable manner. wherein the movement of biomass for a variety of applications. however. a few power plants have started bringing in manpower from states as distant as Orissa and Bihar. power output can be maximized by raising boiler operating pressures from the present 60-62 bar to more than 80-85 bar. Field study reveals that there is an increasing scarcity of biomass due to the increased demand because of several upcoming biomass consuming industries in the region as well as shifting to biomass being an economically attractive proposition. Developing Organized Biomass Markets and Rationalizing Input-Output Pricing Traditionally. with the help of GIS and IT. There is a need to evolve a model or mechanism to ensure that such data is streamlined to make the biomass atlas dynamic as well as realistic. thereby achieving higher efficiencies. Recently. the consumers to plan the operations and regulators to regulate the tariff. Similarly. besides its price. in different areas that have biomass potential as well as potential as a utilization market. can be monitored. Thus biomass has now become a monetized commodity. Bangalore is definitely a good initiative. For harnessing the large untapped biomass power potential in the scattered or wide spread low agro-residue density regions or isolated small agro-processing clusters. Similarly. The MNRE sponsored biomass atlas prepared by the Indian Institute of Science (IISc). an effort has been made to compile the learnings and insight gained through field visits and to give a few suggestions/recommendations which could prove helpful in formulating guidelines for enhanced promotion of electricity-energy through an optimal exploitation of locally available biomass energy sources. Thus there is a need to demonstrate the viability of biomass market or mandi system on a pilot basis. F I E L D R E V I E W Recommendations and Guidelines In this section. crop-agro residue ratios (in some cases. on the lines of the Tamil Nadu pattern. biomass remained non-commercial and a non-monetized commodity and is generally collected for consumption rather than purchased. as they minimize the water requirements.

in. NGOs and other Investors for the establishment of the above-mentioned projects. 100 lakh for projects having installed capacity upto 5. Email: jainvk@nic. The partial financial assistance for such projects. Conclusions Based on the learnings and insight gained through field visits as well as discussions with relevant stakeholders it can be concluded that there is still a large untapped potential of biomass energy in the country. Rs. The format and other details can be obtained from the Ministry or downloaded from MNRE’s website www. Cooperative Societies / Sugar Mills.5 MW. will be limited to Rs. with matching contribution from the promoter. Manager Deloitte Touche Tohamatsu India Pvt Ltd Email: smande@deloitte.5 MW and Rs. 200 lakh for projects with capacity above 7. B-14. Determining feed-in-tariff on rational basis for providing a level playing field to encourage the adoption of green renewable power. the following critical aspects need due consideration. it is important to implement the program properly. Evolving a mechanism for dynamic and realistic assessment of biomass resource availability with long term sustainability. Therefore. 2010.0 MW and upto 7. Telefax : 011-24369788. New Delhi-110003. This needs to be a continuous updation process.mnre. As part of this Lodi Road. it is proposed that all states should determine the tariff for purchase of power from biomass plants following a two part tariff mechanism. However. Evolving conducive dynamic policies for encouraging adoption of cleaner power generation through exploitation of local renewable resources to achieve energy security and a cleaner F I E L D Call for Proposals Demonstration Projects on Establishment of Fuel Supply Linkages in Existing Biomass/Bagasse Cogeneration Power Plants The Ministry of New and Renewable Interested Project Promoters / Organizations can obtain guidelines for submission of proposal from the Project Management Cell (PMC) established in the Ministry of New and Renewable Energy. Government of India. and hence is not amenable for a two part tariff. is implementing a UNDP / GEF assisted Project on “Removal of Barriers to Biomass Power Generation in India. Also. Sanjay Mande. Proposals are invited from promoters of existing Biomass Power Plants. to avoid dense clusters and explore the option of promoting new technologies (higher pressures and temperatures in boilers) as well as promoting other technologies such as biomass gasifiers.” The aim of the Project is to accelerate the adoption of environmentally sustainable biomass power technologies by removing the barriers identified.R E V I E W Rationalizing Feed-in-tariff It is generally perceived that energy from nonconventional sources is infirm in nature and cannot be strictly Magazine on Biomass Energy December 2009 20 . sterling engines and biomethanation. CGO Complex. 150 lakh for capacity above 5. with sharp variation in the price of input fuel cost. Ensuring the evolution of organized biomass markets (mandi) for streamlining the biomass supply and rationalizing the input-output prices for the power plants. biomass projects are capable of generating firm power and hence two part tariff is desirable to operate the plant at an efficient level. or download from the Ministry’s web site: www.0 MW. to tap the distributed sub-megawatt biomass potential in the country. wind and mini-hydel projects being the best examples. Last date for submission of the proposal has been extended to April 9. Appropriate energy conversion technology selection for matching sustainable and available biomass resources and local power needs. However.mnre. the two part tariff is convenient for accommodating the cost of price escalation. thereby laying the foundation for the large scale commercialization of biomass power through increased access to financing. It cannot be over emphasized that for effective implementation of biomass based power generation programs. the Ministry is contemplating establishing five projects based on different models of biomass fuel supply linkages to demonstrate improvement in sustainability and economic viability of the existing power plants that are facing problems in the improvement of required quantity of biomass.

coriander waste) and (ii) agro based industries after processing the crop (e. 300 million tonnes could be used for biomass generation. Government of India has been supporting the sector for a number of years. Agro-industrial residues such as bagasse. loading and transportation of this loose biomass and sell to the briquette manufacturers. rice husk and groundnut shell). Hence the farmers and the mill owners are two important stakeholders in the supply chain.g. Winrock International India undertook a thorough study on the performance of a number of units located in five states of the country Gujarat. Briquetting of biomass thus carries tremendous scope and potential in converting the agro residues into a more usable form of fuel.e. Maharashtra and Karnataka and the rest in Madhya Pradesh and Andhra Pradesh. Punjab and Uttar Pradesh. coconut stalks. are estimated to total around 75 million tonnes per annum. the Ministry of New & Renewable Energy (MNRE). rice husk. sunflower stalks/husk. Forest waste could be yet another major source of biomass residue. i. Realizing the wide ranging benefits associated with biomass briquetting. Punjab and Tamil Nadu. branches and mustard waste. and Punjab. groundnut husk.Biomass Briquetting: An Overview Introduction India has approximately 141 million hectares of arable land and agricultural output is around 800 million tonnes.g. The study aims at examining the challenges or barriers faced by the industry and develope appropriate strategies aimed at accelerated promotion of briquetting in the country. Magazine on Biomass Energy December 2009 O V E R V I E W Biomass Briquetting in India The raw material for the briquetting industry comes from two sources (i) from agricultural fields after harvesting (e. Crop residues which are not used as animal fodder. paddy straw. Horticultural waste would add another 75 million tonnes of waste per annum. Tamil Nadu. Table 1 shows the approximate number of briquette manufacturing units in the states visited. can be used for better utilization and improved efficiency. Even after deducting 450 million tonnes. about 30% plants are located in Uttar Pradesh. The combustion of these briquettes also improves performance as compared to their present utilization pattern. which in itself generates 750 million tonnes of waste. Agro-residues in their compact form. briquettes obtained by different densification technologies. Briquetting activity is intense in the states of Gujarat. Karnataka. Table 1: Distribution of briquetting units in the country State Gujarat Tamil Nadu Karnataka Punjab Uttar Pradesh Maharashtra No. saw mill waste and de-oiled cake are estimated at around 150 million tonnes per annum. Karnataka. are the other important stakeholders. Tamil Nadu. of units 150 50 45 40 5 85 Briquetting machines in Gujarat 21 . which is used as fodder. Gujarat is the leading state in briquette production. At present more than 60% of the briquetting plants are located in the states of Gujarat. corn cobs. The agents / middlemen who undertake the collection. There are more than 150 briquette manufacturers in the state and all of them use binder-less piston press machines. such as cane trash.

