A 900 MW Power Plant Running on Biomass? It Could be a Reality in Five Years!
I thought I was never going to see the day when a large power plant would run entirely on biomass. You can understand my pessimism when you are told that a MW of powerplant will require about 8000 T of biomass every year. A 300 MW power plant will hence require an awful 2.5 million T of biomass every year. That's a heck of a lot of, well, anything. Well, there are some courageous folks around the world. Drax in the UK, for one. They are building 3x300 MW furnaces on biomass, and are arranging for a 8 million T biomass supply from around the world. (By comparison, India's total biomass based power production - outside of bagasse power - is only about 1500 MW. So the Drax project alone would be about 60% of total Indian biomass installed capacity!) While I am certainly overawed, good news, I must say. If they can operate it sustainably for a few years, biomass power would have definitely reached a milestone. Will be really keen to know how they plan to manage the supply chain. This is what the news report has to say "The vast majority of the biomass will come from North America, but there will also be locally sourced supplies of willow and elephant grass to power the furnaces. "
A Case Study of Clenergen and Yuken’s Gasification Biomass Project
Yuken India Limited, set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company Limited, Japan, is a manufacturer of oil hydraulic equipment. Yuken has achieved one of the fastest growth rates in the Indian oil hydraulics industry, in the last 29 years. Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation, plans to enter into a minimum 15 years Power Purchase Agreement (PPA) with Yuken to supply up to 2.5MW/h, with the rest of the electricity generated being completely sold out to the National Grid System. The biomass power plants with a capacity of 4 MW/h will be installed and begin operation within 10 months upon signing of the PPA. Clenergen India plans to lease up to 800 acres of non arable land near the manufacturing site in order to grow a high yielding species of bamboo as a source of biomass for the gasification power plant. The bamboo produced is asexual, non-invasive, non-flowering plant with a lifespan of up to 50 years and above all, is a product of tissue culture. This is advancement in the sector of renewable energy, in that the cost savings created from the cultivation of biomass feedstock will allow the supply of electricity at a price lower than the current market prices and will also help to extend the industries’ vertical market penetration into these market sectors. This is certainly moving forward. With ever increasing fossil fuel prices, this is the ideal way to deal with the growing needs and the economy. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Agricultural biomass availability in India for power generation
India is primarily an agricultural nation with an extensive cultivation of different types of crops including cereal, pulses, oilseeds, fibre crops, spices and plantation crops. With the cultivation of these crops, availability of residual biomass after economic harvest makes power generation in a sustainable way. These raw materials are normally available in variable quantities depending on the acreage of cultivation, mass of residue part available. The total biomass is 511,041 kT/Yr for power generation. Among them, rice, wheat and cotton constitute a major portion with 160,000,111,000 and 21,000 kT/Yr to generate power of 5000, 3300 and 3500 MW respectively. The total power generation capacity is 17,400 MW. Besides these crops, maize, jowar, bajra, coconut, groundnut, banana, cassava and mustard are also potent generators of biomass for power to an appreciable extent. It is evident from the information stated above that the agricultural resources serve as excellent candidates for the power generation either by combustion or gasification. However it is important to note that these materials are variables by biochemical composition and moisture. So, standardization is mandatory by defining limits to make them appropriate for thermal decomposition and as consistently yielding materials of electric power. Further plans are required to efficiently collect and store for processing without time delay. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Benefits of Biomass Based Power
While we are striving hard to switch to more sustainable modes of living, there arise lots of issues questioning the efficiency of our choice of green. Despite all the issues they might have, they have more benefits than their petroleum counterpart. After all, petroleum is not going be here forever. So, this post will focus on the benefits of biomass based power, and why is it more suited as a sustainable alternative. Let us look at the distributed generation, because biomass is available in almost all places, and especially in rural areas, and more important, as gasification based power production can be done on small scales (as low as 20 kW), this process can be used for distributed generation of power as against the centralized power production method followed today. Also, biomass based power is well suited to remote villages with no access to grid but access to significant amounts of biomass Secondly, biomass gasification based power production can be done at small scales – as small as 20 kW – unlike other sources of power (say, nuclear) that require much larger scales. This will ideally suit small villages that have only a few households. Also, this whole process could be done in rural areas, where this could open a gateway of opportunities for rural population. Given that a 1 MW biomass based power generation could require biomass growth in over 150 hectares, the opportunities for rural employment are indeed significant. Thirdly, biomass power results in no new net GHG emissions as it is part of the carbon cycle. Unlike coal and others forms of fossil fuel which have been buried millions of years ago and burning them adds to carbon in the atmosphere, responsible biomass energy generation results in no new carbon emissions or pollution. Finally, the efficiency of the biomass power generation process to make use of mostly animal and crop wastes for energy is remarkable. Also, there is a large variety of feedstock which could be used for the process. Aside from these, they also significantly reduce methane in the atmosphere, which being able to be produced economically. I suppose these are enough reasons to switch to biomass power. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Bio-energy Software Development Assistance – Clixoo
Clixoo, a sister division of EAI, brings to the table a unique intersection of renewable energy domain knowledge and high quality software development expertise. Using these, the bio-energy software team at Clixoo can assist companies keen on development support for a range of biomass power plant/heating related software. These include
- Biomass Assessment
- Feasibility Analysis
- CHP
- Bio-reporting Software
Biomass based power
Biomass is a valuable physical mass of biotic factors and ideally suited for the energy generation in different forms for the fulfillment of human demands over time. Even though deep ground fuel resources of biological origin satisfy it comprehensively, the way it is oxidized today on a time scale for energy production alarms the world by a phenomenon called “Global warming”. It forces us to scan for a suitable and sustainable alternative to fossilized biomass and the answer lies with surface dwelling, active biomass which is derived either from live or dead sources for power generation. Biomass can be subjected to power generation by combustion principle which is exactly followed for fossil sources and also is found to have a greater flexibility to generate power than conventional sources. Besides combustion, biomass is readily amenable for gasification where energy as power, heat and synthetic fuels can be derived. Biomass based power proves to be highly profitable under conditions where natural resources such as wood from forests, agricultural and animal sources etc are at abundance. India is a potential hub for this alternative route of power generation but currently holds a marginal fraction of 2650 MW out of its total installed capacity of 172000 MW. It utilizes bagasse co-generation system as its major option for biomass based power production with a capacity of 1411.53 MW achieved till June, 2010. It is important to note that biomass based power is multi-dimensionally advantageous as follows Rural economic upliftment, Suited for rural areas, Ability to have small kW scale power production, Distributed generation, Carbon neutral, Efficient utilization of renewable biological sources and accession of low cost resource. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Boilers Guide – Guide to Pick Optimal Biomass, Processing & Boiler Type
Many companies in India, and worldwide, are shifting from the use of fossil fuels for their boilers to using biomass. Such a transition is not easy though, given the significant differences between biomass and coal or other fossil fuels - differences both in terms of product characteristics as well as the supply chain and other market characteristics. So, how can a company go about making the key decisions in its transition to a biomass boiler? The nice folks at Boilers.Guide have put together a guide that eases this transition, specifically from coal to biomass boilers. This guide helps you iron out many of the uncertainties and questions a typical stakeholder has. The guide provides pointers on what characteristics to look for while selecting the optimal biomass to be used in boilers, selecting the right form (i.e pellets, briquettes, loose) for transportation and storage and selecting the appropriate combustion system and pollution control equipment. The guide is divided into three stages of selection with each stage providing information on the parameters to be considered, the pros and cons and examples to help you set up the most optimal biomass boiler. Get more from the guide itself - Using Biomass for Boilers - the Way Forward. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass conversion to natural gas – is this being followed anywhere?
I and my team might be working on an interesting project where the company is trying to move away from natural gas for its heating purposes and into the use of biomass for the same. The reason of course has to do with economics, with natural gas prices shooting through the roof past couple of years. While we are figuring out ways in which the company could use biomass directly for heating instead of natural gas, this process poses some problems owing to the specific needs of the client. I am hence wondering if the process of converting biomass to natural gas is being followed anywhere. I know that this is pretty much feasible, but not sure about the technology maturity and economics. If there is anyone who is aware of commercial conversions of biomass to natural gas, do let me know. You can include your response in the comment section or send a note to narsi [at] eai dot in. Thank you.
Biomass Gasification for the Environment and Economy
There are a whole lot of benefits from biomass gasification, both economy wise and ecology wise. Speaking of environmental benefits, gasification plants produce significantly lower quantities of air pollutants, which is really a good thing. The process can also reduce the environmental impact of waste disposal because it can use waste products as feedstock, generating valuable products from materials that would otherwise be disposed as wastes. Gasification's byproducts are non-hazardous and are readily marketable and also use significantly less water than traditional coal-based power generation, and can be designed so they recycle their process water, discharging none into the surrounding environment. If that is not convincing, let us look at the economical benefits. Gasification can be used to turn lower-priced feedstocks into valuable products like electricity, substitute natural gas, fuels, chemicals, and fertilizers. For example, a chemical plant can gasify petcoke or high sulfur coal instead of using high-priced natural gas, thereby reducing its operating costs. While a gasification power plant is capital intensive (like any very large manufacturing plant), its operating costs are potentially lower than conventional processes or coal-fired plants because gasification plants are more efficient and require less back-end pollution control equipment. With continued research and development efforts and commercial operating experience, the cost of these units will continue to decrease. The process also offers wide fuel flexibility. A gasification plant can vary the mix of solid feedstocks, or run on gas or liquid feedstocks—giving it more freedom to adjust to the price and availability of its feedstocks. Many predict that coal-based power plants and other manufacturing facilities will be required to capture and store CO2, or participate in a carbon cap and trade market. In this scenario, gasification projects will have a cost advantage over conventional technologies. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Gasification in India to Generate Lakhs of Jobs
Emerging green economy in the country may see creation of nine lakh jobs in India by 2025, a top government official said.
"India could generate nine lakh jobs by 2025 in biomass gasification, of which three lakh would be in manufacturing of stoves and six lakh in areas such as processing into briquettes and pellets and the fuel supply chain," Ministry of Micro, Small and Medium Enterprises (MSME) Secretary Dinesh Rai said.
More from here.
I am not sure if biomass gasification alone could generate almost a million jobs. The secretary appears to have his numbers done for him all right, but I still wonder.
It will of course be good if it comes true. It was only yesterday that I met this gentleman whose company manufactures efficient burners for kerosene stoves and he was quite hopeful about the micro-gasifiers as well.
Let's see how it goes
Biomass Gasification Power Production – Bottlenecks and Barriers
Biomass gasification is a process where materials are transformed by thermal decomposition under partially oxygenated conditions to generate syn-gas for power generation. It seems to be a powerful technique where energy can be produced in a sustainable way along with valuable products such as green oil and biochar but it is multi step process where bottlenecks continuously arises at every step of the production pathway. The most commonly encountered limitations are batch to batch variation in energy content, purification of the syngas, contaminants influence in the performance of the engines, ash and biochar disposals, toxic gas emissions and operational efficiency of the gas engines and mandatory modifications required to make the engines energy effective. In addition to these prime technical problems, others notable hindrances are insufficient capacity of the stakeholders and inadequate institutional and policy framework at the national, regional and local levels and limited access to financing and lack of interest on part of the state electricity boards (SEBs) in promoting biomass power generation etc. In India, conditions are further complicate by lack of working capital, limited interest in power projects, lack of effective regulatory framework and absence of effective information dissemination etc. In spite of the limitations, the technology continues to gain acceptance. Its potential to meet the energy demands on a flexible scale makes a robust move to outweigh the magnitude of limitations associated with it. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Power Plant with Attractive PPA Looking for PE Investors
A contact of EAI is looking for an investor to assist them financially for a 15 MW biomass power plant.
What he is looking for is a capital infusion to the extent of 25 crores, as he has already completed most of the rest.
The promoter is an established entrepreneur who knows his business, and most important, has an attractive PPA with the state electricity board for power purchase at tariff upwards of Rs 7 per kWh. In addition, he has done a good job of ensuring that the biomass supply at excellent prices.
Overall, it appears to be quite a profitable opportunity and should be of interest to private equity investors keen on adding a profitable biomass power plant of a reasonable size to their portfolio.
Highlights
- Power plant is being set up in Maharashtra, and most of the plant construction has already been completed
- Has a strong 13 year PPA, tariff Rs 7.5/kWh for 13 years with state discom.
- Plant in strategic location for feedstock availability
- Have agreements with the local distributors and farmers for resources.
- Total project cost: Approx Rs 100 crores (about $16 million), required infusion: 25 crores (about $4 million)
Cleantech Funds and Their Investments in Biomass in India
Several VCs/PEs/Companies have created funds which invest in clean technology or companies with partial clean technology operations, and have either invested, or are interested in investing in India. Some of these organizations and their investments are summarized as follows.
Company Energy/Cleantech Specific Fund Activity/Investment Shell Group through their Shell Foundation (invested directly or through other funds invested in Husk Power ($1.1M), while New Israel Fund, Dorot Foundation, Nathan Cummings Foundation, Andrea and Charles Bronfman Philanthropies through their Green Environment Fund invested in Greenko Group ($46.3M). Chrys Capital directly and through ChyrsCapital V LLC (through subsidiary Van Dyck invested in Pratibha Industries Ltd (Rs. 50 Crore) and Suzlon Energy (Rs. 50 Crore). Barings Private Equity India Private limited through consortium of PEs invested in Auro Mira ($21 M) whose Investor share was not disclosed. Additionally, Blackstone via their Blackstone Advisors India Private Ltd invested in Moser Baer ($300 M), 3i Group through their 3i India Infrastructure Fund invested in GVK Power and Infrastructure (Rs. 800 Crore) in both conventional and renewable energy. Reliance through their Reliance India Power Fund invested in Su-Kam Power Systems (Rs. 45 Crores), Citi Group CVC International (PE) through Citi Group Venture Capital (VC) invested in Suzlon (Rs. 50 Crores). The above was only the list of highlighted events. The list is actually very exhaustive. As the population increases, and there arises a demand for a more sustainable form of energy, a lot of investments have been made in this sector. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsCons of Gasifiers
The use of biomass gasification for power production is not new, but its use has been so far been limited and its contribution to the overall power production has so far been negligible in India. The producer gas derived from biomass gasification can be used for either producing power (by use in a gas engine) or can be used for thermal applications. With better technologies evolving for both gasifiers and gas engines, it can be expected that biomass gasification could start contributing a lot more to the overall power production in India. For starters, biomass gasifiers are reactors that heat biomass in a low-oxygen environment to produce a fuel gas called the producer gas. The gas produced from a gasifier can drive highly efficient devices such as gensets, turbines and fuel cells to generate electricity. A biomass gasification system consists primarily of a reactor or container into which fuel is fed along with a limited (less than stoichiometric, that required for complete combustion) supply of air. Heat for gasification is generated through partial combustion of the feed material. The resulting chemical breakdown of the fuel and internal reactions result in a combustible gas usually called producer gas. Though gasifiers are really special in their own way, they have their limitations. Gasification is a complex and sensitive process. There exists high level of disagreement about gasification among engineers, researchers, and manufacturers. Several manufacturers claim that their unit can be operated on all kinds of biomass. But it is a questionable fact as physical and chemical properties varies fuel to fuel. Gasifiers require atleast half an hour or more to start the process. Raw material is bulky and frequent refuelling is often required for continuous running of the system. Handling residues such as ash, tarry condensates is time consuming and dirty work. Driving with producer gas fueled vehicles requires much more and frequent attention than gasoline or diesel fueled vehlicles. Getting the producer gas is not difficult, but obtaining in the proper state is the challenging task. The physical and chemical properties of producer gas such as energy content, gas composition and impurities vary time to time. All the gasifiers have fairly strict requirements for fuel size, moisture and ash content. Inadequate fuel preparation is an important cause of technical problems with gasifiers. Gasifier is too often thought of as simple device that can generate a combustible gas from any biomass fuel. A hundred years of research has clearly shown that key to successful gasification is gasifier specifically designed for a particular type of fuel. Hence, biomass gasification technology requires hard work and tolerance. As I said, gasifiers are indeed special in their own way. I’d rather we just wait for the technology to advance in the future to go far beyond its limitations. After all, as I said then and I will again, petroleum is not here forever, and we need more sustainable feedstock and advanced technologies for processing. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Cool Solutions for Your Hot Problems – Getting Your Heating Costs Under Control
Sustainable Industrial & Commercial Heating Solutions - A Critical Pain Point
No, this blog post is not about those hot problems. It is about problems companies, especially in the manufacturing sector, face for their heating requirements!
With the prices of furnace oil, diesel and LPG increasing alarmingly in the past few years, companies suddenly find their costs of their energy shooting up to unaffordable levels.
Suddenly, using renewable and sustainable energy sources such as solar and biomass, and utilizing heat that was wasted earlier appear to be the way forward.
I hence thought I’d provide an overview of renewable and sustainable options available for heating requirements in factories.
The following are the sustainable heating avenues that are technically feasible today:
- Solar Water Heater
- Biomass
- Waste Heat Recovery/CHP/Cogen
- CST (concentrating solar thermal)
- Energy efficiency heating equipment
- Back pressure steam turbine
Biomass Energy for Reducing Dependency on Furnace Oil, LPG or Diesel
Reducing Fossil Fuel Use at Industries & Commercial Units through Use of Biomass Energy
Also check out:
EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Product
Costs of feedstock for Biomass gasification
Biomass gasification utilizes renewable feed stocks for liberating the synthesis gas by thermal decomposition under high temperature conditions. Among the factors affecting the production protocol, cost economics play a critical role and is well pronounced in cases when the scale of operation is magnified. Entrepreneurs of gasification technology often make contracts with farmers or traders so as to ensure a price security and timely uninterrupted availability of their concerned feed commodity. In spite of the strategies, price fluctuations in gasification feed stocks have been witnessed, for instance cost of rice husk was at Rs: 600/tonne in 2009 but has steeply increased to Rs 1800/tonne by the end of 2010 and such an extreme volatility in market prices causes a concern to buyers and affect the final price of the power/unit produced by biomass gasification technology. Lack of price security has produced an unique trend in gasification where the venturers start their own farms for feed stock production which they claim that it can cut costs by two-third of the actual cost and seems to be working well in particular with dedicated energy crops. Gasification technology is well balanced economically as entrepreneurs have a scope to sell biochar by-product which fetches good market price to compensate for the cost procurement of the feedstock. Socio-economic and technical factors continuing to challenge the progression of gasification but the productivity makes it a superior choice that cannot be camouflaged. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Current Status of Biomass Gasification in India
India has initiated its power generation from renewable sources by several different principles namely gasification and combustion. Biomass gasification is carried out at different power capacity levels ranging from 25 kW to 2 MW and above. When a comparative analysis is made between combustion and gasification of biomass, the former technology is best operational under high capacity installations while the inverse is true for the gasification. This peculiar advantage seen in gasification to operate at smaller ranges makes the technology suitable for adoption in rural and by small entrepreneurs where power generation is required rather than efficiency. The technology even though best functions with high range installations of 2 MW, its utility is obstructed by the demand for a series for engines and India has less than 10 installations so far. Gasification technology is really ideal where resources are randomized and adoption of any other technology is tedious on a financial scale. Gasifiers are flexible to operate which makes the user to follow any technology depending on his requirements to a limited extent. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Decarbonizing India’s Energy Sector by Biomass and Biofuels
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
In India, 22% of the total energy supply is renewables, with biomass contributing 85%. Biomass use is shifting from traditional residential heating to power production. Biofuels represent less than 1% of transport fuels, with bioethanol at 3% of gasoline consumption. The biomass market is projected to reach INR 32,000 crore by FY2030-31. India produces 450-500 million tonnes of biomass annually, with a surplus of 230 MMT/year. Biomass-derived energy constitutes 32% of India’s primary energy use. The biomass pellet manufacturing capacity is 2.38 MMT, with 83,066 MT co-fired in 39 thermal power plants.
Reliance Industries Limited (RIL) is transitioning from fossil fuels to renewable energy, including biofuels, for its energy demand. This involves using bio-pathways to fix CO2 and recycling materials across value chains. RIL plans to set up around 100 Compressed Biogas (CBG) plants over the next five years, consuming over 5.5 million tonnes per annum of agricultural residue and organic waste. This initiative is projected to reduce nearly 2 million tonnes of carbon dioxide emissions annually. In essence, RIL’s decarbonization strategy involves renewable energy, biofuels, recycling, and CBG plants.
Thermax, an Indian energy and environment engineering company, is decarbonizing its manufacturing processes using biomass and biofuels. Its subsidiary, TOESL, installs biomass-fired plants and sells steam. Thermax’s solutions include the Atmospheric Fluidised Bed Combustion Boiler, capable of using various fuels including coal, lignite, rice husk, petcoke, spent coffee ground, washery rejects, low ash coal, paper sludge, roasted chaffs, DOB, bagasse, pith woodchips, coffee husks, mustard stalk, cotton stalk, and char. Thermax has secured an order worth over Rs 500 crore to set up five bio-CNG plants across India, with a capacity to produce 110 Tonnes Per Day of bio-CNG, utilizing local feedstock exceeding 1,000 TPD. This initiative contributes to the decarbonization of manufacturing processes.
