issue 2 – dec 2009 undp-gef b n r e i w ibiomasspower.gov.in/document/magazines/bioenergy m… ·...

Field Review ofGrid ConnectedBiomass PowerPlants

UNDP MNREInitiative:Access toClean Energy

4 Page 28 Page 32

ISSUE 2 – DEC 2009

A QUARTERLY MAGAZINE ON BIOMASS ENERGY, PUBLISHED UNDER THE UNDP-GEF BIOMASS POWER PROJECT OF

MINISTRY OF NEW AND RENEWABLE ENERGY (MNRE), GOVERNMENT OF INDIA. PUBLISHED BY WINROCK INTERNATIONAL INDIA (WII)

Ministry of New and Renewable EnergyGovernment of India

Briquetting ofPine Needles – AViableEntrepreneurshipModel

Magazine on Biomass Energy December 2009 iii

MESSAGE FROM THE EDITOR

(K.P. Sukumaran)

Adviser&

National Project Director

Iam delighted to place before you the second issue of the “BioenergyIndia” magazine. I hope you would have enjoyed reading its inauguralissue. It would be my endeavour to bring before you as much value

added information as possible on topical issues of primary interest to thestakeholders 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 thefield 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 plantsin three southern states of our country. Likewise, an initiative on extracting power through pineneedle 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 ofbiomass and bagasse based cogeneration power in all possible forms. This issue features a Requestfor Proposal under the demonstration project namely,” Establishment of fuel supply linkages inexisting biomass/bagasse cogeneration power plants”. The immdiedate purpose is to overcome theexisting barriers as well as to make optimum use of the new technology advances in small capacitysystems.

It will also be our constant endeavour to include the international scenario of this emerging sectorand this issue presents a brief glimpse into the European policy initiatives specific to biomass energyprojects. Summary conclusions of our current understanding of the biomass energy area as presentedthrough 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 thiskey sector for a wider benefit of the Renewable Energy community. Such an interaction will addfurther value to this publication and will help in ensuring that each issue is interesting, informativeand relevant for our readers.

Paddy growing areas in the eastern parts of the country namely Bihar, Orissa, West Bengal and eastern parts of Uttar Pradeshare amongst the most backward areas which also have the lowest per capita electricity consumption. This brings out immensepossibility for producing electricity from rice husk, i.e residues produced in rice mills in a decentralized mode in these Statesto 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 demonstratedthat 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, paybackperiod of the investment for such rice mills could be even between 9–12 months. There are more than 15,000 rice mills inBihar, Orrisa, West Bengal and Eastern U.P. Gasifier manufacturing facilities also exist in these States. Samta SmraddhiFoundation, an NGO, which was an initiative by Mr. Gynaesh Pandey, an US based NRI, had taken up a few projects of rice huskbased 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 huskbased gasifier system of 32 kW capacity. A fixed amount is charged from each household depending upon the numbers of CFLused 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 Organizationnamely M/s Ernst and Young Ltd. in order to assess the potential, identify barriers and also suggest improvements in theimplementation strategy for promoting gasifiers. The Ministry, thereafter, initiated an intensified programme for promotion ofbiomass gasifiers in the rice mills as a part of its “Biomass Gasifier Programme”, which has been modified to achieve animproved and faster implementation of biomass gasifiers both for industries as well as for village based projects. In order tofacilitate preparation of projects proposals and to have interface with financing institutions, the Ministry has retained theservices of M/s. Beltron Telecommunications Limited, Patna. State Bank of India and Punjab National Bank have come forwardto finance such projects.

A series of interactive meetings were organized in the States of Bihar, Orissa and UP during the last three monthsinvolving biomass gasifier manufacturers, rice mill owners, financing institutions, non-governmental organizations, etc. inorder to generate viable proposals in rice mills, villages, cold storages. These interactions have generated considerableinterest amongst all stakeholders. Efforts are also being made to link powering mobile powers, irrigation pump sets, horticulturemission activities, etc. along with Gasifier Projects. One village level project has been initiated in February, 2010 in VillageMahada, District Buxar, Bihar to provide electricity for lighting and also to energise pump sets for irrigation.

Electricity generation from rice husk – initiativesby MNRE in Eastern states

Gasifier system installed atWest Champaran District of Bihar

INDIA

ISSUE 2 – DEC 2009 contents06 Biomass based Power Generation at

Tail-end of the Grid – A new initiative byMNRE

10 Biomass Gasification – Current Status& Prospects

CHIEF PATRONDeepak Gupta, Secretary, MNRE

PATRONGauri Singh, Joint Secretary, MNRE

EDITORIAL BOARDSudhir Mohan, Adviser, MNREPreeti Soni, Head (E&E Unit), UNDPK.S. Popli, Director (Technical), IREDAJ.R. Meshram, Director, MNRE

EDITORK.P. Sukumaran, Adviser & NPD, MNRE

ASSOCIATE EDITORV.K. Jain, Director & NPC, MNRE

WINROCK EDITORIAL TEAMSobhanbabu P.R.K., Program ManagerUrvashi Dogra, Sr. Program OfficerSuneel Deambi, ConsultantJaison Jose, Sr. Program Associate

EDITORIAL OFFICEProject Management CellMinistry of New and Renewable EnergyBlock No. 14, CGO Complex,Lodi Road, New Delhi 110 003Telefax : 011-24369788Website : www.mnre.gov.inEmail : [email protected]

PRODUCED BYWinrock International India (WII)S-212, 2nd Floor, Panchsheel ParkNew Delhi – 110 017Tel: 91-11-26013869; Fax: 91-11-26013876Website : www.winrockindia.orgEmail : [email protected]

PRINTED ATPrinter : Premier Fime P P Ltd, New Delhi

Publisher : Ministry of New and RenewableEnergy, New Delhi

DISCLAIMERThe views expressed by authors including those of theEditor in this magazine are not necessarily the views ofMNRE or WII.

14 Field Review of Grid Connected BiomassBased Power Plants in South India

21 Biomass Briquetting: An Overview

28 Briquetting of Pine Needles – A ViableEntrepreneurship Model

30 IREDA Financing of Biomass PowerProjects

32 UNDP MNRE Initiative: Access to CleanEnergy

34 Major Events

35 Policy Incentives for IPPs and Investorsfor Wind & Biomass Power Generation

37 News Snippets on Biomass Power

39 European Policy on Biomass Energy

40 Book Information

Magazine on Biomass Energy December 2009 v

Magazine on Biomass Energy December 2009 6

Biomass based Power Generation at Tail-endof the Grid – A new initiative by MNRE

BackgroundThe “National Action Plan on Climate Change (NAPCC)”released on 30th June 2008 inter-alia includes specificaction points for promoting deployment, resolving thebarriers to development and commercial deploymentof biomass amongst other renewable energytechnologies and promoting biomass combustion andbiomass gasification technologies. In the context ofenergy security and necessity to reduce greenhousegas emissions there is urgent need for acceleratedharnessing of all renewable energy sources especiallybiomass based energy, feeding power to the grid andoff-grid applications. Promotion of distributed /decentralized, along with grid interactive, biomassbased power generation would not only help inmeeting the energy needs in rural areas but also helpin reduction of transmission & distribution losses andensuring sustainable energy supply to the industries.

Policy SupportIndia faces formidable challenges in meeting its energyneeds of providing requisite quantities of energy ofdesired quality for sustained growth, at the rate of 8-9 per cent during the next 25 years. This would requirea four-fold increase in energy supply with a six-foldincrease in power generation installed capacity. TheGovernment of India has initiated several reformmeasures to create a favorable environment foraddition of new generating capacity in the country. Afurther boost to this sector has come with theimplementation of Electricity Act 2003, which laysemphasis on use of renewable sources of energy forpower generation. The Electricity Act 2003 and theNational Electricity Policy 2005 has put in place ahighly liberal framework for power generation. So far,14 biomass potential s tates have announcedpreferential tariff as well as renewable energypurchase obligations. CERC has recently issuedguidelines for tariff determination including biomass,which is a positive step towards development ofrenewable energy in the country.

Estimated Biomass PotentialBiomass, which is a Carbon neutral fuel source forproduction of electricity, holds considerable promise forIndia. Availability of biomass in India is estimated at about540 million tonnes per year, covering residues fromagriculture, agro industry, forestry and plantations.Principal agricultural residues include rice husk, ricestraw, bagasse, sugar cane tops and leaves, trash,groundnut shells, cotton stalks, mustard stalks, etc. Ithas been estimated that about 70-75% of these wastesare used as fodder, fuel for domestic cooking and forother economic purposes thus leaving behind 120 –150 million tonnes of usable agro industrial andagricultural residues per year, which could be madeavailable for power generation. By using these surplusagricultural residues, about 16,000 MW of grid qualitypower can be generated with the presently availabletechnologies. However, all the potential is notrealizable as the biomass is available in a dispersedmanner; its availability is seasonal and there arecompetitive uses. Apart from providing a muchneeded relief from power shortages, power projectsbased on biomass would generate employment in ourrural areas.

Present level of Biomass Utilization forPower GenerationKeeping in view this vast potential, a number oftechnologies for converting biomass into power havebeen successfully developed, demonstrated and aretechno-economically viable. Biomass combustion andbagasse cogeneration based power generation capacityof 2000 MW has been established in the country. About800 MW projects are under implementation. TheStates of Andhra Pradesh, Chhattisgarh, Karnataka,Maharashtra, Punjab, Rajasthan and Tamil Nadu havetaken lead role in this sector. In addition, about 100MWe equivalent biomass gasifier systems have beendeployed for thermal applications in industries andabout 10 MW biomass gasifier systems are being usedfor meeting electrici ty needs of rural areas.Considering the present status of biomass based powergeneration and / or thermal applications, it is expected

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that only about 30-35 million tonnes of surplus woodyor non-woody biomass is being used annually for theexisting and ongoing biomass projects. According tothe Biomass Resource Atlas prepared byIndian Institute of Science, Bangalore, more than 300districts in India have biomass potential between 10-100 MW.

Need for small capacity BiomassPower PlantsLarge biomass projects, of late, are facing problems intheir operation due to the shortage of biomass availablewithin a reasonable distance. This is because the biomassis finding a variety of competitive uses in the wake ofincreasing price of conventional fuel, mainly diesel,which is being substituted by biomass both in small andmedium scale boilers and for other such applications.Biomass thus becomes a tradable commodity and itsprice varies as per the market. In that event, large Biomassprojects become commercially unsustainable. While asustainable and organized biomass fuel linkage can makethe Biomass projects a successful venture, there is also aneed to utilize biomass for small capacity project in adecentralized mode, to provide electricity in the ruralareas at the tail end of the grid. In this context, theBiomass Gasifier technology, which is more efficient atthis scale, assumes greater importance.

There is a large gap in the demand and supply ofelectricity in the country especially in rural areas. Theproblem of providing power to rural areas would becritical even when infrastructure under RGGVY becomesready, due to shortage of power in the rural grid; oftenelectricity is either not available for extended hoursduring the day time or the grid voltage is very low,especially at the tail-end of the grid. This results in shiftingof several productive activities, including operation ofagriculture pumps to evenings, contributing to theevening time load peaking.

Biomass based power plants using the locally availablebiomass resources for off grid / distributed and gridconnected power generation of 250 kW to 2 MWcapacity have been recently introdued in the BiomassGasifier Program. Biomass power generating systems,both biomass gasifier and Boiler-Turbine-Generator (BTG)based, are now available commercially in the countryupto MW scale. Setting up of such projects preferably attail end of the grid, and having a decentralized

distribution component would not only stabilize the gridbut also reduce the T&D losses and ensure sustainablesupply of electricity near the biomass production andelectricity consumption points.

In the area of biomass gasification technology, significantdevelopment has been achieved in India and India isthe leader in this technology. Biomass gasifiers of a fewkilowatts upto several megawatts have been successfullydeveloped indigenously. Promotion of gasifiers forproviding decentralized energy and power for lighting,captive requirements of industries and productivepurposes, such as water pumping, mobile tower charging,etc., in rural areas is being contemplated by the Ministry,especially in those states where captive biomass isavailable and availability of electricity is a majorconstraint.

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The program envisages implementationof such projects with an activeinvolvement of Independent PowerProducers (IPPs), Energy ServiceCompanies (ESCOs), Co-operatives,Panchayats, SHGs, NGOs,manufacturers, entrepreneurs,promoters & developers etc.

Support for Biomass based capacityupto 2 MW Power ProjectsThe Ministry is promoting the following biomass basedsystems:

Biomass gasifier based MW level grid connectedpower plants with 100% producer gas engines.Biomass based grid connected Boiler-Turbine-Generator (BTG) projects, preferably at tail end of thegrid and having a decentralized distributioncomponent would also be supported.

The maximum installed capacity of each such projectwould be 2 MW.

The program envisages implementation of such projectswith involvement of Independent Power Producers(IPPs), Energy Service Companies (ESCOs), Co-operatives,Panchayats, SHGs, NGOs, manufacturers orentrepreneurs, promoters & developers, etc.


Items Pattern of CFA

Distributed / off grid power projects in rural areas and grid connected power Rs. 15,000 per kWprojects with 100% producer gas engines or biomass based combustion projects

Biomass gasifier systems retrofitted with dual fuel mode engines Rs. 2,500 per kW

Captive power projects (captive power less than 50%) and / or feeding surplus Rs. 10,000 per kWpower to grid in rice mills (with 100% producer gas engines or biomass basedcombustion projects).

Projects involving installation of 100% gas engines with an existing gasifier Rs. 10.00 lakh per 100 kW

Biomass gasifier projects for distributed / off-grid for rural areas and grid Rs. 1.50 lakh per 50 kWconnected power projects for ensuring regular availability of biomass,provision of collection, processing and storage and operation & maintenanceincluding compulsory AMC for 5 years after the guarantee period

Support towards lighting devices and distribution network Financial support limited to amaximum of 3 km i.e. Rs. 3.00 lakhper project (@ Rs. 1.00 lakh per km).