Many units came into existence after seeing the success of units in Gujarat. every conceivable agro-waste is being used as feed stock in Saurashtra region of Gujarat. a great majority of briquette manufacturers are using piston press technology to manufacture briquettes of 65 mm diameter and 90 mm diameter.O V E R V I E W Apart from the predominant use of groundnut husk. Surat (textiles). The reasons for Gujarat’s predominant position in briquette manufacturing and usage are as follows: Abundant raw material availability round the year – especially groundnut husk Uninterrupted and adequate power supply. in order to optimize the quality of the briquette and its cost. This is mentioned in Table 2. Annamalai hills of Tamil Nadu Bangalore ( Karnataka). Briquettes of size 65 mm and 90 mm are manufactured here. A majority of units in Gujarat are located in the Saurashtra region. Tirupur (TN) Ahmedabad. Bangalore. in different ratios. Dry weather conditions – even the wet raw materials like bagasse (50% moisture) dry quickly without having to use driers Widespread market demand in industrial clusters such as Morbi (ceramics). Major machinery manufacturers are located in Gujarat and spares’ availability is good. There are many industrial segments which have started using biomass briquettes as fuel in their regular processes. Ludhiana (Punjab). There are nearly 50 briquette manufacturing units in Tamil Nadu. The technologies for briquette manufacturing can be categorized into four types as mentioned below: Piston Press Screw Press Hydraulic Piston Press Pelletization In India. Jalandhar. The units have more than 5 to 6 machines of capacities in the range of 750 kg/hr to 1000 kg/hr and are equipped with grinders. The pictures below and Biomass briquettes Table 2: Identified industrial clusters using briquettes as fuel Type of Industrial clusters Tea factories Textile / garment factories Chemicals and Pharmaceuticals Tyre retreading industries Ceramic cluster Paper mills Rubber industries Location Nilgiris. Ankaleshwar Ludhiana. and Vapi and Ankaleshwar (chemicals and pharma). as mentioned earlier. They use a wide variety of bio-residues as raw material. Vapi. The raw materials being used in a particular area depend on the cropping pattern and the seasonal variations in the availability of each raw material in that area. Mysore Morbi Ahmedabad Jalandhar Application Drying of tea leaf Steam generation for ironing of clothes Steam for the reactors Steam generation Baking of tiles Process steam Process steam Magazine on Biomass Energy December 2009 22 . Availability of trained manpower.

it is 4. At present. The straw to grain ratio of the cereals varies from 2.0 for mustard. O V E R V I E W Potential Markets The potential market for the briquetting sector is majorly in the tea industry.25 to 1. a by-product of rice milling. mulberry and plantation crops produce woody (ligneous) residues. Tamil Nadu and Karnataka. mustard. crops such as red gram. castor and jeera are available from January to April. and mustard stalks are the best suited materials for briquetting and are used in major proportion in briquettes across the country. Raw materials such as groundnut husk. Coffee husk is mainly available in the Coorg region of Karnataka. Most of the other residues like coriander. Andhra Pradesh. over 25% of the units have switched over to briquettes. Rice husk.6 for wheat. sawdust. This clearly indicates that demand is more than the supply. Sawdust is mainly available in the Kutch region of Gujarat and Kerala where many saw mills are located. (b) cropping patterns and (c) current utilization of crop residues. The moisture content of the raw materials must be in the range of 6 to 8% to minimize the wear and tear of the machine and get good compaction. Straw. Presently 30-35% of them have shifted to briquettes and are satisfied with the combustion characteristics. cotton. which has low Magazine on Biomass Energy December 2009 ash and moisture content thus making it easily briquettable. a low-density residue. Each factory consumes 40 to 50 tonnes per month. It is noted that every conceivable type of agro-residue is being used for briquetting especially in Gujarat where the activity is high when compared to other parts of India. The current market demand is roughly 250 to 300 tonnes per day in the tea cluster alone. There are around 300 units in Ludhiana.3 for groundnut husk. accounts for 20% of paddy. rapeseed. There is a potential market size of around 120 to 150 tonnes per day which is yet to be explored to the fullest.A briquetting unit above shows piston press machine and briquettes manufactured in a typical unit in Gujarat. 4800 per tonne. groundnut husk is available round the year. There is no supply of briquettes in monsoon months because the raw material is wet and cannot be briquetted. The selection of raw material depends on the following factors: Cost of raw material Availability Moisture content The most preferred and abundantly available raw material in Gujarat is groundnut husk. Around 1. is the dominant residue. Unlike other crop residues. coffee husk. it is imperative to understand (a) the area under agricultural crops. The RPR is 2. There are nearly 250 tea factories in Tamil Nadu. 23 . Each unit consumes 600 kg/hr of briquettes which results in savings to the tune of Rs. which decides the quantity of agro-residue generated. Briquettes are priced between Rs.0 for cotton. The demand for briquettes is also high in the textile cluster.000 per day.5 for maize to 1. 800 units in Tirupur and 500 units in Bangalore in which 50 kg/hr to 200 kg/hr boilers are being used for steam generation. However its availability is less during monsoon. The residue-to-produce ratio (RPR). Mustard stalks are available in Gujarat and Rajasthan. 4000 to Rs. The availability of groundnut husk is more in Gujarat. For assessing the quantity of crop residues available for briquetting. Unlike the cereals. The types of raw materials being used differ from region to region. Escalating raw material prices is a major cause for concern.40 kg of briquettes are needed to make 1 kg tea which saves Rs 1 per kg of tea in cost of production. 6. and 2. varies from crop to crop.0 for coffee. 4.

3. Reluctance of commercial banks to lend and lack of Market Related Issues working capital support Briquette units have high working capital requirement.14.O V E R V I E W Problems Encountered by the Sector Supply Side Issues Rapidly increasing raw material prices (prices of some raw materials like coffee husk have gone upto Rs. Also.800 per tonne (from Rs 2. Wild fluctuations in raw material prices Their working capital requirement is as high as the capital cost in most cases. are not worth pledging.000 per tonne.800 in 2007) is an issue resulting in increasing costs. The machines which are used for this purpose have high wear and tear cost and Seasonal availability of briquettes Non-availability of briquettes in monsoon season is parts need to be replaced frequently.000. advantage of saving substantially on the transportation cost of raw materials. banks need some other security in order to finance working capital loans High costs of raw material collection and for these units. which is common as raw material is stocked in open yards. In essence. Taper die and Split discouraging many interested user industries. Due to non-availability of raw material during the monsoon season. It is highly Loans with low interest rates are needed to make the industry more viable in the present situation. briquette units are forced to close down operations for 3 to 4 months. Technology Issues There are many technological issues which Energy from biomass briquettes this sector is facing. Institutional Issues Competition from fossil fuels Briquettes will be favoured by the industry only if their landed cost is below Rs. 4. Absence of soft line of credit there is a probability of jamming of the die. One of the difficulties being faced is the hazard of fire. The cost of a spare set is as high as Rs. Agro-processing Many units in Gujarat have not availed subsidy as they industries belong to that category as they generate do not have time and manpower to follow up with the authorities. But banks are reluctant to sanction It is necessary that briquette units maintain surplus space to store enough quantities of raw material to make them working capital loans to briquette units as their stocks relatively immune to wild price fluctuations. Magazine on Biomass Energy December 2009 Lack of village level institutions Lack of village level institutions for collection. storage 24 . Lack of Financial Issues understanding on briquette charging/feeding is also an issue. if the raw material is not properly ground. die are to be replaced in 100 to 400 hours while Ram & Piston have to be replaced in 200 to 600 hours. transportation Delays in disbursement of subsidy Briquetting is very suitable for those who have easy and cheap access to raw materials. energy-intensive and the required total connected load is around 85 to 90 HP. The subsidy disbursement process needs to their own captive raw materials and have an added be quick and streamlined.