The shift from fossil fuels to renewable energy sources is a key aspect of the company's strategies. This transition is driven by the need for cleaner energy sources and the potential economic benefits of renewable energy. Development of advanced biofuels like bioethanol, biodiesel, and biogas from sustainable feedstocks like algae and dedicated energy crops can further reduce reliance on fossil fuels and enhance energy security.
Looking ahead, the focus will be on enhancing the efficiency of biomass and biofuel technologies, developing second-generation bioconversion processes, and ensuring the sustainable sourcing of feedstocks. The potential of biomass and biofuels extends beyond just energy production. It opens up opportunities for waste management, rural development, and job creation, contributing to a circular economy. Companies like Reliance Industries and Thermax are pioneering this transition, demonstrating the viability and benefits of these renewable energy sources.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
Emerging Feedstock for Biomass Power
Following my previous post on the industry perspectives on the various methods that have to be adopted for sustainable feedstock procurement (http://eai.in/blog/2011/12/industry-perspectives-and-strategies-for-effective-biomass-feedstock-procurement.html), today’s article showcases the various feedstock (emerging) that could be used as a potential source for biomass-based power generation. As you might be well aware, the first generation feedstock such as sugars, starches from wheat, sorghum, sweet potato etc are not widely used for bioenergy production owing to the food-fuel conflicts. Similarly, even the second generation feedstock such as mustard are not being used in a big way for bioenergy production. These days, more focus is being thrown on the advanced feedstock such as the third-generation biofuels ( these seek to improve yields through improving the feedstocks themselves instead of the processes). These feedstocks include those sources that promise to generate greater than 500 gallons of oil per acre per year. Examples include palm oil and algae oil, rapeseed and jatropha oil, grasses (switchgrass, miscanthus), trees (willow), halophytes (saltwater plants). Provided are some details of the emerging biomass feedstock such as camelina, miscanthus and bamboo and their potential to perform as a bio-fuel. Miscanthus: Miscanthus, also known as Elephant grass can grow up to 3 meters high and it is native to tropical and sub-tropical regions of Africa and South Asia. Miscanthus is mentioned as a biofuel crop because of its relatively high dry matter yields across a range of environmental and soil conditions. The Miscanthus genotype most commonly recommended for biofuel production is a sterile hybrid (Miscanthus x giganteus) believed to be a M. sacchariflorus x M. sinensis hybrid. Miscanthus utilization in the biofuel industry is primarily for combustion in power plants – it has the desirable properties of low water and ash contents. Current research is focused on its potential as a biomass crop for direct combustion and for lignocellulosic conversion to ethanol. Giant miscanthus has been studied in the European Union and is now used commercially there for bedding, heat, and electricity generation. Most production currently occurs in England but also in Spain, Italy, Hungary, France, and Germany. Recently, Japan and China have taken renewed interest in this native species and started multiple research and commercialization projects. In the United States, research began at the University of Illinois at Urbana-Champaign in 2001 and has expanded rapidly to other U.S. universities. However there is currently little published information on giant miscanthus yields in the United States. Bamboo: Recently, bamboo has received increasing attention for producing biofuel because of its easy propagation, vigorous regeneration, fast growth, high productivity and quick maturity. Bamboo is an efficient user of land, and produces more biomass per unit area than most tree species. But the process of converting bamboo cellulose into liquid fuel is difficult to execute efficiently because of the extraordinary density of the plant. However, new research from Mississippi State University hold clues for how scientists can learn to more easily break down bamboo, and thus more efficiently extract biofuels from all other cellulose sources using the bacteria from pandas’ waste. If the researchers are successful, the manufactured enzymes could be used in a new, much cheaper and more efficient process for converting bamboo and other woody plants into biofuels. Fuel properties and potential as a bio-fuel of different bamboo species:
| Species | Moisture content | Density | Ash content | Energy content |
| % | g/cm3 | % | MJ/Kg | |
| B.pallida | 44 | 0.61 | 1.91 | 18.63 |
| B.tulda | 37 | 0.65 | 1.92 | 18.61 |
| D.asper | 37 | 0.77 | 4.23 | 17.92 |
| D.membranaceus | 43 | 0.62 | 4.99 | 18.81 |
| G.apus | 35 | 0.76 | 2.00 | 18.14 |
Future Feed-in-Tariff Trends for India – for Wind, Solar and Other Renewable Power Sources
It is an open secret that renewable power requires incentives - these usually are in the form of capital subsidies, tax incentives and most importantly, via feed in tariffs. It is a million dollar (make that Billion Dollar) question what the future of feed in tariffs will be for the mainstream renewable power sources. I picked up some resources on these. Wouldn't say they provide a peek into the future, but at least one of these try telling us how the government arrives at these numbers, so that will provide us with some clues. Go through the following links when time permits Link 1 Link 2 Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
How Biogas-based Power Generation is Picking up Pace in India
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Most of us have come across the gobar gas – literally meaning gas from the cow. It is the same as what is called biogas. This is the gas that is released when bacteria feast on organic matter – typically human and animal feces – and release a gas that is about 50% methane. While biogas had predominantly been used earlier for heating purposes, its use for power production is also beginning to show a marked rise across the world, and in India too. How is power produced from biogas? The process is actually quite simple. Step 1 is generation of biogas. This is done typically using what are anaerobic called digesters. Animal (or human) waste is fed into the digester, where the microorganisms (called methanogenic bacteria) act upon it. Depending on the type of digester, it could take anywhere between 10 days to 15 days for the waste to have been "digested" by the bacteria and the release of biogas. The biogas thus produced can be used in IC engines specially devised for the use of biogas. These engines are similar in working principles to diesel engines and natural gas engines. These engines produce electricity from biogas. A bit of observation will lead us to easily understand why this concept will be of enormous interest to specific industry segments. Two segments stand out - industries that employ large numbers of animals and sewage treatment plants that treat human waste. Both these segments have started benefitting from this concept; as a result, we have a few STPs (sewage treatment plants) already generating power from the sludge generated (one of the STPs at Chennai, at a town called Nesapakkam, generates about 500 kW of power from the waste, and uses the power generated for all its electricity purposes). Some numbers will help understand the potential available for power generation from biogas. The cow population of India (about 225 million) alone generates about 800 million tons of wet dung which translates to about 150 million T of dry weight. 1 Kg of dry cow dung can generate about 1.2 kWh of electricity (it can generate the equivalent of about 4 kWh thermal). Thus, if all cow dung were converted to electricity, that would be 1.2*150*1000 million kWh = 180 TWh. India generated a total of 855 TWh in 2011-12. This implies that cow dung, if entirely converted to power, would have produced about 20% of total India's power! If the waste of other cattle and human waste were also taken into account, this could be about 30%. That is an awesome number. Of course, these data hide the actual difficulty in converting even a small portion of animal or human waste into electricity, owing to the infrastructural and social problems associated with these. All the same, waste -> biogas -> power is quite practical to a whole host of industries for whom such waste is available on premises. More information about waste to energy in general in the Indian context, is available from EAI's waste to energy resource section. Some of the following YouTube videos provide a more visual account of how to generate biogas from organic waste: Biogas from food waste - ARTI - http://www.youtube.com/watch?v=BGSl72xZHNk&feature=related Bio-gas from kitchen waste and bio mass - http://www.youtube.com/watch?v=uppVZGS7bYI&feature=related Biogas from Vegetarian Food Waste - http://www.youtube.com/watch?v=NZFrPZZIFTs&feature=related Biogas from Human Waste - http://www.youtube.com/watch?v=_m1nr2v5S8o And while on sewage, human waste and toilets, etc, a couple of interesting articles on things are emerging New toilet technology after 150 years of waste The seat of power - Better sewage treatment is the latest thing in clean energy Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsHow Punjab Will Benefit from All Its Agricultural Residue- A Case Study
Agricultural residues never go to waste. Not when they can be used for generating energy. In this context, the government of Punjab, India, plans to produce about 1,000 MW of green energy from livestock residues by 2015. When you think about it, this has huge economical and environmental benefits. In a region where large quantities of cattle manure become a major pollutant, this could be seen as an opportunity that could open a lot of doors. Aside livestock residues, the state also generates nearly 21 million tons of rice stalks and similar biomass plant wastes annually, which can all go into the production of green power. The state government is thus planning to make renewable resources as the source of their power to contribute 10% of its total energy production in the next five years. It is worthy to mention that Punjab already runs a biomethanation facility with a capacity of 1 MW, in a location close to Ludhiana. The facility uses methanogens (microbes that produce methane as a metabolic by-product) for the manufacture of methane gas. It currently uses 235 tons of cattle wastes to generate 18,000 kWh of electricity in addition to producing 45 tons of organic fertilizer every day. Also, the Punjab Energy Development Agency has developed 318 MW of green power projects, which includes the Ludhiana plant, till date. These projects comprise 37 MW of small hydro facilities, 28 MW of biomass power facilities, 250 MW of biomass co-generation facilities and 2 MW of solar projects. The agency also develops 132 MW of green power projects currently, which include 11 MW of hydropower, 100 MW of biomass co-generation and 20 MW of traditional biomass. If everything goes right and operational, the state will generate 700 MW of green power by 2012. That’s big! It is worthwhile to note that the planters are also getting an income of nearly RS. 4,000 per acre every year in the process of marketing agro wastes to biomass facilities. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Industry Perspectives and Strategies for Effective Biomass Feedstock Procurement
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
One of the most critical bottlenecks for biomass power plants is the supply chain bottlenecks that could result in non-availability of feedstock. A related problem is the volatility, or more precisely increase, in the feedstock price. Both these could render the project unviable. Highlighted in this article are some of the industrial perspectives in overcoming barriers for procuring a balanced feedstock supply. EAI’s research with industry experts suggest that there is no established biomass value chain that exists in India for the procurement and transportation of the biomass feedstock. Typically, the facility staffs from a biomass gasification plant acquires biomass from several to dozens of small-scale biomass suppliers on a relatively informal, non contractual basis; although some have considered the use of aggregators, there is no data or proof available from the Indian biomass gasification companies that have engaged such a service as yet. The biomass procurement model that is typically followed in India is discussed below: Route #1 – Biomass Producer -->Transport Contractor --> Biomass Collection Centres (BCC’s) --> Power Producers The biomass producer i.e. the farmers/mill owners hands over the feedstock to a transport contractor who in turn delivers the feedstock to the biomass consumers or BCC’s. The BCC’s (managed by the biomass consumer) pay the farmers and the power producers collect the feedstock from these collection centres as and when required. At some instances, the farmers deliver the feedstock in the power producer’s facility and get directly paid for it. Route #2 - Biomass Producers --> Waste Processing Mills -->Biomass Power Producers For feedstock where further processing is required, the farmers/mill owners deposit the feedstock in waste processing mills. From the waste processing mills through a transport contractor the feedstock is deposited in the BCC’s or directly in the power producer’s facility. In some cases, especially in briquetting, the processing is done in the collection centres itself where a mobile briquetter is taken and the briquettes that are processed are directly delivered to the facility or collected by the power producers. Key Strategies to be Followed for Effective Biomass Feedstock Procurement EAI’s interactions with the industry reveal that the following strategies have to be adopted in order to bring both the availability and price of biomass under control:- Security should be addressed by obtaining a written formal supply agreement with a reputable, local supplier. A five-year signed supply agreement with pricing and minimum volumes can go a long way in helping to secure necessary financing. A bioenergy project that is totally reliant on only one source of feedstock will be at risk, so two supply contracts are even better. This will also allow one to negotiate a better feedstock price, as the supplier will benefit from a long-term relationship and a guaranteed market. An interested lender needs to know that both the feedstock supplier and bioenergy processor are committed to the project.
- It can be beneficial to hire an independent professional to verify one’s biomass supply projections and double-check that the feedstock supply is sustainable over the long term
- Backward integration and own captive biomass source (one company, Orient Green Power, is even trying out a novel technique of going for energy plantations on their own wind farms)
- According to the Washington based biomass supply company ‘Powerstock’, for a well-managed supply, an inclusive definition of biomass is needed. The company is also taking efforts to educate the public on the value of well-managed, productive forests.
- The bottom line of feedstock security is composed of several aspects: grower relations, harvesting, marketing, equipment utilization, proprietary techniques and agricultural economics. Hence it's important to manage the entire process from seed to market.
- The supply sector needs to make the transition from a residues-based approach to an integrated, dedicated feedstock supply system using energy crops, plus residues.
Key Indian Players in Biomass Gasification based Power Production
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Biomass gasification, with its capability to work in kW scales (as low as 20 kW) and its ability to utilize a wide and diverse range of biomass feedstock is ideally suited for rural areas without access to power but with easy access to significant amount of biomass. Discussed in this post are some of the prominent players in India which use biomass gasification for power production Summary of Prominent Independent Power Producers using Biomass Gasification in India| Company | Location | Plant Location(s) | Cumulative Installations |
| Clenergen Corporation | Chennai | Tamil Nadu, Karnataka | Cumulative capacity of 19.5 MW in operation and 20.5 MW under construction |
| Green Infra | Delhi | Orissa and Bihar | The company is developing five biomass power projects with a cumulative capacity of 68 MW. |
| Greenko Group | Bangalore | Chattisgarh, Karnataka, Andhra Pradesh | 41.5 MW from 6 biomass power plants |
| Husk Power | Bihar | Bihar | HPS had 65 fully operational plants, and a further 10 under construction or starting operation. 48 plants are wholly owned and operated by HPS, and the other 17 run under some type of franchise or partnership. HPS’ plants have capacity of 35-100 kW each. |
| All Green energy | Bengaluru | Karnataka, Tamilnadu and Madhya Pradesh | 10 biomass plants have been proposed to set up with a capacity of 6.5 MW each. |
- 8 MW Ecofren power project in Chhattisgarh
- 8 MW ISA power project in Chhattisgarh
- 7.5 MW power project in Karnataka
- 6 MW project in GEPL, Kadapa, Andhra Pradesh
- 6 MW project in Andhra Pradesh
- 6 MW Roshini Power Project in Andhra Pradesh
Potential for Biomass Power in India
Biomass based power generation is a choice of reality under the geographical regions where a sustainability exists in the flow of biologically raw materials for the production of power and India is one of the most notable universal giants for the production of biomass based power which can be best understood from the estimates of its biomass availability and the power produced from it. India has biomass production of 546 million tonnes per year from the agricultural sources alone to generate electricity at a capacity of 17,982 MW and its overall production of power from renewable sources stands at 34961 MWe in 2010.A calculated annual growth rate for the next decade realistically and optimistically is above 42,000 MWe and 48640 MWe respectively. The development of biomass based power is further enhanced by the Government regulatory policies by declaring duty exemptions’, tax breaks and financial incentives etc. The cost of producing electricity from biomass is affordable at Rs: 2.25-3.25 / kWh. In spite of all these attempts biomass based power generation is at its infant stage because of hindering factors such as feedstock availability, transportation, price volatility etc. India to emerge as a role model must utilize its renewable energy sources to a large extent, develop dedicated energy crops, establish end user market for co-products such as charcoal, biochar, activated carbon, and implement energy efficient technology for economically feasible power generation on a massive scale. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
PRESPL Secures ₹4.1 Million Investment from Mitsui for Biomass Growth
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Mitsui, a leading Japanese conglomerate, has recently invested ₹4.1 million in Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), a company focused on collecting agricultural residues and converting them into biomass briquettes and pellets. This investment underscores the growing potential of the Indian biomass sector, which is expected to witness significant growth in the coming years.
The Indian biomass market is estimated to be valued at around ₹50,000 crore and is projected to reach ₹1,00,000 crore by 2025, driven by factors such as the Increasing demand for renewable energy, Growing awareness of environmental concerns, and Supportive government policies.
The Indian biomass sector is also witnessing a surge in international collaborations, with several prominent companies entering the market through partnerships and alliances. For instance, Aramco, a prominent oil and gas company, joins forces with ReNew Power, India's largest renewable energy company, to explore opportunities in developing and deploying low-carbon technologies, including biomass-based power solutions. This collaboration signifies the growing interest of leading energy giants in exploring cleaner alternatives.
Additionally, Danish Biogas's collaboration with the Maharashtra Energy Development Agency (MEDA) brings together expertise in advanced biogas technologies with experience in promoting renewable energy and rural development in Maharashtra. This partnership contributes to a more sustainable waste management system through biogas generation..
These strategic partnerships are just a glimpse into the exciting developments propelling the Indian biomass sector forward. The government is also playing a crucial role in accelerating its growth through supportive initiatives like subsidies for setting up biomass power plants and briquette/pellet production units, promoting dedicated energy crops and efficient residue collection systems, and providing tax benefits for biomass projects. Investments in research and development are also being made to improve conversion technologies, optimize feedstock utilization, and develop cost-effective biomass solutions.
Navigating this complex ecosystem requires a comprehensive understanding of the key players involved. The Indian biomass value chain comprises various stakeholders, including biomass producers like farmers and forestry companies, collectors and aggregators responsible for managing feedstock collection and storage, processing and conversion companies that transform biomass into usable forms, original equipment manufacturers (OEMs) who create machinery for the sector, suppliers providing essential goods and services, power plants and industries utilizing biomass-based fuels, and government agencies responsible for regulation and promotion.
Beyond the core value chain, the adjacent value chain plays a crucial role in supporting the sector's growth. This includes financial institutions offering loans and investments for biomass projects, research institutions and universities engaged in R&D advancements, and non-governmental organizations (NGOs) promoting sustainable practices and advocating for policy changes.
Indigenization remains moderate to low currently, with reliance on imported technologies and equipment. However, government initiatives and rising demand are expected to gradually increase domestic capabilities in the coming years.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Primary Routes for Power from Biomass
The three primary routes for biomass to power are: Combustion, Gasification and Anaerobic Digestion. Combustion is easy to understand – instead of using coal or other fossil fuel, use biomass to produce steam that runs a turbine. Combustion of biomass for power could either be in the form of co-firing (when it is burned along with coal) or pure play biomass based combustion. In the case of gasification, the biomass is first gasified and this gas turn produces power in a gas engine. Anaerobic digestion is usually applied to biomass that typically have a high amount of water in them (anaerobic digestion is most used for treating organic waste such as kitchen waste and sewage waste into energy). Under this route, microorganisms act upon the organic matter present in the biomass under anaerobic (absence of air) and convert it into biogas. An emerging route for biomass based power is pyrolysis. In this, the biomass is rapidly heated to 450 - 600 °C in absence of air, and results in a bio-oil called the pyrolysis oil, which can in turn be used for firing the boilers. Typically, 50 - 75 % (by weight) of the feedstock is converted into pyrolysis oil. Pyrolysis as a method for power production is not well established currently in India or elsewhere in the world. Typically pyrolysis plants work well beyond 2 MW scale, while gasification plants work well until 2 MW scale, at the current technological progress. Thus, it can be said that pyrolysis takes off where gasification ends. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Prominent biomass feedstock for gasification
Biomass for power generation by combustion or gasification is normally variable in its chemical composition of electron rich reactants, ash content, moisture, sulphur and nitrogen content etc. As a result, selection of the most convenient feedstock is an issue of debate. The degree and diversity of contaminants strongly influence the production and purification of synthesis gas in gasification while they tend to have a minimum effect in the combustion process. Independant of these disturbances virtually any raw material applied in power generation process should be a matter with potentials. In India, a vast array of feed stocks are utilized for power generation but the most wide ones are farm and mill wastes, woody trees, energy plantations and other green manure crops. Preference is made on the basis of availability, cost, bulkiness of the material, pre-processing, storage etc. Biomass used in India yields varying level of energy but it is also the gas engine and generators whose efficiency equivalently determine power generation. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
REC Price Band Revised
The Central Electricity Regulatory Commission(CERC) has announced the floor and forbearance prices to be used for solar/non-solar projects from the FY 2012-13 upto 2016-17. The prices set are shown in the table below
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Prices (2012-2017) | Current | % Reduction | Prices (2012-2017) | Current | % Reduction | |
| Forbearance Price | 3300 | 3900 | 15.38 | 13400 | 17000 | 21.18 |
| Floor Price | 1500 | 1500 | 0.00 | 9300 | 12000 | 22.50 |
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Proposed | Current | % Reduction | Proposed | Current | % Reduction | |
| Forbearance Price | 3480 | 3900 | 10.77 | 13690 | 17000 | 19.47 |
| Floor Price | 1400 | 1500 | 6.67 | 9880 | 12000 | 17.67 |
- Non-solar – the floor price remains unchanged. Thus biomass/wind generators are expected to get the same minium revenue as they have been getting earlier.
- Solar – the floor price has seen a cut of about 23% from current levels. Although this might seem drastic, it is not likely to have a significant impact on solar power projects (refer section below).
- Average bid price under phase 1 batch 2 of JNNSM could be around Rs. 12.5 /kWh(on the higher side)
- APPC prices could rise by 15% annually (base price used is that of Tamil Nadu) - reasons for this were mentioned earlier.