Support towards project formulation Financial incentives of Rs.5000/-per project to the banks / FIs,manufacturers, promoters,consultants & service providers fordeveloping firmed up and bankableproposals for a minimum of 10projects or above.

Service charges for Verification and Certification Rs. 10,000/- per 100 kW, subjectto maximum of Rs.1.00 lakh for aproject of 1 MW capacity. Aminimum service charge would beRs. 10,000/- per site

Preparation of Detailed Project Reports (DPRs) for centralized distributed /grid connected / captive power generation projects:- Projects between 100-500 kW capacities Rs. 0.50 lakh- Projects above 500 kW capacities. Rs. 1.00 lakh- DPR is not required for the projects below 100 kW capacities.

HRD & Training- O&M Technicians’ Course @Rs. 2.00 lakh per course- Gasifier Entrepreneur Development Course @Rs. 3.00 lakh per course- Awareness promotions such as organization of seminars, business meets, Maximum upto Rs.3.00 lakhworkshops, etc.

Support for gasifier manufacturers / suppliers for establishing service centers Rs. 5.00 lakh (One-time funding)in areas where cluster of systems, minimum 10, have been set up in onedistrict / region.

Special category states and islands 20% higher CFA

Pattern of Central Financial Assistance (CFA)Pattern of Central Financial Assistance (CFA) for various components is given below:

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Grid connected project proposals should containDetailed Project Reports (DPRs) covering salientfeatures as per a format. The project developer shouldenter into agreement with the utilities for sale of poweror 3rd party sale and furnish copies of the PPA, copiesof all clearance from statutory angle along with loanagreement or supporting documents for meeting balancefunds, etc. Only those grid interactive projects would besupported which have envisaged fuel linkagemechanisms to ensure regular supply of the requiredquantity of biomass feed stock and provision ofcollection, processing and storage of biomass. Theprojects based on BTG route should have a reasonableprovision in relation to the project locations fordecentralized distribution component and details shouldbe provided in the project proposal.

The Ministry provides Central Financial Assistance (CFA)@ Rs.15,000/- per kW for grid connected power projectswith 100% producer gas engines or biomass basedcombustion projects as given in the table. In addition,financial assistance upto Rs. 1.00 lakh would also beavailable for preparation of Detailed Project Report (DPR)of grid connected / captive power generation projects.CFA as applicable under the scheme will be disbursedpost-commissioning through one installment directly tothe promoters or lending institutions / FIs after receipt ofcommissioning and verification reports and requisitedocuments.

Besides financial incentives, fiscal incentives such asaccelerated depreciation, tax holidays for ten yearsand capital subsidy for biomass power projects are alsobeing provided. Biomass power projects can also availthe benefit of concessional custom duty and excise dutyexemption for equipments and machinery. Loan isavailable through the Indian Renewable EnergyDevelopment Agency (IREDA).

Technology Demonstration on WasteHeat Utilization for Cooling / Chilling& Steam GenerationBiomass gasifiers and engines produce waste heat, whichis presently dissipated to the atmosphere. Waste heatbased cooling / chilling and steam generating systemsare available in the country. In order to use the wasteheat and to increase the commercial / economicalbenefits, it is proposed that the technology suitable forbiomass gasifiers be demonstrated.

For the purpose, the existing level of subsidy will beprovided for the gasifier with 100% producer gasengine components. In addition, financial assistanceupto 50% of the cost of plant and machineries, i.e.,Vapor Absorption Machine (VAM) for cooling /chilling system and steam generating system fromwaste heat would be provided. Financial assistancewould not be provided for land & building. It isplanned that 25 demonstration projects be taken upin rice mills, replacing steam engines / boilers withbiomass gasifiers coupled with 100% producer gasengines for power generation along with provisionfor meeting the entire thermal requirement throughwaste heat recovery.

Under some of these projects, demonstration of coldstorage or ice making units would also be taken up atfeasible locations using waste heat for chilling / coldstorage through VAM and steam generating systems.These projects would be taken up under TechnologyDemonstration Projects as per RD&D policy of theMinistry for Technology Demonstration, on 50:50 costsharing basis.

Details of the program and guidelines can be viewed at theMNRE website - http://www.mnes.nic.in/adm-approvals/biomassgasifier.pdf

K P Sukumaran, Adviser & D K Khare, Director

Ministry of New & Renewable EnergyEmail: [email protected]; [email protected]

Besides financial incentives, fiscalincentives such as accelerateddepreciation, tax holidays for ten years,capital subsidy for biomass powerproject are also being provided.Biomass power projects can also availbenefit of concessional custom duty andexcise duty exemption for equipmentsand machinery.

Biomass Gasification – Current Status &Prospects

IntroductionBio-resources have perennially met a very wide spectrumof human needs; be it food, fodder, feedstock, fibre orenergy (amongst others). Developments during the lastcouple of centuries (with the discovery of coal and thebeginning of the Industrial Revolution) have resulted inan increased use of synthetic materials and fossil fuels(followed by nuclear energy) as substitutes for bio-resources in some important areas of both thermal andelectrical applications. The shift away from bio-resourcesand their derivatives has been particularly dramatic inthe developed world and in their utilization as chemicalfeedstock, building materials, fibre and as an energysource. This substitution has further resulted in a widelyprevalent impression that continued heavy reliance onbio-resources implies lack of modernization andeconomic development of a nation, society or people atlarge. Such an impression has been particularly strongin the case of use of bio-resources for energy purposesand, to a large extent justifiable, as technologydevelopment for efficient and convenient utilization ofbio-resources has assumed very low priority, because ofvarious new energy sources that are seen to be very cheapand convenient for use.

the risk of its clandestine use in the proliferation ofweapons of mass destruction, air and water pollution,environmental degradation, need for empowerment ofrural people and for an increased self-reliance, and last(but not the least), fear of climatological changes,particularly global warming.

Biomass GasificationOf the various technologies for effective utilization ofbiomass, gasification has long been seen as a technologywith tremendous potential and promise, particularly forsmall and medium scale power generation. Of course,the technology is equally suitable for a wide range ofthermal applications. As biomass resources are dispersedwidely (with generally low bulk densities), the ability ofgasification technology to be deployed over a wide rangeof output ratings makes it ideal for distribution,production of energy/generation of electricity, therebyopening massive avenues both for employmentgeneration and economic development in rural areas.While substantial technology development efforts havebeen made all over the world during the last threedecades (many with extensive international andmultilateral funding), substantial progress has only beenmade in a few countries, with India unquestionably beingthe leader in the field. Biomass gasification has not onlyreached a reasonable level of commercialization in India,but a small niche industry is slowly developing here witha number of gasifier systems being exported from Indiato various countries.

Technology StatusThe two most popular gasifier types i.e. ‘Updraft’ (orcounter-current) and ‘Downdraft’ (or co-current), haveboth been developed in the country, even though majorefforts of the technology developers and manufacturersalike have been focused on the downdraft design.However, each design has its own set of strengths andweaknesses. ‘Updraft’ gasifiers have significant multi-fuelcapability, simpler design and hence lower investments,but suffer from relatively large quantities of tar in the gasstream. This design is seen to be more suitable for direct,closely coupled thermal applications since power


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Biomass gasification has not onlyreached a reasonable level ofcommercialization in India, but a smallniche industry is slowly developing herewith a number of gasifier systems beingexported from India to variouscountries.

Developments over the last decade or so would seem tosignal that the wheel is almost coming a full circle, i.e.to a point where an increasing use of bio-resources(particularly for energy) is being seen as imperative andin the larger interest of mankind. The driving forcesbehind such a move cover a wide range of humanconcerns including the exhaustibility of fossil fuels,radiation and other hazards of nuclear energy, including

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generation through internal combustion (IC) engineswould require elaborate gas cleaning systems. However,at least one manufacturer in the country has been offeringthe updraft gasifier systems for power generation.Downdraft gasifiers, on the other hand, generally producecleaner gas (though still requiring further gas cleaningfor power generation application using I.C. engines, etc.),but have a lower fuel flexibility as compared to theupdraft designs. Within the downdraft concept, systemshave been developed in both the open core mode andalso in a closed top mode (i.e. without and with throat).

The country today boasts of having more than 10 activemanufacturers of Biomass Gasifiers, duly registered withthe Ministry of New and Renewable Energy (MNRE). Awide variety of gasifier systems are being commerciallyoffered using different feedstocks and covering aspectrum of applications and output ratings. Over 200such systems are likely to be added this year with exportslikely to cover over twenty five countries. The status interms of feedstock capability, applications and outputratings, etc., is briefly covered below:

Feedstock CapabilityStarting with wood as a feedstock, the work over the lastdecade has resulted in a wide range of feedstockbecoming acceptable in different gasifier designs.Different designs of woody biomass gasifiers could eitheraccept uniform wood chips or a wide range of sizes ineither chipped form or in cut, round pieces. Some of thesedesigns can also accept briquettes of various agriculturaland agro-industrial residues. Other residues and wastesused as gasifier feedstocks include bamboo, maize cobs,coconut shells, weeds like lantana camara, threshedmustard stalks, cotton stalks, maize stalks, groundnutshells and sun-flower husks, etc. There are other designsthat largely work with the agricultural and agro-industrialresidues including rice husk and other similar finebiomass materials. However, most of these gasifierdesigns do not accept the woody biomass as a feedstock.

In the recent past, such designs have been developedthat allow a quick change-over from wood-likematerials as feedstock to fines like rice husk, etc., andvice versa. This is being seen as a step forward in thedirection of development of a “Universal” gasifier,operating in a downdraft mode that could work on avariety of feedstock materials. Of course, asmentioned earlier, the updraft designs are already

available that have greatermulti-fuel capability.

Output RatingsDepending on the feedstock type, the gasifier systemsare now available with output ratings as low as 3 kWeand 10 kWth, while the largest unit ratings go upto about2 MW (electrical) and over 6 MW. Related biomassprocessing rates go well above two tonnes per hourthrough single large gasifiers (with applications requiringeven larger overall outputs, currently being met with themultiple gasifier units).

Thermal ApplicationsOnce biomass is converted to producer gas, a wide rangeof thermal applications can be handled. This is becauseof the excellent combustion characteristics of the gas,coupled with total control and convenience that goeswith the use of gaseous fuels. While applicationsrequiring temperatures of upto 1100oC have beenhandled with the producer gas alone, other applicationswith a higher temperature requirement have been metthrough the dual-fuel operation, mainly from gasifiers.An amazing array of thermal applications are now beingmet through biomass gasifiers, as can be seen from thepartial list given below:

CO2 Production Ceramic Tile MakingSteel Annealing Aluminium MeltingSteel Rolling SericultureGluten Drying Industrial DryingSpray Drying Cardamom DryingRubber Drying Pulse DryingPrecipitate silica drying Institutional CookingBoilers Hot Air GeneratorsCrematoria Thermic Fluid Heaters

Though some of these applications have been one of akind, many others have been replicated on a relativelylarge scale including those in sericulture, cardamomdrying, ceramic tile baking, crumb rubber drying, CO2

production, etc.

Biomass gasifier designs


Power Generation in Dual-Fuel ModeThe entire cycle of biomass gasifier technologydevelopment in the country was started initially to savediesel in the commonly used diesel pumpsets and gensetsthrough dual-fuel mode operation. While hundreds ofthese systems were set up as demonstration projectsmainly for irrigation pumping, the application neverreally caught on as a regular, commercial option.However, greater success was achieved in dual-fuelmode operation through a number of rural electrificationprojects/decentralized generation projects (taken up byIISc, Desi Power, TERI and Ankur Scientific, etc.) andalso for the captive power requirements in the industry.Over the last couple of years, sharp spurt in oil / HSDprices have made the cost of generation too high evenin dual fuel mode, so that rural electrification / distributedgeneration through this route is no more viable. However,a large number of gasifier systems have also been installedin industrial units that still use diesel / furnace oilgenerating sets (in situations where power supply is totallyunreliable, etc.) in the power range of a few tens ofkilowatts to a few hundred of kilowatts. A large numberof these installations are taking place in the Central andEastern parts of the country.

Power Generation in 100% Gas ModeWith power generation in a dual fuel mode becomingincreasingly unviable on account of very high HSD prices(even if, it is only 25% of the total energy provider),emphasis has shifted to the biomass based powergeneration systems based on 100% gas utilization.

Various gasifier models and designs have been connectedto the commercially available natural gas gensets, dulymodified to operate on producer gas. The available rangeof output ratings and the list of suppliers have grownsubstantially during the last few years, with output ratingsas small as 4 kWe (separately covered in the next section)to projects generating upto a few megawatts of usefulpower. This program is receiving substantial financialsupport from the MNRE in terms of Central FinancialAllocations (CFA). Installations in the recent past havecovered rural electrification, captive power (with a varietyof users) as well as grid feeding.

Small Rating Systems for Remote ApplicationsTechnology Development in this area during the last fewyears has indeed been extremely significant. A wide rangeof output ratings (from 4 kWe to 100 kWe) are nowcommercially available with the following attractivefeatures:

Totally stand-alone systems, with a built-in start-upAutomation of gasifier and engine genset startups(without manual blowers / cranking)Excellent variable load responseAttractive specific fuel consumption (around 1.0 – 1.5kg /kWh)Built-in systems for biomass preparation (includingexhaust based drying)Low initial investmentsSimple to operate and maintain

If compared to the Solar Photovoltaic (PV) power packs,the initial investments are about one tenth per kW ofinstalled capacity (and as low as one eigth per kWh ofgeneration capacity – due to low PLF of the solar systems).These developments have indeed opened up thepossibility of biomass power packs being seen as one of

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FBG-250 at M/sJasoriya RiceMill, Burdwan

Inauguration of 250 kWe Power Plant at AIMS, Karnataka

1 MWe PowerPlant,Coimbatore


the most cost-effective and serious options for meetingthe small scale, stand-alone power needs in remote areas,islands, difficult terrains and forest villages, etc. Over ahundred installations have been made during the lastcouple of years. A number of systems have also beenexported to countries like Colombia, Vietnam, Sri Lanka,Cambodia, Madagascar, Italy and USA, etc. However,market dissemination of these systems has been sporadicinspite of tremendous potential – mostly on account ofsomewhat ineffective policy initiatives.