Hence. Technological support and training to end-use Industries/sector There is a need to perform comprehensive energy audits of combustion equipment using briquettes instead of other solid fuels. maintenance and monitoring issues like periodic maintenance requirements of machines. But none of the units operated satisfactorily. wear pattern/characteristics of critical components. The ministry can also organize trainings for various end-use sectors.and transportation of agri-residue and biomass waste is increasing the foothold of supply agents. along with SNA Magazine on Biomass Energy December 2009 Strategies to Overcome Financial Barriers Restarting the IREDA line of credit IREDA was the only financial institution financing briquetting units in the country two decades back. A part of the power requirement can be met through this mode of generation with the balance coming from the grid. Less involvement of state nodal agencies The briquetting industry deserves active support from state nodal agencies. Monitoring of moisture content of raw material and its impact on the operation of the machine has also to be taken care of. binder technology employed. there is a need for standardization/certification of quality of the briquettes. Strategies to Overcome Barriers Strategies to Overcome Technological Barriers Initiating focused research and development programs High electrical energy consumption and high wear rate of machine parts increases cost of production. Due to all these uncertainties. The testing labs could be accredited by SNAs depending upon the credibility and lab facilities available. wherein 90% of the cost of the machinery was subsidized for briquette units in the state. Training may be phased out later when sufficient awareness has been created in the end-use industry/ sector on handling briquettes in boilers and other heating appliances Quality assurance Briquette quality varies due to the raw material used. MNRE has to facilitate energy audits through State Nodal Agencies (SNAs) to develop suitable retrofits to optimize the efficiency of the combustion system for briquette use. 22 units. pre heating etc. Overcoming power shortages Reliable and uninterrupted power supply is essential for large-scale commercialization of the briquetting sector. with 28 briquetting units financed by it. MNRE may commission a study to develop the standardization protocol. which is not happening presently. Units are able to operate only around 8 to 10 hrs /day except in Gujarat where power shortage is minimal as compared to other states. affecting its moisture content. This would provide technical support to SNA for developing master trainers for various types of end use industry/ sector/ cluster. Also. pine needles and lantana as raw materials were benefited from the scheme. to identify the problem areas. banks are not inclined to provide lending support to these units. A briquetting plant employing even a single machine of capacity 500 kg/hr can sustain a power plant of about 400 kW at full load. This R&D strategy has to focus on the operation. to increase the available time of machine and reduce the high power consumption. Similarly. combustion ability and calorific value. For the same purpose. through the cascade approach. each with120 kg/hr or 250 kg/hr capacity and using saw dust.. Also required is a comprehensive technical audit of different types of machines for complete technical mapping. to reduce the wear and tear. barring a few cases. The scheme was 25 . O V E R V I E W Infrastructural Problems Briquette units are located in rural areas where power supply is unreliable. Uttarakhand Renewable Energy Development Agency (UREDA) also ran a scheme from 2003 to 2007. Adulteration of the briquette with non combustible substances to increase the weight also damages the boilers and other heating appliances. etc. lubricating oil. support is required to organize trainings at the local level. There is a need to develop a research & development (R&D) strategy to increase the production capacity. who are not only taking away large chunks of profits in the sector but also inducing high price fluctuations. MNRE should look into promoting the concept of developing existing briquetting plants along with gasifier based power plants to take care of the power supply for the briquetting units.

Lack of knowledge with regard to the technology. have large stock yards to store the raw material in bulk quantities. marketing and the risks associated with such enterprises discourages financial institutions from financing such projects. It is equally beneficial to those who have a large captive consumption of briquettes and are presently using agro-residues with low utilization efficiencies and/or expensive coal. The proposed fund intends to increase the comfort level of the lenders so that banks develop lending operations in these areas and also set in place the institutional apparatus and technical assistance services to articulate the policy goals of the enterprises. Creation of extension support service A properly functioning extension support system for briquette manufacturers is crucial for wide-scale utilization of this technology. It substantially saves on the transportation cost of raw materials. rather than briquette manufacturers. who find investment in this venture profitable. helping them have an assured supply of biomass at reasonable cost and maximizing the profits and viability. through training. O V E R V I E W MNRE may consider supporting/ promoting models similar to warehousing/ storage of agricultural products on a public private community partnership basis. Institutional strengthening. The private investors could also be briquette manufacturers.discontinued from 2007 as the units became unviable due to high cost of production (increasing raw material prices) and low volume of operations. Promotion of briquetting in agro processing units Briquetting technology is well suited for agro-processing industries. IREDA may consider re-starting their financing scheme. Thus. both at the level of the entrepreneur and financing institution. to institutionalize and embed the financing mechanism. the commercial chains. India has gained good operating experience in the piston press technology. especially in the western and southern regions. to ensure assured supply investors who may share a part of the total profit earned. to ensure assured supply. industry associations and enterprises on aspects related to biomass energy and institutional strengthening as its key elements. with enhancement of the awareness of banks. which generate their own captive raw materials. networks. increasing the margins of supply agents. Creation of extension support service MNRE may seek support of universities and national research institutes for provision of extension support 26 Strategies to Overcome Market Barriers Adequate storage of biomass for continuous supply Erratic supply of raw material. provision of equipment and training materials. MNRE may consider supporting/ promoting models similar to warehousing/ storage of agricultural products on a public private community partnership basis. with the end user industries refusing to buy briquettes at the price of Rs. demonstrations and study tours may also help. The intermediaries (supply agents). MNRE may consider developing extension support services for various stakeholders of this sector. The storage facilities could be maintained by community groups or their federations and finances could come from private Magazine on Biomass Energy December 2009 . The stock maintained in these warehouses should be of sufficient quantity to deal with three months of production capacity. commercial banks may come forward to provide working capital support to the entrepreneurs. wide price fluctuations and non availability of biomass during monsoon season affects the briquette manufacturers and the end-use sector due to lack of assured supply of briquettes around the year. with more than 250 plants installed with a success rate of 75%. The extension institute(s) and/or industry associations may conduct training courses for relevant groups in the country. Now. Risk guarantee fund for briquetting sector IREDA may consider a Risk Guarantee Instrument to evince the support of banks in this sector to provide an impetus to commercial lending for briquetting enterprises/projects through part coverage of business and financial risks.6. The self-financed briquetting plants implemented since mid ’90s are doing good business.500 per tonne. If IREDA is able to take care of the term loan requirements. MNRE may undertake mapping and identification of such agro processing units and take up special awareness generation and capacity building programs for promoting briquetting in them. IREDA will have to ensure simplicity.

for free or by paying a very nominal price to the farmers. researchers & industry professionals. Farmers lack bargaining capacity as the quantity of raw material generated individually in small land holdings is not high enough to demand a good Winrock International Supply agents procure the highly scattered agro-residues from fields after harvesting season.. capacity building. private consultancy companies for biomass energy technologies (existing or potential). Phone: 0124 430 3868 Magazine on Biomass Energy December 2009 27 . figures and tables). forging alliances. research institutes (research and provision of information). Gurgaon-122 001. To meet such an objective in a timely manner. The two lead articles would be given an honorarium of Rs 1.000-2. agro-industrial residues like groundnut shell. extension support services and providing technical support. The major stakeholders who would be influenced by the same are current and potential briquette using industries. etc. from academicians. Please send in your inputs along with your photograph to: Smriti Mishra (smriti@winrockindia. Ritu Bharadwaj. rice husk etc. gasification or cogeneration. industry associations. which includes preparation and provision of information on new and improved briquetting technologies and equipment. so as to create a sustainable livelihoods option for the village community and maintain an assured supply of raw material at a reasonable price. Supply agents also have tie-ups with agro-processing mill owners to procure the Request for Articles Bioenergy India is intended to meet the updated information requirements of a diverse cross-section of stakeholders from various end-use considerations. briquette manufacturers and banks. that support the formation of village level institutions like self help groups.. Senior Program Officer Winrock International India Email: ritu@winrockindia. who own a fleet of vehicles for collection and transportation of raw materials within 100 to 150 km radius and have huge stock-yards for storage. user groups and livelihood groups involved in livelihood and income generating activities. These schemes provide funds for capacity building and capital subsidies for establishing micro enterprises. research institutes and NGOs) in new and improved biomass energy technologies is also an important step. Training of trainers (extension workers.500 words (approximately 5-6 pages. The contributions should be of about 2. industry associations. for agents. They then stock and sell to briquette units for a higher price when the availability is scarce. features. Phase V.500 each. be it biomass combustion. MNRE needs to undertake capacity building for agencies and NGOs involved in identification and strengthening of these groups at the village level. Monitoring of new and improved biomass energy technologies and preparation of investment plans for new or improved biomass energy technologies also help in the purpose. MNRE could facilitate ties with schemes of other Ministries like the Ministry of Rural Development. in bulk quantities during off-season and at low prices. Udyog Vihar. case studies and news items. There is a need to develop community based institutions to create the critical mass required to eliminate the role of supply agents. which would include relevant O V E R V I E W Strategies to Overcome Institutional Barriers Development and strengthening of village level institutions Raw materials used in briquette units is sourced through intermediaries/agents. equipment manufacturers. 788. the editorial team of the magazine invites articles. charts. Ensure a greater role of SNAs in promoting this sector SNAs need to play an important role in engaging with stakeholders at various levels for training. biomass waste generating industries. The community based institutions could be federated into a cluster level institution to develop infrastructure for storage & transportation.