- REC price after 2016-17 period (i.e. from FY 2017-18 onwards) is reduced by 25%
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| JNNSM Tariff (average) (Rs. per kWh) | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 |
| APPC (Rs. per kWh) | 3.38 | 3.89 | 4.38 | 5.04 | 5.38 | 6.19 | 6.38 | 7.34 | 7.38 | 8.49 |
| REC (Rs. per kWh) | 9.30 | 9.30 | 9.30 | 9.30 | 9.30 | 6.98 | 6.98 | 6.98 | 6.98 | 6.98 |
| Total (Rs. per kWh) | 12.68 | 13.19 | 13.68 | 14.34 | 14.68 | 13.16 | 13.36 | 14.31 | 14.36 | 15.46 |
| REC mechanism's Incremental revenue over PPA(Rs. per kWh) | 0.18 | 0.69 | 1.18 | 1.84 | 2.18 | 0.66 | 0.86 | 1.81 | 1.86 | 2.96 |
Table: REC vs preferential PPA for 10 years post 2012
As can be seen from the above table, the REC mechanism is quite comparable, if not better when compared to the assured tariff provided by NVVN over 10 years of operation of the solar powerplant. Overall, the REC mechanism can clearly drive the solar market, provided the Renewable Purchase Obligation (RPO) is strictly enforced by the various SERCs. The CERC release can be found here. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsREC Trading – November 2011
The REC trading for the month of November concluded yesterday. Figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 105,527 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 96,154 (90%) RECs traded while PXIL saw trading of 9,373 (10%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The price of REC varied between the two exchanges - IEX and PXIL. Non-solar RECs closed with a price of Rs. 2,900 at IEX while the RECs sold at Rs. 2,800 at the PXIL. At the IEX, the prices have seen a 7% rise over those paid last month where the trading price was Rs. 2,700 per REC.
| September | Non-Solar | Solar | ||||
| Buy Bids | Trade Volume | Sale Price | Buy Bids | Trade Volume | Sale Price | |
| IEX | 257,578 | 96,154 | 2,900 | 43 | - | - |
| PXIL | 51,199 | 9,373 | 2,800 | 0 | - | - |
| Total | 308,777 | 105,527 | - | 43 | - | - |
REC Trading – September 2011
The REC trading for the month of September concluded recently. Trading figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 46,362 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 41,385 (89%) RECs traded while PXIL saw trading of 4,977 (11%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The most encouraging part of the trading was the price paid for each certificate. The price of REC grew to Rs. 2300 from Rs. 1800 last month.
|
September |
Non-Solar |
Solar |
||||
|
Buy Bids |
Sell Bids |
Sale Price |
Buy Bids |
Sell Bids |
Sale Price |
|
|
IEX |
196,159 |
76,026 |
2,300 |
7 |
- |
- |
|
PXIL |
30,853 |
9,562 |
2,300 |
0 |
- |
- |
|
Total |
227,012 |
85,588 |
- |
7 |
- |
- |
Interestingly, there are 7 buy bids for solar REC; up from the lone buy bid last month, although this is promising, it highlights a serious issue. As with the previous months, there are no solar RECs available as no projects are registered under REC. This is a worrying trend and is going to put immense strain on the obligated entities to fulfil their solar RPO. The reasons for lack of solar projects registered under REC could include
- Higher payback period for solar projects
- REC prices guaranteed only up to 2016-17
- A combination of the above two greatly reduces the bankability of solar projects
Renewtech India 2011 Conference – Day 2
The details of the first day of the conference is available here. The second day of the The 3rd International Expo and Summit, Renewtech India 2011 conference started with a speech by Mr. D.C. Bhishikar, Managing Director, Clarke Energy India. The topic was “Application of Gas Generated from Waste Treatment for Combined Heat and Power(CHP) Solutions using GE Jenbacher Gas Engine Technology” He mentioned that the company has about 300 MW of installation base in India. He explained the various aspects of the Jenbacher Gas Engine Technology and explained that while a combustion based power generation(ranking cycle) has an efficiency of approximately 28%, the Gas engine technology has an efficiency of about 40%. The next speaker was Mr. Ravinder Tanwar, VP-Operations, Websol Energy Systems Ltd and he spoke on the topic “ Rural Electrification in Sagar Island through off Grid Solar PV Power plants”. In this session, Mr. Tanwar presented a case study of how an off-grid solar PV power plant in the Sagar island in Sunderbans, West Bengal changed the lifestyle of the inhabitants there. He explained the cost of setting up the plant and the challenges that Websol faced in putting up these plants. For example, the Solar PV modules had to be transported to the islands using boats.
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The next session was about “Solar Energy & Hybrids”. This session had speakers from Gadhia Solar Energy Systems, HCL Technologies, Soltigua-Italy and Mahindra Cleantech Ventures. Mr. Badal Shah, MD of Gadhia Solar, spoke about Solar Air conditioning. He briefly explained the principle behind how it works. He also talked about Solar cookers and highlighted the company’s projects in cooking meals at Tirupati and Shirdi temples. One key point he wanted people to remember was that Solar energy can only complement other sources of energy and cannot be a substitute for them. The next speaker was Mr. Vijaya Klnr Pingali, Group Technical Specialist at HCL Technologies Limited. The topic of his speech was “Monitoring for Better Monetization and Implementation” . In his speech, Mr. Pingali highlighted the need for effective monitoring of Solar PV farms. He also described the different types of monitoring with various examples. Mr. Francesco Orioli, Director-Marketing & Sales, Soltigua, Italy spoke on the topic of Concentrating Solar Power(CSP). The firm Soltigua is a market leader in the CSP Parabolic Solar Collectors. Mr. Orioli presented some case studies about some of the CSP projects his firm had undertaken. The next topic was “ Building Robust Ecosystem for Solar Energy in India” and the speaker was Mr. Vish Palekar, Business Head, Mahindra Cleantech Ventures. Mr. Palekar gave a very insightful speech on the development of the Solar sector in India, especially the grid-connected projects selected under the 1st part of the first phase of the JNNSM. He touched upon the following aspects of these projects- Growth drivers – Policy/PPA
- Project Implemention – Financing, Technology selection and execution.
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The third session of the day was on Wind Power. Two speakers spoke during the session – Mr. Renjith Viripullan, Engineering Manager, Onshore systems GE Energy and Mr. Bhagwat Divate, National Technical Manager, Kluber Lubrication India. Mr. Divate spoke on “Wind Turbine Maintenance Technology & Efficiency” and highlighted various challenges in the maintenance of Wind Turbines. He explained the tribological features to be kept in mind during maintenance and also the importance of lubricants. Mr. Virupullan spoke about “Wind Turbines for Low Wind Speed Market” . His speech included the definition of low speeds, challenges and opportunities in this segment.-
The final session was titled “Case Studies on Applications of Renewable Energy”. The following were the topics and the speakers.- “Innovative CDM Based Renewable Energy Projects” – Dr. Ram Babu of General Carbon
- “Solar PV Pumping system for Landscape Irrigation Application” – Mr. Vilas Erande of Samved Energy Systems
- “Waste-to-Energy Application” – Mr Soumya Bhattacharya, Concord Blue
- Tidal & Geo-Thermal Energy
- Energy Efficiency
- Quality and Certification of PV Solar Cells.
Renewtech India 2011 Conference – Day 3
This is my final post on the Renewtech India 2011 conference. Click here for details on Day 1 and click here for details of Day 2. The final day of the event had 3 sessions. The first session was titled “Tidal & Geo-Thermal Energy”. The first speaker was Dr. Ritesh Arya, Hydrogeologist & Groundwater Consulting in Himalayas. He gave a very insightful speech on the topic “Geothermal potential in India – A Review”. He highlighted the fact that India has more than 10 GW potential in the Geothermal space. He made an interesting point that while Solar, Wind and other forms of energy are renewable energy but not sustainable energy whereas Geothermal energy is a sustainable energy. He described how the heat of the magma under the ground can be harnessed to generate steam for heating applications and power generation. He explained his experiences in Ladakh and the Himachal region where there are natural hot springs. He also talked about his experiences in Iceland where geothermal energy is available in abundance. In Iceland, the people even grow tropical fruits like banana in green houses heated by the geothermal energy. The next speech of the session was by Prof. S. G. Kanitkar, Head-Green Energy Division, Enviro-Abrasion Resistance engineers Pvt. Ltd. His topic was “Tidal Wave energy”. He started off by describing the differences between the Tidal and Wave energy. The current scenario of harnessing these forms of energy were explained by him. He then provided the technological details about how the Wave energy can be harnessed. In particular, he provided the details of the device his team has developed. The second session of the day focused on “Energy Efficiency”. The following were the speakers 1. Mr. Jens Burgtorf, Director – GIZ-IGEN, Bureau of Energy Efficiency 2. Mr. Martin Wohlmuth of Arqum GmbH – “Resource Efficiency Network India – A Field Report” 3. Mr. G. Gururaja of Avni Energy Solutions Pvt. Ltd – “LED Technology: Its Role in Present Scenario for India’s Lighting Requirement” 4. Mr. Dinesh Shetty of Bureau Veritas Certification – BS/EN 16001:2009 – Energy Management Systems for Reduction of Energy Costs/Green House Gases Emission. As can be seen from the topics of the presentations, the session focused on various aspects of Energy Efficiency. “Quality and Certification of PV Solar Cells” was the title of the final session of the day. This session had two speakers – Mr. Srinivas Chakravarthy, Country Head – Industry Services, TUV Rheinland(India) and Ms. S. Vasanthi, Director – Technology and Marketing at Websol Energy Systems. Mr. Chakravarthy of TUV Rheinland spoke about the module certification process in general and TUV Rheinland in particular. He started off by explaining the various environmental influences during the long term operation of PV modules. This includes solar radiation, temperature, mechanical stress due to factors like wind, atmosphere,etc. He explained the different standards for Performance, safety and qualification. Subsequently, he described the different tests conducted for the IEC or other certification. This includes subjecting the modules to high level of different types of stresses(temperature, sunlight, handling, partial shading, wind, UV rays,etc).He concluded by talking about the various services offered by TUV Rheinland and also about the new test facility in Bangalore. The last speaker of the session was Ms. S. Vasanthi. Her topic was “ Improvement in Crystalline Si PV Modules Through Quality Control and Innovation in Manufacturing Processes”. She explained the various steps in the solar PV cell and module manufacturing process. She described the various quality control measures and some of the common defects like browning of cells. The effect of each of the raw material for a module(metallisation paste, ribbon, flux, encapsulant,etc) on the final quality of the PV module was also discussed. That concluded the 3rd edition of the Renewtech India conference. The 4th Renewtech India conference is scheduled for 16-18 February 2012 at the same venue – Bombay Exhibition Centre, Goregoan, Mumbai.
Rice husk used for power in one of India’s poorest states- A case Study
Whoever thought rice husk can generate power needs a medal! Considering how much rice husks go to waste in a country where rice is the staple food, it is comforting to know fossil fuels are not our only resort for power production. Thanks to Manoj Shinha, a renewable energy entrepreneur pioneered using discarded rice husks as biomass to provide energy to Bihar, one of India’s poorest states. Mr. Shinha along with his colleagues Gaynesh Pandey, Ratnesh Yadav and Charles W. Ransler developed Husk Power Systems to address the situation of poverty in their home state of Bihar. Many villages in India live off the grid in the darkness, this new advancement means that they need not depend on grid for electricity, rather generate their own clean, affordable electricity.The company generates and sells electricity for a price that is less than half of what the villagers pay for kerosene. This was possible because the whole concept is focused on research and development investment to simplify energy production and transmission, such as using bamboo instead of cement posts to install power lines.And, since communities no longer use kerosene, wood or dung for electricity, this way of electricity generation lowers the environmental and health hazards. In addition, rice husk ash, a byproduct of the gasification process, can be used for concrete production thus reducing the amount of high-carbon Portland restless leg syndrome cement.On average, a single power plant serves 400 houses, replacing 42,000 liters of kerosene and 18,000 liters of diesel yearly. As of August 2010, H.P.S. has sequestered 50,000 tons of carbon dioxide. Currently, they have installed over 60 mini-power plants that are 100 percent biomass-based which supply power to over 25,000 households in more than 250 villages.With the market opportunity in mind, they aim to expand their business to bring clean electricity to Indian villages by installing 2,000 new plants by 2014 beyond Bihar.
Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Sael: A $10 Million Spark for India’s Waste-to-Energy Future
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
In a move that highlights the growing potential of the waste-to-energy sector in India, Norfund, the Norwegian Investment Fund for Developing Countries, has invested $10 million in Sael, an Indian company that converts agricultural waste into clean energy. This investment will help Sael expand its operations and contribute to India's clean energy goals.
Sael is a leading player in the Indian waste-to-energy sector. The company uses a proprietary technology to convert agricultural waste, such as rice straw and sugarcane bagasse, into clean energy. Sael's plants generate electricity that is fed into the grid, helping to reduce India's reliance on fossil fuels.
Indian waste-to-energy market
The Indian waste-to-energy market is expected to grow at a CAGR of 20% over the next five years, driven by factors such as increasing waste generation, growing awareness of environmental issues, and government support for renewable energy. The market is currently estimated to be worth around $1 billion, and it is expected to reach $5 billion by 2025.
The market is booming with investments pouring in and cutting-edge technology emerging. However, hurdles like complex regulations, limited financing, and public concerns exist.
Key players include waste-to-energy companies, waste management companies, power producers, and government agencies. Recognizing the immense potential of the Indian market, foreign and domestic players are joining forces to unlock the power of waste-to-energy (WtE). Joint ventures like Sterling & Wilson and Hitachi Zosen's 50 MW plant, or Arc Energy and Wheelabrator's 60 MW project, are testaments to this collaborative spirit. Beyond developers, waste-to-energy companies are forging partnerships with waste management firms like Ramky Enviro Services to ensure consistent, high-quality feedstock.
This synergy extends to research institutions and technology providers as well, with Tata Power and IIT Bombay developing advanced gasification technology and Vedanta partnering with Neste for co-processing expertise. These collaborations are crucial for navigating local complexities, accelerating technological advancements, and ultimately achieving India's WtE ambitions.
The government also actively supports WtE with feed-in tariffs, tax breaks, and streamlining regulations. Recent investments and project announcements showcase the sector's potential. Technological advancements like plasma gasification and bioreactors promise improved efficiency.
Challenges include inadequate waste segregation, public opposition, and fly ash management. Continued government support, public awareness campaigns, and innovative solutions are crucial to overcome these hurdles.
Overall, India's WtE sector holds immense promise for sustainable waste management and clean energy generation. By addressing challenges and seizing opportunities, India can turn waste into a valuable resource for a brighter future.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Tamil Nadu’s Biomass Power Plans – Energy Plantations is the Answer?
Biomass is one of the renewable energy domains in which Tamil Nadu could have significant potential for progress in future. Estimates suggest only about 10% of the potential has so far been utilized. Of course, the lack of a robust supply chain that make create supply and price security is a problem as much in Tamil Nadu as it is in the rest of the country. Some inputs and updates for biomass power in Tamil Nadu are provided below.
- Potential for Biomass based power in Tamil Nadu is 1589.9 MW (1160 MW based on agricultural waste and 429.9 MW from forest and wasteland cultivation).
- 22 biomass power plants with total installed capacity of 169 MW are in operation.
- Ten biomass power plants with totaling to 120 MW, with over 80% plant load factor, have faced temporary shut downs owing to unviable tariff rates and increasing feedstock cost.
- Biomass power producers association has approached Tamil Nadu Electricity Regulatory Commission (TNERC) with a request to revise the tariff and offer higher annual tariff escalation. The viable rate for operating biomass power plants in years to come would run beyond Rs 6.50/kWh, but the current tariff of Rs 4.5/kWh is in no way adequate to sustain the projects in the long run.
- Tamil Nadu Energy Development Agency (TEDA), along with Tamil Nadu Biomass Power Producers Association, has been actively involved in promoting large scale energy plantations in marginal / waste land in the state with high potential crops.
- The Tamil Nadu Biomass Power Producers Association suggests that energy plantation would not only serve to provide cheap and continuous feedstock supply for power plants, but it would also improve the quality of life of the rural population. Estimates suggest that a 10 mw biomass power plant can ensure livelihood of over 2,000 marginalised families. They can be employed in collection, transportation, cutting, chipping of biomass and cultivation of wasteland with energy plants like Juliflora, Bheema Bamboo etc.
The man propelling the bio-energy movement in India – PRESPL
Welcoming Lt Col Monish Ahuja to CLIMAFIX SUMMIT 2022 - the 1st summit for Indian climate tech startups. I'm sure you have heard the saying, "Water, water everywhere, not a drop to drink" That applies quite well to the Indian agricultural residues as well. Hundreds of millions of tons of agro waste around the country, but very little available for the industries to use. And worse, a good portion gets burnt on the fields because the farmers do not know what to do with them. So where's the challenge? What is broken in this system? To a significant extent, logistics, or rather the lack of it. Securing and transporting millions of tons of agricultural waste from hundreds of thousands of farmers and transporting it reliably to end users is not rocket science. But it is systems science. Discipline science. Or patience science, if that term is more endearing to you. In EAI's decade long work in the bio-energy sector during which we consulted for dozens of clients including the likes of GSK (#Horlicks division, now part of Unilever), we have seen how unorganized the agro-waste supply has been, except for bagasse coming straight from large sugar mills and to a lesser extent saw dust from plywood factories. It is a complex challenge of logistics, societal & local traditions, and of course the omnipresent politics. The sector needed someone who could wade through all these, build an efficient system and evolve an organized biomass supply chain. Enter Lt Col Monish Ahuja. Army discipline, Systems thinking. Business acumen. These characteristics have helped him build Punjab Renewable Energy Systems Private Limited (PRESPL) into a force to reckon with countrywide in industrial biomass supply. PRESPL is today is one of the few organized players that has the ability to provide industrial decarbonization on scale through biomass, supplying thousands of tons of agro-waste based biomass every day to industries. I remember sitting with him in his office in Navi Mumbai a few years back when he patiently took me through the process by which he was building an effective front-end logistics system while also putting together a scalable digital back-end system. While coming out from the meeting, I thought - finally, here's someone who appears to be just what the doctor ordered for India's bio-energy sector. Since then, his company has - not surprisingly - grown and grown. Hats off to Monish, and we are proud to have him as one of the experts who will share his insights at the CLIMAFIX SUMMIT 2022, India's first climate startup summit, Nov 25 & 26, Chennai, organized by the Climate Startup Intelligence division CLIMAFIX of EAI (Energy Alternatives India) & Energy Consortium - IIT Madras Welcome Monish, and here's hoping you inspire more of your breed - and soon. More about CLIMAFIX SUMMIT, India's first summit for climate startups
VC / PE Perspectives and Opinions on Biomass Power
Indian VCs have not really done a good amount of investing in cleantech. Cleantech perhaps is not really a VC game as it is more of an engineering related discplie that does not offer the types of scalabilitiees that VCs desire or the exit periods. VCs also do not understand cleantech well enough to take calls. Many cleantech deals, especially in the power segment, are PPA based, with limited upsides, not typical VC games. Many cleantech and renewable energy startups require capital that is much higher than what VCs can typically offer to invest. Predictions for Cleantech VC in 2011 - Kachan & Co.'s Dallas Kachan looks at what 2011 will have in store for cleantech (http://alwayson.goingon.com/node/66783 ) Sustained worldwide venture capital investment will continue to cede importance to corporate and non-institutional capital. A return to early stage venture investments - predict a return to early stage venture capital investing in cleantech in 2011. Energy efficiency emerges as the clear rock star of cleantech. Biofuel investment could reach former highs. Recycling and mining will attract more investment. Natural gas emerges to threaten solar and wind for utility renewable power generation. China becomes the most important market for cleantech: if you're not selling in China, you won't matter. There is a significant amount of interest among PEs for investments in both traditional and renewable energy. PEs – not surprisingly – are not very keen on risky technology bets in renewable energy, but are OK with business model risks. Some of the PEs (such as IFC, ADB etc) are willing to take fairly long-term views (with over 10 year horizon). Investment sweet spot ( in terms of the quantum) varies from fund to fund, but obviously for most of the blue-chip, it is upwards of $50 million. PEs are well aware of the regulatory and societal bottlenecks that could arise in large-scale energy sector investing (especially for coal-based and large-hydro based sectors). Many PEs are clear that they wish to invest in businesses that can stand on their own revenues (even if takes a while) and are not keen on business plans that rely on getting bought out. Most every PE acknowledged that while they might not like coal, it is here to stay as the largest contributor to power for the foreseeable future. PE arms of organizations such as IFC and ADB, while not shutting out the option of investing in coal-based or natural gas based power plants, have a mandate to decrease their exposures to these “non-green” sectors. What a PE can bring to the table - Many private equity funds have been able to provide not just the financial support required but also strategic support and value-add for the firm’s growth. Disconnect in Valuation expectations - one of the issues faced by PE players while investing in cleantech companies is the disconnect in valuation expectations between the entrepreneur and investor with the buoyant public markets resulting in an increasing buoyancy in expectations! PEs feel that entrepreneurs should take a longer term view while setting their valuation expectations. Currently, 80% of infrastructure projects, and 46% of power projects, are funded by the banking system. So, PEs constitute only a small share of the infrastructure projects. While private equity folks could like IRRs of about 25%, power and infrastructure IRRs is only about 12%. Some private equity companies might wish to play a consolidator’s role as well where they consolidate a diverse portfolio of (say) energy companies such that they win even if 7/10 companies do well enough. Investors such as IFC have specialists/experts in every project to take care of social and environmental aspects. Private equity funds are interested in the macro factors (demand supply gap in electricity et al) as well strategic micro factors. One of the factors that seem to interest PEs is the method for companies to go diversified on green power that is having assets in wind, small hydro, biomass etc together, instead of betting just on one thing alone. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Why Biomass for Power Generation?