9 kW System at Odenthurai

Special DevelopmentsWhile various technology developers and manufacturershave come up with a number of exciting initiatives anddevelopments, just a few are being mentioned here:

Development of kilowatt level operating, table-topdemonstration models (demonstrated at variousmeetings and conferences)Mobile power packs of a few kilowatt ratingsCombined heat and power systems (e.g. on a tea estatein Uganda), and,A trailer-mounted 200 kWe gasifier system used forthe testing of Micro-Turbines in the US

Export Market PotentialTechnology leadership of the country in small andmedium size gasifiers clearly comes through in terms ofexports being made to a largenumber of countries. Many ofthese exports have been one ofa kind, i.e. mainly fortechnology demonstrationpurposes. However, some havebeen part of an overall businessendeavour to develop theoverseas markets. Multipleinstallations have already takenplace in some countriesindicating a slow acceptance ofthe technology from India.

Export orders have also come to the Indian companiesthrough a competitive international funding mechanism,including orders from various UN agencies. Significantbusiness relationships are also starting to develop (forinternational business development) between entitiesfrom different countries and Indian organizations activein the field of biomass gasification. A partial list ofcountries having purchased biomass gasifier systems fromIndia is given here:

USAChile, Brazil, Guatemala, ColombiaSwitzerland, Italy, Germany, Sweden, RussiaAustralia, New ZealandSri Lanka, Myanmar, Cambodia, Vietnam, Malaysia,IndonesiaRussia, Ukraine, Latvia, PolandMozambique, Uganda, Madagascar

Gasifier for a Co-Gen System,Uganda

4 kW Mobile Demonstration System

Trailer Mounted System in the US Contd on page 31...

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Field Review of Grid Connected BiomassBased Power Plants in South India

IntroductionBiomass has been and is still one of the major energysources within an agrarian developing country like India.Various biomass energy resources comprise fuel woodfrom the forest and wasteland, agro-residues, non-edibleoil seeds and other degradable biomass. It is estimatedthat over 500 million tonnes of agro-residues areproduced annually in India. After deducting the amountused as fodder and domestic cooking fuel besides otherlocal uses, about 120 to 150 million tonnes of the surplusbiomass supply is available annually. It transforms intoan estimated biomass power production potential ofthe order of 17,000 to 22,000 MW. Out of this, almost25% can come from the agro-processing basedindustries, like rice mills, sugar mills and oil mills,where huge quantities of biomass are produced as aby-product during various processes. The remainingpower potent ial needs to be exploi ted f romdis t r ibuted farm level and dis t r ibuted agro-processing activities throughout the country. Inaddition, some power can be produced from thefast growing energy plantations on over 70 millionhectares of wastelands spread over different states.

Presently, MNRE is implementing the UNDP/GEF assistedproject on “Removal of Barriers to Biomass PowerGeneration in India”. The defined objective of the currentproject is to accelerate adoption of environmentallysustainable biomass power technologies by removingthe barriers identified, thereby laying the foundation forlarge scale commercialization of biomass powerthrough an increased access to financing. DeloitteTouche Tohmatsu India Private Limited (DTTIPL) wasawarded a study dealing with the biomass powerplants installed in the southern states of AndhraPradesh and Tamil Nadu.

A significant objective of this study was to carry out anextensive review, analysis, synthesis of information/datacollected, which would be validated through the fieldvisits. This exercise was supplemented with meetings withkey stakeholders for identifying major barriers and puttingforth suggestions to overcome them.

Progress of Biomass Power PlantInstallationsSince the mid-nineties, MNRE is implementing a programrelated to biomass based combustion and cogenerationpower plants. So far, about 203 plants aggregating about1,677 MW installed capacity have been commissionedin the different states of the country till November 2008,for feeding power into the national grid. Leading statesin the installation of bagasse based cogeneration are UttarPradesh, Karnataka, Tamil Nadu, Andhra Pradesh andMaharashtra respectively. While in the area of biomasspower, the leading states are Andhra Pradesh,Chhattisgarh, Tamil Nadu and Karnataka. There are about171 plants based on the use of both biomass and bagassecogeneration at various stages of implementation withan aggregated capacity of 1,950 MW. (Table 1)

Growth Pattern of Installations in Southern IndiaAs mentioned earlier, the three states covered under thisstudy (namely Andhra Pradesh, Karnataka, and TamilNadu) are amongst the top four leading states in the fieldof biomass power plant implementation in India. In thetargeted region of south India, there are in all 63 biomasspower plants. These have a cumulative installed capacityof 434.45 MW and have been commissioned so far inthe following three states covered under the present study(Figure 1 on the next page).Andhra Pradesh 219.75 MW (40 units)Karnataka 81.00 MW (11 units)Tamil Nadu 133.70 MW (12 units)

Andhra Pradesh took an early lead and presently hasalmost 33% of the total installed biomass power plantcapacity in the country with installed capacity of 219.75MW from the 40 plants. A majority (by more than 75%)of plants got commissioned during the period 2000 to2004. The three districts of Krishna, Prakasam and Gunturhave 16 plants installed with a cumulative installedcapacity of 89.5 MW (more than 40% of state).

In Karnataka, a majority of the plants (almost 75%) wereinstalled during 2004 to 2005. Out of the total 11 plants,with a cumulative installed capacity of 81 MW, six plants

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State Biomass power (as on 30-06-2008) Bagasse cogeneration (as on 30-06-2008)No of units Installed capacity (MW) No of units Installed capacity (MW)

Andhra Pradesh 40 219.75 18 124.05Chhattisgarh 18 146.30 - -Gujarat 1 0.50 - -Haryana 1 4.00 1 2.00Karnataka 11 81.00 16 180.78Madhya Pradesh 1 1.00 - -Maharashtra 2 11.50 20 102.50Punjab 2 16.00 2 12.00Rajasthan 3 23.30 - -Tamil Nadu 12 133.70 17 179.00Uttar Pradesh - - 26 352.50Total 91 637.05 100 952.83

Table 1: Installations of biomass power and cogeneration plants in India

2.751

20.5

58

4744.5

30

46 64.5

7.5

3228.5

8

12

4.5

18

48.5

26.5

14.2

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10

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70

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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AP Installed (MW) KK Installed (MW) TN Installed (MW)

AP Cumulative Capacity (MW) KK Cumulative Capacity (MW) TN Cumulative Capacity (MW)

are located in the rice bowl area of Tungabhadra, in acluster in Koppal, Bellary and Raichur districts withcumulative capacity of 40.5 MW.

In Tamil Nadu the real impetus came recently in 2006,with the commissioning of three new plants with acumulative capacity of 48.5 MW. A majority of theseplants are located in the southern districts of Sivaganga,Ramanathpuram, Pudukkottai, Thoothukudi, Tirunelveliand Madurai with more than 80% share in the totalinstalled capacity. There is also a lone biomass gasifierbased grid connected power plant of 1.25 MW capacityin Coimbatore district.

Types of Fuel UsedThe main source of biomass being used in most of thepower plants in Karnataka and Andhra Pradesh is ricehusk, which is supported by other wide ranging varietyof locally available seasonal biomass sources. However,in Tamil Nadu, Prosopis juliflora is the most widely usedbiomass resource for the power plants supported by otherwide ranging varieties of locally available seasonalbiomass sources (Table 2 presented on next page).

During field visits to the selected sites it was observedthat in Karnataka, coal (especially dolachar, which is aby-product of sponge iron cluster in Raichur region andis available at a low cost of Rs 1200 to 1500 per tonne)is being used in some plants upto the permitted quota.In Andhra Pradesh plants use minimal quantities of coal(maximum upto allowed quota) from the Singareni coalfields to cover any shortage of biomass availability or tosubstitute relatively high priced biomass (higher than coal).In Tamil Nadu, a majority of the plants were found mainlyusing biomass with negligible amounts of coal usage.

Fuel SupplyIn India, though biomass is and likely to remain a majorsource of primary energy in the near future, it is yet tobecome a commercial commodity. It is still collectedand used in the domestic sector and then sold in anunorganized market within the small and medium (SME)enterprises. Similarly, in most of the biomass based powerplants, biomass supply is still an unorganized affair.Though, over time, linkages between the biomass

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Figure 1: Growth of installed capacities of biomasscogeneration plants in three states


suppliers and plant promoters has been establishedinformally, there is still no long-term supply contract oragreement between them. Normally, biomass is procuredthrough the local biomass traders/suppliers, who in turnprocure the biomass from the units producing biomassresidue (i.e. as a by-product of the agro-processing units),farmers or individuals. In many cases, the farmer orindividual biomass collector-supplier fetches the biomassto the power plant and delivers it on a cash basis.

Normally, tractor/trucks are used for the transportationof this fuel. Loose biomass is normally procured fromthe surrounding region within a radius of 50-80 kms.This results in a higher transportation cost per tonne.High density woody biomass is procured from a 50-150km radius and sometimes even as far as 200-300 kms.

Fuel StorageGenerally fuel is stored at the plant site partly in an openyard and partly in closed sheds so as to ensure availabilityof stock for the plant operation even during the monsoonor rainy season. On an average, plants stock fuel to thetune of 300-500 tonnes, which is equivalent to roughly30-50 days of regular operation.

Fuel ProcessingResidues such as rice husk, sawdust and coffee husk areavailable and procured in a ready-to-use form. Otherresidues such as mustard stalk, cotton stalk and groundnutshell, etc. need to be pulverized before use especially influidized boilers. It has been observed that plants haveadopted their own combination of residues owing to avariety of technical and economic reasons. Sometimes,a shift from one type of residue to the other alsohappens, because of economic considerations. By andlarge, many plants seem to rely only on the selective“mill residues” such as rice husk, coffee waste,sawdust and groundnut shell, etc. These are normallyavailable in bulk quantities at reasonable prices incomparison to field obtained residues as the logisticsof harvesting the field residues on a large scale hasnot been established so far. Woody biomass is alsoprocured to supplement the agro-residue as and whenrequired and often has to be procured from relativelylonger distances.

Fuel CostingBiomass (agro-residue) prices are relatively dynamic innature as compared to prices of fossil fuel and woody

State Coal usage Main biomass Other biomass types used

Andhra Pradesh Generally below allowable limit Paddy husk Stalks (Maize, cotton,from Singareni coal field Paddy straw Sunflower, Jowar, Red Gram,

Bengal Gram)Cobs (Maize, Jowar)Groundnut shellCoconut shellWood waste

Karnataka Generally upto allowable limit. Paddy husk Coconut shell, huskRecently cheap dolachar is being Coffee wastes Stalks (Gram, Jowar, Tur, Bajra, Ragi)used Maize cobs-stalks Sugarcane tops and leaves

Cotton Stalks Paddy strawCoconut frond Jowar husk-stalks-cobs

Groundnut shellWood waste

Tamil Nadu Negligible coal Prosopis juliflora Coconut frondsTapioca stalks Paddy straw, husk

Stalks (Cotton, Ragi, Maize, Jowar,Bengal Gram, Red Gram, Sunflower)Groundnut shellCobs (Maize, Bajra, Jowar cobsWood waste, Saw dust)

Table 2: Summary of fuel usage

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biomass, which are relatively sluggish. The main factorsthat affect the price of agro-residue include croppingpattern and variation in production due to the effect ofseveral factors. The price also depends on theopportunity cost, as biomass is normally available ina limited span of time during the year in accordancewith the flow of harvest or agro-processing activity.Another factor that contributes to the landed price ofagro-residues at the plant is the transportation costdue to low bulk densities.

As mentioned earlier, rice husk is a major crop residuein the states of Andhra Pradesh and Karnataka, whilewoody biomass (prosopis juliflora, casurina, tapioca)is mainly used in Tamil Nadu along with a widevariety of agro-residues available locally, dependingon the cropping pattern of the region. The costbreakup of the landed price of selected majorbiomass (rice husk, fuelwood, other agro-residuessuch as, stalks/cobs/shells, etc.) resource types aresummarized in Table 3.

Issues and ChallengesBased on the information and feedback gathered fromsecondary sources, insight gained through field visits tothe selected power plants and discussions with the keystakeholders, an effort was made to identify the variousissues and challenges being faced by biomass powerplants as well as the major barriers impeding an enhancedpromotion of biomass power plants in the states coveredunder the study. These are discussed briefly in thefollowing few sections.

Biomass Scarcity and Rising PricesA majority of biomass plants are confronted with anincreasing scarcity of biomass which has to be procuredfrom longer distances resulting in increasedtransportation cost. For instance, in the Gangavati beltof Karnataka, woody biomass is procured from as far asthe Chikmagalur area of south Karnataka. The othermajor issue is rapidly rising biomass prices in thecatchment area of the plant. At the initial stages ofplant installation, the agro-residue was considered aswaste and was thus available at throwaway prices withlanded price of about Rs 500-1,200 per tonne.However, in recent times (last 4-5 years) biomassprices have gone up very rapidly.

During the current year, rice husk price has gone ashigh as Rs 2,500 per tonne in the crowded biomasspower plant clusters like Gangavati belt (Raichur,Koppal, Bellary distr icts) in Karanataka andVijayawada (Krishna, Guntur, Prakasam districts)cluster as well as Kurnool-Mehboobnagar in AndhraPradesh. The main reasons for the steep rise in ricehusk price can be pointed down as

Very close location(s) of the biomass power plants;almost 6-7 plants in an area of one district (about 50kmradius).Several upcoming high biomass consuming industrieslike distilleries.Several other industries that require thermal energyinputs switching over from costly fossil fuels torelatively cheaper biomass fuels (to reduce fuel costby almost 50-60%).

