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MarketPulse Knowledge Networks (P) Ltd.

Head Office: B-803, NRI Towers, Judges Bungalow, Bodakdev, Ahmedabad 380 054
Pune Office: A-3, Gourish Apartments, Right Bhusari Colony, Paud Road, Kothrud, Pune 411 038
Phone: 93502 30915, 93765 08020 Email: raghav@marketpulse.co.in, prasoon@marketpulse.co.in

BIOENERGY SECTOR OPPORTUNITIES IN INDIA
GROUND-LEVEL EVALUATION AND FRAMEWORK FOR ACTION

1. Rationale of the Study

Bioenergy defined as energy produced from organic matter or biomass has recently become one of
the most dynamic and rapidly changing sectors of the global energy economy. Accelerated growth
in the production and use of bioenergy in the past few years is attracting interest from policy
makers and investors round the globe.

Recent oil price increases have had devastating effects on many of the worlds poor countries. Oil
import bills now consume a large and unsustainable share of the foreign exchange earnings of
most developing countries including India (USD 68 billion in 2007-08) and act as a big drain on the
public exchequer. The recent impact of oil prices on India has been enormous and has pulled down
the performance of Indian economy in most key sectors. The poor situation with regard to energy
security in India has been acting as the major stumbling block for the growth and competitiveness
of Indias manufacturing and engineering sector for long. For a country like India which obtains a
major share of its modern energy from an increasingly unstable oil market, there is a worthwhile
case for energy supply diversification. The economic attractiveness of bioenergy for India stems
from the opportunity to divert a significant portion of the money now being sent abroad to pay for
oil to local agricultural and energy sector which in turn would strengthen domestic economy,
enhance farmer incomes and generate additional employment.

Even though domestic and community-based biogas systems have been present in India for more
than two decades, enabled by a large nation-wide programme of the Indian Government; the
potential of bioenergy production for meeting the energy demands of both institutional and
individual users still remain highly under-tapped. Most of the biogas units established through
subsidies from relevant state agencies and developmental organisations are dysfunctional or
inoperative. The economic benefits of large-size and commercial bioenergy units in Europe, Latin
America and South-East Asia are now fairly well-established and thus relevant for study of their
applicability to Indian context.

The situation with modern bioenergy systems is more complex to assess due to the large variety of
options related to the type of feedstocks, technology, outputs, actors etc. Nevertheless, bio-
fermentation/biogas systems can be a first-rate solution when the necessary feedstock, water
inputs and knowledge converge. However, a rigorous examination of the key macro-level and
micro-level issues is essential to assess the feasibility and socio-economic attractiveness of the
bioenergy sector for India.

MarketPulse Knowledge Networks (P) Ltd.


Head Office: B-803, NRI Towers, Judges Bungalow, Bodakdev, Ahmedabad 380 054
Pune Office: A-3, Gourish Apartments, Right Bhusari Colony, Paud Road, Kothrud, Pune 411 038
Phone: 93502 30915, 93765 08020 Email: raghav@marketpulse.co.in, prasoon@marketpulse.co.in
The proposed study seeks to structure the approach to the current opportunities in the bioenergy
sector. Its foremost goal is to help bridge the gap between the conceptual appeal of bioenergy and
the practical requirements for successful implementation of bioenergy initiatives on a commercial
scale. It would further try to bring together a meticulous yet lucid synthesis of key issues to inspire
interest, invite deeper analysis, catalyze problem-solving approach and promote tangible action by
all bioenergy stakeholders comprising industrialists, farmers, investors, financiers, government
and its agencies, knowledge/research institutions, service providers and consumers. It also intends
to contribute to international discussion on the strategies/policies needed to ensure sustainable
and equitable development of bioenergy in the short-to-medium time horizon.