they are difficult to use due to their very low bulk density in addition to high moisture and ash contents. There are approximately 33 million households and institutional kitchens. The Entrepreneurship Model A business unit has been set up in Kotdwara in the hilly state of Uttarakhand. As a result. Within it. unwarranted weeds. less than half the equivalent amount of LPG.e. Additionally.000 Kcal/kg of coal).2 kg of biomass can replace 1 kg of coal. These stoves are currently used in institutional kitchens such as restaurants. is exerting undue pressure on the region’s forest cover. These are very inefficient and polluting and often result in resource wastage besides causing indoor air pollution. company cafeterias and 28 Potential Applications The loose unused biomass can be pelletized to a bulk density of more than 650 kg/m 3 that can be easily transported and used for small and big thermal applications. Fuel wood is generally preferred due to its higher energy density. 2. such as for cooking. The low cost and guaranteed availability of the densified biomass happens to be the main motivation for clients to switch to the clean energy alternative. In addition. coconut shell. rice straw. wheat straw. boiler operators for steam generation and food processing industries that normally use coal for heating purposes. ease of convenience and transportation. The low cost. These briquettes are then supplied to the brick kiln manufacturers. depends on the traditional wood burning stoves. the densified biomass can be used to replace coal in the locally set up small scale industries. cow dung. the replaced LPG will generate carbon credits. fuel wood often accounts for a major fraction of the total biomass use. corncob. These briquettes can then be supplied along with a smokeless biomass chulha to the institutional kitchens. and many other agricultural residues as well. Excessive use of fuel wood. mid-day meal school program. bagasse. banquet halls. biomass briquettes using forest residues or agro-waste. These residues mainly include rice husk. which make use of LPG for cooking purpose in India. which has resulted in gross under utilization and neglect of biomass residues as being a potential renewable energy (RE) source. Agro-waste. Their operational performance can be optimized so as to increase their efficiency for meeting the local energy requirements. will act as a main motivator for the end-users to switch to this clean energy alternative. however. wood stove) in the kitchen” is regarded as being one of the top-10 global health risks. cafeterias and restaurants in order to replace LPG. this “killer (i. the biomass utilization in the rural sector. smokeless midsize scale stoves based on gasification technology have also been developed that burn the briquettes and can replace the LPG stoves. i. It is compounded by the lack of suitable cost-effective technologies for utilizing biomass residues. (which include a widerange of residues such as dry leaves.500 Kcal/Kg (as compared to 5. such as the brick kilns and boilers.S T U D Y C A S E Briquetting of Pine Needles – A Viable Entrepreneurship Model Background Most of the rural population in the developing countries continue to rely heavily on biomass to meet their limited energy needs. forest residue. According to the World Health Organisation (WHO). sawdust from local sawmills) are being utilized apart from the highly inflammable pine needles that cause forest fires. Despite the abundance of these residues.e. such as Magazine on Biomass Energy December 2009 . forest residue and highly inflammable pine needles that cause forest fires can be used to make biomass briquettes. These briquettes have a calorific value of around 3. The process of briquetting biomass is a mature technology and is currently operational in different parts of India. The solution lies in taking a close look at the large quantities of biomass residues available in the rural agriculture societies.5 kg of such pellets can replace 1 kg of liquified petroleum gas (LPG) and 1. grass. The loose unused biomass can be pelletized to a bulk density of more than 650 kg/m3 that can be easily transported and used for small and big thermal applications. However. Moreover. The smokeless biomass chulhas for large scale cooking uses gasification technology and can be adapted.

The use of gasification technology combined with densification results in an efficient and clean burning of the available biomass and thus offers significant potential for utilizing the unused biomass for several applications such as commercial Environmental Gains Possible Although biomass offers itself as a sustainable and carbon-neutral source of energy. thus possibly resulting in reduction of 200. Also. especially to run the ultra mega power projects. Ltd. Conclusion Our continued reliance on fossil fuels will also be reduced. However. but also generates employment opportunities for the local youth. Brijesh Rawat.000 certified emission reductions (CERs) per unit. C A S E S T U D Y Pine needle briquettes being used to cook food The Expansion Plan The next logical step is to start 10 similar independent business units that will replicate the above project and thus produce 20. which is now one of the top most national priorities. The project has the necessary approval from the local authorities to access the forest waste required to expand the project activity. projects like these will empower the rural population to fulfill their thermal and electricity needs. According to a recent report of the Uttarakhand Forest Department. The rate of return after 2-3 years of operation for the investors will be around 20%.000 tonnes of fossil fuel will be replaced. Excessive reliability on wood also exerts an undesirable pressure on the region’s forest cover. around 50% of homes. Therefore. Several self-help groups working with the local micro-entrepreneurs at the village level are engaged to collect and store biomass. and even small scale power generation units. Furthermore. This is also expected to generate employment opportunities for more than 5. Further. Net revenues from the sale of carbon credits alone at current rates will be around $3 million. large quantities of the surplus biomass residues are available in India. mostly in the rural areas. an initial investment of around $200. are still not connected to the grid. This will ultimately pave the way to develop sustainable businesses so as to generate some regular income for the poor farmers. The project aims to reduce CO 2 emission from burning fossil fuels which is mainly responsible for the climate change. Excessive use of fuelwood is also exerting pressure on the region’s forest cover. indoor air pollution besides related respiratory and other health problems. yet its inefficient use results in wastage. but the difficulties experienced in using and transporting them have severely restricted their enhanced usage.000 tonnes of CO2 emissions. This project is not only able to address the energy problem with the use of pine needles.temples.000 per unit is required for setting up the factory and collection centers and developing the market for clean energy.000-30. has resulted in a gross underutilization and neglect of biomass residues as a potential energy source. The revenues accrue from the sale of briquettes and cooking stoves as well as from the carbon credits that are generated by the replacement of fossil fuels. Managing Director Rural Renewable Urja Solutions Pvt. Email: rawatbrij@yahoo. No doubt. more than 1 million tonnes of pine needles are available. the nonavailability of suitable cost effective technologies for utilizing the biomass residues for clean energy purposes Magazine on Biomass Energy December 2009 29 .000 people in the rural areas and an additional 300 people in the semi-urban areas. a total of 100. Currently India imports around 80-90% of its crude oil requirements annually and lately coal is also being imported. industrial boilers.