Table 3: Detailed break up of biomass cost (all figures in Rs)

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Fuel type Collection price Loading-unloading Transportation Fuel processing Total

Andhra PradeshRice husk 1,500-2,000 100-200 150-250 —- 1,800-2,350Stalks/shells/cobs 600-1,200 150-250 200-300 100-200 1,200-1,800Fuelwood 900-1,350 100-150 200-250 100-150 1,600-1,900

KarnatakaRice husk 1,500-2,000 100-200 150-300 —- 1,800-2,500Stalks/shells/cobs 900-1,350 150-250 200-300 100-200 1,500-2,000Fuelwood 1,500-1,800 100-200 230-500 100-200 2,000-2,500

Tamil NaduRice husk 1,500-2,100 100-150 150-300 —- 1,800-2,500Stalks/shells/cobs 450-800 100-150 150-250 50-100 700-1,400Fuelwood 1,200-1,650 100-150 200-400 150-250 1,800-2,500


Economic ViabilityA majority of the biomass power plant operatorsexpressed serious concern over the reduced marginsrequired to ensure economic viability of the plants inthe recent years. The problem is due to the rising inputbiomass fuel prices and relatively lower feed-in-tariffoffered. In fact, rationalization of the feed-in-tariff forgrid connected renewable power, especially biomasspower plants, is critical for ensuring the desired economicviability. During the last year or so, many biomass powerplants in Tamil Nadu had closed down their non-viableoperations due to increase in fuel prices. In the Gangavatibelt in Karnataka, some biomass power plants havestarted using relatively cheaper fossil fuels, like dolachar(which is a by-product of the sponge iron units in theregion) upto the maximum possible limit as per theprevailing regulation, so as to maintain economicviability of the plant operation, which is affected by theincreasing rice husk prices.

Working CapitalBiomass power plants are relatively less capital intensive,but need a huge working capital owing to the manpowerintensive nature of the operations and substantial fuelcost requirement. Biomass prices fluctuate widely due

to their seasonal availability. Huge working capitalinvestment is required to procure and store largequantities of biomass during the season when biomassis relatively cheaper.

Plant OperationsFrom field visits as well as discussions, it was realizedthat biomass combustion based plant operations are nowquite streamlined and have emerged out of the initialteething troubles with regard to smooth plant operations.As mentioned earlier, plants are facing problems inmanaging the biomass supply due to the competingindustries in the neighbourhood and the major challengeis of managing the fuel cost with rising prices. The pricerise is due to the competing usages which offer higheropportunity cost to biomass, which was earlier availableas waste.

Grid stability has been mentioned as an issue by plantsthat are connected to 33kV grid because frequent trippingcauses problems in restarting and results in higher fuelcost (fuel wastage) as well as loss of revenue due toplant (unplanned) outage. However, plants connectedwith 132kV lines face negligible problems due to gridtripping.

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Overall view of a grid connected biomass combustion based power plant


Some plants in Karnataka and Andhra Pradesh alsomentioned problems about the scarcity of skilledmanpower. Manpower/worker/labour shortage duringthe harvesting season is quite a common problem.Recently, a few power plants have started bringing inmanpower from states as distant as Orissa and Bihar.

Recommendations and GuidelinesIn this section, an effort has been made to compile thelearnings and insight gained through field visits and togive a few suggestions/recommendations which couldprove helpful in formulating guidelines for enhancedpromotion of electricity-energy through an optimalexploitation of locally available biomass energy sources,in a sustainable manner.

Evolving Mechanism for Dynamic RealisticAssessment of Biomass AvailabilityPresently biomass assessment, merely based on theagriculture production data, crop-agro residue ratios (insome cases, stalk yield per hectare) for residue yield andprevailing consumption based on norms of per capitaconsumptions (based on available survey results) doestend to give a large biomass power potential. Field studyreveals that there is an increasing scarcity of biomassdue to the increased demand because of severalupcoming biomass consuming industries in the regionas well as shifting to biomass being an economicallyattractive proposition.

The MNRE sponsored biomass atlas prepared by theIndian Institute of Science (IISc), Bangalore is definitelya good initiative, which involved a massive operation of

collecting and analyzing the extensive field level data.There is a need to evolve a model or mechanism to ensurethat such data is streamlined to make the biomass atlasdynamic as well as realistic, with the help of GIS and IT.

Developing Organized Biomass Markets andRationalizing Input-Output PricingTraditionally, biomass remained non-commercial and anon-monetized commodity and is generally collectedfor consumption rather than purchased. In recent times,however, biomass is being sold for a price that isincreasing rapidly with the rising demand for it as a cheapsource of energy for a large number of process heatapplications. Thus biomass has now become a monetizedcommodity, but it is still traded individually in anunorganized manner. There is a need to systematicallydevelop a reliable market for biomass supply, whereinthe movement of biomass for a variety of applications,besides its price, can be monitored. Thus there is a needto demonstrate the viability of biomass market or mandisystem on a pilot basis, in different areas that havebiomass potential as well as potential as a utilizationmarket. This will help set a trend and benefit the growersto get maximum opportunity cost, the consumers to planthe operations and regulators to regulate the tariff.

Appropriate Technology Selection for MatchingAvailable Resource and NeedPresently, a majority of grid connected biomass powerplants are either Rankine cycle based biomasscombustion power plants or cogeneration plants. Forharnessing the large untapped biomass power potentialin the scattered or wide spread low agro-residue densityregions or isolated small agro-processing clusters, othertechnologies like biomass gasification can be moresuitable. Similarly, there can be a niche market forbiomethanation based power plants for captive/gridconnected power use, to tap the potential of highmoisture content (or even slurry) by-product of a typicalagro-processing sector, such as tapioca, coffee processingand rubber processing. In combustion based powerplants too, power output can be maximized by raisingboiler operating pressures from the present 60-62 bar tomore than 80-85 bar, thereby achieving higherefficiencies. Similarly, on the lines of the Tamil Nadupattern, it could be useful to switch from wet water cooledsurface condensers to dry air cooled condensers in allthe future biomass power plants, as they minimize thewater requirements.

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Heap of corn cobs being used as biomass fuel


Demonstration Projects on Establishment of FuelSupply Linkages in Existing Biomass/BagasseCogeneration Power PlantsThe Ministry of New and Renewable Energy,Government of India, is implementing a UNDP / GEFassisted Project on “Removal of Barriers to BiomassPower Generation in India.” The aim of the Project is toaccelerate the adoption of environmentally sustainablebiomass power technologies by removing the barriersidentified, thereby laying the foundation for the large scalecommercialization of biomass power through increasedaccess to financing. As part of this project, the Ministry iscontemplating establishing five projects based on differentmodels of biomass fuel supply linkages to demonstrateimprovement in sustainability and economic viability ofthe existing power plants that are facing problems in theimprovement of required quantity of biomass. The partial

financial assistance for such projects, with matchingcontribution from the promoter, will be limited toRs. 100 lakh for projects having installed capacity upto5.0 MW; Rs. 150 lakh for capacity above 5.0 MW andupto 7.5 MW and Rs. 200 lakh for projects with capacityabove 7.5 MW. Proposals are invited from promotersof existing Biomass Power Plants, Cooperative Societies/ Sugar Mills, NGOs and other Investors for theestablishment of the above-mentioned projects.Interested Project Promoters / Organizations can obtainguidelines for submission of proposal from the ProjectManagement Cell (PMC) established in the Ministry ofNew and Renewable Energy, B-14, CGO Complex, LodiRoad, New Delhi-110003, Telefax : 011-24369788,Email: [email protected], or download from the Ministry’sweb site: www.mnre.gov.in. Last date for submissionof the proposal has been extended to April 9, 2010.

Call for Proposals

The format and other details can be obtained from the Ministry or downloaded from MNRE’s website www.mnre.gov.in

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It is generally perceived that energy from non-conventional sources is infirm in nature and cannot bestrictly dispatched, and hence is not amenable for a twopart tariff; wind and mini-hydel projects being the bestexamples. However, biomass projects are capable ofgenerating firm power and hence two part tariff isdesirable to operate the plant at an efficient level. Also,with sharp variation in the price of input fuel cost, thetwo part tariff is convenient for accommodating the costof price escalation. Therefore, it is proposed that all statesshould determine the tariff for purchase of power frombiomass plants following a two part tariff mechanism.

ConclusionsBased on the learnings and insight gained through fieldvisits as well as discussions with relevant stakeholders itcan be concluded that there is still a large untappedpotential of biomass energy in the country. However, itis important to implement the program properly, to avoiddense clusters and explore the option of promoting newtechnologies (higher pressures and temperatures inboilers) as well as promoting other technologies such asbiomass gasifiers, sterling engines and biomethanation,to tap the distributed sub-megawatt biomass potential in

the country. It cannot be over emphasized that foreffective implementation of biomass based powergeneration programs, the following critical aspects needdue consideration.

Evolving a mechanism for dynamic and realisticassessment of biomass resource availability with longterm sustainability. This needs to be a continuousupdation process.Ensuring the evolution of organized biomass markets(mandi) for streamlining the biomass supply andrationalizing the input-output prices for the power plants.Appropriate energy conversion technology selectionfor matching sustainable and available biomassresources and local power needs.Determining feed-in-tariff on rational basis forproviding a level playing field to encourage theadoption of green renewable power.Evolving conducive dynamic policies for encouragingadoption of cleaner power generation throughexploitation of local renewable resources to achieveenergy security and a cleaner climate.

Sanjay Mande, Manager

Deloitte Touche Tohamatsu India Pvt LtdEmail: [email protected]


Biomass Briquetting: An Overview

IntroductionIndia has approximately 141 million hectares of arableland and agricultural output is around 800 milliontonnes, which in itself generates 750 million tonnesof waste. Even after deducting 450 million tonnes,which is used as fodder, 300 million tonnes could beused for biomass generation. Crop residues which arenot used as animal fodder, such as cane trash, paddy straw,coconut stalks, branches and mustard waste, are estimatedto total around 75 million tonnes per annum.

Agro-industrial residues such as bagasse, rice husk,groundnut husk, corn cobs, saw mill waste and de-oiledcake are estimated at around 150 million tonnes perannum. Horticultural waste would add another75 million tonnes of waste per annum. Forest waste couldbe yet another major source of biomass residue.

Briquetting of biomass thus carries tremendous scopeand potential in converting the agro residues into a moreusable form of fuel. Agro-residues in their compact form,i.e. briquettes obtained by different densificationtechnologies, can be used for better utilization andimproved efficiency. The combustion of these briquettesalso improves performance as compared to their presentutilization pattern.

At present more than 60% of the briquetting plants arelocated in the states of Gujarat, Punjab and Tamil Nadu;about 30% plants are located in Uttar Pradesh,Maharashtra and Karnataka and the rest in MadhyaPradesh and Andhra Pradesh. Winrock InternationalIndia undertook a thorough study on the performance ofa number of units located in five states of the country -Gujarat, Tamil Nadu, Karnataka, Punjab and UttarPradesh.

Realizing the wide ranging benefits associated withbiomass briquett ing, the Ministry of New &Renewable Energy (MNRE), Government of India hasbeen supporting the sector for a number of years. Thestudy aims at examining the challenges or barriersfaced by the industry and develope appropriatestrategies aimed at accelerated promotion ofbriquetting in the country.

Biomass Briquetting in IndiaThe raw material for the briquetting industry comes fromtwo sources (i) from agricultural fields after harvesting(e.g. sunflower stalks/husk, coriander waste) and (ii) agrobased industries after processing the crop (e.g. rice huskand groundnut shell). Hence the farmers and the millowners are two important stakeholders in the supplychain. The agents / middlemen who undertake thecollection, loading and transportation of this loosebiomass and sell to the briquette manufacturers, are theother important stakeholders.

Briquetting activity is intense in the states of Gujarat,Karnataka, Tamil Nadu, and Punjab. Table 1 shows theapproximate number of briquette manufacturing unitsin the states visited.

Gujarat is the leading state in briquette production. Thereare more than 150 briquette manufacturers in the stateand all of them use binder-less piston press machines.

Table 1: Distribution of briquetting units in thecountry

State No. of units

Gujarat 150Tamil Nadu 50Karnataka 45Punjab 40Uttar Pradesh 5Maharashtra 85

Briquetting machines in Gujarat

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Apart from the predominant use of groundnut husk, everyconceivable agro-waste is being used as feed stock inSaurashtra region of Gujarat.

A majority of units in Gujarat are located in the Saurashtraregion. The units have more than 5 to 6 machines ofcapacities in the range of 750 kg/hr to 1000 kg/hr andare equipped with grinders. Briquettes of size 65 mmand 90 mm are manufactured here.

The reasons for Gujarat’s predominant position inbriquette manufacturing and usage are as follows:

Abundant raw material availability round the year –especially groundnut huskUninterrupted and adequate power supply.Major machinery manufacturers are located in Gujaratand spares’ availability is good.Availability of trained manpower.Dry weather conditions – even the wetraw materials like bagasse (50%moisture) dry quickly without havingto use driersWidespread market demand inindustrial clusters such as Morbi(ceramics), Surat (textiles), and Vapiand Ankaleshwar (chemicals andpharma).

There are nearly 50 briquettemanufacturing units in Tamil Nadu.Many units came into existence afterseeing the success of units in Gujarat.There are many industrial segmentswhich have started using biomassbriquettes as fuel in their regularprocesses. This is mentioned in Table 2.

Table 2: Identified industrial clusters using briquettes as fuel

Type of Industrial clusters Location Application

Tea factories Nilgiris, Annamalai hills of Tamil Nadu Drying of tea leafTextile / garment factories Bangalore ( Karnataka), Ludhiana (Punjab), Steam generation for

Tirupur (TN) ironing of clothesChemicals and Pharmaceuticals Ahmedabad, Vapi, Ankaleshwar Steam for the reactorsTyre retreading industries Ludhiana, Jalandhar, Bangalore, Mysore Steam generationCeramic cluster Morbi Baking of tilesPaper mills Ahmedabad Process steamRubber industries Jalandhar Process steam

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categorized into four types as mentioned below:Piston PressScrew PressHydraulic Piston PressPelletization

In India, as mentioned earlier, a great majority of briquettemanufacturers are using piston press technology tomanufacture briquettes of 65 mm diameter and 90 mmdiameter. They use a wide variety of bio-residues as rawmaterial, in different ratios, in order to optimize thequality of the briquette and its cost. The raw materialsbeing used in a particular area depend on the croppingpattern and the seasonal variations in the availability ofeach raw material in that area. The pictures below and

Biomass briquettes


A briquetting unit

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above shows piston press machine and briquettesmanufactured in a typical unit in Gujarat.