Biomass has been used as a source of energy right since mankind started its existence; In fact, one of the predominant energy sources today is biomass. Biomass as a source for power production is not entirely new either. Biomass has been used, in the place of coal, for steam generation at power plants, though in a limited way. Indeed, currently, the predominant method used for producing power using biomass still is the combustion route, At the same time, other processes, such as biomass gasification, which can work at much smaller scales and use the biomass more efficiently are emerging. The newer processes especially biomass gasification based power production, is relevant today especially in the Indian context mainly because of its potential to provide distributed power at rural level, especially for small remote villages that have good access to biomass but no access to grid power, and which require only small scale power production. Biomass based power is also relevant in the context of climate change and global warming as biomass based power production is net carbon neutral. The contribution of bioenergy to the total primary energy consumption in India is over 27% (Source: FAO). This is indeed the case for many other countries, because biomass is used in a significant way in rural areas in many countries. However, the contribution of biomass to power production is much smaller than this percentage – currently, biomass comprises only about 2650 MW of installed capacity, out of a total of 172000 MW of total electricity installed capacity in the country. Besides, biomass power has the following benefits- distributed generation, baseload power, ability to have small, kW scale power production, suited for rural areas and ideal for rural economic upliftment. I believe these are enough to justify why biomass is best suited for power production. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
A Case Study of Clenergen and Yuken’s Gasification Biomass Project
by admin | May 19, 2011 | Biomass Power
Yuken India Limited, set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company Limited, Japan, is a manufacturer of oil hydraulic equipment. Yuken has achieved one of the fastest growth rates in the Indian oil hydraulics industry, in the...A 900 MW Power Plant Running on Biomass? It Could be a Reality in Five Years!
I thought I was never going to see the day when a large power plant would run entirely on biomass. You can understand my pessimism when you are told that a MW of powerplant will require about 8000 T of biomass every year. A 300 MW power plant will hence require an awful 2.5 million T of biomass every year. That's a heck of a lot of, well, anything. Well, there are some courageous folks around the world. Drax in the UK, for one. They are building 3x300 MW furnaces on biomass, and are arranging for a 8 million T biomass supply from around the world. (By comparison, India's total biomass based power production - outside of bagasse power - is only about 1500 MW. So the Drax project alone would be about 60% of total Indian biomass installed capacity!) While I am certainly overawed, good news, I must say. If they can operate it sustainably for a few years, biomass power would have definitely reached a milestone. Will be really keen to know how they plan to manage the supply chain. This is what the news report has to say "The vast majority of the biomass will come from North America, but there will also be locally sourced supplies of willow and elephant grass to power the furnaces. "
A Case Study of Clenergen and Yuken’s Gasification Biomass Project
Yuken India Limited, set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company Limited, Japan, is a manufacturer of oil hydraulic equipment. Yuken has achieved one of the fastest growth rates in the Indian oil hydraulics industry, in the last 29 years. Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation, plans to enter into a minimum 15 years Power Purchase Agreement (PPA) with Yuken to supply up to 2.5MW/h, with the rest of the electricity generated being completely sold out to the National Grid System. The biomass power plants with a capacity of 4 MW/h will be installed and begin operation within 10 months upon signing of the PPA. Clenergen India plans to lease up to 800 acres of non arable land near the manufacturing site in order to grow a high yielding species of bamboo as a source of biomass for the gasification power plant. The bamboo produced is asexual, non-invasive, non-flowering plant with a lifespan of up to 50 years and above all, is a product of tissue culture. This is advancement in the sector of renewable energy, in that the cost savings created from the cultivation of biomass feedstock will allow the supply of electricity at a price lower than the current market prices and will also help to extend the industries’ vertical market penetration into these market sectors. This is certainly moving forward. With ever increasing fossil fuel prices, this is the ideal way to deal with the growing needs and the economy. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Agricultural biomass availability in India for power generation
India is primarily an agricultural nation with an extensive cultivation of different types of crops including cereal, pulses, oilseeds, fibre crops, spices and plantation crops. With the cultivation of these crops, availability of residual biomass after economic harvest makes power generation in a sustainable way. These raw materials are normally available in variable quantities depending on the acreage of cultivation, mass of residue part available. The total biomass is 511,041 kT/Yr for power generation. Among them, rice, wheat and cotton constitute a major portion with 160,000,111,000 and 21,000 kT/Yr to generate power of 5000, 3300 and 3500 MW respectively. The total power generation capacity is 17,400 MW. Besides these crops, maize, jowar, bajra, coconut, groundnut, banana, cassava and mustard are also potent generators of biomass for power to an appreciable extent. It is evident from the information stated above that the agricultural resources serve as excellent candidates for the power generation either by combustion or gasification. However it is important to note that these materials are variables by biochemical composition and moisture. So, standardization is mandatory by defining limits to make them appropriate for thermal decomposition and as consistently yielding materials of electric power. Further plans are required to efficiently collect and store for processing without time delay. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Benefits of Biomass Based Power
While we are striving hard to switch to more sustainable modes of living, there arise lots of issues questioning the efficiency of our choice of green. Despite all the issues they might have, they have more benefits than their petroleum counterpart. After all, petroleum is not going be here forever. So, this post will focus on the benefits of biomass based power, and why is it more suited as a sustainable alternative. Let us look at the distributed generation, because biomass is available in almost all places, and especially in rural areas, and more important, as gasification based power production can be done on small scales (as low as 20 kW), this process can be used for distributed generation of power as against the centralized power production method followed today. Also, biomass based power is well suited to remote villages with no access to grid but access to significant amounts of biomass Secondly, biomass gasification based power production can be done at small scales – as small as 20 kW – unlike other sources of power (say, nuclear) that require much larger scales. This will ideally suit small villages that have only a few households. Also, this whole process could be done in rural areas, where this could open a gateway of opportunities for rural population. Given that a 1 MW biomass based power generation could require biomass growth in over 150 hectares, the opportunities for rural employment are indeed significant. Thirdly, biomass power results in no new net GHG emissions as it is part of the carbon cycle. Unlike coal and others forms of fossil fuel which have been buried millions of years ago and burning them adds to carbon in the atmosphere, responsible biomass energy generation results in no new carbon emissions or pollution. Finally, the efficiency of the biomass power generation process to make use of mostly animal and crop wastes for energy is remarkable. Also, there is a large variety of feedstock which could be used for the process. Aside from these, they also significantly reduce methane in the atmosphere, which being able to be produced economically. I suppose these are enough reasons to switch to biomass power. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Bio-energy Software Development Assistance – Clixoo
Clixoo, a sister division of EAI, brings to the table a unique intersection of renewable energy domain knowledge and high quality software development expertise. Using these, the bio-energy software team at Clixoo can assist companies keen on development support for a range of biomass power plant/heating related software. These include
- Biomass Assessment
- Feasibility Analysis
- CHP
- Bio-reporting Software
Biomass based power
Biomass is a valuable physical mass of biotic factors and ideally suited for the energy generation in different forms for the fulfillment of human demands over time. Even though deep ground fuel resources of biological origin satisfy it comprehensively, the way it is oxidized today on a time scale for energy production alarms the world by a phenomenon called “Global warming”. It forces us to scan for a suitable and sustainable alternative to fossilized biomass and the answer lies with surface dwelling, active biomass which is derived either from live or dead sources for power generation. Biomass can be subjected to power generation by combustion principle which is exactly followed for fossil sources and also is found to have a greater flexibility to generate power than conventional sources. Besides combustion, biomass is readily amenable for gasification where energy as power, heat and synthetic fuels can be derived. Biomass based power proves to be highly profitable under conditions where natural resources such as wood from forests, agricultural and animal sources etc are at abundance. India is a potential hub for this alternative route of power generation but currently holds a marginal fraction of 2650 MW out of its total installed capacity of 172000 MW. It utilizes bagasse co-generation system as its major option for biomass based power production with a capacity of 1411.53 MW achieved till June, 2010. It is important to note that biomass based power is multi-dimensionally advantageous as follows Rural economic upliftment, Suited for rural areas, Ability to have small kW scale power production, Distributed generation, Carbon neutral, Efficient utilization of renewable biological sources and accession of low cost resource. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Boilers Guide – Guide to Pick Optimal Biomass, Processing & Boiler Type
Many companies in India, and worldwide, are shifting from the use of fossil fuels for their boilers to using biomass. Such a transition is not easy though, given the significant differences between biomass and coal or other fossil fuels - differences both in terms of product characteristics as well as the supply chain and other market characteristics. So, how can a company go about making the key decisions in its transition to a biomass boiler? The nice folks at Boilers.Guide have put together a guide that eases this transition, specifically from coal to biomass boilers. This guide helps you iron out many of the uncertainties and questions a typical stakeholder has. The guide provides pointers on what characteristics to look for while selecting the optimal biomass to be used in boilers, selecting the right form (i.e pellets, briquettes, loose) for transportation and storage and selecting the appropriate combustion system and pollution control equipment. The guide is divided into three stages of selection with each stage providing information on the parameters to be considered, the pros and cons and examples to help you set up the most optimal biomass boiler. Get more from the guide itself - Using Biomass for Boilers - the Way Forward. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass conversion to natural gas – is this being followed anywhere?
I and my team might be working on an interesting project where the company is trying to move away from natural gas for its heating purposes and into the use of biomass for the same. The reason of course has to do with economics, with natural gas prices shooting through the roof past couple of years. While we are figuring out ways in which the company could use biomass directly for heating instead of natural gas, this process poses some problems owing to the specific needs of the client. I am hence wondering if the process of converting biomass to natural gas is being followed anywhere. I know that this is pretty much feasible, but not sure about the technology maturity and economics. If there is anyone who is aware of commercial conversions of biomass to natural gas, do let me know. You can include your response in the comment section or send a note to narsi [at] eai dot in. Thank you.
Biomass Gasification for the Environment and Economy
There are a whole lot of benefits from biomass gasification, both economy wise and ecology wise. Speaking of environmental benefits, gasification plants produce significantly lower quantities of air pollutants, which is really a good thing. The process can also reduce the environmental impact of waste disposal because it can use waste products as feedstock, generating valuable products from materials that would otherwise be disposed as wastes. Gasification's byproducts are non-hazardous and are readily marketable and also use significantly less water than traditional coal-based power generation, and can be designed so they recycle their process water, discharging none into the surrounding environment. If that is not convincing, let us look at the economical benefits. Gasification can be used to turn lower-priced feedstocks into valuable products like electricity, substitute natural gas, fuels, chemicals, and fertilizers. For example, a chemical plant can gasify petcoke or high sulfur coal instead of using high-priced natural gas, thereby reducing its operating costs. While a gasification power plant is capital intensive (like any very large manufacturing plant), its operating costs are potentially lower than conventional processes or coal-fired plants because gasification plants are more efficient and require less back-end pollution control equipment. With continued research and development efforts and commercial operating experience, the cost of these units will continue to decrease. The process also offers wide fuel flexibility. A gasification plant can vary the mix of solid feedstocks, or run on gas or liquid feedstocks—giving it more freedom to adjust to the price and availability of its feedstocks. Many predict that coal-based power plants and other manufacturing facilities will be required to capture and store CO2, or participate in a carbon cap and trade market. In this scenario, gasification projects will have a cost advantage over conventional technologies. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Gasification in India to Generate Lakhs of Jobs
Emerging green economy in the country may see creation of nine lakh jobs in India by 2025, a top government official said.
"India could generate nine lakh jobs by 2025 in biomass gasification, of which three lakh would be in manufacturing of stoves and six lakh in areas such as processing into briquettes and pellets and the fuel supply chain," Ministry of Micro, Small and Medium Enterprises (MSME) Secretary Dinesh Rai said.
More from here.
I am not sure if biomass gasification alone could generate almost a million jobs. The secretary appears to have his numbers done for him all right, but I still wonder.
It will of course be good if it comes true. It was only yesterday that I met this gentleman whose company manufactures efficient burners for kerosene stoves and he was quite hopeful about the micro-gasifiers as well.
Let's see how it goes
Biomass Gasification Power Production – Bottlenecks and Barriers
Biomass gasification is a process where materials are transformed by thermal decomposition under partially oxygenated conditions to generate syn-gas for power generation. It seems to be a powerful technique where energy can be produced in a sustainable way along with valuable products such as green oil and biochar but it is multi step process where bottlenecks continuously arises at every step of the production pathway. The most commonly encountered limitations are batch to batch variation in energy content, purification of the syngas, contaminants influence in the performance of the engines, ash and biochar disposals, toxic gas emissions and operational efficiency of the gas engines and mandatory modifications required to make the engines energy effective. In addition to these prime technical problems, others notable hindrances are insufficient capacity of the stakeholders and inadequate institutional and policy framework at the national, regional and local levels and limited access to financing and lack of interest on part of the state electricity boards (SEBs) in promoting biomass power generation etc. In India, conditions are further complicate by lack of working capital, limited interest in power projects, lack of effective regulatory framework and absence of effective information dissemination etc. In spite of the limitations, the technology continues to gain acceptance. Its potential to meet the energy demands on a flexible scale makes a robust move to outweigh the magnitude of limitations associated with it. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Power Plant with Attractive PPA Looking for PE Investors
A contact of EAI is looking for an investor to assist them financially for a 15 MW biomass power plant.
What he is looking for is a capital infusion to the extent of 25 crores, as he has already completed most of the rest.
The promoter is an established entrepreneur who knows his business, and most important, has an attractive PPA with the state electricity board for power purchase at tariff upwards of Rs 7 per kWh. In addition, he has done a good job of ensuring that the biomass supply at excellent prices.
Overall, it appears to be quite a profitable opportunity and should be of interest to private equity investors keen on adding a profitable biomass power plant of a reasonable size to their portfolio.
Highlights
- Power plant is being set up in Maharashtra, and most of the plant construction has already been completed
- Has a strong 13 year PPA, tariff Rs 7.5/kWh for 13 years with state discom.
- Plant in strategic location for feedstock availability
- Have agreements with the local distributors and farmers for resources.
- Total project cost: Approx Rs 100 crores (about $16 million), required infusion: 25 crores (about $4 million)
Cleantech Funds and Their Investments in Biomass in India
Several VCs/PEs/Companies have created funds which invest in clean technology or companies with partial clean technology operations, and have either invested, or are interested in investing in India. Some of these organizations and their investments are summarized as follows.
Company Energy/Cleantech Specific Fund Activity/Investment Shell Group through their Shell Foundation (invested directly or through other funds invested in Husk Power ($1.1M), while New Israel Fund, Dorot Foundation, Nathan Cummings Foundation, Andrea and Charles Bronfman Philanthropies through their Green Environment Fund invested in Greenko Group ($46.3M). Chrys Capital directly and through ChyrsCapital V LLC (through subsidiary Van Dyck invested in Pratibha Industries Ltd (Rs. 50 Crore) and Suzlon Energy (Rs. 50 Crore). Barings Private Equity India Private limited through consortium of PEs invested in Auro Mira ($21 M) whose Investor share was not disclosed. Additionally, Blackstone via their Blackstone Advisors India Private Ltd invested in Moser Baer ($300 M), 3i Group through their 3i India Infrastructure Fund invested in GVK Power and Infrastructure (Rs. 800 Crore) in both conventional and renewable energy. Reliance through their Reliance India Power Fund invested in Su-Kam Power Systems (Rs. 45 Crores), Citi Group CVC International (PE) through Citi Group Venture Capital (VC) invested in Suzlon (Rs. 50 Crores). The above was only the list of highlighted events. The list is actually very exhaustive. As the population increases, and there arises a demand for a more sustainable form of energy, a lot of investments have been made in this sector. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsCons of Gasifiers
The use of biomass gasification for power production is not new, but its use has been so far been limited and its contribution to the overall power production has so far been negligible in India. The producer gas derived from biomass gasification can be used for either producing power (by use in a gas engine) or can be used for thermal applications. With better technologies evolving for both gasifiers and gas engines, it can be expected that biomass gasification could start contributing a lot more to the overall power production in India. For starters, biomass gasifiers are reactors that heat biomass in a low-oxygen environment to produce a fuel gas called the producer gas. The gas produced from a gasifier can drive highly efficient devices such as gensets, turbines and fuel cells to generate electricity. A biomass gasification system consists primarily of a reactor or container into which fuel is fed along with a limited (less than stoichiometric, that required for complete combustion) supply of air. Heat for gasification is generated through partial combustion of the feed material. The resulting chemical breakdown of the fuel and internal reactions result in a combustible gas usually called producer gas. Though gasifiers are really special in their own way, they have their limitations. Gasification is a complex and sensitive process. There exists high level of disagreement about gasification among engineers, researchers, and manufacturers. Several manufacturers claim that their unit can be operated on all kinds of biomass. But it is a questionable fact as physical and chemical properties varies fuel to fuel. Gasifiers require atleast half an hour or more to start the process. Raw material is bulky and frequent refuelling is often required for continuous running of the system. Handling residues such as ash, tarry condensates is time consuming and dirty work. Driving with producer gas fueled vehicles requires much more and frequent attention than gasoline or diesel fueled vehlicles. Getting the producer gas is not difficult, but obtaining in the proper state is the challenging task. The physical and chemical properties of producer gas such as energy content, gas composition and impurities vary time to time. All the gasifiers have fairly strict requirements for fuel size, moisture and ash content. Inadequate fuel preparation is an important cause of technical problems with gasifiers. Gasifier is too often thought of as simple device that can generate a combustible gas from any biomass fuel. A hundred years of research has clearly shown that key to successful gasification is gasifier specifically designed for a particular type of fuel. Hence, biomass gasification technology requires hard work and tolerance. As I said, gasifiers are indeed special in their own way. I’d rather we just wait for the technology to advance in the future to go far beyond its limitations. After all, as I said then and I will again, petroleum is not here forever, and we need more sustainable feedstock and advanced technologies for processing. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Cool Solutions for Your Hot Problems – Getting Your Heating Costs Under Control
Sustainable Industrial & Commercial Heating Solutions - A Critical Pain Point
No, this blog post is not about those hot problems. It is about problems companies, especially in the manufacturing sector, face for their heating requirements!
With the prices of furnace oil, diesel and LPG increasing alarmingly in the past few years, companies suddenly find their costs of their energy shooting up to unaffordable levels.
Suddenly, using renewable and sustainable energy sources such as solar and biomass, and utilizing heat that was wasted earlier appear to be the way forward.
I hence thought I’d provide an overview of renewable and sustainable options available for heating requirements in factories.
The following are the sustainable heating avenues that are technically feasible today:
- Solar Water Heater
- Biomass
- Waste Heat Recovery/CHP/Cogen
- CST (concentrating solar thermal)
- Energy efficiency heating equipment
- Back pressure steam turbine
Biomass Energy for Reducing Dependency on Furnace Oil, LPG or Diesel
Reducing Fossil Fuel Use at Industries & Commercial Units through Use of Biomass Energy
Also check out:
EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Product
Costs of feedstock for Biomass gasification
Biomass gasification utilizes renewable feed stocks for liberating the synthesis gas by thermal decomposition under high temperature conditions. Among the factors affecting the production protocol, cost economics play a critical role and is well pronounced in cases when the scale of operation is magnified. Entrepreneurs of gasification technology often make contracts with farmers or traders so as to ensure a price security and timely uninterrupted availability of their concerned feed commodity. In spite of the strategies, price fluctuations in gasification feed stocks have been witnessed, for instance cost of rice husk was at Rs: 600/tonne in 2009 but has steeply increased to Rs 1800/tonne by the end of 2010 and such an extreme volatility in market prices causes a concern to buyers and affect the final price of the power/unit produced by biomass gasification technology. Lack of price security has produced an unique trend in gasification where the venturers start their own farms for feed stock production which they claim that it can cut costs by two-third of the actual cost and seems to be working well in particular with dedicated energy crops. Gasification technology is well balanced economically as entrepreneurs have a scope to sell biochar by-product which fetches good market price to compensate for the cost procurement of the feedstock. Socio-economic and technical factors continuing to challenge the progression of gasification but the productivity makes it a superior choice that cannot be camouflaged. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Current Status of Biomass Gasification in India
India has initiated its power generation from renewable sources by several different principles namely gasification and combustion. Biomass gasification is carried out at different power capacity levels ranging from 25 kW to 2 MW and above. When a comparative analysis is made between combustion and gasification of biomass, the former technology is best operational under high capacity installations while the inverse is true for the gasification. This peculiar advantage seen in gasification to operate at smaller ranges makes the technology suitable for adoption in rural and by small entrepreneurs where power generation is required rather than efficiency. The technology even though best functions with high range installations of 2 MW, its utility is obstructed by the demand for a series for engines and India has less than 10 installations so far. Gasification technology is really ideal where resources are randomized and adoption of any other technology is tedious on a financial scale. Gasifiers are flexible to operate which makes the user to follow any technology depending on his requirements to a limited extent. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Decarbonizing India’s Energy Sector by Biomass and Biofuels
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
In India, 22% of the total energy supply is renewables, with biomass contributing 85%. Biomass use is shifting from traditional residential heating to power production. Biofuels represent less than 1% of transport fuels, with bioethanol at 3% of gasoline consumption. The biomass market is projected to reach INR 32,000 crore by FY2030-31. India produces 450-500 million tonnes of biomass annually, with a surplus of 230 MMT/year. Biomass-derived energy constitutes 32% of India’s primary energy use. The biomass pellet manufacturing capacity is 2.38 MMT, with 83,066 MT co-fired in 39 thermal power plants.