2. Our Proposal

MarketPulse invites NABARD for collaboration with it for a comprehensive study on the bioenergy
sector in India which aims to meet the following objects:

Examination of the key macro-level and micro-level issues for assessing the feasibility and
socio-economic attractiveness of the bioenergy sector for India
Structuring an approach for harnessing the current opportunities in the bioenergy sector
Bridging the gap between the conceptual appeal of bioenergy and the practical requirements
for successful implementation of bioenergy initiatives in India on a commercial scale
Contribution to international discussion on the strategies/policies needed to ensure sustainable
and equitable development of bioenergy in India in the short-to-medium time horizon

3. Scope of Study

Bioenergy Overview

Forms of Biomass Methods for Conversion to Energy Comparative Analysis of Biochemical and
Thermochemical Conversion International Developments in Bioenergy Investor Focus and
Support Decision Matrix for Mapping Bioenergy Conversion Methods to Project Ecosystems
Government of India Policies & Schemes Study of Salient Projects in India Areas of Interest
and Concern of Potential Investors
Bioenergy Feedstocks

First, Second, and Third Generation Biofuels State of Development Comparative Analysis of
Crop Requirements and Outputs Acceptability, Availability and Accessibility Issues
Geographical Regions of Suitability and Focus Environment Friendliness Energy Efficiency
Basic Economics Indicative Capital and Operational Costs Soil Health Management

MarketPulse Knowledge Networks (P) Ltd.


Head Office: B-803, NRI Towers, Judges Bungalow, Bodakdev, Ahmedabad 380 054
Pune Office: A-3, Gourish Apartments, Right Bhusari Colony, Paud Road, Kothrud, Pune 411 038
Phone: 93502 30915, 93765 08020 Email: raghav@marketpulse.co.in, prasoon@marketpulse.co.in
Conversion Technology Overview

Suppliers of Domestic Technology for Large Size Units Cost Advantages of Domestic Technology
versus its Performance Latest Developments in Conversion Technologies Ongoing Areas of
Research Illustrious Global Projects Best Technology Providers Key Performance Parameters
Conversion Technology Analysis and Evaluation

Comparative Analysis of Digester Designs Computation of Biogas Plant Parameters
Maintenance and Control of Critical Parameters Material Balance Analysis Anaerobic
Digestion Process Optimization with Multiple Substrates Detailed Economic Analysis with
Single and Multiple Substrates Feed Evaluation of Biomass Gasification Technology
Comparative Analysis between Biomass Gasification and Anaerobic Digestion
Quality Control, Economics and Market Potential of Outputs

Conditioning of Biogas Technology Options and Cost Implications Scrubbing Requirements for
Bio-CNG and Bio-electricity Generation Infrastructure Requirements for Storage,
Transportation and Marketing of Bio-CNG Cost Analysis with respect to CNG from Natural Gas
CHP Technology Economics for Bio-electricity Generation Emission and Other Benefits
Associated with CHP Technology Infrastructure Requirements for Transmission and
Distribution of Bio-electricity Methods to Improve Commercial Value of Digestate/Slurry
Market for Enriched Manure Separation and Storage of CO2 Market of CO2 Captive
Utilization of CO2 for Algae Farming Study of Algae to Biofuel Technology and Market
Developments Computation of Carbon Emissions Reduction Units Capitalisation of GHG
Reduction Potential of Different Outputs
Industry Best Practices, Case Studies and Business Models

International Best Practices for Different Components in Bioenergy Value Chain Case Studies of
Success in Challenging Environments Innovative Business Models Innovative Models of
Financing and Investor Participation Approaches for Rapid Upscaling while Ensuring
Sustainability Key Participants in Industry Value Chain Evolution and Significance of Key
Participants Models for Multisector Participation (including PPP and Social Sector Involvement)
4. Expected Outcomes

Proximate Outcomes

Structure an approach to tap the current opportunities in the bioenergy sector and foster
participation by investors and corporate entities

MarketPulse Knowledge Networks (P) Ltd.


Head Office: B-803, NRI Towers, Judges Bungalow, Bodakdev, Ahmedabad 380 054
Pune Office: A-3, Gourish Apartments, Right Bhusari Colony, Paud Road, Kothrud, Pune 411 038
Phone: 93502 30915, 93765 08020 Email: raghav@marketpulse.co.in, prasoon@marketpulse.co.in
Bridge the gap between the conceptual appeal of bioenergy and the practical requirements for
successful implementation of bioenergy initiatives

Ultimate Outcomes

Inspire interest, invite deeper analysis, catalyze problem-solving approach and promote
tangible action by all bioenergy stakeholders
Contribute to international discussion on the strategies and policies needed to ensure
economic, sustainable and equitable development of bioenergy

5. Methodology

The scope of study entails that data has to be collected from both primary and secondary sources.
The major emphasis would be on gathering first-hand information from all the key stakeholders of
bioenergy sector in India comprising of current users, existing and potential investors, domain
specialists, technology experts, policy-makers, supporting institutions etc. about their actual
experiences and perspectives regarding bioenergy. A rigorous study of international initiatives and
their underlying issues would supplement the primary information collected from key stakeholders
in India.