For assessing the quantity of crop residues available forbriquetting, it is imperative to understand (a) the areaunder agricultural crops, (b) cropping patterns and (c)current utilization of crop residues.

The residue-to-produce ratio (RPR), which decides thequantity of agro-residue generated, varies from crop tocrop. The straw to grain ratio of the cereals varies from2.5 for maize to 1.6 for wheat. Straw, a low-densityresidue, is the dominant residue. Rice husk, a by-productof rice milling, accounts for 20% of paddy. Unlike thecereals, crops such as red gram, cotton, rapeseed,mustard, mulberry and plantation crops produce woody(ligneous) residues. The RPR is 2.3 for groundnut husk,4.0 for coffee, it is 4.0 for cotton, and 2.0 for mustard.

It is noted that every conceivable type of agro-residue isbeing used for briquetting especially in Gujarat wherethe activity is high when compared to other parts of India.The types of raw materials being used differ from regionto region. The selection of raw material depends on thefollowing factors:

Cost of raw materialAvailabilityMoisture content

The most preferred and abundantly available rawmaterial in Gujarat is groundnut husk, which has low

ash and moisture content thus making iteasily briquettable. Unlike other cropresidues, groundnut husk is available roundthe year. However its availability is lessduring monsoon. Most of the other residueslike coriander, castor and jeera are availablefrom January to April. Sawdust is mainlyavailable in the Kutch region of Gujarat andKerala where many saw mills are located.Raw materials such as groundnut husk,sawdust, coffee husk, and mustard stalks arethe best suited materials for briquetting andare used in major proportion in briquettesacross the country. The availability ofgroundnut husk is more in Gujarat, AndhraPradesh, Tamil Nadu and Karnataka. Coffeehusk is mainly available in the Coorg regionof Karnataka. Mustard stalks are available in

Gujarat and Rajasthan. The moisture content of the rawmaterials must be in the range of 6 to 8% to minimize thewear and tear of the machine and get good compaction.

Escalating raw material prices is a major cause forconcern. Briquettes are priced between Rs. 4000 toRs. 4800 per tonne.

Potential MarketsThe potential market for the briquetting sector is majorlyin the tea industry. There are nearly 250 tea factories inTamil Nadu. Presently 30-35% of them have shifted tobriquettes and are satisfied with the combustioncharacteristics. Around 1.25 to 1.40 kg of briquettes areneeded to make 1 kg tea which saves Rs 1 per kg of teain cost of production. Each factory consumes 40 to 50tonnes per month. This clearly indicates that demand ismore than the supply. There is no supply of briquettes inmonsoon months because the raw material is wet andcannot be briquetted. The current market demand isroughly 250 to 300 tonnes per day in the tea clusteralone. The demand for briquettes is also high in the textilecluster. There are around 300 units in Ludhiana, 800units in Tirupur and 500 units in Bangalore in which 50kg/hr to 200 kg/hr boilers are being used for steamgeneration. At present, over 25% of the units haveswitched over to briquettes. Each unit consumes600 kg/hr of briquettes which results in savings to thetune of Rs. 6,000 per day. There is a potential marketsize of around 120 to 150 tonnes per day which isyet to be explored to the fullest.


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Energy from biomass briquettes

Problems Encountered by theSector

Supply Side IssuesRapidly increasing raw material prices(prices of some raw materials like coffeehusk have gone upto Rs. 3,800 per tonne(from Rs 2,800 in 2007) is an issue resultingin increasing costs. Due to non-availabilityof raw material during the monsoon season,briquette units are forced to close downoperations for 3 to 4 months. One of thedifficulties being faced is the hazard of fire,which is common as raw material isstocked in open yards.

Technology IssuesThere are many technological issues whichthis sector is facing. The machines which areused for this purpose have high wear and tear cost andparts need to be replaced frequently. Taper die and Splitdie are to be replaced in 100 to 400 hours while Ram& Piston have to be replaced in 200 to 600 hours. Thecost of a spare set is as high as Rs.14,000. Lack ofunderstanding on briquette charging/feeding is also anissue. Also, if the raw material is not properly ground,there is a probability of jamming of the die. It is highlyenergy-intensive and the required total connected loadis around 85 to 90 HP.

Market Related Issues

Wild fluctuations in raw material pricesIt is necessary that briquette units maintain surplus spaceto store enough quantities of raw material to make themrelatively immune to wild price fluctuations.

High costs of raw material collection andtransportationBriquetting is very suitable for those who have easy andcheap access to raw materials. Agro-processingindustries belong to that category as they generatetheir own captive raw materials and have an addedadvantage of saving substantially on the transportationcost of raw materials.

Competition from fossil fuelsBriquettes will be favoured by the industry only if theirlanded cost is below Rs. 4,000 per tonne.

Seasonal availability of briquettesNon-availability of briquettes in monsoon season isdiscouraging many interested user industries.

Financial Issues

Absence of soft line of creditLoans with low interest rates are needed to make theindustry more viable in the present situation.

Reluctance of commercial banks to lend and lack ofworking capital supportBriquette units have high working capital requirement.Their working capital requirement is as high as the capitalcost in most cases. But banks are reluctant to sanctionworking capital loans to briquette units as their stocksare not worth pledging. In essence, banks need someother security in order to finance working capital loansfor these units.

Delays in disbursement of subsidyMany units in Gujarat have not availed subsidy as theydo not have time and manpower to follow up with theauthorities. The subsidy disbursement process needs tobe quick and streamlined.

Institutional Issues

Lack of village level institutionsLack of village level institutions for collection, storage


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and transportation of agri-residue and biomass waste isincreasing the foothold of supply agents, who are notonly taking away large chunks of profits in the sector butalso inducing high price fluctuations.

Less involvement of state nodal agenciesThe briquetting industry deserves active support fromstate nodal agencies, which is not happening presently,barring a few cases.

Infrastructural ProblemsBriquette units are located in rural areas where powersupply is unreliable. Units are able to operate onlyaround 8 to 10 hrs /day except in Gujarat where powershortage is minimal as compared to other states. Dueto all these uncertainties, banks are not inclined toprovide lending support to these units.

Strategies to Overcome Barriers

Strategies to Overcome Technological Barriers

Initiating focused research and developmentprogramsHigh electrical energy consumption and high wear rateof machine parts increases cost of production. There is aneed to develop a research & development (R&D)strategy to increase the production capacity, to reducethe wear and tear, to increase the available time ofmachine and reduce the high power consumption. ThisR&D strategy has to focus on the operation, maintenanceand monitoring issues like periodic maintenancerequirements of machines, wear pattern/characteristicsof critical components, lubricating oil, etc. Monitoringof moisture content of raw material and its impact onthe operation of the machine has also to be takencare of. Also required is a comprehensive technicalaudit of different types of machines for completetechnical mapping, to identify the problem areas.

Technological support and training to end-useIndustries/sectorThere is a need to perform comprehensive energy auditsof combustion equipment using briquettes instead ofother solid fuels. MNRE has to facilitate energy auditsthrough State Nodal Agencies (SNAs) to develop suitableretrofits to optimize the efficiency of the combustionsystem for briquette use. The ministry can also organizetrainings for various end-use sectors, along with SNA

through the cascade approach. This would providetechnical support to SNA for developing master trainersfor various types of end use industry/ sector/ cluster. Also,support is required to organize trainings at the local level.

Training may be phased out later when sufficientawareness has been created in the end-use industry/sector on handling briquettes in boilers and other heatingappliances

Quality assuranceBriquette quality varies due to the raw material used,binder technology employed, pre heating etc., affectingits moisture content, combustion ability and calorificvalue. Adulteration of the briquette with non combustiblesubstances to increase the weight also damages theboilers and other heating appliances. Hence, there is aneed for standardization/certification of quality of thebriquettes. For the same purpose, MNRE maycommission a study to develop the standardizationprotocol. The testing labs could be accredited by SNAsdepending upon the credibility and lab facilitiesavailable.

Overcoming power shortagesReliable and uninterrupted power supply is essential forlarge-scale commercialization of the briquetting sector.MNRE should look into promoting the concept ofdeveloping existing briquetting plants along with gasifierbased power plants to take care of the power supply forthe briquetting units. A briquetting plant employing evena single machine of capacity 500 kg/hr can sustain apower plant of about 400 kW at full load. A part of thepower requirement can be met through this mode ofgeneration with the balance coming from the grid.

Strategies to Overcome Financial Barriers

Restarting the IREDA line of creditIREDA was the only financial institution financingbriquetting units in the country two decades back, with28 briquetting units financed by it. But none of the unitsoperated satisfactorily. Similarly, Uttarakhand RenewableEnergy Development Agency (UREDA) also ran a schemefrom 2003 to 2007, wherein 90% of the cost of themachinery was subsidized for briquette units in the state.22 units, each with120 kg/hr or 250 kg/hr capacity andusing saw dust, pine needles and lantana as raw materialswere benefited from the scheme. The scheme was


discontinued from 2007 as the units became unviabledue to high cost of production (increasing raw materialprices) and low volume of operations, with the end userindustries refusing to buy briquettes at the price ofRs.6,500 per tonne. Now, India has gained goodoperating experience in the piston press technology, withmore than 250 plants installed with a success rate of75%. The self-financed briquetting plants implementedsince mid ’90s are doing good business, especially inthe western and southern regions. Thus, IREDA mayconsider re-starting their financing scheme. If IREDA isable to take care of the term loan requirements,commercial banks may come forward to provide workingcapital support to the entrepreneurs.

Risk guarantee fund for briquetting sectorIREDA may consider a Risk Guarantee Instrument toevince the support of banks in this sector to provide animpetus to commercial lending for briquettingenterprises/projects through part coverage of businessand financial risks. Lack of knowledge with regard tothe technology, the commercial chains, networks,marketing and the risks associated with such enterprisesdiscourages financial institutions from financing suchprojects. IREDA will have to ensure simplicity, toinstitutionalize and embed the financing mechanism,both at the level of the entrepreneur and financinginstitution. The proposed fund intends to increase thecomfort level of the lenders so that banks develop lendingoperations in these areas and also set in place theinstitutional apparatus and technical assistance servicesto articulate the policy goals of the enterprises.

Strategies to Overcome Market Barriers

Adequate storage of biomass for continuous supplyErratic supply of raw material, wide price fluctuationsand non availability of biomass during monsoon seasonaffects the briquette manufacturers and the end-use sectordue to lack of assured supply of briquettes around theyear. The intermediaries (supply agents), rather thanbriquette manufacturers, have large stock yards to storethe raw material in bulk quantities, increasing the marginsof supply agents. MNRE may consider supporting/promoting models similar to warehousing/ storage ofagricultural products on a public private communitypartnership basis, to ensure assured supply. The storagefacilities could be maintained by community groups ortheir federations and finances could come from private

investors who may share a part of the total profit earned.The private investors could also be briquettemanufacturers, who find investment in this ventureprofitable, helping them have an assured supply ofbiomass at reasonable cost and maximizing the profitsand viability. The stock maintained in these warehousesshould be of sufficient quantity to deal with three monthsof production capacity.

Promotion of briquetting in agro processing unitsBriquetting technology is well suited for agro-processingindustries, which generate their own captive rawmaterials. It substantially saves on the transportation costof raw materials. It is equally beneficial to those whohave a large captive consumption of briquettes and arepresently using agro-residues with low utilizationefficiencies and/or expensive coal. MNRE mayundertake mapping and identification of such agroprocessing units and take up special awarenessgeneration and capacity building programs forpromoting briquetting in them.

Creation of extension support serviceA properly functioning extension support system forbriquette manufacturers is crucial for wide-scaleutilization of this technology. MNRE may considerdeveloping extension support services for variousstakeholders of this sector, with enhancement of theawareness of banks, industry associations and enterpriseson aspects related to biomass energy and institutionalstrengthening as its key elements. Institutionalstrengthening, through training, provision of equipmentand training materials, demonstrations and study toursmay also help. The extension institute(s) and/or industryassociations may conduct training courses for relevantgroups in the country.

Creation of extension support serviceMNRE may seek support of universities and nationalresearch institutes for provision of extension support

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MNRE may consider supporting/promoting models similar towarehousing/ storage of agriculturalproducts on a public private communitypartnership basis, to ensure assuredsupply


services, which includes preparation and provision ofinformation on new and improved briquettingtechnologies and equipment. Training of trainers(extension workers, industry associations, researchinstitutes and NGOs) in new and improved biomassenergy technologies is also an important step. Monitoringof new and improved biomass energy technologies andpreparation of investment plans for new or improvedbiomass energy technologies also help in the purpose.

The major stakeholders who would be influenced bythe same are current and potential briquette usingindustries, biomass waste generating industries, researchinstitutes (research and provision of information), industryassociations, private consultancy companies for biomassenergy technologies (existing or potential), equipmentmanufacturers, briquette manufacturers and banks.

Strategies to Overcome Institutional Barriers

Development and strengthening of village levelinstitutionsRaw materials used in briquette units is sourced throughintermediaries/agents, who own a fleet of vehicles forcollection and transportation of raw materials within 100to 150 km radius and have huge stock-yards for storage.Supply agents procure the highly scattered agro-residuesfrom fields after harvesting season, for free or by payinga very nominal price to the farmers. Farmers lackbargaining capacity as the quantity of raw materialgenerated individually in small land holdings is not highenough to demand a good price. Supply agents also havetie-ups with agro-processing mill owners to procure the

agro-industrial residues like groundnut shell, rice husketc., for agents, in bulk quantities during off-season andat low prices. They then stock and sell to briquette unitsfor a higher price when the availability is scarce.