Reliance Industries Limited (RIL) is transitioning from fossil fuels to renewable energy, including biofuels, for its energy demand. This involves using bio-pathways to fix CO2 and recycling materials across value chains. RIL plans to set up around 100 Compressed Biogas (CBG) plants over the next five years, consuming over 5.5 million tonnes per annum of agricultural residue and organic waste. This initiative is projected to reduce nearly 2 million tonnes of carbon dioxide emissions annually. In essence, RIL’s decarbonization strategy involves renewable energy, biofuels, recycling, and CBG plants.
Thermax, an Indian energy and environment engineering company, is decarbonizing its manufacturing processes using biomass and biofuels. Its subsidiary, TOESL, installs biomass-fired plants and sells steam. Thermax’s solutions include the Atmospheric Fluidised Bed Combustion Boiler, capable of using various fuels including coal, lignite, rice husk, petcoke, spent coffee ground, washery rejects, low ash coal, paper sludge, roasted chaffs, DOB, bagasse, pith woodchips, coffee husks, mustard stalk, cotton stalk, and char. Thermax has secured an order worth over Rs 500 crore to set up five bio-CNG plants across India, with a capacity to produce 110 Tonnes Per Day of bio-CNG, utilizing local feedstock exceeding 1,000 TPD. This initiative contributes to the decarbonization of manufacturing processes.
The shift from fossil fuels to renewable energy sources is a key aspect of the company's strategies. This transition is driven by the need for cleaner energy sources and the potential economic benefits of renewable energy. Development of advanced biofuels like bioethanol, biodiesel, and biogas from sustainable feedstocks like algae and dedicated energy crops can further reduce reliance on fossil fuels and enhance energy security.
Looking ahead, the focus will be on enhancing the efficiency of biomass and biofuel technologies, developing second-generation bioconversion processes, and ensuring the sustainable sourcing of feedstocks. The potential of biomass and biofuels extends beyond just energy production. It opens up opportunities for waste management, rural development, and job creation, contributing to a circular economy. Companies like Reliance Industries and Thermax are pioneering this transition, demonstrating the viability and benefits of these renewable energy sources.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
Emerging Feedstock for Biomass Power
Following my previous post on the industry perspectives on the various methods that have to be adopted for sustainable feedstock procurement (http://eai.in/blog/2011/12/industry-perspectives-and-strategies-for-effective-biomass-feedstock-procurement.html), today’s article showcases the various feedstock (emerging) that could be used as a potential source for biomass-based power generation. As you might be well aware, the first generation feedstock such as sugars, starches from wheat, sorghum, sweet potato etc are not widely used for bioenergy production owing to the food-fuel conflicts. Similarly, even the second generation feedstock such as mustard are not being used in a big way for bioenergy production. These days, more focus is being thrown on the advanced feedstock such as the third-generation biofuels ( these seek to improve yields through improving the feedstocks themselves instead of the processes). These feedstocks include those sources that promise to generate greater than 500 gallons of oil per acre per year. Examples include palm oil and algae oil, rapeseed and jatropha oil, grasses (switchgrass, miscanthus), trees (willow), halophytes (saltwater plants). Provided are some details of the emerging biomass feedstock such as camelina, miscanthus and bamboo and their potential to perform as a bio-fuel. Miscanthus: Miscanthus, also known as Elephant grass can grow up to 3 meters high and it is native to tropical and sub-tropical regions of Africa and South Asia. Miscanthus is mentioned as a biofuel crop because of its relatively high dry matter yields across a range of environmental and soil conditions. The Miscanthus genotype most commonly recommended for biofuel production is a sterile hybrid (Miscanthus x giganteus) believed to be a M. sacchariflorus x M. sinensis hybrid. Miscanthus utilization in the biofuel industry is primarily for combustion in power plants – it has the desirable properties of low water and ash contents. Current research is focused on its potential as a biomass crop for direct combustion and for lignocellulosic conversion to ethanol. Giant miscanthus has been studied in the European Union and is now used commercially there for bedding, heat, and electricity generation. Most production currently occurs in England but also in Spain, Italy, Hungary, France, and Germany. Recently, Japan and China have taken renewed interest in this native species and started multiple research and commercialization projects. In the United States, research began at the University of Illinois at Urbana-Champaign in 2001 and has expanded rapidly to other U.S. universities. However there is currently little published information on giant miscanthus yields in the United States. Bamboo: Recently, bamboo has received increasing attention for producing biofuel because of its easy propagation, vigorous regeneration, fast growth, high productivity and quick maturity. Bamboo is an efficient user of land, and produces more biomass per unit area than most tree species. But the process of converting bamboo cellulose into liquid fuel is difficult to execute efficiently because of the extraordinary density of the plant. However, new research from Mississippi State University hold clues for how scientists can learn to more easily break down bamboo, and thus more efficiently extract biofuels from all other cellulose sources using the bacteria from pandas’ waste. If the researchers are successful, the manufactured enzymes could be used in a new, much cheaper and more efficient process for converting bamboo and other woody plants into biofuels. Fuel properties and potential as a bio-fuel of different bamboo species:
| Species | Moisture content | Density | Ash content | Energy content |
| % | g/cm3 | % | MJ/Kg | |
| B.pallida | 44 | 0.61 | 1.91 | 18.63 |
| B.tulda | 37 | 0.65 | 1.92 | 18.61 |
| D.asper | 37 | 0.77 | 4.23 | 17.92 |
| D.membranaceus | 43 | 0.62 | 4.99 | 18.81 |
| G.apus | 35 | 0.76 | 2.00 | 18.14 |
Future Feed-in-Tariff Trends for India – for Wind, Solar and Other Renewable Power Sources
It is an open secret that renewable power requires incentives - these usually are in the form of capital subsidies, tax incentives and most importantly, via feed in tariffs. It is a million dollar (make that Billion Dollar) question what the future of feed in tariffs will be for the mainstream renewable power sources. I picked up some resources on these. Wouldn't say they provide a peek into the future, but at least one of these try telling us how the government arrives at these numbers, so that will provide us with some clues. Go through the following links when time permits Link 1 Link 2 Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
How Biogas-based Power Generation is Picking up Pace in India
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Most of us have come across the gobar gas – literally meaning gas from the cow. It is the same as what is called biogas. This is the gas that is released when bacteria feast on organic matter – typically human and animal feces – and release a gas that is about 50% methane. While biogas had predominantly been used earlier for heating purposes, its use for power production is also beginning to show a marked rise across the world, and in India too. How is power produced from biogas? The process is actually quite simple. Step 1 is generation of biogas. This is done typically using what are anaerobic called digesters. Animal (or human) waste is fed into the digester, where the microorganisms (called methanogenic bacteria) act upon it. Depending on the type of digester, it could take anywhere between 10 days to 15 days for the waste to have been "digested" by the bacteria and the release of biogas. The biogas thus produced can be used in IC engines specially devised for the use of biogas. These engines are similar in working principles to diesel engines and natural gas engines. These engines produce electricity from biogas. A bit of observation will lead us to easily understand why this concept will be of enormous interest to specific industry segments. Two segments stand out - industries that employ large numbers of animals and sewage treatment plants that treat human waste. Both these segments have started benefitting from this concept; as a result, we have a few STPs (sewage treatment plants) already generating power from the sludge generated (one of the STPs at Chennai, at a town called Nesapakkam, generates about 500 kW of power from the waste, and uses the power generated for all its electricity purposes). Some numbers will help understand the potential available for power generation from biogas. The cow population of India (about 225 million) alone generates about 800 million tons of wet dung which translates to about 150 million T of dry weight. 1 Kg of dry cow dung can generate about 1.2 kWh of electricity (it can generate the equivalent of about 4 kWh thermal). Thus, if all cow dung were converted to electricity, that would be 1.2*150*1000 million kWh = 180 TWh. India generated a total of 855 TWh in 2011-12. This implies that cow dung, if entirely converted to power, would have produced about 20% of total India's power! If the waste of other cattle and human waste were also taken into account, this could be about 30%. That is an awesome number. Of course, these data hide the actual difficulty in converting even a small portion of animal or human waste into electricity, owing to the infrastructural and social problems associated with these. All the same, waste -> biogas -> power is quite practical to a whole host of industries for whom such waste is available on premises. More information about waste to energy in general in the Indian context, is available from EAI's waste to energy resource section. Some of the following YouTube videos provide a more visual account of how to generate biogas from organic waste: Biogas from food waste - ARTI - http://www.youtube.com/watch?v=BGSl72xZHNk&feature=related Bio-gas from kitchen waste and bio mass - http://www.youtube.com/watch?v=uppVZGS7bYI&feature=related Biogas from Vegetarian Food Waste - http://www.youtube.com/watch?v=NZFrPZZIFTs&feature=related Biogas from Human Waste - http://www.youtube.com/watch?v=_m1nr2v5S8o And while on sewage, human waste and toilets, etc, a couple of interesting articles on things are emerging New toilet technology after 150 years of waste The seat of power - Better sewage treatment is the latest thing in clean energy Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsHow Punjab Will Benefit from All Its Agricultural Residue- A Case Study
Agricultural residues never go to waste. Not when they can be used for generating energy. In this context, the government of Punjab, India, plans to produce about 1,000 MW of green energy from livestock residues by 2015. When you think about it, this has huge economical and environmental benefits. In a region where large quantities of cattle manure become a major pollutant, this could be seen as an opportunity that could open a lot of doors. Aside livestock residues, the state also generates nearly 21 million tons of rice stalks and similar biomass plant wastes annually, which can all go into the production of green power. The state government is thus planning to make renewable resources as the source of their power to contribute 10% of its total energy production in the next five years. It is worthy to mention that Punjab already runs a biomethanation facility with a capacity of 1 MW, in a location close to Ludhiana. The facility uses methanogens (microbes that produce methane as a metabolic by-product) for the manufacture of methane gas. It currently uses 235 tons of cattle wastes to generate 18,000 kWh of electricity in addition to producing 45 tons of organic fertilizer every day. Also, the Punjab Energy Development Agency has developed 318 MW of green power projects, which includes the Ludhiana plant, till date. These projects comprise 37 MW of small hydro facilities, 28 MW of biomass power facilities, 250 MW of biomass co-generation facilities and 2 MW of solar projects. The agency also develops 132 MW of green power projects currently, which include 11 MW of hydropower, 100 MW of biomass co-generation and 20 MW of traditional biomass. If everything goes right and operational, the state will generate 700 MW of green power by 2012. That’s big! It is worthwhile to note that the planters are also getting an income of nearly RS. 4,000 per acre every year in the process of marketing agro wastes to biomass facilities. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Industry Perspectives and Strategies for Effective Biomass Feedstock Procurement
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
One of the most critical bottlenecks for biomass power plants is the supply chain bottlenecks that could result in non-availability of feedstock. A related problem is the volatility, or more precisely increase, in the feedstock price. Both these could render the project unviable. Highlighted in this article are some of the industrial perspectives in overcoming barriers for procuring a balanced feedstock supply. EAI’s research with industry experts suggest that there is no established biomass value chain that exists in India for the procurement and transportation of the biomass feedstock. Typically, the facility staffs from a biomass gasification plant acquires biomass from several to dozens of small-scale biomass suppliers on a relatively informal, non contractual basis; although some have considered the use of aggregators, there is no data or proof available from the Indian biomass gasification companies that have engaged such a service as yet. The biomass procurement model that is typically followed in India is discussed below: Route #1 – Biomass Producer -->Transport Contractor --> Biomass Collection Centres (BCC’s) --> Power Producers The biomass producer i.e. the farmers/mill owners hands over the feedstock to a transport contractor who in turn delivers the feedstock to the biomass consumers or BCC’s. The BCC’s (managed by the biomass consumer) pay the farmers and the power producers collect the feedstock from these collection centres as and when required. At some instances, the farmers deliver the feedstock in the power producer’s facility and get directly paid for it. Route #2 - Biomass Producers --> Waste Processing Mills -->Biomass Power Producers For feedstock where further processing is required, the farmers/mill owners deposit the feedstock in waste processing mills. From the waste processing mills through a transport contractor the feedstock is deposited in the BCC’s or directly in the power producer’s facility. In some cases, especially in briquetting, the processing is done in the collection centres itself where a mobile briquetter is taken and the briquettes that are processed are directly delivered to the facility or collected by the power producers. Key Strategies to be Followed for Effective Biomass Feedstock Procurement EAI’s interactions with the industry reveal that the following strategies have to be adopted in order to bring both the availability and price of biomass under control:- Security should be addressed by obtaining a written formal supply agreement with a reputable, local supplier. A five-year signed supply agreement with pricing and minimum volumes can go a long way in helping to secure necessary financing. A bioenergy project that is totally reliant on only one source of feedstock will be at risk, so two supply contracts are even better. This will also allow one to negotiate a better feedstock price, as the supplier will benefit from a long-term relationship and a guaranteed market. An interested lender needs to know that both the feedstock supplier and bioenergy processor are committed to the project.
- It can be beneficial to hire an independent professional to verify one’s biomass supply projections and double-check that the feedstock supply is sustainable over the long term
- Backward integration and own captive biomass source (one company, Orient Green Power, is even trying out a novel technique of going for energy plantations on their own wind farms)
- According to the Washington based biomass supply company ‘Powerstock’, for a well-managed supply, an inclusive definition of biomass is needed. The company is also taking efforts to educate the public on the value of well-managed, productive forests.
- The bottom line of feedstock security is composed of several aspects: grower relations, harvesting, marketing, equipment utilization, proprietary techniques and agricultural economics. Hence it's important to manage the entire process from seed to market.
- The supply sector needs to make the transition from a residues-based approach to an integrated, dedicated feedstock supply system using energy crops, plus residues.
Key Indian Players in Biomass Gasification based Power Production
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Biomass gasification, with its capability to work in kW scales (as low as 20 kW) and its ability to utilize a wide and diverse range of biomass feedstock is ideally suited for rural areas without access to power but with easy access to significant amount of biomass. Discussed in this post are some of the prominent players in India which use biomass gasification for power production Summary of Prominent Independent Power Producers using Biomass Gasification in India| Company | Location | Plant Location(s) | Cumulative Installations |
| Clenergen Corporation | Chennai | Tamil Nadu, Karnataka | Cumulative capacity of 19.5 MW in operation and 20.5 MW under construction |
| Green Infra | Delhi | Orissa and Bihar | The company is developing five biomass power projects with a cumulative capacity of 68 MW. |
| Greenko Group | Bangalore | Chattisgarh, Karnataka, Andhra Pradesh | 41.5 MW from 6 biomass power plants |
| Husk Power | Bihar | Bihar | HPS had 65 fully operational plants, and a further 10 under construction or starting operation. 48 plants are wholly owned and operated by HPS, and the other 17 run under some type of franchise or partnership. HPS’ plants have capacity of 35-100 kW each. |
| All Green energy | Bengaluru | Karnataka, Tamilnadu and Madhya Pradesh | 10 biomass plants have been proposed to set up with a capacity of 6.5 MW each. |
- 8 MW Ecofren power project in Chhattisgarh
- 8 MW ISA power project in Chhattisgarh
- 7.5 MW power project in Karnataka
- 6 MW project in GEPL, Kadapa, Andhra Pradesh
- 6 MW project in Andhra Pradesh
- 6 MW Roshini Power Project in Andhra Pradesh
Potential for Biomass Power in India
Biomass based power generation is a choice of reality under the geographical regions where a sustainability exists in the flow of biologically raw materials for the production of power and India is one of the most notable universal giants for the production of biomass based power which can be best understood from the estimates of its biomass availability and the power produced from it. India has biomass production of 546 million tonnes per year from the agricultural sources alone to generate electricity at a capacity of 17,982 MW and its overall production of power from renewable sources stands at 34961 MWe in 2010.A calculated annual growth rate for the next decade realistically and optimistically is above 42,000 MWe and 48640 MWe respectively. The development of biomass based power is further enhanced by the Government regulatory policies by declaring duty exemptions’, tax breaks and financial incentives etc. The cost of producing electricity from biomass is affordable at Rs: 2.25-3.25 / kWh. In spite of all these attempts biomass based power generation is at its infant stage because of hindering factors such as feedstock availability, transportation, price volatility etc. India to emerge as a role model must utilize its renewable energy sources to a large extent, develop dedicated energy crops, establish end user market for co-products such as charcoal, biochar, activated carbon, and implement energy efficient technology for economically feasible power generation on a massive scale. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
PRESPL Secures ₹4.1 Million Investment from Mitsui for Biomass Growth
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Mitsui, a leading Japanese conglomerate, has recently invested ₹4.1 million in Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), a company focused on collecting agricultural residues and converting them into biomass briquettes and pellets. This investment underscores the growing potential of the Indian biomass sector, which is expected to witness significant growth in the coming years.
The Indian biomass market is estimated to be valued at around ₹50,000 crore and is projected to reach ₹1,00,000 crore by 2025, driven by factors such as the Increasing demand for renewable energy, Growing awareness of environmental concerns, and Supportive government policies.
The Indian biomass sector is also witnessing a surge in international collaborations, with several prominent companies entering the market through partnerships and alliances. For instance, Aramco, a prominent oil and gas company, joins forces with ReNew Power, India's largest renewable energy company, to explore opportunities in developing and deploying low-carbon technologies, including biomass-based power solutions. This collaboration signifies the growing interest of leading energy giants in exploring cleaner alternatives.
Additionally, Danish Biogas's collaboration with the Maharashtra Energy Development Agency (MEDA) brings together expertise in advanced biogas technologies with experience in promoting renewable energy and rural development in Maharashtra. This partnership contributes to a more sustainable waste management system through biogas generation..
These strategic partnerships are just a glimpse into the exciting developments propelling the Indian biomass sector forward. The government is also playing a crucial role in accelerating its growth through supportive initiatives like subsidies for setting up biomass power plants and briquette/pellet production units, promoting dedicated energy crops and efficient residue collection systems, and providing tax benefits for biomass projects. Investments in research and development are also being made to improve conversion technologies, optimize feedstock utilization, and develop cost-effective biomass solutions.
Navigating this complex ecosystem requires a comprehensive understanding of the key players involved. The Indian biomass value chain comprises various stakeholders, including biomass producers like farmers and forestry companies, collectors and aggregators responsible for managing feedstock collection and storage, processing and conversion companies that transform biomass into usable forms, original equipment manufacturers (OEMs) who create machinery for the sector, suppliers providing essential goods and services, power plants and industries utilizing biomass-based fuels, and government agencies responsible for regulation and promotion.
Beyond the core value chain, the adjacent value chain plays a crucial role in supporting the sector's growth. This includes financial institutions offering loans and investments for biomass projects, research institutions and universities engaged in R&D advancements, and non-governmental organizations (NGOs) promoting sustainable practices and advocating for policy changes.