including raw materials. pass-out.5 MW should be 63 Kg/cm2 Magazine on Biomass Energy December 2009 The maximum possible period for loan repayment will be 10 years The promoter of such projects is expected to contribute a minimum of 30% of the total project cost IREDA will make available a loan amount upto 70% of the total project cost Biomass power generation projects based on direct combustion mode and with a capacity range of 1-10 MW are eligible for financing. Such a facility is also available for the biomass power generation and bagasse based cogeneration related projects with varying terms and conditions. at concessional rates in accordance with the type of scheme.. Minimum applicable boiler pressure for capacities in excess of 7.5 to 12. This covers machinery and equipment components required for generation of electric power. The maximum possible period for loan repayment will be 10 years Promoter of such projects is expected to contribute a minimum of 30% of the total project cost IREDA will be making available a loan amount upto 70% of the total project cost Projects with more than 7. Waste heat recovery equipment Tax Holiday 10 year tax holiday Customs duty Duty leviable for NRSE power projects of less than 50 MW capacity (under Project Import Category) is 20 % ad valorem. across the country. Mentioned below is the table that highlights financial incentives available for the purpose. which advances loan facilities to potential project developers. The minimum applicable boiler pressure should be 63 Kg/cm2 The interest rate corresponding to four different categories (I-IV) will be in the range of 11. components and assemblies Central Sales Tax – General Sales Tax Exemption is available in certain states Financing Norms and Interest Rates for Biomass/Cogeneration Based Power Projects Small scale cogeneration (except sugar industry) projects upto 7.15% Maximum period for loan repayment will be 10 years and the project promoter is expected to pay 30% of the total project cost IREDA will make available an amount upto 70% of the total project cost 30 . extraction and condensing turbine for power generation with boilers 3. Fluidized Bed Boilers 2.50 to 12. The table is followed by details of the financing norms for these projects. Back Pressure.5 to 12. controlled extraction.15%. Its financial arm is known as the Indian Renewable Energy Development Agency (IREDA) Limited. Fiscal incentives available for biomass power generation Item Income Tax Depreciation Description 100% depreciation in the first year can be claimed for the following power generation equipment: 1. Central Excise Duty Exempted for renewable energy devices.15%.5 MW installed capacity attract interest rates ranging between 11. etc. etc. planning and program implementation measures.5 MW installed capacity (both for sugar and non-sugar industry) also attract equivalent interest rates in the range of 11.FINANCING SCHEMES IREDA Financing of Biomass Power Projects Background The Ministry of New and Renewable Energy (MNRE) is an apex organization responsible for renewable energy based policy. High efficiency boilers 4..

will be considered on case to case basis subject to careful examination.water availability.presence of other Biomass power/ Biomass cogeneration projects in that area .75% with upto 75% of the total equipment cost being available for financing. Such a loan is to be paid back in a period of 7 years The maximum moratorium period would be 2 years Biomass gasification (concerning 100 kWth and above) projects will attract an annual interest rate of 12. Managing Director Ankur Scientific Energy Technologies Pvt. B C Jain.e. Source: www. The fact that biomass is generally available all over and the relatively low initial investments required should further help its increased market penetration. thereby strengthening the tail end voltage distribution. captive power requirements for the industry. etc. In terms of applications. The major constraint of the past i. Vadodara Email: 31 .e. The maximum period during which the loan is to be repaid would be 5 years and would involve a maximum moratorium period of 2 years The promoter of such a project is expected to make a contribution equivalent to 25% of the total project cost Minimum size of Sugar Plant should be 2500 TCD. grid-fed power generation is likely to dominate in developed countries. wherever Magazine on Biomass Energy December 2009 attractive policies are in place (i.5 MW capacity upto a maximum of 10 MW.. Countries like India may also see more and more megawatt level power plants feeding into the grid. while simultaneously creating massive employment opportunities and economic development. excluding captive Biomass/ Bagasse based cogeneration. in one district Projects set up for captive consumption without grid inter-connectivity are encouraged Projects based on captive biomass/ energy plantation are encouraged Use of highly energy efficient equipment in Biomass Power Plants is encouraged Biomass direct combustion power projects exceeding 7.biomass availability . Italy.Biomass fuel processing machines in case of IREDA funded projects will attract an annual interest rate of 12. adequate technology development and availability of reliable hardware has largely been overcomed. Other Points of Significance Biomass Cogeneration Cogeneration and Industrial Use of high energy efficient equipment in sugar/paper mills for supporting cogeneration projects is encouraged. particularly Germany. This may lead to improved power supply to rural areas through the grid.ireda.. Ltd. FINANCING SCHEMES Biomass Power Generation IREDA shall finance not more than one independent Biomass Power Project.75% A loan amount upto 75% of the project cost will be made available by IREDA. thereby requiring a minimum promoter contribution of 25%. particularly with reference to: . future prospects for biomass gasification have become better than before. an increasing use of biomass gasification technology has become inevitable. in many European countries.). As biomass resources can be deployed on demand and for almost all types of applications.Biomass Gasification (Contd from page 13) Future Prospects With an increasing commitment to deploy the renewable energy resources throughout the .linkage for off-season fuel . thermal applications and distributed generation for remote/rural areas could open big opportunities in developing countries. As against this. etc.

MNRE. MNRE. The workshop began with a welcome address by Shri K P Sukumaran. (iii) leveraging environmental finance and (iv) knowledge sharing. The First technical session was on ‘Clean energy access: issues. Assistant Country Director. which was aimed at getting feedback from the grassroot level NGOs on their learnings and experiences from past projects in mainstreaming renewable energy. He thanked the speakers and participants for joining the workshop at such a short notice. an inception workshop was organized in ‘Casurina’ at India Habitat Center. The project proposes to support national efforts to reduce GHGs by focusing on the following themes– (i) energy efficiency improvements in select energy intensive sectors (ii) enhanced access to clean energy.UNDP MNRE WORKSHOP UNDP MNRE Initiative: Access to Clean Energy The Government of India and UNDP have recently initiated a program entitled ‘Supporting national development objectives with co-benefits of mitigating climate change’. MNRE. Lodi Road. Mainstreaming renewable energy to extend energy services to the rural poor seems extremely relevant not only in terms of stimulating regional development and in improving the quality of life. energy access is a growing concern. The Ministry of New and Renewable Energy (MNRE) is the implementing partner for the component of the project dealing with `enhanced access to clean energy’ In order to sensitize key stakeholders and to solicit feedback based on their past learnings. Adviser. Inspite of the overall enthusiasm and activity. New Delhi on 23rd December 2009. Dr Preeti Soni. This initiative aims to support the Government of India’s efforts to fulfil national commitments under the UN Framework Convention on Climate Change and the Kyoto Protocol. but also in enhancing livelihood opportunities for the vast majority of the rural population which is deprived of clean energy services. In the end. Joint Secretary. Magazine on Biomass Energy December 2009 Shri Deepak Gupta. Given this above background. On behalf of MNRE and UNDP. Director. However. Secretary. He encouraged the participants to share their learnings and experiences from the past renewable energy projects and to provide feedback on the existing policies and programs for up scaling clean energy technology interventions so that a realistic strategy and action plan could be evolved. he also thanked Winrock International India (WII) for their help in organizing the workshop. The Chairpersons of the session encouraged representatives of the NGOs from different states and institutions to share their experiences on clean energy initiatives and contribute their expertise towards 32 . The purpose of the session was also to review the existing policies and programs of the government for up scaling clean energy technology interventions so that the gaps could be addressed and appropriate energy solutions for poverty alleviation in low-income households could be developed. The session was co-chaired by Shri K P Sukumaran and Shri V K Jain. wherein several million people still depend on traditional biomass to meet their cooking energy needs and they also lack access to electricity in their homes. he thanked Shri Deepak Gupta. UNDP and Shri K P Sukumaran for their support and encouragement towards this project. not much effort has been made to address the issue of access to clean energy. Ms Gauri Singh. challenges and way forward – voices from the state’. MNRE. He informed the participants about the Ministry’s objective in organizing the workshop. MNRE addressing the audience The Chairpersons briefed the participants about how energy plays a crucial role in underpinning efforts to achieve overall development and in improving the quality of lives of poor people. Secretary. The inaugural session ended with a vote of thanks by Shri V K Jain. chairperson apprised the participants that the primary objective of the technical session.