There is a need to develop community based institutionsto create the critical mass required to eliminate the roleof supply agents, so as to create a sustainable livelihoodsoption for the village community and maintain an assuredsupply of raw material at a reasonable price. Thecommunity based institutions could be federated into acluster level institution to develop infrastructure forstorage & transportation. MNRE could facilitate ties withschemes of other Ministries like the Ministry of RuralDevelopment, that support the formation of village levelinstitutions like self help groups, user groups andlivelihood groups involved in livelihood and incomegenerating activities. These schemes provide funds forcapacity building and capital subsidies for establishingmicro enterprises. MNRE needs to undertake capacitybuilding for agencies and NGOs involved inidentification and strengthening of these groups at thevillage level.

Ensure a greater role of SNAs in promoting this sectorSNAs need to play an important role in engaging withstakeholders at various levels for training, capacitybuilding, forging alliances, extension support servicesand providing technical support.

Ritu Bharadwaj, Senior Program Officer

Winrock International IndiaEmail: [email protected]

Request for ArticlesBioenergy India is intended to meet the updated information requirements of a diverse cross-section of stakeholdersfrom various end-use considerations, be it biomass combustion, gasification or cogeneration. To meet such anobjective in a timely manner, the editorial team of the magazine invites articles, features, case studies and newsitems, etc., from academicians, researchers & industry professionals.

The contributions should be of about 2,000-2,500 words (approximately 5-6 pages, which would include relevantgraphs, charts, figures and tables). The two lead articles would be given an honorarium of Rs 1,500 each. Pleasesend in your inputs along with your photograph to:

Smriti Mishra ([email protected])Winrock International India; 788, Udyog Vihar, Phase V, Gurgaon-122 001; Phone: 0124 430 3868

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Briquetting of Pine Needles – A ViableEntrepreneurship ModelBackgroundMost of the rural population in the developing countriescontinue to rely heavily on biomass to meet their limitedenergy needs. However, the biomass utilization in therural sector, such as for cooking, depends on thetraditional wood burning stoves. These are veryinefficient and polluting and often result in resourcewastage besides causing indoor air pollution. Accordingto the World Health Organisation (WHO), this “killer(i.e. wood stove) in the kitchen” is regarded as beingone of the top-10 global health risks. The solution lies intaking a close look at the large quantities of biomassresidues available in the rural agriculture societies. Theseresidues mainly include rice husk, rice straw, wheat straw,corncob, coconut shell, bagasse, and many otheragricultural residues as well. Despite the abundance ofthese residues, they are difficult to use due to their verylow bulk density in addition to high moisture and ashcontents. As a result, fuel wood often accounts for a majorfraction of the total biomass use. Fuel wood is generallypreferred due to its higher energy density, ease ofconvenience and transportation. Excessive use of fuelwood, however, is exerting undue pressure on theregion’s forest cover. It is compounded by the lack ofsuitable cost-effective technologies for utilizing biomassresidues, which has resulted in gross under utilizationand neglect of biomass residues as being a potentialrenewable energy (RE) source.

Potential ApplicationsThe loose unused biomass can be pelletized to a bulkdensity of more than 650 kg/m3 that can be easilytransported and used for small and big thermalapplications. These briquettes have a calorific value ofaround 3,500 Kcal/Kg (as compared to 5,000 Kcal/kg ofcoal). 2.5 kg of such pellets can replace 1 kg of liquifiedpetroleum gas (LPG) and 1.2 kg of biomass can replace1 kg of coal. There are approximately 33 millionhouseholds and institutional kitchens, which make useof LPG for cooking purpose in India. Agro-waste, forestresidue and highly inflammable pine needles that causeforest fires can be used to make biomass briquettes. Thesebriquettes can then be supplied along with a smokelessbiomass chulha to the institutional kitchens, such as

cafeterias and restaurants in order to replace LPG. Thelow cost, i.e. less than half the equivalent amount ofLPG, will act as a main motivator for the end-users toswitch to this clean energy alternative. Moreover, thereplaced LPG will generate carbon credits. The processof briquetting biomass is a mature technology and iscurrently operational in different parts of India. Thesmokeless biomass chulhas for large scale cooking usesgasification technology and can be adapted. Theiroperational performance can be optimized so as toincrease their efficiency for meeting the local energyrequirements. Additionally, the densified biomass canbe used to replace coal in the locally set up small scaleindustries, such as the brick kilns and boilers.

The Entrepreneurship ModelA business unit has been set up in Kotdwara in the hillystate of Uttarakhand. Within it, biomass briquettes usingforest residues or agro-waste, (which include a wide-range of residues such as dry leaves, grass, unwarrantedweeds, forest residue, cow dung, sawdust from localsawmills) are being utilized apart from the highlyinflammable pine needles that cause forest fires. Thesebriquettes are then supplied to the brick kilnmanufacturers, boiler operators for steam generation andfood processing industries that normally use coal forheating purposes. The low cost and guaranteedavailability of the densified biomass happens to be themain motivation for clients to switch to the clean energyalternative. In addition, smokeless midsize scale stovesbased on gasification technology have also beendeveloped that burn the briquettes and can replace theLPG stoves. These stoves are currently used ininstitutional kitchens such as restaurants, banquet halls,mid-day meal school program, company cafeterias and

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The loose unused biomass can bepelletized to a bulk density of more than650 kg/m3 that can be easilytransported and used for small and bigthermal applications.


temples. The revenues accrue from thesale of briquettes and cooking stoves aswell as from the carbon credits that aregenerated by the replacement of fossilfuels. Several self-help groups workingwith the local micro-entrepreneurs at thevillage level are engaged to collect andstore biomass. According to a recentreport of the Uttarakhand ForestDepartment, more than 1 million tonnesof pine needles are available. The projecthas the necessary approval from the localauthorities to access the forest wasterequired to expand the project activity.This project is not only able to addressthe energy problem with the use of pineneedles, but also generates employmentopportunities for the local youth.

The Expansion PlanThe next logical step is to start 10 similar independentbusiness units that will replicate the above project andthus produce 20,000-30,000 certified emissionreductions (CERs) per unit. This is also expected togenerate employment opportunities for more than 5,000people in the rural areas and an additional 300 peoplein the semi-urban areas. Also, a total of 100,000 tonnesof fossil fuel will be replaced, thus possibly resulting inreduction of 200,000 tonnes of CO2 emissions. Netrevenues from the sale of carbon credits alone at currentrates will be around $3 million. However, an initialinvestment of around $200,000 per unit is required forsetting up the factory and collection centers anddeveloping the market for clean energy. The rate of returnafter 2-3 years of operation for the investors will bearound 20%.

Environmental Gains PossibleAlthough biomass offers itself as a sustainable andcarbon-neutral source of energy, yet its inefficient useresults in wastage, indoor air pollution besides relatedrespiratory and other health problems. Excessive use offuelwood is also exerting pressure on the region’s forestcover. No doubt, large quantities of the surplus biomassresidues are available in India, but the difficultiesexperienced in using and transporting them have severelyrestricted their enhanced usage. Further, the non-availability of suitable cost effective technologies forutilizing the biomass residues for clean energy purposes

has resulted in a gross underutilization and neglect ofbiomass residues as a potential energy source. Excessivereliability on wood also exerts an undesirable pressureon the region’s forest cover. The use of gasificationtechnology combined with densification results in anefficient and clean burning of the available biomass andthus offers significant potential for utilizing the unusedbiomass for several applications such as commercialcooking, industrial boilers, and even small scale powergeneration units. The project aims to reduce CO2

emission from burning fossil fuels which is mainlyresponsible for the climate change.

ConclusionOur continued reliance on fossil fuels will also bereduced, which is now one of the top most nationalpriorities. Currently India imports around 80-90% of itscrude oil requirements annually and lately coal is alsobeing imported, especially to run the ultra mega powerprojects. Furthermore, around 50% of homes, mostly inthe rural areas, are still not connected to the grid.Therefore, projects like these will empower the ruralpopulation to fulfill their thermal and electricity needs.This will ultimately pave the way to develop sustainablebusinesses so as to generate some regular income forthe poor farmers.

Pine needle briquettes being used to cook food

Brijesh Rawat, Managing Director

Rural Renewable Urja Solutions Pvt. Ltd.Email: [email protected]

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IREDA Financing of Biomass Power ProjectsBackgroundThe Ministry of New and Renewable Energy (MNRE) is an apex organization responsible for renewable energy basedpolicy, planning and program implementation measures, etc., across the country. Its financial arm is known as theIndian Renewable Energy Development Agency (IREDA) Limited, which advances loan facilities to potential projectdevelopers, etc., at concessional rates in accordance with the type of scheme. Such a facility is also available for thebiomass power generation and bagasse based cogeneration related projects with varying terms and conditions.Mentioned below is the table that highlights financial incentives available for the purpose. The table is followed bydetails of the financing norms for these projects.

Fiscal incentives available for biomass power generation

Item Description

Income Tax 100% depreciation in the first year can be claimed for the following power generationDepreciation equipment:

1. Fluidized Bed Boilers2. Back Pressure, pass-out, controlled extraction, extraction and condensing turbine for power

generation with boilers3. High efficiency boilers4. Waste heat recovery equipment

Tax Holiday 10 year tax holidayCustoms duty Duty leviable for NRSE power projects of less than 50 MW capacity (under Project Import

Category) is 20 % ad valorem. This covers machinery and equipment components requiredfor generation of electric power.

Central Excise Duty Exempted for renewable energy devices, including raw materials, components and assembliesCentral Sales Tax –General Sales Tax Exemption is available in certain states

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Financing Norms and Interest Rates forBiomass/Cogeneration Based PowerProjectsSmall scale cogeneration (except sugar industry) projectsupto 7.5 MW installed capacity attract interest ratesranging between 11.5 to 12.15%.

The maximum possible period for loan repayment willbe 10 yearsPromoter of such projects is expected to contribute aminimum of 30% of the total project costIREDA will be making available a loan amount upto70% of the total project cost

Projects with more than 7.5 MW installed capacity (bothfor sugar and non-sugar industry) also attract equivalentinterest rates in the range of 11.50 to 12.15%. Minimumapplicable boiler pressure for capacities in excess of 7.5MW should be 63 Kg/cm2

The maximum possible period for loan repayment willbe 10 yearsThe promoter of such projects is expected tocontribute a minimum of 30% of the total project costIREDA will make available a loan amount upto 70%of the total project cost

Biomass power generation projects based on directcombustion mode and with a capacity range of 1-10MW are eligible for financing. The minimum applicableboiler pressure should be 63 Kg/cm2

The interest rate corresponding to four differentcategories (I-IV) will be in the range of 11.5 to 12.15%Maximum period for loan repayment will be 10 yearsand the project promoter is expected to pay 30% ofthe total project costIREDA will make available an amount upto 70% ofthe total project cost


Biomass fuel processing machines in case of IREDAfunded projects will attract an annual interest rate of12.75%

A loan amount upto 75% of the project cost will bemade available by IREDA, thereby requiring aminimum promoter contribution of 25%. Such a loanis to be paid back in a period of 7 yearsThe maximum moratorium period would be 2 years

Biomass gasification (concerning 100 kWth and above)projects will attract an annual interest rate of 12.75%with upto 75% of the total equipment cost being availablefor financing.

The maximum period during which the loan is to berepaid would be 5 years and would involve amaximum moratorium period of 2 yearsThe promoter of such a project is expected to make acontribution equivalent to 25% of the total projectcost

Other Points of Significance

Biomass Cogeneration and IndustrialCogenerationUse of high energy efficient equipment in sugar/papermills for supporting cogeneration projects is encouraged.

Minimum size of Sugar Plant should be 2500 TCD.

Biomass Power GenerationIREDA shall finance not more than one independentBiomass Power Project, excluding captive Biomass/Bagasse based cogeneration, in one districtProjects set up for captive consumption without gridinter-connectivity are encouragedProjects based on captive biomass/ energy plantationare encouragedUse of highly energy efficient equipment in BiomassPower Plants is encouragedBiomass direct combustion power projectsexceeding 7.5 MW capacity upto a maximum of10 MW, will be considered on case to case basissubject to careful examination, particularly withreference to:- biomass availability- presence of other Biomass power/ Biomass

cogeneration projects in that area- linkage for off-season fuel- water availability, etc.

Source: www.ireda.in

Future ProspectsWith an increasing commitment to deploy the renewableenergy resources throughout the world, future prospectsfor biomass gasification have become better than before.The major constraint of the past i.e. adequate technologydevelopment and availability of reliable hardware haslargely been overcomed. As biomass resources can bedeployed on demand and for almost all types ofapplications, an increasing use of biomass gasificationtechnology has become inevitable.

The fact that biomass is generally available all over andthe relatively low initial investments required shouldfurther help its increased market penetration.

In terms of applications, grid-fed power generation islikely to dominate in developed countries, wherever

attractive policies are in place (i.e. in many Europeancountries, particularly Germany, Italy, etc.). As againstthis, captive power requirements for the industry,thermal applications and distributed generation forremote/rural areas could open big opportunities indeveloping countries. Countries like India may alsosee more and more megawatt level power plantsfeeding into the grid, thereby strengthening the tailend voltage distribution. This may lead to improvedpower supply to rural areas through the grid, whilesimultaneously creating massive employmentopportunities and economic development.