Indigenization remains moderate to low currently, with reliance on imported technologies and equipment. However, government initiatives and rising demand are expected to gradually increase domestic capabilities in the coming years.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Primary Routes for Power from Biomass
The three primary routes for biomass to power are: Combustion, Gasification and Anaerobic Digestion. Combustion is easy to understand – instead of using coal or other fossil fuel, use biomass to produce steam that runs a turbine. Combustion of biomass for power could either be in the form of co-firing (when it is burned along with coal) or pure play biomass based combustion. In the case of gasification, the biomass is first gasified and this gas turn produces power in a gas engine. Anaerobic digestion is usually applied to biomass that typically have a high amount of water in them (anaerobic digestion is most used for treating organic waste such as kitchen waste and sewage waste into energy). Under this route, microorganisms act upon the organic matter present in the biomass under anaerobic (absence of air) and convert it into biogas. An emerging route for biomass based power is pyrolysis. In this, the biomass is rapidly heated to 450 - 600 °C in absence of air, and results in a bio-oil called the pyrolysis oil, which can in turn be used for firing the boilers. Typically, 50 - 75 % (by weight) of the feedstock is converted into pyrolysis oil. Pyrolysis as a method for power production is not well established currently in India or elsewhere in the world. Typically pyrolysis plants work well beyond 2 MW scale, while gasification plants work well until 2 MW scale, at the current technological progress. Thus, it can be said that pyrolysis takes off where gasification ends. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Prominent biomass feedstock for gasification
Biomass for power generation by combustion or gasification is normally variable in its chemical composition of electron rich reactants, ash content, moisture, sulphur and nitrogen content etc. As a result, selection of the most convenient feedstock is an issue of debate. The degree and diversity of contaminants strongly influence the production and purification of synthesis gas in gasification while they tend to have a minimum effect in the combustion process. Independant of these disturbances virtually any raw material applied in power generation process should be a matter with potentials. In India, a vast array of feed stocks are utilized for power generation but the most wide ones are farm and mill wastes, woody trees, energy plantations and other green manure crops. Preference is made on the basis of availability, cost, bulkiness of the material, pre-processing, storage etc. Biomass used in India yields varying level of energy but it is also the gas engine and generators whose efficiency equivalently determine power generation. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
REC Price Band Revised
The Central Electricity Regulatory Commission(CERC) has announced the floor and forbearance prices to be used for solar/non-solar projects from the FY 2012-13 upto 2016-17. The prices set are shown in the table below
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Prices (2012-2017) | Current | % Reduction | Prices (2012-2017) | Current | % Reduction | |
| Forbearance Price | 3300 | 3900 | 15.38 | 13400 | 17000 | 21.18 |
| Floor Price | 1500 | 1500 | 0.00 | 9300 | 12000 | 22.50 |
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Proposed | Current | % Reduction | Proposed | Current | % Reduction | |
| Forbearance Price | 3480 | 3900 | 10.77 | 13690 | 17000 | 19.47 |
| Floor Price | 1400 | 1500 | 6.67 | 9880 | 12000 | 17.67 |
- Non-solar – the floor price remains unchanged. Thus biomass/wind generators are expected to get the same minium revenue as they have been getting earlier.
- Solar – the floor price has seen a cut of about 23% from current levels. Although this might seem drastic, it is not likely to have a significant impact on solar power projects (refer section below).
- Average bid price under phase 1 batch 2 of JNNSM could be around Rs. 12.5 /kWh(on the higher side)
- APPC prices could rise by 15% annually (base price used is that of Tamil Nadu) - reasons for this were mentioned earlier.
- REC price after 2016-17 period (i.e. from FY 2017-18 onwards) is reduced by 25%
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| JNNSM Tariff (average) (Rs. per kWh) | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 |
| APPC (Rs. per kWh) | 3.38 | 3.89 | 4.38 | 5.04 | 5.38 | 6.19 | 6.38 | 7.34 | 7.38 | 8.49 |
| REC (Rs. per kWh) | 9.30 | 9.30 | 9.30 | 9.30 | 9.30 | 6.98 | 6.98 | 6.98 | 6.98 | 6.98 |
| Total (Rs. per kWh) | 12.68 | 13.19 | 13.68 | 14.34 | 14.68 | 13.16 | 13.36 | 14.31 | 14.36 | 15.46 |
| REC mechanism's Incremental revenue over PPA(Rs. per kWh) | 0.18 | 0.69 | 1.18 | 1.84 | 2.18 | 0.66 | 0.86 | 1.81 | 1.86 | 2.96 |
Table: REC vs preferential PPA for 10 years post 2012
As can be seen from the above table, the REC mechanism is quite comparable, if not better when compared to the assured tariff provided by NVVN over 10 years of operation of the solar powerplant. Overall, the REC mechanism can clearly drive the solar market, provided the Renewable Purchase Obligation (RPO) is strictly enforced by the various SERCs. The CERC release can be found here. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsREC Trading – November 2011
The REC trading for the month of November concluded yesterday. Figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 105,527 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 96,154 (90%) RECs traded while PXIL saw trading of 9,373 (10%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The price of REC varied between the two exchanges - IEX and PXIL. Non-solar RECs closed with a price of Rs. 2,900 at IEX while the RECs sold at Rs. 2,800 at the PXIL. At the IEX, the prices have seen a 7% rise over those paid last month where the trading price was Rs. 2,700 per REC.
| September | Non-Solar | Solar | ||||
| Buy Bids | Trade Volume | Sale Price | Buy Bids | Trade Volume | Sale Price | |
| IEX | 257,578 | 96,154 | 2,900 | 43 | - | - |
| PXIL | 51,199 | 9,373 | 2,800 | 0 | - | - |
| Total | 308,777 | 105,527 | - | 43 | - | - |
REC Trading – September 2011
The REC trading for the month of September concluded recently. Trading figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 46,362 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 41,385 (89%) RECs traded while PXIL saw trading of 4,977 (11%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The most encouraging part of the trading was the price paid for each certificate. The price of REC grew to Rs. 2300 from Rs. 1800 last month.
|
September |
Non-Solar |
Solar |
||||
|
Buy Bids |
Sell Bids |
Sale Price |
Buy Bids |
Sell Bids |
Sale Price |
|
|
IEX |
196,159 |
76,026 |
2,300 |
7 |
- |
- |
|
PXIL |
30,853 |
9,562 |
2,300 |
0 |
- |
- |
|
Total |
227,012 |
85,588 |
- |
7 |
- |
- |
Interestingly, there are 7 buy bids for solar REC; up from the lone buy bid last month, although this is promising, it highlights a serious issue. As with the previous months, there are no solar RECs available as no projects are registered under REC. This is a worrying trend and is going to put immense strain on the obligated entities to fulfil their solar RPO. The reasons for lack of solar projects registered under REC could include
- Higher payback period for solar projects
- REC prices guaranteed only up to 2016-17
- A combination of the above two greatly reduces the bankability of solar projects
Renewtech India 2011 Conference – Day 2
The details of the first day of the conference is available here. The second day of the The 3rd International Expo and Summit, Renewtech India 2011 conference started with a speech by Mr. D.C. Bhishikar, Managing Director, Clarke Energy India. The topic was “Application of Gas Generated from Waste Treatment for Combined Heat and Power(CHP) Solutions using GE Jenbacher Gas Engine Technology” He mentioned that the company has about 300 MW of installation base in India. He explained the various aspects of the Jenbacher Gas Engine Technology and explained that while a combustion based power generation(ranking cycle) has an efficiency of approximately 28%, the Gas engine technology has an efficiency of about 40%. The next speaker was Mr. Ravinder Tanwar, VP-Operations, Websol Energy Systems Ltd and he spoke on the topic “ Rural Electrification in Sagar Island through off Grid Solar PV Power plants”. In this session, Mr. Tanwar presented a case study of how an off-grid solar PV power plant in the Sagar island in Sunderbans, West Bengal changed the lifestyle of the inhabitants there. He explained the cost of setting up the plant and the challenges that Websol faced in putting up these plants. For example, the Solar PV modules had to be transported to the islands using boats.
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The next session was about “Solar Energy & Hybrids”. This session had speakers from Gadhia Solar Energy Systems, HCL Technologies, Soltigua-Italy and Mahindra Cleantech Ventures. Mr. Badal Shah, MD of Gadhia Solar, spoke about Solar Air conditioning. He briefly explained the principle behind how it works. He also talked about Solar cookers and highlighted the company’s projects in cooking meals at Tirupati and Shirdi temples. One key point he wanted people to remember was that Solar energy can only complement other sources of energy and cannot be a substitute for them. The next speaker was Mr. Vijaya Klnr Pingali, Group Technical Specialist at HCL Technologies Limited. The topic of his speech was “Monitoring for Better Monetization and Implementation” . In his speech, Mr. Pingali highlighted the need for effective monitoring of Solar PV farms. He also described the different types of monitoring with various examples. Mr. Francesco Orioli, Director-Marketing & Sales, Soltigua, Italy spoke on the topic of Concentrating Solar Power(CSP). The firm Soltigua is a market leader in the CSP Parabolic Solar Collectors. Mr. Orioli presented some case studies about some of the CSP projects his firm had undertaken. The next topic was “ Building Robust Ecosystem for Solar Energy in India” and the speaker was Mr. Vish Palekar, Business Head, Mahindra Cleantech Ventures. Mr. Palekar gave a very insightful speech on the development of the Solar sector in India, especially the grid-connected projects selected under the 1st part of the first phase of the JNNSM. He touched upon the following aspects of these projects- Growth drivers – Policy/PPA
- Project Implemention – Financing, Technology selection and execution.
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The third session of the day was on Wind Power. Two speakers spoke during the session – Mr. Renjith Viripullan, Engineering Manager, Onshore systems GE Energy and Mr. Bhagwat Divate, National Technical Manager, Kluber Lubrication India. Mr. Divate spoke on “Wind Turbine Maintenance Technology & Efficiency” and highlighted various challenges in the maintenance of Wind Turbines. He explained the tribological features to be kept in mind during maintenance and also the importance of lubricants. Mr. Virupullan spoke about “Wind Turbines for Low Wind Speed Market” . His speech included the definition of low speeds, challenges and opportunities in this segment.-
The final session was titled “Case Studies on Applications of Renewable Energy”. The following were the topics and the speakers.- “Innovative CDM Based Renewable Energy Projects” – Dr. Ram Babu of General Carbon
- “Solar PV Pumping system for Landscape Irrigation Application” – Mr. Vilas Erande of Samved Energy Systems
- “Waste-to-Energy Application” – Mr Soumya Bhattacharya, Concord Blue
- Tidal & Geo-Thermal Energy
- Energy Efficiency
- Quality and Certification of PV Solar Cells.
Renewtech India 2011 Conference – Day 3
This is my final post on the Renewtech India 2011 conference. Click here for details on Day 1 and click here for details of Day 2. The final day of the event had 3 sessions. The first session was titled “Tidal & Geo-Thermal Energy”. The first speaker was Dr. Ritesh Arya, Hydrogeologist & Groundwater Consulting in Himalayas. He gave a very insightful speech on the topic “Geothermal potential in India – A Review”. He highlighted the fact that India has more than 10 GW potential in the Geothermal space. He made an interesting point that while Solar, Wind and other forms of energy are renewable energy but not sustainable energy whereas Geothermal energy is a sustainable energy. He described how the heat of the magma under the ground can be harnessed to generate steam for heating applications and power generation. He explained his experiences in Ladakh and the Himachal region where there are natural hot springs. He also talked about his experiences in Iceland where geothermal energy is available in abundance. In Iceland, the people even grow tropical fruits like banana in green houses heated by the geothermal energy. The next speech of the session was by Prof. S. G. Kanitkar, Head-Green Energy Division, Enviro-Abrasion Resistance engineers Pvt. Ltd. His topic was “Tidal Wave energy”. He started off by describing the differences between the Tidal and Wave energy. The current scenario of harnessing these forms of energy were explained by him. He then provided the technological details about how the Wave energy can be harnessed. In particular, he provided the details of the device his team has developed. The second session of the day focused on “Energy Efficiency”. The following were the speakers 1. Mr. Jens Burgtorf, Director – GIZ-IGEN, Bureau of Energy Efficiency 2. Mr. Martin Wohlmuth of Arqum GmbH – “Resource Efficiency Network India – A Field Report” 3. Mr. G. Gururaja of Avni Energy Solutions Pvt. Ltd – “LED Technology: Its Role in Present Scenario for India’s Lighting Requirement” 4. Mr. Dinesh Shetty of Bureau Veritas Certification – BS/EN 16001:2009 – Energy Management Systems for Reduction of Energy Costs/Green House Gases Emission. As can be seen from the topics of the presentations, the session focused on various aspects of Energy Efficiency. “Quality and Certification of PV Solar Cells” was the title of the final session of the day. This session had two speakers – Mr. Srinivas Chakravarthy, Country Head – Industry Services, TUV Rheinland(India) and Ms. S. Vasanthi, Director – Technology and Marketing at Websol Energy Systems. Mr. Chakravarthy of TUV Rheinland spoke about the module certification process in general and TUV Rheinland in particular. He started off by explaining the various environmental influences during the long term operation of PV modules. This includes solar radiation, temperature, mechanical stress due to factors like wind, atmosphere,etc. He explained the different standards for Performance, safety and qualification. Subsequently, he described the different tests conducted for the IEC or other certification. This includes subjecting the modules to high level of different types of stresses(temperature, sunlight, handling, partial shading, wind, UV rays,etc).He concluded by talking about the various services offered by TUV Rheinland and also about the new test facility in Bangalore. The last speaker of the session was Ms. S. Vasanthi. Her topic was “ Improvement in Crystalline Si PV Modules Through Quality Control and Innovation in Manufacturing Processes”. She explained the various steps in the solar PV cell and module manufacturing process. She described the various quality control measures and some of the common defects like browning of cells. The effect of each of the raw material for a module(metallisation paste, ribbon, flux, encapsulant,etc) on the final quality of the PV module was also discussed. That concluded the 3rd edition of the Renewtech India conference. The 4th Renewtech India conference is scheduled for 16-18 February 2012 at the same venue – Bombay Exhibition Centre, Goregoan, Mumbai.
Rice husk used for power in one of India’s poorest states- A case Study
Whoever thought rice husk can generate power needs a medal! Considering how much rice husks go to waste in a country where rice is the staple food, it is comforting to know fossil fuels are not our only resort for power production. Thanks to Manoj Shinha, a renewable energy entrepreneur pioneered using discarded rice husks as biomass to provide energy to Bihar, one of India’s poorest states. Mr. Shinha along with his colleagues Gaynesh Pandey, Ratnesh Yadav and Charles W. Ransler developed Husk Power Systems to address the situation of poverty in their home state of Bihar. Many villages in India live off the grid in the darkness, this new advancement means that they need not depend on grid for electricity, rather generate their own clean, affordable electricity.The company generates and sells electricity for a price that is less than half of what the villagers pay for kerosene. This was possible because the whole concept is focused on research and development investment to simplify energy production and transmission, such as using bamboo instead of cement posts to install power lines.And, since communities no longer use kerosene, wood or dung for electricity, this way of electricity generation lowers the environmental and health hazards. In addition, rice husk ash, a byproduct of the gasification process, can be used for concrete production thus reducing the amount of high-carbon Portland restless leg syndrome cement.On average, a single power plant serves 400 houses, replacing 42,000 liters of kerosene and 18,000 liters of diesel yearly. As of August 2010, H.P.S. has sequestered 50,000 tons of carbon dioxide. Currently, they have installed over 60 mini-power plants that are 100 percent biomass-based which supply power to over 25,000 households in more than 250 villages.With the market opportunity in mind, they aim to expand their business to bring clean electricity to Indian villages by installing 2,000 new plants by 2014 beyond Bihar.
Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Sael: A $10 Million Spark for India’s Waste-to-Energy Future
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
In a move that highlights the growing potential of the waste-to-energy sector in India, Norfund, the Norwegian Investment Fund for Developing Countries, has invested $10 million in Sael, an Indian company that converts agricultural waste into clean energy. This investment will help Sael expand its operations and contribute to India's clean energy goals.
Sael is a leading player in the Indian waste-to-energy sector. The company uses a proprietary technology to convert agricultural waste, such as rice straw and sugarcane bagasse, into clean energy. Sael's plants generate electricity that is fed into the grid, helping to reduce India's reliance on fossil fuels.
Indian waste-to-energy market
The Indian waste-to-energy market is expected to grow at a CAGR of 20% over the next five years, driven by factors such as increasing waste generation, growing awareness of environmental issues, and government support for renewable energy. The market is currently estimated to be worth around $1 billion, and it is expected to reach $5 billion by 2025.
The market is booming with investments pouring in and cutting-edge technology emerging. However, hurdles like complex regulations, limited financing, and public concerns exist.
Key players include waste-to-energy companies, waste management companies, power producers, and government agencies. Recognizing the immense potential of the Indian market, foreign and domestic players are joining forces to unlock the power of waste-to-energy (WtE). Joint ventures like Sterling & Wilson and Hitachi Zosen's 50 MW plant, or Arc Energy and Wheelabrator's 60 MW project, are testaments to this collaborative spirit. Beyond developers, waste-to-energy companies are forging partnerships with waste management firms like Ramky Enviro Services to ensure consistent, high-quality feedstock.
This synergy extends to research institutions and technology providers as well, with Tata Power and IIT Bombay developing advanced gasification technology and Vedanta partnering with Neste for co-processing expertise. These collaborations are crucial for navigating local complexities, accelerating technological advancements, and ultimately achieving India's WtE ambitions.
The government also actively supports WtE with feed-in tariffs, tax breaks, and streamlining regulations. Recent investments and project announcements showcase the sector's potential. Technological advancements like plasma gasification and bioreactors promise improved efficiency.
Challenges include inadequate waste segregation, public opposition, and fly ash management. Continued government support, public awareness campaigns, and innovative solutions are crucial to overcome these hurdles.
Overall, India's WtE sector holds immense promise for sustainable waste management and clean energy generation. By addressing challenges and seizing opportunities, India can turn waste into a valuable resource for a brighter future.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Tamil Nadu’s Biomass Power Plans – Energy Plantations is the Answer?
Biomass is one of the renewable energy domains in which Tamil Nadu could have significant potential for progress in future. Estimates suggest only about 10% of the potential has so far been utilized. Of course, the lack of a robust supply chain that make create supply and price security is a problem as much in Tamil Nadu as it is in the rest of the country. Some inputs and updates for biomass power in Tamil Nadu are provided below.
- Potential for Biomass based power in Tamil Nadu is 1589.9 MW (1160 MW based on agricultural waste and 429.9 MW from forest and wasteland cultivation).
- 22 biomass power plants with total installed capacity of 169 MW are in operation.
- Ten biomass power plants with totaling to 120 MW, with over 80% plant load factor, have faced temporary shut downs owing to unviable tariff rates and increasing feedstock cost.
- Biomass power producers association has approached Tamil Nadu Electricity Regulatory Commission (TNERC) with a request to revise the tariff and offer higher annual tariff escalation. The viable rate for operating biomass power plants in years to come would run beyond Rs 6.50/kWh, but the current tariff of Rs 4.5/kWh is in no way adequate to sustain the projects in the long run.
- Tamil Nadu Energy Development Agency (TEDA), along with Tamil Nadu Biomass Power Producers Association, has been actively involved in promoting large scale energy plantations in marginal / waste land in the state with high potential crops.
- The Tamil Nadu Biomass Power Producers Association suggests that energy plantation would not only serve to provide cheap and continuous feedstock supply for power plants, but it would also improve the quality of life of the rural population. Estimates suggest that a 10 mw biomass power plant can ensure livelihood of over 2,000 marginalised families. They can be employed in collection, transportation, cutting, chipping of biomass and cultivation of wasteland with energy plants like Juliflora, Bheema Bamboo etc.