entrepreneurs’ unfamiliarity with structuring commercially viable businesses. The Chairpersons briefed the participants and said that several barriers impede private investment in the commercialization of RETs and in the development of commercially viable business models for clean energy access. The following concrete deliverables were mentioned: Rural Energy Access Advisory Committee to be formed UNDP MNRE WORKSHOP Participants at the workshop Magazine on Biomass Energy December 2009 33 . In order to accomplish the objectives as highlighted above. Strategic partnerships to leverage environmental financing Possibilities need to be explored for leveraging local level finances and strategic partnerships for climate change relevant initiatives. emphasized the need for linking RE with livelihood programs of rural development. Rajasthan. schemes and programs. Development of national strategy for “Accelerated clean energy access” The learnings here will serve as inputs to the process for developing a national strategy for “Accelerated clean rural energy access”. demand development (by facilitating livelihoods). Uttar Pradesh. (b) providing a platform for discussion on climate issues. an organization. the following specific actions were proposed to be carried out.developing a strategy for enhancing access to clean energy. The session was co-chaired by Shri K P Sukumaran. brought forward points such as ‘acceptance of the community for renewable energy technology is less’ and ‘lack of awareness is a major challenge for commercialization’. The project activities will be a part of the district energy plans. an NGO working in the sector. Besides. Development Alternatives. Design a framework to address gaps and up-scale clean energy technologies Based on a review of existing policies. there is the absence of an institutional mechanism that can allow enterprises that are harnessing renewable energy technologies to come together to script and articulate suggestions on policies which will encourage private investments in renewable energy. awareness. as well as connect with associations in other countries to form investment and trade links. in the identified districts in the relevant states.centralized power station for local enterprises. capacity building and skill development. a feasible framework for up-scaling clean energy technology interventions. NGOs from the state of Orissa. and Shri S N Srinivas. State Nodal Agencies (SNAs) will be involved in collating the experiences at the grass root level and will be the link with national level actions. which has worked on REZ (rural entrepreneurship zone) model. strengthening supply services (manufacturer development). Support to up-scale implementation The project aims to up-scale implementation through provision of technology packages. The representative from CARD. Knowledge sharing platforms and networking The project aims to provide inputs for environmental policy and climate change policy regimes through (a) strengthening database on mitigation and vulnerabilities. The major barriers include limited financing to defray high up-front costs associated with developing renewable energy projects. Bihar. will be designed. Gujarat. Jharkhand and Chhattisgarh shared their experiences during the workshop. United Nations Development Programme. The second technical session was on ‘Business models for clean energy access’. tough competition from subsidized conventional energy sources that lower the market price for electric and thermal power and market penetration costs. (c) supporting joint partnerships and activities aimed at knowledge sharing with different stakeholders. Madhya Pradesh.

On behalf of MNRE. The prime focus of the project will be on promoting sound economic/business models and on targeting unmet demand. The Chairperson talked about the proceedings of the workshop and the key conclusions drawn from the recommendations of the participants. It was proposed that information related to the project be put on the website of WII with links from MNRE and UNDP website. Magazine on Biomass Energy December 2009 UNDP MNRE WORKSHOP Major Events Biomass 2010 Conference March 30–31.htm GreenEx 2010 May 12– New Delhi. 40 Max Muller Marg. documenting NGOs’ experiences. registration of NGOs. Establishment of criteria for Renewable Energy Service Company (RESCO) as a viable business model. Mozambique Contact: HEDON Household Energy Network Website:http://www. The World Bank and Dr Kinsuk Mitra. 2010 Lecture Hall. Winrock International India. Providing inputs for environmental policy and national as well at international climate policy regimes. Energy Specialist. self help groups. Kinsuk Mitra. USA Contact: biomassmeeting@courtesyassoc. This would also work towards evolving quantum and mode of financing.and current scenario reviewed. The concluding session was chaired by Shri Deepak Gupta and the panelists included Ms Gauri Singh. VA. This will be used for sharing project related information. USA Contact: service@bbiinternational. users associations and others in the renewable arena. 2010 MTN Expo Centre.conference@etaflorence. 2010 Arlington. Johannesburg South Africa Contact: Cradle of Humankind. 2010 Pestana Rovuma Hotel Maputo. It was brought about in this session that the project will not only involve NGOs but also new generation entrepreneurs. 2010 Minneapolis. Developing a national policy to accelerate an improved “Access to clean energy”.it International BIOMASS Conference & Expo May 4–6. Demonstrating energy efficiency in villages. etc. Mainstreaming modern clean energy devices for meeting thermal applications in selected areas for the end uses of both the domestic sector and enterprises. India International Centre. he thanked all the speakers and participants for sharing their valuable experiences and helping in achieving the objectives of the workshop. Dr Preeti Soni. France Contact: biomass. President. Muldersdrift Gauteng Email:smithalw@gmail.July 2. Ms Anjali Urja Sanghathan to be formulated to build in grassroot feedback for the activities in participating districts. 2010 Lyon. Supporting actions to reduce transmission & distribution losses.merlinwiz. Proper development of the operational manual is also a part of the project. Japan Contact: re2010reg@convention. South Asia Sector Sustainable Development Website: Bio energy Markets Africa: Expanding sustainable bioenergy production Mozambique May 11–13. India Contact: info@growdieselevents. technology suppliers. Energy The workshop concluded with a vote of thanks by Dr. Developing communication strategy to disseminate the learning. Exploring partnerships and strategies. MN. electricity generation and distribution for 250 rural villages. Shri K P 18th European Biomass Conference and Exhibition May 3–7. 2010 ISES Asia Pacific Regional Conference on Renewable Energy June 27 . Capacity building of Urja Sanghatan and training of trainers for rural franchise. Courtesy: WII Editorial Team 34 . UNDP and / growdieselevents@gmail.hedon. equipment Algae Biofuel Workshop 2010 April 12–13.

Chief Operating Officer. CERC Shri Dilip Nigam. Independent power producers. Secretary. The participants included senior members from Government organizations. Director. consultants. CERC Dr G C Datta Roy. Chairman & Managing Director. industry specialists and other stakeholders interested in renewable energy. Chairman. he added. Shri Alok Kumar. GEDA Shri Sunil Jain. BMR Advisors Shri Amulya Charan. Shri Balawant Joshi. apart from reducing raw material costs. He called for a lot more to be done to achieve targets and also stressed on the need for investors to take risks. in association with the United Nations Development Programme (UNDP). Managing Partner. MERC Shri Chintan Shah. Shri M K Deb. Dr. investors. on behalf of the Ministry of New and Renewable Energy (MNRE). Chairman.Energy Business. will also strengthen the grid. Shri Harry Dhaul He spoke on the subject of incentivizing biomass generation and how it facilitated utilization of locally available feedstock. Chief Executive . MNRE Ms Gauri Singh. Shri Deepak Gupta As far as biomass is concerned. Tata Power Trading Co. Managing Director. New Delhi. in order to give a boost to renewable energy projects being developed by IPPs. creating an attractive investment market for large independent power producers and foreign direct investors. Green Infra Ltd. MNRE Shri V P Raja. regulators. 2009. advisors. Shri Gokul Chaudhri. operated on high plant load factors 35 I P P A I W O R K S H O P . experts.Policy Incentives for IPPs and Investors for Wind & Biomass Power Generation A seminar on Policy Incentives for IPPs and Investors for Wind & Biomass Power Generation was organized by Independent Power Producers Association of India (IPPAI). wind power project developers. Chairmen of Electricity Regulatory Commissions. Head . He said that the Ministry “is there to unlock the locks that have been locked for too many years” to facilitate investment in the sector. The program is to be implemented by the Indian Renewable Energy Development Agency and is a significant push by the government to take unilateral and voluntary action to support the growth of renewable energy technologies in the country. Shri Gupta said there were many big projects to feed into the grid but added that the MNRE would also focus on the smaller. Following are the key points of discussion related to the biomass energy that emerged during this event: Dr Farooq Abdullah The honourable minister announced that the Government would play the role of a facilitator and would not be a ‘blocker’ in the efforts to help growth of power generation through renewable energy sources. Farooq Abdullah. India. policymakers. at The Imperial. He added that since 30-40% of India is without access to power. Secretary. India. ABPS Infrastructure Advisory Magazine on Biomass Energy December 2009 Shri V H Buch. The inaugural address at the seminar was delivered by the Hon’ble Union Minister for New and Renewable Energy. it has a moral imperative to use rice husk and other biomass products to provide an opportunity to give power to deprived villages.Consolidated Energy Consultants Ltd. Suzlon Energy Ltd. more manageable tail end projects to feed the local and catchment area which. He also said that the generated power can be used in irrigation pumps which are diesel guzzlers. left a lower carbon footprint in transportation of fuel. Other eminent speakers included the following: Shri Deepak Gupta. Partner. and the Indian Renewable Energy Development Agency (IREDA) on December 17.Strategic Business Development. IREDA Dr Pramod Deo. MNRE Shri Debashish Majumdar. Director. The MNRE further announced that it will be simultaneously promoting biomass based distributed and grid connected power generation. Managing Director . Ltd. Joint Secretary. DSCL Energy Services Co Ltd.