B C Jain, Managing Director

Ankur Scientific Energy Technologies Pvt. Ltd., VadodaraEmail: [email protected]

(Contd from page 13)

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...Biomass Gasification


UNDP MNRE Initiative: Access to Clean Energy

The Government of India and UNDP have recentlyinitiated a program entitled ‘Supporting nationaldevelopment objectives with co-benefits ofmitigating climate change’. This initiative aims tosupport the Government of India’s efforts to fulfil nationalcommitments under the UN Framework Convention onClimate Change and the Kyoto Protocol. The projectproposes to support national efforts to reduce GHGs byfocusing on the following themes– (i) energy efficiencyimprovements in select energy intensive sectors (ii)enhanced access to clean energy, (iii) leveragingenvironmental finance and (iv) knowledge sharing. TheMinistry of New and Renewable Energy (MNRE) is theimplementing partner for the component of the projectdealing with `enhanced access to clean energy’

In order to sensitize key stakeholders and to solicitfeedback based on their past learnings, an inceptionworkshop was organized in ‘Casurina’ at India HabitatCenter, Lodi Road, New Delhi on 23rd December 2009.The workshop began with a welcome address by Shri KP Sukumaran, Adviser, MNRE. He informed theparticipants about the Ministry’s objective in organizingthe workshop. He encouraged the participants to sharetheir learnings and experiences from the past renewableenergy projects and to provide feedback on the existingpolicies and programs for up scaling clean energytechnology interventions so that a realistic strategy andaction plan could be evolved.

The inaugural session ended with a vote of thanks byShri V K Jain, Director, MNRE. On behalf of MNRE andUNDP, he thanked Shri Deepak Gupta, Secretary, MNRE,Ms Gauri Singh, Joint Secretary, MNRE, Dr Preeti Soni,Assistant Country Director, UNDP and Shri K PSukumaran for their support and encouragement towardsthis project. He thanked the speakers and participantsfor joining the workshop at such a short notice. In theend, he also thanked Winrock International India (WII)for their help in organizing the workshop.

The First technical session was on ‘Clean energy access:issues, challenges and way forward – voices from thestate’. The session was co-chaired by Shri K P Sukumaranand Shri V K Jain.

The Chairpersons briefed the participants about howenergy plays a crucial role in underpinning efforts toachieve overall development and in improving thequality of lives of poor people. However, energy accessis a growing concern, wherein several million peoplestill depend on traditional biomass to meet their cookingenergy needs and they also lack access to electricity intheir homes. Mainstreaming renewable energy to extendenergy services to the rural poor seems extremely relevantnot only in terms of stimulating regional developmentand in improving the quality of life, but also in enhancinglivelihood opportunities for the vast majority of the ruralpopulation which is deprived of clean energy services.Inspite of the overall enthusiasm and activity, not mucheffort has been made to address the issue of access toclean energy.

Given this above background, chairperson apprised theparticipants that the primary objective of the technicalsession, which was aimed at getting feedback from thegrassroot level NGOs on their learnings and experiencesfrom past projects in mainstreaming renewable energy.The purpose of the session was also to review the existingpolicies and programs of the government for up scalingclean energy technology interventions so that the gapscould be addressed and appropriate energy solutions forpoverty alleviation in low-income households could bedeveloped. The Chairpersons of the session encouragedrepresentatives of the NGOs from different states andinstitutions to share their experiences on clean energyinitiatives and contribute their expertise towards

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Shri Deepak Gupta, Secretary, MNRE addressing the audience


developing a strategy for enhancing access to cleanenergy. The representative from CARD, an NGO workingin the sector, emphasized the need for linking RE withlivelihood programs of rural development. DevelopmentAlternatives, an organization, which has worked on REZ(rural entrepreneurship zone) model- centralized powerstation for local enterprises, brought forward points suchas ‘acceptance of the community for renewable energytechnology is less’ and ‘lack of awareness is a majorchallenge for commercialization’.

The second technical session was on ‘Business modelsfor clean energy access’. The session was co-chaired byShri K P Sukumaran, and Shri S N Srinivas, UnitedNations Development Programme.

The Chairpersons briefed the participants and said thatseveral barriers impede private investment in thecommercialization of RETs and in the development ofcommercially viable business models for clean energyaccess. The major barriers include limited financing todefray high up-front costs associated with developingrenewable energy projects, entrepreneurs’ unfamiliaritywith structuring commercially viable businesses, toughcompetition from subsidized conventional energysources that lower the market price for electric andthermal power and market penetration costs.

Besides, there is the absence of an institutionalmechanism that can allow enterprises that are harnessingrenewable energy technologies to come together to scriptand articulate suggestions on policies which willencourage private investments in renewable energy, aswell as connect with associations in other countries toform investment and trade links.

NGOs from the state of Orissa, Madhya Pradesh, UttarPradesh, Rajasthan, Bihar, Gujarat, Jharkhand andChhattisgarh shared their experiences during the workshop.

In order to accomplish the objectives as highlightedabove, the following specific actions were proposed tobe carried out.

Design a framework to address gaps and up-scaleclean energy technologies

Based on a review of existing policies, schemes andprograms, a feasible framework for up-scaling cleanenergy technology interventions, in the identified districtsin the relevant states, will be designed. State NodalAgencies (SNAs) will be involved in collating theexperiences at the grass root level and will be the linkwith national level actions.

Support to up-scale implementationThe project aims to up-scale implementation throughprovision of technology packages, strengthening supplyservices (manufacturer development), demanddevelopment (by facilitating livelihoods), awareness,capacity building and skill development. The projectactivities will be a part of the district energy plans.

Development of national strategy for “Acceleratedclean energy access”

The learnings here will serve as inputs to the process fordeveloping a national strategy for “Accelerated cleanrural energy access”.

Strategic partnerships to leverage environmentalfinancing

Possibilities need to be explored for leveraging local levelfinances and strategic partnerships for climate changerelevant initiatives.

Knowledge sharing platforms and networkingThe project aims to provide inputs for environmentalpolicy and climate change policy regimes through(a) strengthening database on mitigation andvulnerabilities, (b) providing a platform for discussionon climate issues, (c) supporting joint partnerships andactivities aimed at knowledge sharing with differentstakeholders.

The following concrete deliverables were mentioned:Rural Energy Access Advisory Committee to be formed

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Participants at the workshop


and current scenario reviewed,Urja Sanghathan to be formulated to build in grassrootfeedback for the activities in participating districts,Capacity building of Urja Sanghatan and training oftrainers for rural franchise,Mainstreaming modern clean energy devices formeeting thermal applications in selected areas for theend uses of both the domestic sector and enterprises,Energy efficiency, electricity generation anddistribution for 250 rural villages,Establishment of criteria for Renewable Energy ServiceCompany (RESCO) as a viable business model,Demonstrating energy efficiency in villages,Supporting actions to reduce transmission &distribution losses,Developing communication strategy to disseminatethe learning,Developing a national policy to accelerate animproved “Access to clean energy”,Exploring partnerships and strategies,Providing inputs for environmental policy and nationalas well at international climate policy regimes.

The concluding session was chaired byShri Deepak Gupta and the panelists includedMs Gauri Singh, Shri K P Sukumaran, Dr Preeti Soni,Ms Anjali Garg, Energy Specialist, South Asia SectorSustainable Development Energy, The World Bank andDr Kinsuk Mitra, President, Winrock International India.

The Chairperson talked about the proceedings of theworkshop and the key conclusions drawn from therecommendations of the participants. It was broughtabout in this session that the project will not only involveNGOs but also new generation entrepreneurs, technologysuppliers, equipment manufacturers, self help groups, usersassociations and others in the renewable arena.

The prime focus of the project will be on promotingsound economic/business models and on targetingunmet demand. This would also work towardsevolving quantum and mode of financing. It wasproposed that information related to the project beput on the website of WII with links from MNRE andUNDP website. This will be used for sharing projectrelated information, documenting NGOs’experiences, registration of NGOs, etc. Properdevelopment of the operational manual is also a partof the project.

Biomass 2010 ConferenceMarch 30–31, 2010Arlington, VA, USAContact: [email protected]

Algae Biofuel Workshop 2010April 12–13, 2010Lecture Hall, India International Centre, 40 MaxMuller Marg, New Delhi, IndiaContact: [email protected] /[email protected]

Bio energy Markets Africa: Expandingsustainable bioenergy production MozambiqueMay 11–13, 2010Pestana Rovuma Hotel Maputo, MozambiqueContact: HEDON Household Energy NetworkWebsite:http://www.hedon.info/715/events.htm

GreenEx 2010May 12–13, 2010MTN Expo Centre. Johannesburg South AfricaContact: Cradle of Humankind, MuldersdriftGautengEmail:[email protected]:http://www.merlinwiz.com/

18th European Biomass Conference and ExhibitionMay 3–7, 2010Lyon, FranceContact: [email protected]

International BIOMASS Conference & ExpoMay 4–6, 2010Minneapolis, MN, USAContact: [email protected]

ISES Asia Pacific Regional Conference onRenewable EnergyJune 27 - July 2, 2010Yokohama, JapanContact: [email protected]

Major Events

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Courtesy: WII Editorial Team

The workshop concluded with a vote of thanks byDr. Kinsuk Mitra. On behalf of MNRE, UNDP andWII, he thanked all the speakers and participants forsharing their valuable experiences and helping inachieving the objectives of the workshop.


Policy Incentives for IPPs and Investors forWind & Biomass Power Generation

A seminar on Policy Incentives for IPPs and Investors forWind & Biomass Power Generation was organized byIndependent Power Producers Association of India(IPPAI), on behalf of the Ministry of New and RenewableEnergy (MNRE), in association with the United NationsDevelopment Programme (UNDP), India, and the IndianRenewable Energy Development Agency (IREDA) onDecember 17, 2009, at The Imperial, New Delhi, India.The program is to be implemented by the IndianRenewable Energy Development Agency and is asignificant push by the government to take unilateral andvoluntary action to support the growth of renewableenergy technologies in the country, creating an attractiveinvestment market for large independent powerproducers and foreign direct investors. The MNRE furtherannounced that it will be simultaneously promotingbiomass based distributed and grid connected powergeneration, in order to give a boost to renewable energyprojects being developed by IPPs.

The inaugural address at the seminar was delivered bythe Hon’ble Union Minister for New and RenewableEnergy, Dr. Farooq Abdullah. Other eminent speakersincluded the following:

Shri Deepak Gupta, Secretary, MNREMs Gauri Singh, Joint Secretary, MNREShri Debashish Majumdar, Chairman & ManagingDirector, IREDADr Pramod Deo, Chairman, CERCShri Dilip Nigam, Director, MNREShri V P Raja, Chairman, MERCShri Chintan Shah, Head - Strategic BusinessDevelopment, Suzlon Energy Ltd.Shri M K Deb, Managing Director - ConsolidatedEnergy Consultants Ltd.Shri Gokul Chaudhri, Partner, BMR AdvisorsShri Amulya Charan, Managing Director, Tata PowerTrading Co. Ltd.Shri Alok Kumar, Secretary, CERCDr G C Datta Roy, Chief Executive - Energy Business,DSCL Energy Services Co Ltd.Shri Balawant Joshi, Managing Partner, ABPSInfrastructure Advisory

Shri V H Buch, Director, GEDAShri Sunil Jain, Chief Operating Officer, Green Infra Ltd.

The participants included senior members fromGovernment organizations, Chairmen of ElectricityRegulatory Commissions, Independent power producers,regulators, policymakers, investors, consultants, advisors,experts, wind power project developers, industryspecialists and other stakeholders interested in renewableenergy.

Following are the key points of discussion related to thebiomass energy that emerged during this event:

Dr Farooq AbdullahThe honourable minister announced that theGovernment would play the role of a facilitator andwould not be a ‘blocker’ in the efforts to help growth ofpower generation through renewable energy sources. Hesaid that the Ministry “is there to unlock the locks thathave been locked for too many years” to facilitateinvestment in the sector. He called for a lot more to bedone to achieve targets and also stressed on the need forinvestors to take risks.

Shri Deepak GuptaAs far as biomass is concerned, Shri Gupta said therewere many big projects to feed into the grid but addedthat the MNRE would also focus on the smaller, moremanageable tail end projects to feed the local andcatchment area which, apart from reducing raw materialcosts, will also strengthen the grid. He added that since30-40% of India is without access to power, it has a moralimperative to use rice husk and other biomass products toprovide an opportunity to give power to deprived villages.He also said that the generated power can be used inirrigation pumps which are diesel guzzlers, he added.

Shri Harry DhaulHe spoke on the subject of incentivizing biomassgeneration and how it facilitated utilization of locallyavailable feedstock, left a lower carbon footprint intransportation of fuel, operated on high plant load factors

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(PLFs), was ideal for remote villages where off-gridsystems could be set up, and was most suited fordistributed generation projects since there were zerotransmission and distribution losses. He added that it alsoled to increased local employment due to upstream anddownstream activities, boosted growth in ruralinfrastructure and education and led to substantialmultiplier benefits in the local economic and socialframework.

Dr G C Datta RoyDr Roy spoke on the ‘Development of Small ScaleBiomass Based Distributed Power Generation in RuralAreas.’ He said that surplus availability for IPPs wouldbe mainly from agro and forest waste and the competitiveuse of biomass would be the critical factor drivingsustainability. Analyzing the economic competitivenessof using biomass, he said that next to captive usage,the most valued use of biomass is as fiber and addedthat brick kilns and cement mills can offer higher pricesby as much as 25%, considering coal price parity. But,he also added that usage by these industries is notsignificant enough to appear as a competitive threat tobiomass based power plants.

He also felt that oil mills can offer much higher prices,because they have an opportunity of higher valuerealization by installing mini cogeneration powerplants and exporting small quantities of power to thegrid-which would provide the highest value realizationfrom biomass. He also said that price parity would begoverned by coal price parity and added that, at the tailend, competitive pressure would be a lot less.

Dr Roy spoke of the gaps in CERC’s regulations onbiomass based power generation and said that not havinga standardized station heat rate for biomass based powerplants has hampered generation. He mentioned thatstation heat rate is not defined at different powergeneration capacities, as is in the case of coal, and saidthat the station heat rate for biomass based power plantsis arrived at depending on the of type of biomass andtype of technology.

He elaborated on the financial and economic viabilityof a typical biomass power project and spoke of the issuesthat dogged last mile DG models. He added that bettergrid connectivity and the possibility of learning fromexisting larger plants for scaling down, offers newopportunities for the development of 1-2 MW small IPPsas last mile DG plants. He also asked if tail end DGsystems could be subjected to payment of OA chargesand added that last mile DGs can make significantimpacts on reducing T&D losses.