The man propelling the bio-energy movement in India – PRESPL
Welcoming Lt Col Monish Ahuja to CLIMAFIX SUMMIT 2022 - the 1st summit for Indian climate tech startups. I'm sure you have heard the saying, "Water, water everywhere, not a drop to drink" That applies quite well to the Indian agricultural residues as well. Hundreds of millions of tons of agro waste around the country, but very little available for the industries to use. And worse, a good portion gets burnt on the fields because the farmers do not know what to do with them. So where's the challenge? What is broken in this system? To a significant extent, logistics, or rather the lack of it. Securing and transporting millions of tons of agricultural waste from hundreds of thousands of farmers and transporting it reliably to end users is not rocket science. But it is systems science. Discipline science. Or patience science, if that term is more endearing to you. In EAI's decade long work in the bio-energy sector during which we consulted for dozens of clients including the likes of GSK (#Horlicks division, now part of Unilever), we have seen how unorganized the agro-waste supply has been, except for bagasse coming straight from large sugar mills and to a lesser extent saw dust from plywood factories. It is a complex challenge of logistics, societal & local traditions, and of course the omnipresent politics. The sector needed someone who could wade through all these, build an efficient system and evolve an organized biomass supply chain. Enter Lt Col Monish Ahuja. Army discipline, Systems thinking. Business acumen. These characteristics have helped him build Punjab Renewable Energy Systems Private Limited (PRESPL) into a force to reckon with countrywide in industrial biomass supply. PRESPL is today is one of the few organized players that has the ability to provide industrial decarbonization on scale through biomass, supplying thousands of tons of agro-waste based biomass every day to industries. I remember sitting with him in his office in Navi Mumbai a few years back when he patiently took me through the process by which he was building an effective front-end logistics system while also putting together a scalable digital back-end system. While coming out from the meeting, I thought - finally, here's someone who appears to be just what the doctor ordered for India's bio-energy sector. Since then, his company has - not surprisingly - grown and grown. Hats off to Monish, and we are proud to have him as one of the experts who will share his insights at the CLIMAFIX SUMMIT 2022, India's first climate startup summit, Nov 25 & 26, Chennai, organized by the Climate Startup Intelligence division CLIMAFIX of EAI (Energy Alternatives India) & Energy Consortium - IIT Madras Welcome Monish, and here's hoping you inspire more of your breed - and soon. More about CLIMAFIX SUMMIT, India's first summit for climate startups
VC / PE Perspectives and Opinions on Biomass Power
Indian VCs have not really done a good amount of investing in cleantech. Cleantech perhaps is not really a VC game as it is more of an engineering related discplie that does not offer the types of scalabilitiees that VCs desire or the exit periods. VCs also do not understand cleantech well enough to take calls. Many cleantech deals, especially in the power segment, are PPA based, with limited upsides, not typical VC games. Many cleantech and renewable energy startups require capital that is much higher than what VCs can typically offer to invest. Predictions for Cleantech VC in 2011 - Kachan & Co.'s Dallas Kachan looks at what 2011 will have in store for cleantech (http://alwayson.goingon.com/node/66783 ) Sustained worldwide venture capital investment will continue to cede importance to corporate and non-institutional capital. A return to early stage venture investments - predict a return to early stage venture capital investing in cleantech in 2011. Energy efficiency emerges as the clear rock star of cleantech. Biofuel investment could reach former highs. Recycling and mining will attract more investment. Natural gas emerges to threaten solar and wind for utility renewable power generation. China becomes the most important market for cleantech: if you're not selling in China, you won't matter. There is a significant amount of interest among PEs for investments in both traditional and renewable energy. PEs – not surprisingly – are not very keen on risky technology bets in renewable energy, but are OK with business model risks. Some of the PEs (such as IFC, ADB etc) are willing to take fairly long-term views (with over 10 year horizon). Investment sweet spot ( in terms of the quantum) varies from fund to fund, but obviously for most of the blue-chip, it is upwards of $50 million. PEs are well aware of the regulatory and societal bottlenecks that could arise in large-scale energy sector investing (especially for coal-based and large-hydro based sectors). Many PEs are clear that they wish to invest in businesses that can stand on their own revenues (even if takes a while) and are not keen on business plans that rely on getting bought out. Most every PE acknowledged that while they might not like coal, it is here to stay as the largest contributor to power for the foreseeable future. PE arms of organizations such as IFC and ADB, while not shutting out the option of investing in coal-based or natural gas based power plants, have a mandate to decrease their exposures to these “non-green” sectors. What a PE can bring to the table - Many private equity funds have been able to provide not just the financial support required but also strategic support and value-add for the firm’s growth. Disconnect in Valuation expectations - one of the issues faced by PE players while investing in cleantech companies is the disconnect in valuation expectations between the entrepreneur and investor with the buoyant public markets resulting in an increasing buoyancy in expectations! PEs feel that entrepreneurs should take a longer term view while setting their valuation expectations. Currently, 80% of infrastructure projects, and 46% of power projects, are funded by the banking system. So, PEs constitute only a small share of the infrastructure projects. While private equity folks could like IRRs of about 25%, power and infrastructure IRRs is only about 12%. Some private equity companies might wish to play a consolidator’s role as well where they consolidate a diverse portfolio of (say) energy companies such that they win even if 7/10 companies do well enough. Investors such as IFC have specialists/experts in every project to take care of social and environmental aspects. Private equity funds are interested in the macro factors (demand supply gap in electricity et al) as well strategic micro factors. One of the factors that seem to interest PEs is the method for companies to go diversified on green power that is having assets in wind, small hydro, biomass etc together, instead of betting just on one thing alone. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Why Biomass for Power Generation?
Biomass has been used as a source of energy right since mankind started its existence; In fact, one of the predominant energy sources today is biomass. Biomass as a source for power production is not entirely new either. Biomass has been used, in the place of coal, for steam generation at power plants, though in a limited way. Indeed, currently, the predominant method used for producing power using biomass still is the combustion route, At the same time, other processes, such as biomass gasification, which can work at much smaller scales and use the biomass more efficiently are emerging. The newer processes especially biomass gasification based power production, is relevant today especially in the Indian context mainly because of its potential to provide distributed power at rural level, especially for small remote villages that have good access to biomass but no access to grid power, and which require only small scale power production. Biomass based power is also relevant in the context of climate change and global warming as biomass based power production is net carbon neutral. The contribution of bioenergy to the total primary energy consumption in India is over 27% (Source: FAO). This is indeed the case for many other countries, because biomass is used in a significant way in rural areas in many countries. However, the contribution of biomass to power production is much smaller than this percentage – currently, biomass comprises only about 2650 MW of installed capacity, out of a total of 172000 MW of total electricity installed capacity in the country. Besides, biomass power has the following benefits- distributed generation, baseload power, ability to have small, kW scale power production, suited for rural areas and ideal for rural economic upliftment. I believe these are enough to justify why biomass is best suited for power production. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Primary Routes for Power from Biomass
by admin | May 19, 2011 | Biomass for Heating & Power, Biomass Power, Net Zero by Narsi, Renewable Energy
The three primary routes for biomass to power are: Combustion, Gasification and Anaerobic Digestion. Combustion is easy to understand – instead of using coal or other fossil fuel, use biomass to produce steam that runs a turbine. Combustion of biomass for power could...A 900 MW Power Plant Running on Biomass? It Could be a Reality in Five Years!
I thought I was never going to see the day when a large power plant would run entirely on biomass. You can understand my pessimism when you are told that a MW of powerplant will require about 8000 T of biomass every year. A 300 MW power plant will hence require an awful 2.5 million T of biomass every year. That's a heck of a lot of, well, anything. Well, there are some courageous folks around the world. Drax in the UK, for one. They are building 3x300 MW furnaces on biomass, and are arranging for a 8 million T biomass supply from around the world. (By comparison, India's total biomass based power production - outside of bagasse power - is only about 1500 MW. So the Drax project alone would be about 60% of total Indian biomass installed capacity!) While I am certainly overawed, good news, I must say. If they can operate it sustainably for a few years, biomass power would have definitely reached a milestone. Will be really keen to know how they plan to manage the supply chain. This is what the news report has to say "The vast majority of the biomass will come from North America, but there will also be locally sourced supplies of willow and elephant grass to power the furnaces. "
A Case Study of Clenergen and Yuken’s Gasification Biomass Project
Yuken India Limited, set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company Limited, Japan, is a manufacturer of oil hydraulic equipment. Yuken has achieved one of the fastest growth rates in the Indian oil hydraulics industry, in the last 29 years. Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation, plans to enter into a minimum 15 years Power Purchase Agreement (PPA) with Yuken to supply up to 2.5MW/h, with the rest of the electricity generated being completely sold out to the National Grid System. The biomass power plants with a capacity of 4 MW/h will be installed and begin operation within 10 months upon signing of the PPA. Clenergen India plans to lease up to 800 acres of non arable land near the manufacturing site in order to grow a high yielding species of bamboo as a source of biomass for the gasification power plant. The bamboo produced is asexual, non-invasive, non-flowering plant with a lifespan of up to 50 years and above all, is a product of tissue culture. This is advancement in the sector of renewable energy, in that the cost savings created from the cultivation of biomass feedstock will allow the supply of electricity at a price lower than the current market prices and will also help to extend the industries’ vertical market penetration into these market sectors. This is certainly moving forward. With ever increasing fossil fuel prices, this is the ideal way to deal with the growing needs and the economy. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Agricultural biomass availability in India for power generation
India is primarily an agricultural nation with an extensive cultivation of different types of crops including cereal, pulses, oilseeds, fibre crops, spices and plantation crops. With the cultivation of these crops, availability of residual biomass after economic harvest makes power generation in a sustainable way. These raw materials are normally available in variable quantities depending on the acreage of cultivation, mass of residue part available. The total biomass is 511,041 kT/Yr for power generation. Among them, rice, wheat and cotton constitute a major portion with 160,000,111,000 and 21,000 kT/Yr to generate power of 5000, 3300 and 3500 MW respectively. The total power generation capacity is 17,400 MW. Besides these crops, maize, jowar, bajra, coconut, groundnut, banana, cassava and mustard are also potent generators of biomass for power to an appreciable extent. It is evident from the information stated above that the agricultural resources serve as excellent candidates for the power generation either by combustion or gasification. However it is important to note that these materials are variables by biochemical composition and moisture. So, standardization is mandatory by defining limits to make them appropriate for thermal decomposition and as consistently yielding materials of electric power. Further plans are required to efficiently collect and store for processing without time delay. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Benefits of Biomass Based Power
While we are striving hard to switch to more sustainable modes of living, there arise lots of issues questioning the efficiency of our choice of green. Despite all the issues they might have, they have more benefits than their petroleum counterpart. After all, petroleum is not going be here forever. So, this post will focus on the benefits of biomass based power, and why is it more suited as a sustainable alternative. Let us look at the distributed generation, because biomass is available in almost all places, and especially in rural areas, and more important, as gasification based power production can be done on small scales (as low as 20 kW), this process can be used for distributed generation of power as against the centralized power production method followed today. Also, biomass based power is well suited to remote villages with no access to grid but access to significant amounts of biomass Secondly, biomass gasification based power production can be done at small scales – as small as 20 kW – unlike other sources of power (say, nuclear) that require much larger scales. This will ideally suit small villages that have only a few households. Also, this whole process could be done in rural areas, where this could open a gateway of opportunities for rural population. Given that a 1 MW biomass based power generation could require biomass growth in over 150 hectares, the opportunities for rural employment are indeed significant. Thirdly, biomass power results in no new net GHG emissions as it is part of the carbon cycle. Unlike coal and others forms of fossil fuel which have been buried millions of years ago and burning them adds to carbon in the atmosphere, responsible biomass energy generation results in no new carbon emissions or pollution. Finally, the efficiency of the biomass power generation process to make use of mostly animal and crop wastes for energy is remarkable. Also, there is a large variety of feedstock which could be used for the process. Aside from these, they also significantly reduce methane in the atmosphere, which being able to be produced economically. I suppose these are enough reasons to switch to biomass power. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Bio-energy Software Development Assistance – Clixoo
Clixoo, a sister division of EAI, brings to the table a unique intersection of renewable energy domain knowledge and high quality software development expertise. Using these, the bio-energy software team at Clixoo can assist companies keen on development support for a range of biomass power plant/heating related software. These include
- Biomass Assessment
- Feasibility Analysis
- CHP
- Bio-reporting Software
Biomass based power
Biomass is a valuable physical mass of biotic factors and ideally suited for the energy generation in different forms for the fulfillment of human demands over time. Even though deep ground fuel resources of biological origin satisfy it comprehensively, the way it is oxidized today on a time scale for energy production alarms the world by a phenomenon called “Global warming”. It forces us to scan for a suitable and sustainable alternative to fossilized biomass and the answer lies with surface dwelling, active biomass which is derived either from live or dead sources for power generation. Biomass can be subjected to power generation by combustion principle which is exactly followed for fossil sources and also is found to have a greater flexibility to generate power than conventional sources. Besides combustion, biomass is readily amenable for gasification where energy as power, heat and synthetic fuels can be derived. Biomass based power proves to be highly profitable under conditions where natural resources such as wood from forests, agricultural and animal sources etc are at abundance. India is a potential hub for this alternative route of power generation but currently holds a marginal fraction of 2650 MW out of its total installed capacity of 172000 MW. It utilizes bagasse co-generation system as its major option for biomass based power production with a capacity of 1411.53 MW achieved till June, 2010. It is important to note that biomass based power is multi-dimensionally advantageous as follows Rural economic upliftment, Suited for rural areas, Ability to have small kW scale power production, Distributed generation, Carbon neutral, Efficient utilization of renewable biological sources and accession of low cost resource. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Boilers Guide – Guide to Pick Optimal Biomass, Processing & Boiler Type
Many companies in India, and worldwide, are shifting from the use of fossil fuels for their boilers to using biomass. Such a transition is not easy though, given the significant differences between biomass and coal or other fossil fuels - differences both in terms of product characteristics as well as the supply chain and other market characteristics. So, how can a company go about making the key decisions in its transition to a biomass boiler? The nice folks at Boilers.Guide have put together a guide that eases this transition, specifically from coal to biomass boilers. This guide helps you iron out many of the uncertainties and questions a typical stakeholder has. The guide provides pointers on what characteristics to look for while selecting the optimal biomass to be used in boilers, selecting the right form (i.e pellets, briquettes, loose) for transportation and storage and selecting the appropriate combustion system and pollution control equipment. The guide is divided into three stages of selection with each stage providing information on the parameters to be considered, the pros and cons and examples to help you set up the most optimal biomass boiler. Get more from the guide itself - Using Biomass for Boilers - the Way Forward. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass conversion to natural gas – is this being followed anywhere?
I and my team might be working on an interesting project where the company is trying to move away from natural gas for its heating purposes and into the use of biomass for the same. The reason of course has to do with economics, with natural gas prices shooting through the roof past couple of years. While we are figuring out ways in which the company could use biomass directly for heating instead of natural gas, this process poses some problems owing to the specific needs of the client. I am hence wondering if the process of converting biomass to natural gas is being followed anywhere. I know that this is pretty much feasible, but not sure about the technology maturity and economics. If there is anyone who is aware of commercial conversions of biomass to natural gas, do let me know. You can include your response in the comment section or send a note to narsi [at] eai dot in. Thank you.
Biomass Gasification for the Environment and Economy
There are a whole lot of benefits from biomass gasification, both economy wise and ecology wise. Speaking of environmental benefits, gasification plants produce significantly lower quantities of air pollutants, which is really a good thing. The process can also reduce the environmental impact of waste disposal because it can use waste products as feedstock, generating valuable products from materials that would otherwise be disposed as wastes. Gasification's byproducts are non-hazardous and are readily marketable and also use significantly less water than traditional coal-based power generation, and can be designed so they recycle their process water, discharging none into the surrounding environment. If that is not convincing, let us look at the economical benefits. Gasification can be used to turn lower-priced feedstocks into valuable products like electricity, substitute natural gas, fuels, chemicals, and fertilizers. For example, a chemical plant can gasify petcoke or high sulfur coal instead of using high-priced natural gas, thereby reducing its operating costs. While a gasification power plant is capital intensive (like any very large manufacturing plant), its operating costs are potentially lower than conventional processes or coal-fired plants because gasification plants are more efficient and require less back-end pollution control equipment. With continued research and development efforts and commercial operating experience, the cost of these units will continue to decrease. The process also offers wide fuel flexibility. A gasification plant can vary the mix of solid feedstocks, or run on gas or liquid feedstocks—giving it more freedom to adjust to the price and availability of its feedstocks. Many predict that coal-based power plants and other manufacturing facilities will be required to capture and store CO2, or participate in a carbon cap and trade market. In this scenario, gasification projects will have a cost advantage over conventional technologies. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Gasification in India to Generate Lakhs of Jobs
Emerging green economy in the country may see creation of nine lakh jobs in India by 2025, a top government official said.
"India could generate nine lakh jobs by 2025 in biomass gasification, of which three lakh would be in manufacturing of stoves and six lakh in areas such as processing into briquettes and pellets and the fuel supply chain," Ministry of Micro, Small and Medium Enterprises (MSME) Secretary Dinesh Rai said.
More from here.
I am not sure if biomass gasification alone could generate almost a million jobs. The secretary appears to have his numbers done for him all right, but I still wonder.
It will of course be good if it comes true. It was only yesterday that I met this gentleman whose company manufactures efficient burners for kerosene stoves and he was quite hopeful about the micro-gasifiers as well.
Let's see how it goes
Biomass Gasification Power Production – Bottlenecks and Barriers
Biomass gasification is a process where materials are transformed by thermal decomposition under partially oxygenated conditions to generate syn-gas for power generation. It seems to be a powerful technique where energy can be produced in a sustainable way along with valuable products such as green oil and biochar but it is multi step process where bottlenecks continuously arises at every step of the production pathway. The most commonly encountered limitations are batch to batch variation in energy content, purification of the syngas, contaminants influence in the performance of the engines, ash and biochar disposals, toxic gas emissions and operational efficiency of the gas engines and mandatory modifications required to make the engines energy effective. In addition to these prime technical problems, others notable hindrances are insufficient capacity of the stakeholders and inadequate institutional and policy framework at the national, regional and local levels and limited access to financing and lack of interest on part of the state electricity boards (SEBs) in promoting biomass power generation etc. In India, conditions are further complicate by lack of working capital, limited interest in power projects, lack of effective regulatory framework and absence of effective information dissemination etc. In spite of the limitations, the technology continues to gain acceptance. Its potential to meet the energy demands on a flexible scale makes a robust move to outweigh the magnitude of limitations associated with it. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Power Plant with Attractive PPA Looking for PE Investors
A contact of EAI is looking for an investor to assist them financially for a 15 MW biomass power plant.
What he is looking for is a capital infusion to the extent of 25 crores, as he has already completed most of the rest.
The promoter is an established entrepreneur who knows his business, and most important, has an attractive PPA with the state electricity board for power purchase at tariff upwards of Rs 7 per kWh. In addition, he has done a good job of ensuring that the biomass supply at excellent prices.
Overall, it appears to be quite a profitable opportunity and should be of interest to private equity investors keen on adding a profitable biomass power plant of a reasonable size to their portfolio.
Highlights
- Power plant is being set up in Maharashtra, and most of the plant construction has already been completed
- Has a strong 13 year PPA, tariff Rs 7.5/kWh for 13 years with state discom.
- Plant in strategic location for feedstock availability
- Have agreements with the local distributors and farmers for resources.
- Total project cost: Approx Rs 100 crores (about $16 million), required infusion: 25 crores (about $4 million)
Cleantech Funds and Their Investments in Biomass in India
Several VCs/PEs/Companies have created funds which invest in clean technology or companies with partial clean technology operations, and have either invested, or are interested in investing in India. Some of these organizations and their investments are summarized as follows.
Company Energy/Cleantech Specific Fund Activity/Investment Shell Group through their Shell Foundation (invested directly or through other funds invested in Husk Power ($1.1M), while New Israel Fund, Dorot Foundation, Nathan Cummings Foundation, Andrea and Charles Bronfman Philanthropies through their Green Environment Fund invested in Greenko Group ($46.3M). Chrys Capital directly and through ChyrsCapital V LLC (through subsidiary Van Dyck invested in Pratibha Industries Ltd (Rs. 50 Crore) and Suzlon Energy (Rs. 50 Crore). Barings Private Equity India Private limited through consortium of PEs invested in Auro Mira ($21 M) whose Investor share was not disclosed. Additionally, Blackstone via their Blackstone Advisors India Private Ltd invested in Moser Baer ($300 M), 3i Group through their 3i India Infrastructure Fund invested in GVK Power and Infrastructure (Rs. 800 Crore) in both conventional and renewable energy. Reliance through their Reliance India Power Fund invested in Su-Kam Power Systems (Rs. 45 Crores), Citi Group CVC International (PE) through Citi Group Venture Capital (VC) invested in Suzlon (Rs. 50 Crores). The above was only the list of highlighted events. The list is actually very exhaustive. As the population increases, and there arises a demand for a more sustainable form of energy, a lot of investments have been made in this sector. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsCons of Gasifiers
The use of biomass gasification for power production is not new, but its use has been so far been limited and its contribution to the overall power production has so far been negligible in India. The producer gas derived from biomass gasification can be used for either producing power (by use in a gas engine) or can be used for thermal applications. With better technologies evolving for both gasifiers and gas engines, it can be expected that biomass gasification could start contributing a lot more to the overall power production in India. For starters, biomass gasifiers are reactors that heat biomass in a low-oxygen environment to produce a fuel gas called the producer gas. The gas produced from a gasifier can drive highly efficient devices such as gensets, turbines and fuel cells to generate electricity. A biomass gasification system consists primarily of a reactor or container into which fuel is fed along with a limited (less than stoichiometric, that required for complete combustion) supply of air. Heat for gasification is generated through partial combustion of the feed material. The resulting chemical breakdown of the fuel and internal reactions result in a combustible gas usually called producer gas. Though gasifiers are really special in their own way, they have their limitations. Gasification is a complex and sensitive process. There exists high level of disagreement about gasification among engineers, researchers, and manufacturers. Several manufacturers claim that their unit can be operated on all kinds of biomass. But it is a questionable fact as physical and chemical properties varies fuel to fuel. Gasifiers require atleast half an hour or more to start the process. Raw material is bulky and frequent refuelling is often required for continuous running of the system. Handling residues such as ash, tarry condensates is time consuming and dirty work. Driving with producer gas fueled vehicles requires much more and frequent attention than gasoline or diesel fueled vehlicles. Getting the producer gas is not difficult, but obtaining in the proper state is the challenging task. The physical and chemical properties of producer gas such as energy content, gas composition and impurities vary time to time. All the gasifiers have fairly strict requirements for fuel size, moisture and ash content. Inadequate fuel preparation is an important cause of technical problems with gasifiers. Gasifier is too often thought of as simple device that can generate a combustible gas from any biomass fuel. A hundred years of research has clearly shown that key to successful gasification is gasifier specifically designed for a particular type of fuel. Hence, biomass gasification technology requires hard work and tolerance. As I said, gasifiers are indeed special in their own way. I’d rather we just wait for the technology to advance in the future to go far beyond its limitations. After all, as I said then and I will again, petroleum is not here forever, and we need more sustainable feedstock and advanced technologies for processing. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Cool Solutions for Your Hot Problems – Getting Your Heating Costs Under Control
Sustainable Industrial & Commercial Heating Solutions - A Critical Pain Point
No, this blog post is not about those hot problems. It is about problems companies, especially in the manufacturing sector, face for their heating requirements!