Information Sources

Existing commercial bioenergy units in India
Government bodies and other development organisations promoting renewable energy
Potential investors (driven by captive demand or investment interest)
Industry players handling/generating potential bioenergy feedstock/substrates
Technology providers for bioenergy in India
Individuals with a good understanding of bioenergy sector or representing other players in the
bioenergy value-chain having a potential interest
Resource persons having a first hand knowledge of the markets for electricity, CNG,
steam/heat, industrial carbon dioxide, organic manure
Online and offline content/publications

Primary Data Collection

The primary level data would be collected through:

MarketPulse Knowledge Networks (P) Ltd.


Head Office: B-803, NRI Towers, Judges Bungalow, Bodakdev, Ahmedabad 380 054
Pune Office: A-3, Gourish Apartments, Right Bhusari Colony, Paud Road, Kothrud, Pune 411 038
Phone: 93502 30915, 93765 08020 Email: raghav@marketpulse.co.in, prasoon@marketpulse.co.in
Study of bioenergy sector, bioenergy conversion technology, bioenergy output marketing, best
practices, case studies and business models through semi-structured discussions with

fifteen (15) key resource persons having first-hand exposure of handling or setting up
commercial bioenergy units in India
fifteen (15) key resource persons from government agencies and other development
organisations promoting renewable energy in India
fifteen (15) key resource persons representing technology providers for bioenergy in
India
fifteen (15) frontline organisations having potential interest in bioenergy sector for
captive demand, investment and/or business expansion
ten (10) key resource persons from industry players handling/producing potential
bioenergy feedstock/substrates, such as sugar mills, rice/food processing plants,
municipalities, paper mills, distilleries etc
ten (10) experts/individuals with either a good understanding of the bioenergy sector
or representing other value-chain players with potential interest

Study of the markets of various commercial outputs that can be generated with available
bioenergy technologies including electricity, bioCNG, heat, carbon dioxide, manure etc
Semi-structured discussions with twenty (20) resource persons from various key
industries having a first hand knowledge of the markets for electricity, CNG,
steam/heat, industrial carbon dioxide, organic manure

Secondary Data Collection

The secondary level data would be collected from:
Journals, reports, technical papers and magazines pertaining to bioenergy and associated
sectors
Study of the policies, scheme & subsidies of Govt. of India on renewable energy, captive power
generation and carbon emission reduction
Online and offline news items and features on bioenergy and associated sectors

6. Time Schedule and Human Resource Requirements

The scope of the study would be completed within 120 days from the date of commissioning. Gantt
chart for the key activities to be completed as part of the overall study is given below:

MarketPulse Knowledge Networks (P) Ltd.


Head Office: B-803, NRI Towers, Judges Bungalow, Bodakdev, Ahmedabad 380 054
Pune Office: A-3, Gourish Apartments, Right Bhusari Colony, Paud Road, Kothrud, Pune 411 038
Phone: 93502 30915, 93765 08020 Email: raghav@marketpulse.co.in, prasoon@marketpulse.co.in

Activity
20
Days
20
Days
20
Days
20
Days
20
Days
20
Days
Desk Research

Design & Pretesting of Research Tools

Field Research

Compilation and Analysis of Findings

Draft and Final Document Preparation


The human resource requirement (in mandays) as is necessary for completing the study within the
proposed period of 120 days is detailed in the following table:


MANDAYS REQUIREMENT
Activity
Principal
Consultant
Associate(s)
Desk Research 5 10
Design & Pretesting of Research Tools 5 10
Field Research 40 75
Compilation and Analysis of Findings 10 15
Draft and Final Document Preparation 20 30
Total Mandays Requirement 80 120

7. BUDGET

Professional Fees

The professional fees for the services to be delivered under this assignment have been provided in
the following table. The professional fee of the Principal Consultant(s) [unit rate @INR 3500],
which is equivalent to a total amount of INR 280,000 has been done away with as a contribution of
MarketPulse towards the proposed study. The output document resulting from this study would be
a joint intellectual property of MarketPulse and NABARD.