In conclusion, he said that there is a strong case for thedevelopment of last mile grid connected biomass DGsystems (1-2 MW) which require policy support duringtheir development phase, including financial subsidy,which could be capital or generation based. He said thatdifferent tariff structures and rates, when consideringpartnership with rural communities, should beconsidered together with preferential dispatch, liberalgrid connectivity, and freedom from rostering. He alsosuggested that liberal open access-capacity and charges,exemption from distribution charges, and cross-subsidyfor such DG projects should be offered.

Call for AdvertisementsWe invite organizations to advertise their profiles and products in the Bioenergy India magazine. Advertisementsfocusing on the Biomass Energy sector will be offered a space in the magazine. Special discount is available forinsertions in more than two issues. For details, please contact Sasi M at [email protected]

The advertisement tariff is as follows:

Particulars Colour (Rs) Black and White (Rs)

Back Cover 20,000.00 ———Front and Back Inside Cover 18,000.00 10,000.00Inside Full Page 15,000.00 8,000.00Inside Half Page 8,000.00 3,000.00

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Diesel Replacement in Rice Mills byBiomass GasifiersPresently rice mills make use of import dependent dieselfor meeting their captive power requirements. With duerealization of this fact, the Ministry of New andRenewable Energy (MNRE) has recently launched anambitious scheme for promoting rice husk based biomassgasifier systems in the rice mills. The underlying rationaleis not only to save diesel but also provide economicaland reliable solutions for their captive power needs. Infact, there is an enormous potential for saving fossil fuelsvia this route of renewable energy technology utilization.A special financial package is now in place for thispurpose, under which a Memorandum of Understanding(MOU) was signed between the State Bank of India, Patnaand M/s Beltron Communications Ltd., Patna in thepresence of Shri Deepak Gupta, Secretary, MNRE on 8th

January, 2010. Through this technical & financialmechanism, about 500 rice mills would be able to availthe benefit by setting up biomass gasifier systems during2010 which would lead to the saving of about 20-25million liters of diesel annually and at the same timeavail the benefits of a reliable power supply.

News Snippets on Biomass Power

(PEDA) has already commissioned a biomass powercapacity of 14 MW so far. A total capacity of 282 MWspread over 27 sites across the state is likely to becommissioned by December 2010 in a phased manner.These plants have capacities ranging between 6-20 MW.Of these, M/s Green Planet Energy Private Limited issetting up the maximum biomass power capacity ofaround 145 MW in the state.

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Multi-fuel 10 MW Biomass PowerProject for CDM BenefitMaharashtra Energy Development Agency (MEDA) is alsoencouraging the use of biomass power projects in thestate. M/s AA Energy Limited is currently setting up a 10MW biomass power project at Desaiganj in Wadsa Tehsilof Gadchiroli district of the state. This project will utilizethe surplus biomass residues obtained primarily from ricehusk and other biomass materials like stalks of soya beanand tur etc. These materials available locally would beused to generate power through sustainable meanswithout causing any negative impacts on the surroundingenvironment. This project is expected to result in greenhousegas (GHG) abatement of 149,047 in CO2 equivalent.

Waiver of Environmental Clearance forBiomass ProjectsThe Ministry of Environment and Forests has just issueda draft notification dated December 1, 2009 for makingcertain amendments in the Environment ImpactAssessment (EIA) notification of 2006. Under this, powerplants upto 15 MW capacity, which are based on biomassand use auxiliary fuel such as coal/ lignite/ petroleum productsupto 15%, will be exempted from the EIA requirement.

Companies keen to Set Up BiomassPower PlantsTamil Nadu state government has always consideredgeneration of electricity from wind power as a standbyoption during acute power crises.

Source: www.mnre.gov.in

Punjab Targets to Harness 3,000 MWof Biomass PowerThe state government of Punjab is targeting to producearound 3,000 MW of useful power by putting to use 20lac tonnes of agricultural residue being generated hereevery year. Such a policy initiative is expected to mitigatethe acute problem of pollution, which is caused due tothe combustion of paddy residue in the open. Also, itmay help tackle the decreasing productivity of the landon account of the heat produced by this fire.

Importantly, setting up biomass projects would also earncarbon credits worth crores for the state exchequer. Asper the available estimates, 28 biomass plants wouldbegin to produce around 80 MW power by December2010, whereas the next lot of 28 plants is expected totake the combined power from biomass upto 700 MW.There would be multiple benefits available, which alsoinclude the strengthening of the rural economy. The statenodal agency i.e., Punjab Energy Development Agency

Source: www.peda.gov.in

Source: www.mahaurja.com

Source: www.moef.nic.in


Now, however, many companies have approached theTamil Nadu Energy Development Agency (TEDA), urgingit to give them permission to start biomass plants. If thatpermission comes through and if the Tamil NaduElectricity Board (TNEB) clears the proposal, 487 MWof biomass power can be generated in the coming years.

Biomass, a renewable energy source, is produced byplants during photosynthesis. It contains organic matterthat can be used to produce energy or heat. The estimatedpower generation potential from surplus biomass in TamilNadu is 487 MW, according to a district-level studycarried out by Anna University and the Ministry of Newand Renewable Energy Funding.

Currently, 111 MW of biomass energy is produced by17 units in various districts across Tamil Nadu, includingPudukottai, Dindigul and Kanyakumari. One 10 MWgenerating unit and a 7.5 MW unit will come up soon inTiruvannamalai and Krishnagiri, respectively.

”Some plants that can generate 40 MW of biomass energyare yet to start functioning. Nine companies haveapproached us for power generation; together they cangenerate 100 MW. But they are yet to get the green signalfrom TNEB,” said a senior TEDA official, adding thatmany more companies had approached TEDA for startingbiomass plants.

”According to the Tamil Nadu Electricity RegulatoryCommission’s tariff order issued in May 2006, the ratefor purchase of power by TNEB is Rs 3.15 per unit. InMay 2009, the rate was increased to Rs 4.50 per unit.Companies feel that it is a good rate as they spend Rs 2,450on one tonne of raw material. Hence many companiesare keen on setting up units here,” the official explained.

A company that wants to start a biomass generation planthas to approach TEDA with a proposal, which will bestudied by a standing committee headed by the chairmanof TEDA. The committee has been formed by the stategovernment to select biomass-based power projects andexamine applications from prospective entrepreneurs.Once the committee clears the project, TNEB clearance,too, is mandatory.

The TEDA official said that raw material used to generatebiomass energy would be agricultural residue, includingcoconut shells, rice husk and cane trash. “Raw material

for biomass generation has to be cultivated. For example,people starting units usually have plantations nearby.Hence, even wastelands can be developed,” he said,pointing out that nearly 8,000 tonnes of agriculturalresidue was needed to produce one megawatt a year.The cost of setting one biomass unit works out to Rs 5crore. “As of now, we are generating nearly 150 MW ofbiomass power and in the coming years we will havethe full capacity of 487 MW,” he added.

Oriental Green to Invest in BiomassPower PlantsOriental Green Power (OGP), a renewable energygeneration company promoted by Chennai-basedShriram EPC, would invest Rs 730 crore for setting upbiomass-based power plants.

T. Shivaraman, managing director and chief executiveof Shriram EPC, said, “We have set a target to list OGPby March 2011. The company wants to give thrust onrenewable energy both in the domestic and internationalmarkets.”

The investment would go into setting up of 146 MWplants, each MW entailing Rs 5 crore, reports BusinessStandard. Most of these would be ready by December2010. The company currently operates biomass plantswith a total production capacity of 22 MW, he said. Thecompany would fund the project through debt, whichwould constitute 70 per cent and equity, comprising theremaining 30 per cent.

The company has also entered into a licence agreementwith Envirotherm of Germany for air blowngasification technology for producing fuel gas, whichwill replace furnace oil and liquefied petroleum gas,among others.

India, Germany Sign Rs 140 CroreAgreement for Biomass PowerThe Indian Renewable Energy Development AgencyLimited (IREDA) and Germany’s Development Bank KfWsigned an Agreement on Thursday, 8th October, forfinancial assistance of 19.971 million euros (Rs. 140crores) for the Promotion of Biomass Power Generationin India.

Source: The Bioenergy Site News Desk

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European Policy on Biomass Energy

The European Union (EU) has been actively developingand promoting the production cum use of RenewableEnergy (RE). It diversifies the use of energy sources andcontributes to securing the energy supply. The objectiveis also to develop new industries and technologies. TheEuropean countries initially agreed on an indicative targetfor supply of 12% of energy from RE including biomass,by 2010. To accomplish this target, new laws wereadopted for establishing the national targets for renewableelectricity and biofuels in the transport sector. This wasmainly done to boost the level of RE deployment in theEU countries. Also, the private sector was especiallyencouraged to make the necessary investments. In 2007,the EU leaders took an even tougher stand by establishingthe target of achieving 20% of the energy requirementfrom RE sources, by 2020. Various national targetshave since been proposed for each country in orderto reach 20% for EU as a whole. The use of biomassbased power plants is bound to grow as willcogeneration, where steam generated duringelectricity production is not wasted, but can be usedin the district heating systems. Biomass boilers will beincreasingly used in the buildings, by replacing oil orelectric water heating systems.

The Commission adopted a new Energy and ClimatePackage, including the RES Directives, on 23rd January,2008. This sets the national binding targets for theMember States for achieving the target of 20% from REsources in energy consumption by the year 2020. TheRES directive includes a proposal for a sustainablescheme for biomass, etc. The projections made forthe Renewable Energy Road Map suggested thatbiomass has the potential to make very significantcontributions to reaching the 20% target. However,concerns have also been expressed that suchcontributions may endanger efforts for sustainableprovision of biomass. There are calls to regulate thisthrough the introduction of a wider biomasssustainability scheme. Thus, the Commission haslaunched a consultative mechanism so as to provideinputs into a report concerning the requirements on

a sustainability scheme for energy uses of biomassin 2009.

In all, bioenergy exploitation within the Europeanmember countries is expected to bring in commercialmaturity within the most promising technologies, in orderto attain the following objectives:

ensure highly efficient combined heat and power frombiomasspermit large-scale, sustainable production ofadvanced biofuels

The graph shows the gross electricity generation fromBiomass in the United States and European Union. Thegraph shows that biomass generation is on a steadyincrease in Europe but not in the US. In fact, the growthin the US has flattened out in the period 2002-2007.

EU27 and USA: Gross Electricity Generation fromBiomass, 1996-2007

Currently, various bioenergy technologies are at differentstages of maturity. A longer term research program willsupport the development of a sustainable bioenergyindustry in Europe beyond 2020. The total public andprivate investment needed in Europe, over the next 10years is estimated at 9 billion euro. The contribution tothe EU energy mix by 2020 from the cost-competitivebioenergy used in accordance with the sustainabilitycriteria of the new RES directive could be at least 14%.It could also help in generating around 2 lakh jobs, whichalso emphasizes the need for launching the capacitybuilding initiatives at several levels.

Source: www.ec.europa.eu

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Title: Biomass to Renewable EnergyProcesses

Publisher: CRC PressEditor: Jay Cheng, North Carolina

State University, Raleigh, USANo. of Pages: 517Price: $99.95 / Rs.5,126

A possible solution to the energychallenge, i.e., biomass energyproduction is heavily dependent onsugarcane and corn production and isvulnerable to the fluctuation of thefeedstock price. New technologies

need to be developed to convert abundant biomass suchas lignocellulosic materials into energy products in a cost-effective and environmentally friendly manner.

An introduction to fundamental principles and practicalapplications, Biomass to Renewable Energy Processesexplains the theories of biological processes, biomassmaterials and logistics, and conversion technologies for

Booksbioenergy products such as biogas, ethanol, butanol,biodiesel, and synthetic gases. The book discussesanaerobic digestion of waste materials for biogas andhydrogen production, bioethanol and biobutanolproduction from starch and cellulose, and biodieselproduction from plant oils. It addresses thermal processes,including gasification and pyrolysis of agriculturalresidues and woody biomass. The text also coverspretreatment technologies, enzymatic reactions,fermentation, and microbiological metabolisms andpathways. It explores the engineering principles of biomassgasification and pyrolysis and potential end-products.

Editor Jay Cheng has assembled contributors frommultiple engineering disciplines, reflecting the breadthand depth of the field. These experts discuss thefundamental principles of the processes for bioenergyproduction, supplying the background needed tounderstand and develop biofuel technologies. Theyprovide the foundation for future work and developmenton what can be a clean, green, renewable, andsustainable energy source for years to come.

Title: Biomass And Alternate FuelSystems: An Engineering AndEconomic Guide

Publisher: Wiley-AIChEEditor: Thomas F. Mcgowan, Michael

L. Brown, William S. BulpittNo. of Pages: 264Price: $89.95 /Rs. 4,345

This book explains the characteristicsof renewable fuels, especially biomassand wood, and the cost-effective andenvironment-friendly methods ofhandling, storing and burning thesefuels. It also talks about economicevaluation method, introduction of

the pollution control equipment for limiting theemission from fuel combustion, case studies, and costsand carbon emission comparisons between

conventional and alternate fuels. This book is an updateand expansion of the “Industrial Wood EnergyHandbook” by a team from the Georgia Institute ofTechnology in 1984. It introduces new technologies notavailable at the time of the early version.

Biomass and alternate fuels offer cleaner, renewable waysto produce energy, can greatly reduce operating costs,and are mostly carbon neutral. Biomass and AlternateFuel Systems: An Engineering and Economic Guideprovides readers with an understanding of theseenvironmentally friendly fuels alongside step-by-stepguidance for converting these fuels into energy. Inaddition to biomass, the book also covers other alternatefuel sources such as biogas, reclaimed oil, used tires,cooking oil, solid wastes, and coke. The case studies inthe book help readers understand how they can installand operate energy systems to reap all the benefits ofbiomass and alternate fuels.

Source: www.amazon.com

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