competitive pressure would be a lot less. when considering partnership with rural communities.00 Magazine on Biomass Energy December 2009 36 .00 18.000. he said that there is a strong case for the development of last mile grid connected biomass DG systems (1-2 MW) which require policy support during their development phase. and freedom from rostering. He mentioned that station heat rate is not defined at different power generation capacities. boosted growth in rural infrastructure and education and led to substantial multiplier benefits in the local economic and social framework. He also asked if tail end DG systems could be subjected to payment of OA charges and added that last mile DGs can make significant impacts on reducing T&D losses.000. Dr G C Datta Roy Dr Roy spoke on the ‘Development of Small Scale Biomass Based Distributed Power Generation in Rural Areas. should be considered together with preferential dispatch.000. because they have an opportunity of higher value realization by installing mini cogeneration power plants and exporting small quantities of power to the grid-which would provide the highest value realization from biomass. he also added that usage by these industries is not significant enough to appear as a competitive threat to biomass based power plants. For details.000.’ He said that surplus availability for IPPs would be mainly from agro and forest waste and the competitive use of biomass would be the critical factor driving sustainability. exemption from distribution charges. was ideal for remote villages where off-grid systems could be set up. In conclusion. He also said that price parity would be governed by coal price parity and added that. including financial subsidy. Dr Roy spoke of the gaps in CERC’s regulations on biomass based power generation and said that not having a standardized station heat rate for biomass based power plants has hampered generation.(PLFs). which could be capital or generation The advertisement tariff is as follows: Particulars Back Cover Front and Back Inside Cover Inside Full Page Inside Half Page Colour (Rs) 20.000. he said that next to captive usage.00 8. and said that the station heat rate for biomass based power plants is arrived at depending on the of type of biomass and type of technology. offers new opportunities for the development of 1-2 MW small IPPs as last mile DG plants. He said that different tariff structures and rates.00 15. considering coal price parity. the most valued use of biomass is as fiber and added that brick kilns and cement mills can offer higher prices by as much as 25%. Special discount is available for insertions in more than two issues.00 3.00 8. at the tail end. and was most suited for distributed generation projects since there were zero transmission and distribution losses. I P P A I W O R K S H O P Call for Advertisements We invite organizations to advertise their profiles and products in the Bioenergy India magazine. But. Advertisements focusing on the Biomass Energy sector will be offered a space in the magazine. please contact Sasi M at sasi@winrockindia.000. He also felt that oil mills can offer much higher prices.00 Black and White (Rs) ——— 10. He elaborated on the financial and economic viability of a typical biomass power project and spoke of the issues that dogged last mile DG models.000. Analyzing the economic competitiveness of using biomass. liberal grid connectivity. He added that better grid connectivity and the possibility of learning from existing larger plants for scaling down. He added that it also led to increased local employment due to upstream and downstream activities. and cross-subsidy for such DG projects should be offered. He also suggested that liberal open access-capacity and charges. as is in the case of coal.

These plants have capacities ranging between 6-20 MW. there is an enormous potential for saving fossil fuels via this route of renewable energy technology N E W S S N I P P E T S (PEDA) has already commissioned a biomass power capacity of 14 MW so far. Source: www.000 MW of Biomass Power The state government of Punjab is targeting to produce around 3. Punjab Energy Development Agency Magazine on Biomass Energy December 2009 Waiver of Environmental Clearance for Biomass Projects The Ministry of Environment and Forests has just issued a draft notification dated December 1. Source: www. Such a policy initiative is expected to mitigate the acute problem of Companies keen to Set Up Biomass Power Plants Tamil Nadu state government has always considered generation of electricity from wind power as a standby option during acute power Importantly. M/s AA Energy Limited is currently setting up a 10 MW biomass power project at Desaiganj in Wadsa Tehsil of Gadchiroli district of the state. MNRE on 8th Punjab Targets to Harness 3. A special financial package is now in place for this purpose. 2009 for making certain amendments in the Environment Impact Assessment (EIA) notification of 2006.. Of these.047 in CO2 equivalent. Source: www. under which a Memorandum of Understanding (MOU) was signed between the State Bank of India. whereas the next lot of 28 plants is expected to take the combined power from biomass upto 700 MW. it may help tackle the decreasing productivity of the land on account of the heat produced by this fire. which are based on biomass and use auxiliary fuel such as coal/ lignite/ petroleum products upto Multi-fuel 10 MW Biomass Power Project for CDM Benefit Maharashtra Energy Development Agency (MEDA) is also encouraging the use of biomass power projects in the state. M/s Green Planet Energy Private Limited is setting up the maximum biomass power capacity of around 145 MW in the state. A total capacity of 282 MW spread over 27 sites across the state is likely to be commissioned by December 2010 in a phased manner. will be exempted from the EIA requirement. The underlying rationale is not only to save diesel but also provide economical and reliable solutions for their captive power needs. The state nodal agency i. There would be multiple benefits available. 28 biomass plants would begin to produce around 80 MW power by December 2010. With due realization of this fact. 2010. Secretary.mnre. These materials available locally would be used to generate power through sustainable means without causing any negative impacts on the surrounding which is caused due to the combustion of paddy residue in the open. Patna and M/s Beltron Communications Ltd.000 MW of useful power by putting to use 20 lac tonnes of agricultural residue being generated here every year.peda. In fact. Patna in the presence of Shri Deepak Gupta. Through this technical & financial mechanism. which also include the strengthening of the rural economy. setting up biomass projects would also earn carbon credits worth crores for the state exchequer.nic. Also. power plants upto 15 MW capacity.moef. about 500 rice mills would be able to avail the benefit by setting up biomass gasifier systems during 2010 which would lead to the saving of about 20-25 million liters of diesel annually and at the same time avail the benefits of a reliable power supply. This project is expected to result in greenhouse gas (GHG) abatement of 149. This project will utilize the surplus biomass residues obtained primarily from rice husk and other biomass materials like stalks of soya bean and tur etc. the Ministry of New and Renewable Energy (MNRE) has recently launched an ambitious scheme for promoting rice husk based biomass gasifier systems in the rice mills.. Source: www.e.News Snippets on Biomass Power Diesel Replacement in Rice Mills by Biomass Gasifiers Presently rice mills make use of import dependent diesel for meeting their captive power requirements. As per the available estimates.mahaurja. 37 . Under this.