Units (Mandays) Unit Rate (in INR) Total ( INR)
Fee of Principal Consultant(s) 60 0 0
Fee of Project Associate 120 1000 1,20,000

MarketPulse Knowledge Networks (P) Ltd.


Head Office: B-803, NRI Towers, Judges Bungalow, Bodakdev, Ahmedabad 380 054
Pune Office: A-3, Gourish Apartments, Right Bhusari Colony, Paud Road, Kothrud, Pune 411 038
Phone: 93502 30915, 93765 08020 Email: raghav@marketpulse.co.in, prasoon@marketpulse.co.in
Total Professional Fee 1,20,000
Service tax at the applicable rates will be charged in addition to the professional fee at the time of
raising the invoices for professional fee.

Field Research Expenses

Incidental or out-of-pocket expenses incurred for the project would have to be defrayed by
NABARD in addition to the professional fees. The incidental expenses for associated activities will
be charged on actual basis, with the respective ceilings being AC 3-Tier Railway Fare for intercity
travel; Rs 1200 per day for local conveyance; Rs 1200 per day for lodging (for Class B cities) or Rs
2500 per day (for Class A cities); and Rs 200 per person per day for boarding.

For local conveyance upto Rs 300 per day or boarding expense upto Rs 200 per person per day, it
would not be essential for MarketPulse to submit original bills/vouchers for reimbursement.

A rough estimate of the budget for field research expenses is indicated in the following table:

Activity Rate per Unit No. of Units Total
Lodging Expenses (Class A Cities) 2500 20 50,000
Lodging Expenses (Class B Cities) 1200 50 60,000
Boarding Expenses 200 150 30,000
Local Conveyance 500 80 40,000
Intercity Travel 2000 30 60,000
Total Field Research Expenses Budget 2,40,000

Schedule of Payment (Professional Fee)

30% of the professional fee (INR 36,000) to be paid at the time of signing the agreement
40% of the professional fee (INR 48,000) to be paid at the time of completion of field visits (interim
presentation on key findings from field visits)
30% of the professional fee (INR 36,000) has to paid after preparation of final research document




MarketPulse Knowledge Networks (P) Ltd.


Head Office: B-803, NRI Towers, Judges Bungalow, Bodakdev, Ahmedabad 380 054
Pune Office: A-3, Gourish Apartments, Right Bhusari Colony, Paud Road, Kothrud, Pune 411 038
Phone: 93502 30915, 93765 08020 Email: raghav@marketpulse.co.in, prasoon@marketpulse.co.in
Schedule of Payment (Incidental Expenses)

10% of the field research expenses budget (INR 24,000) at the time of commencement of the study.
Thereafter invoices for reimbursements amounting to more than Rs 20,000 have to be settled
within fifteen days from the date of their submission to NABARD.

8. Key Deliverables

A research document containing a lucid yet rigorous examination of the key macro-level
and micro-level issues that impact the feasibility and socio-economic attractiveness of
bioenergy in India
A report containing the study of the markets of various commercial outputs that can be
generated with available bioenergy technologies including electricity, bioCNG, heat, carbon
dioxide, manure etc
A compilation of best practices, innovative business models, success stories, case-studies,
and designs of multi-stakeholder partnerships from across the globe

9. Confidentiality and IPRs

Confidentiality Agreement: MarketPulse and NABARD each agree that it shall hold the
Confidential Information of the other party in strict confidence. Each party further agrees that it
will not make any disclosure of the Confidential Information (including methods or concepts
utilized in the Confidential Information) to anyone without the express written consent of the
other, except to employees or agents to whom disclosure is necessary to the performance of this
agreement. Each party shall take all reasonable steps to ensure the confidentiality of all
Confidential Information.

IPRs: MarketPulse and NABARD will jointly retain ownership of the copyright and all other
intellectual property rights (IPR) of the Deliverables. MarketPulse nevertheless would have the
right to utilize the final research study document and can also distribute the materials generated
out of this study to relevant beneficiaries. However, MarketPulse would have to seek agreement
from NABARD before disclosing the materials generated out of this study to potential
beneficiaries.