managing director and chief executive of Shriram EPC. among others. each MW entailing Rs 5 crore. Shivaraman. comprising the remaining 30 per cent. 140 crores) for the Promotion of Biomass Power Generation in India. It contains organic matter that can be used to produce energy or heat. is produced by plants during photosynthesis. Currently. But they are yet to get the green signal from TNEB. for financial assistance of 19. “As of now.S N I P P E T S Now. The cost of setting one biomass unit works out to Rs 5 crore. T. rice husk and cane trash. even wastelands can be developed. 8th October. The company would fund the project through debt. Most of these would be ready by December 2010. 487 MW of biomass power can be generated in the coming years.5 MW unit will come up soon in Tiruvannamalai and Krishnagiri.971 million euros (Rs.” the official explained.000 tonnes of agricultural residue was needed to produce one megawatt a year. One 10 MW generating unit and a 7. he said. TNEB clearance. the rate for purchase of power by TNEB is Rs 3. however. people starting units usually have plantations nearby. together they can generate 100 MW. too. The company currently operates biomass plants with a total production capacity of 22 MW. a renewable energy generation company promoted by Chennai-based Shriram EPC. reports Business Standard.” said a senior TEDA official. is mandatory. would invest Rs 730 crore for setting up biomass-based power plants. Companies feel that it is a good rate as they spend Rs 2. The company wants to give thrust on renewable energy both in the domestic and international markets. adding that many more companies had approached TEDA for starting biomass plants. which would constitute 70 per cent and equity. ”According to the Tamil Nadu Electricity Regulatory Commission’s tariff order issued in May 2006. pointing out that nearly 8. according to a district-level study carried out by Anna University and the Ministry of New and Renewable Energy Funding. Source: The Bioenergy Site News Desk 38 . 111 MW of biomass energy is produced by 17 units in various districts across Tamil Nadu. including Pudukottai.50 per unit. respectively. A company that wants to start a biomass generation plant has to approach TEDA with a proposal. many companies have approached the Tamil Nadu Energy Development Agency (TEDA).450 on one tonne of raw material. including coconut shells. which will replace furnace oil and liquefied petroleum gas. In May 2009. The estimated power generation potential from surplus biomass in Tamil Nadu is 487 MW. Oriental Green to Invest in Biomass Power Plants Oriental Green Power (OGP). For example. Germany Sign Rs 140 Crore Agreement for Biomass Power The Indian Renewable Energy Development Agency Limited (IREDA) and Germany’s Development Bank KfW signed an Agreement on Thursday. which will be studied by a standing committee headed by the chairman of TEDA.” he added. Biomass. Hence.” The investment would go into setting up of 146 MW plants. Dindigul and Kanyakumari. Once the committee clears the project.” he said. Nine companies have approached us for power generation. urging it to give them permission to start biomass plants. India. The company has also entered into a licence agreement with Envirotherm of Germany for air blown gasification technology for producing fuel gas. “We have set a target to list OGP by March 2011. said.15 per unit. ”Some plants that can generate 40 MW of biomass energy are yet to start functioning. we are generating nearly 150 MW of biomass power and in the coming years we will have the full capacity of 487 MW. a renewable energy source. The TEDA official said that raw material used to generate biomass energy would be agricultural residue. Hence many companies are keen on setting up units here. “Raw material Magazine on Biomass Energy December 2009 N E W S for biomass generation has to be cultivated. the rate was increased to Rs 4. The committee has been formed by the state government to select biomass-based power projects and examine applications from prospective entrepreneurs. If that permission comes through and if the Tamil Nadu Electricity Board (TNEB) clears the proposal.

concerns have also been expressed that such contributions may endanger efforts for sustainable provision of biomass. the EU leaders took an even tougher stand by establishing the target of achieving 20% of the energy requirement from RE sources. etc. 1996-2007 Currently.European Policy on Biomass Energy The European Union (EU) has been actively developing and promoting the production cum use of Renewable Energy (RE). It diversifies the use of energy sources and contributes to securing the energy supply. This was mainly done to boost the level of RE deployment in the EU countries. various bioenergy technologies are at different stages of maturity. new laws were adopted for establishing the national targets for renewable electricity and biofuels in the transport sector. sustainable production of advanced biofuels The graph shows the gross electricity generation from Biomass in the United States and European Union. the Commission has launched a consultative mechanism so as to provide inputs into a report concerning the requirements on a sustainability scheme for energy uses of biomass in 2009. A longer term research program will support the development of a sustainable bioenergy industry in Europe beyond 2020. The Commission adopted a new Energy and Climate Package. The contribution to the EU energy mix by 2020 from the cost-competitive bioenergy used in accordance with the sustainability criteria of the new RES directive could be at least 14%. by replacing oil or electric water heating systems. However. In 2007. The graph shows that biomass generation is on a steady increase in Europe but not in the US. in order to attain the following objectives: ensure highly efficient combined heat and power from biomass permit large-scale. but can be used in the district heating systems. bioenergy exploitation within the European member countries is expected to bring in commercial maturity within the most promising technologies. The objective is also to develop new industries and technologies.risi. The RES directive includes a proposal for a sustainable scheme for biomass. 2008. Biomass boilers will be increasingly used in the buildings.europa. including the RES Directives. the private sector was especially encouraged to make the necessary Magazine on Biomass Energy December 2009 39 . In fact. In all. where steam generated during electricity production is not wasted. which also emphasizes the need for launching the capacity building initiatives at several levels. This sets the national binding targets for the Member States for achieving the target of 20% from RE sources in energy consumption by the year 2020. Various national targets have since been proposed for each country in order to reach 20% for EU as a whole. Thus. Also. To accomplish this target. The total public and private investment needed in Europe. There are calls to regulate this through the introduction of a wider biomass sustainability scheme. The use of biomass based power plants is bound to grow as will cogeneration. INTERNATIONAL POLICY Source: www. by 2010. by 2020. Source: www. It could also help in generating around 2 lakh jobs. the growth in the US has flattened out in the period The European countries initially agreed on an indicative target for supply of 12% of energy from RE including EU27 and USA: Gross Electricity Generation from Biomass. on 23rd January. over the next 10 years is estimated at 9 billion euro. The projections made for the Renewable Energy Road Map suggested that biomass has the potential to make very significant contributions to reaching the 20% target.

and are mostly carbon neutral. reflecting the breadth and depth of the field. Mcgowan.e. The case studies in the book help readers understand how they can install and operate energy systems to reap all the benefits of biomass and alternate fuels. storing and burning these fuels. i. This book explains the characteristics of renewable fuels. It addresses thermal processes. introduction of the pollution control equipment for limiting the emission from fuel combustion. Biomass and Alternate Fuel Systems: An Engineering and Economic Guide provides readers with an understanding of these environmentally friendly fuels alongside step-by-step guidance for converting these fuels into energy.95 / Rs. enzymatic reactions. Brown. ethanol. The book discusses anaerobic digestion of waste materials for biogas and hydrogen production. In addition to biomass. and sustainable energy source for years to come.345 conventional and alternate fuels. used tires. especially biomass and wood. The text also covers pretreatment technologies.95 /Rs. case studies. including gasification and pyrolysis of agricultural residues and woody biomass. and biodiesel production from plant oils. 4. An introduction to fundamental principles and practical applications. It also talks about economic evaluation method. bioethanol and biobutanol production from starch and cellulose. and the cost-effective and environment-friendly methods of handling. Bulpitt 264 $ Magazine on Biomass Energy December 2009 40 . North Carolina State University. Michael L. biodiesel. and costs and carbon emission comparisons between Source: www. Editor Jay Cheng has assembled contributors from multiple engineering disciplines. This book is an update and expansion of the “Industrial Wood Energy Handbook” by a team from the Georgia Institute of Technology in 1984. cooking oil. can greatly reduce operating costs.5. Biomass to Renewable Energy Processes explains the theories of biological processes. BOOK A possible solution to the energy challenge. These experts discuss the fundamental principles of the processes for bioenergy production. biomass energy production is heavily dependent on sugarcane and corn production and is vulnerable to the fluctuation of the feedstock price. supplying the background needed to understand and develop biofuel technologies. reclaimed oil. green. It introduces new technologies not available at the time of the early version.. butanol. William S.126 bioenergy products such as biogas. New technologies need to be developed to convert abundant biomass such as lignocellulosic materials into energy products in a costeffective and environmentally friendly manner. fermentation. and microbiological metabolisms and pathways. and conversion technologies for Title: Publisher: Editor: No. renewable. and coke. biomass materials and logistics. the book also covers other alternate fuel sources such as biogas. of Pages: Price: Biomass And Alternate Fuel Systems: An Engineering And Economic Guide Wiley-AIChE Thomas F. Biomass and alternate fuels offer cleaner. and synthetic gases.INFORMATION Books Title: Publisher: Editor: No. renewable ways to produce energy. It explores the engineering principles of biomass gasification and pyrolysis and potential end-products. of Pages: Price: Biomass to Renewable Energy Processes CRC Press Jay Cheng. solid wastes. Raleigh. They provide the foundation for future work and development on what can be a clean. USA 517 $

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