With the prices of furnace oil, diesel and LPG increasing alarmingly in the past few years, companies suddenly find their costs of their energy shooting up to unaffordable levels.
Suddenly, using renewable and sustainable energy sources such as solar and biomass, and utilizing heat that was wasted earlier appear to be the way forward.
I hence thought I’d provide an overview of renewable and sustainable options available for heating requirements in factories.
The following are the sustainable heating avenues that are technically feasible today:
- Solar Water Heater
- Biomass
- Waste Heat Recovery/CHP/Cogen
- CST (concentrating solar thermal)
- Energy efficiency heating equipment
- Back pressure steam turbine
Biomass Energy for Reducing Dependency on Furnace Oil, LPG or Diesel
Reducing Fossil Fuel Use at Industries & Commercial Units through Use of Biomass Energy
Also check out:
EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Product
Costs of feedstock for Biomass gasification
Biomass gasification utilizes renewable feed stocks for liberating the synthesis gas by thermal decomposition under high temperature conditions. Among the factors affecting the production protocol, cost economics play a critical role and is well pronounced in cases when the scale of operation is magnified. Entrepreneurs of gasification technology often make contracts with farmers or traders so as to ensure a price security and timely uninterrupted availability of their concerned feed commodity. In spite of the strategies, price fluctuations in gasification feed stocks have been witnessed, for instance cost of rice husk was at Rs: 600/tonne in 2009 but has steeply increased to Rs 1800/tonne by the end of 2010 and such an extreme volatility in market prices causes a concern to buyers and affect the final price of the power/unit produced by biomass gasification technology. Lack of price security has produced an unique trend in gasification where the venturers start their own farms for feed stock production which they claim that it can cut costs by two-third of the actual cost and seems to be working well in particular with dedicated energy crops. Gasification technology is well balanced economically as entrepreneurs have a scope to sell biochar by-product which fetches good market price to compensate for the cost procurement of the feedstock. Socio-economic and technical factors continuing to challenge the progression of gasification but the productivity makes it a superior choice that cannot be camouflaged. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Current Status of Biomass Gasification in India
India has initiated its power generation from renewable sources by several different principles namely gasification and combustion. Biomass gasification is carried out at different power capacity levels ranging from 25 kW to 2 MW and above. When a comparative analysis is made between combustion and gasification of biomass, the former technology is best operational under high capacity installations while the inverse is true for the gasification. This peculiar advantage seen in gasification to operate at smaller ranges makes the technology suitable for adoption in rural and by small entrepreneurs where power generation is required rather than efficiency. The technology even though best functions with high range installations of 2 MW, its utility is obstructed by the demand for a series for engines and India has less than 10 installations so far. Gasification technology is really ideal where resources are randomized and adoption of any other technology is tedious on a financial scale. Gasifiers are flexible to operate which makes the user to follow any technology depending on his requirements to a limited extent. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Decarbonizing India’s Energy Sector by Biomass and Biofuels
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
In India, 22% of the total energy supply is renewables, with biomass contributing 85%. Biomass use is shifting from traditional residential heating to power production. Biofuels represent less than 1% of transport fuels, with bioethanol at 3% of gasoline consumption. The biomass market is projected to reach INR 32,000 crore by FY2030-31. India produces 450-500 million tonnes of biomass annually, with a surplus of 230 MMT/year. Biomass-derived energy constitutes 32% of India’s primary energy use. The biomass pellet manufacturing capacity is 2.38 MMT, with 83,066 MT co-fired in 39 thermal power plants.
Reliance Industries Limited (RIL) is transitioning from fossil fuels to renewable energy, including biofuels, for its energy demand. This involves using bio-pathways to fix CO2 and recycling materials across value chains. RIL plans to set up around 100 Compressed Biogas (CBG) plants over the next five years, consuming over 5.5 million tonnes per annum of agricultural residue and organic waste. This initiative is projected to reduce nearly 2 million tonnes of carbon dioxide emissions annually. In essence, RIL’s decarbonization strategy involves renewable energy, biofuels, recycling, and CBG plants.
Thermax, an Indian energy and environment engineering company, is decarbonizing its manufacturing processes using biomass and biofuels. Its subsidiary, TOESL, installs biomass-fired plants and sells steam. Thermax’s solutions include the Atmospheric Fluidised Bed Combustion Boiler, capable of using various fuels including coal, lignite, rice husk, petcoke, spent coffee ground, washery rejects, low ash coal, paper sludge, roasted chaffs, DOB, bagasse, pith woodchips, coffee husks, mustard stalk, cotton stalk, and char. Thermax has secured an order worth over Rs 500 crore to set up five bio-CNG plants across India, with a capacity to produce 110 Tonnes Per Day of bio-CNG, utilizing local feedstock exceeding 1,000 TPD. This initiative contributes to the decarbonization of manufacturing processes.
The shift from fossil fuels to renewable energy sources is a key aspect of the company's strategies. This transition is driven by the need for cleaner energy sources and the potential economic benefits of renewable energy. Development of advanced biofuels like bioethanol, biodiesel, and biogas from sustainable feedstocks like algae and dedicated energy crops can further reduce reliance on fossil fuels and enhance energy security.
Looking ahead, the focus will be on enhancing the efficiency of biomass and biofuel technologies, developing second-generation bioconversion processes, and ensuring the sustainable sourcing of feedstocks. The potential of biomass and biofuels extends beyond just energy production. It opens up opportunities for waste management, rural development, and job creation, contributing to a circular economy. Companies like Reliance Industries and Thermax are pioneering this transition, demonstrating the viability and benefits of these renewable energy sources.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
Emerging Feedstock for Biomass Power
Following my previous post on the industry perspectives on the various methods that have to be adopted for sustainable feedstock procurement (http://eai.in/blog/2011/12/industry-perspectives-and-strategies-for-effective-biomass-feedstock-procurement.html), today’s article showcases the various feedstock (emerging) that could be used as a potential source for biomass-based power generation. As you might be well aware, the first generation feedstock such as sugars, starches from wheat, sorghum, sweet potato etc are not widely used for bioenergy production owing to the food-fuel conflicts. Similarly, even the second generation feedstock such as mustard are not being used in a big way for bioenergy production. These days, more focus is being thrown on the advanced feedstock such as the third-generation biofuels ( these seek to improve yields through improving the feedstocks themselves instead of the processes). These feedstocks include those sources that promise to generate greater than 500 gallons of oil per acre per year. Examples include palm oil and algae oil, rapeseed and jatropha oil, grasses (switchgrass, miscanthus), trees (willow), halophytes (saltwater plants). Provided are some details of the emerging biomass feedstock such as camelina, miscanthus and bamboo and their potential to perform as a bio-fuel. Miscanthus: Miscanthus, also known as Elephant grass can grow up to 3 meters high and it is native to tropical and sub-tropical regions of Africa and South Asia. Miscanthus is mentioned as a biofuel crop because of its relatively high dry matter yields across a range of environmental and soil conditions. The Miscanthus genotype most commonly recommended for biofuel production is a sterile hybrid (Miscanthus x giganteus) believed to be a M. sacchariflorus x M. sinensis hybrid. Miscanthus utilization in the biofuel industry is primarily for combustion in power plants – it has the desirable properties of low water and ash contents. Current research is focused on its potential as a biomass crop for direct combustion and for lignocellulosic conversion to ethanol. Giant miscanthus has been studied in the European Union and is now used commercially there for bedding, heat, and electricity generation. Most production currently occurs in England but also in Spain, Italy, Hungary, France, and Germany. Recently, Japan and China have taken renewed interest in this native species and started multiple research and commercialization projects. In the United States, research began at the University of Illinois at Urbana-Champaign in 2001 and has expanded rapidly to other U.S. universities. However there is currently little published information on giant miscanthus yields in the United States. Bamboo: Recently, bamboo has received increasing attention for producing biofuel because of its easy propagation, vigorous regeneration, fast growth, high productivity and quick maturity. Bamboo is an efficient user of land, and produces more biomass per unit area than most tree species. But the process of converting bamboo cellulose into liquid fuel is difficult to execute efficiently because of the extraordinary density of the plant. However, new research from Mississippi State University hold clues for how scientists can learn to more easily break down bamboo, and thus more efficiently extract biofuels from all other cellulose sources using the bacteria from pandas’ waste. If the researchers are successful, the manufactured enzymes could be used in a new, much cheaper and more efficient process for converting bamboo and other woody plants into biofuels. Fuel properties and potential as a bio-fuel of different bamboo species:
| Species | Moisture content | Density | Ash content | Energy content |
| % | g/cm3 | % | MJ/Kg | |
| B.pallida | 44 | 0.61 | 1.91 | 18.63 |
| B.tulda | 37 | 0.65 | 1.92 | 18.61 |
| D.asper | 37 | 0.77 | 4.23 | 17.92 |
| D.membranaceus | 43 | 0.62 | 4.99 | 18.81 |
| G.apus | 35 | 0.76 | 2.00 | 18.14 |
Future Feed-in-Tariff Trends for India – for Wind, Solar and Other Renewable Power Sources
It is an open secret that renewable power requires incentives - these usually are in the form of capital subsidies, tax incentives and most importantly, via feed in tariffs. It is a million dollar (make that Billion Dollar) question what the future of feed in tariffs will be for the mainstream renewable power sources. I picked up some resources on these. Wouldn't say they provide a peek into the future, but at least one of these try telling us how the government arrives at these numbers, so that will provide us with some clues. Go through the following links when time permits Link 1 Link 2 Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
How Biogas-based Power Generation is Picking up Pace in India
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Most of us have come across the gobar gas – literally meaning gas from the cow. It is the same as what is called biogas. This is the gas that is released when bacteria feast on organic matter – typically human and animal feces – and release a gas that is about 50% methane. While biogas had predominantly been used earlier for heating purposes, its use for power production is also beginning to show a marked rise across the world, and in India too. How is power produced from biogas? The process is actually quite simple. Step 1 is generation of biogas. This is done typically using what are anaerobic called digesters. Animal (or human) waste is fed into the digester, where the microorganisms (called methanogenic bacteria) act upon it. Depending on the type of digester, it could take anywhere between 10 days to 15 days for the waste to have been "digested" by the bacteria and the release of biogas. The biogas thus produced can be used in IC engines specially devised for the use of biogas. These engines are similar in working principles to diesel engines and natural gas engines. These engines produce electricity from biogas. A bit of observation will lead us to easily understand why this concept will be of enormous interest to specific industry segments. Two segments stand out - industries that employ large numbers of animals and sewage treatment plants that treat human waste. Both these segments have started benefitting from this concept; as a result, we have a few STPs (sewage treatment plants) already generating power from the sludge generated (one of the STPs at Chennai, at a town called Nesapakkam, generates about 500 kW of power from the waste, and uses the power generated for all its electricity purposes). Some numbers will help understand the potential available for power generation from biogas. The cow population of India (about 225 million) alone generates about 800 million tons of wet dung which translates to about 150 million T of dry weight. 1 Kg of dry cow dung can generate about 1.2 kWh of electricity (it can generate the equivalent of about 4 kWh thermal). Thus, if all cow dung were converted to electricity, that would be 1.2*150*1000 million kWh = 180 TWh. India generated a total of 855 TWh in 2011-12. This implies that cow dung, if entirely converted to power, would have produced about 20% of total India's power! If the waste of other cattle and human waste were also taken into account, this could be about 30%. That is an awesome number. Of course, these data hide the actual difficulty in converting even a small portion of animal or human waste into electricity, owing to the infrastructural and social problems associated with these. All the same, waste -> biogas -> power is quite practical to a whole host of industries for whom such waste is available on premises. More information about waste to energy in general in the Indian context, is available from EAI's waste to energy resource section. Some of the following YouTube videos provide a more visual account of how to generate biogas from organic waste: Biogas from food waste - ARTI - http://www.youtube.com/watch?v=BGSl72xZHNk&feature=related Bio-gas from kitchen waste and bio mass - http://www.youtube.com/watch?v=uppVZGS7bYI&feature=related Biogas from Vegetarian Food Waste - http://www.youtube.com/watch?v=NZFrPZZIFTs&feature=related Biogas from Human Waste - http://www.youtube.com/watch?v=_m1nr2v5S8o And while on sewage, human waste and toilets, etc, a couple of interesting articles on things are emerging New toilet technology after 150 years of waste The seat of power - Better sewage treatment is the latest thing in clean energy Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsHow Punjab Will Benefit from All Its Agricultural Residue- A Case Study
Agricultural residues never go to waste. Not when they can be used for generating energy. In this context, the government of Punjab, India, plans to produce about 1,000 MW of green energy from livestock residues by 2015. When you think about it, this has huge economical and environmental benefits. In a region where large quantities of cattle manure become a major pollutant, this could be seen as an opportunity that could open a lot of doors. Aside livestock residues, the state also generates nearly 21 million tons of rice stalks and similar biomass plant wastes annually, which can all go into the production of green power. The state government is thus planning to make renewable resources as the source of their power to contribute 10% of its total energy production in the next five years. It is worthy to mention that Punjab already runs a biomethanation facility with a capacity of 1 MW, in a location close to Ludhiana. The facility uses methanogens (microbes that produce methane as a metabolic by-product) for the manufacture of methane gas. It currently uses 235 tons of cattle wastes to generate 18,000 kWh of electricity in addition to producing 45 tons of organic fertilizer every day. Also, the Punjab Energy Development Agency has developed 318 MW of green power projects, which includes the Ludhiana plant, till date. These projects comprise 37 MW of small hydro facilities, 28 MW of biomass power facilities, 250 MW of biomass co-generation facilities and 2 MW of solar projects. The agency also develops 132 MW of green power projects currently, which include 11 MW of hydropower, 100 MW of biomass co-generation and 20 MW of traditional biomass. If everything goes right and operational, the state will generate 700 MW of green power by 2012. That’s big! It is worthwhile to note that the planters are also getting an income of nearly RS. 4,000 per acre every year in the process of marketing agro wastes to biomass facilities. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Industry Perspectives and Strategies for Effective Biomass Feedstock Procurement
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
One of the most critical bottlenecks for biomass power plants is the supply chain bottlenecks that could result in non-availability of feedstock. A related problem is the volatility, or more precisely increase, in the feedstock price. Both these could render the project unviable. Highlighted in this article are some of the industrial perspectives in overcoming barriers for procuring a balanced feedstock supply. EAI’s research with industry experts suggest that there is no established biomass value chain that exists in India for the procurement and transportation of the biomass feedstock. Typically, the facility staffs from a biomass gasification plant acquires biomass from several to dozens of small-scale biomass suppliers on a relatively informal, non contractual basis; although some have considered the use of aggregators, there is no data or proof available from the Indian biomass gasification companies that have engaged such a service as yet. The biomass procurement model that is typically followed in India is discussed below: Route #1 – Biomass Producer -->Transport Contractor --> Biomass Collection Centres (BCC’s) --> Power Producers The biomass producer i.e. the farmers/mill owners hands over the feedstock to a transport contractor who in turn delivers the feedstock to the biomass consumers or BCC’s. The BCC’s (managed by the biomass consumer) pay the farmers and the power producers collect the feedstock from these collection centres as and when required. At some instances, the farmers deliver the feedstock in the power producer’s facility and get directly paid for it. Route #2 - Biomass Producers --> Waste Processing Mills -->Biomass Power Producers For feedstock where further processing is required, the farmers/mill owners deposit the feedstock in waste processing mills. From the waste processing mills through a transport contractor the feedstock is deposited in the BCC’s or directly in the power producer’s facility. In some cases, especially in briquetting, the processing is done in the collection centres itself where a mobile briquetter is taken and the briquettes that are processed are directly delivered to the facility or collected by the power producers. Key Strategies to be Followed for Effective Biomass Feedstock Procurement EAI’s interactions with the industry reveal that the following strategies have to be adopted in order to bring both the availability and price of biomass under control:- Security should be addressed by obtaining a written formal supply agreement with a reputable, local supplier. A five-year signed supply agreement with pricing and minimum volumes can go a long way in helping to secure necessary financing. A bioenergy project that is totally reliant on only one source of feedstock will be at risk, so two supply contracts are even better. This will also allow one to negotiate a better feedstock price, as the supplier will benefit from a long-term relationship and a guaranteed market. An interested lender needs to know that both the feedstock supplier and bioenergy processor are committed to the project.
- It can be beneficial to hire an independent professional to verify one’s biomass supply projections and double-check that the feedstock supply is sustainable over the long term
- Backward integration and own captive biomass source (one company, Orient Green Power, is even trying out a novel technique of going for energy plantations on their own wind farms)
- According to the Washington based biomass supply company ‘Powerstock’, for a well-managed supply, an inclusive definition of biomass is needed. The company is also taking efforts to educate the public on the value of well-managed, productive forests.
- The bottom line of feedstock security is composed of several aspects: grower relations, harvesting, marketing, equipment utilization, proprietary techniques and agricultural economics. Hence it's important to manage the entire process from seed to market.
- The supply sector needs to make the transition from a residues-based approach to an integrated, dedicated feedstock supply system using energy crops, plus residues.
Key Indian Players in Biomass Gasification based Power Production
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Biomass gasification, with its capability to work in kW scales (as low as 20 kW) and its ability to utilize a wide and diverse range of biomass feedstock is ideally suited for rural areas without access to power but with easy access to significant amount of biomass. Discussed in this post are some of the prominent players in India which use biomass gasification for power production Summary of Prominent Independent Power Producers using Biomass Gasification in India| Company | Location | Plant Location(s) | Cumulative Installations |
| Clenergen Corporation | Chennai | Tamil Nadu, Karnataka | Cumulative capacity of 19.5 MW in operation and 20.5 MW under construction |
| Green Infra | Delhi | Orissa and Bihar | The company is developing five biomass power projects with a cumulative capacity of 68 MW. |
| Greenko Group | Bangalore | Chattisgarh, Karnataka, Andhra Pradesh | 41.5 MW from 6 biomass power plants |
| Husk Power | Bihar | Bihar | HPS had 65 fully operational plants, and a further 10 under construction or starting operation. 48 plants are wholly owned and operated by HPS, and the other 17 run under some type of franchise or partnership. HPS’ plants have capacity of 35-100 kW each. |
| All Green energy | Bengaluru | Karnataka, Tamilnadu and Madhya Pradesh | 10 biomass plants have been proposed to set up with a capacity of 6.5 MW each. |
- 8 MW Ecofren power project in Chhattisgarh
- 8 MW ISA power project in Chhattisgarh
- 7.5 MW power project in Karnataka
- 6 MW project in GEPL, Kadapa, Andhra Pradesh
- 6 MW project in Andhra Pradesh
- 6 MW Roshini Power Project in Andhra Pradesh
Potential for Biomass Power in India
Biomass based power generation is a choice of reality under the geographical regions where a sustainability exists in the flow of biologically raw materials for the production of power and India is one of the most notable universal giants for the production of biomass based power which can be best understood from the estimates of its biomass availability and the power produced from it. India has biomass production of 546 million tonnes per year from the agricultural sources alone to generate electricity at a capacity of 17,982 MW and its overall production of power from renewable sources stands at 34961 MWe in 2010.A calculated annual growth rate for the next decade realistically and optimistically is above 42,000 MWe and 48640 MWe respectively. The development of biomass based power is further enhanced by the Government regulatory policies by declaring duty exemptions’, tax breaks and financial incentives etc. The cost of producing electricity from biomass is affordable at Rs: 2.25-3.25 / kWh. In spite of all these attempts biomass based power generation is at its infant stage because of hindering factors such as feedstock availability, transportation, price volatility etc. India to emerge as a role model must utilize its renewable energy sources to a large extent, develop dedicated energy crops, establish end user market for co-products such as charcoal, biochar, activated carbon, and implement energy efficient technology for economically feasible power generation on a massive scale. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
PRESPL Secures ₹4.1 Million Investment from Mitsui for Biomass Growth
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Mitsui, a leading Japanese conglomerate, has recently invested ₹4.1 million in Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), a company focused on collecting agricultural residues and converting them into biomass briquettes and pellets. This investment underscores the growing potential of the Indian biomass sector, which is expected to witness significant growth in the coming years.
The Indian biomass market is estimated to be valued at around ₹50,000 crore and is projected to reach ₹1,00,000 crore by 2025, driven by factors such as the Increasing demand for renewable energy, Growing awareness of environmental concerns, and Supportive government policies.
The Indian biomass sector is also witnessing a surge in international collaborations, with several prominent companies entering the market through partnerships and alliances. For instance, Aramco, a prominent oil and gas company, joins forces with ReNew Power, India's largest renewable energy company, to explore opportunities in developing and deploying low-carbon technologies, including biomass-based power solutions. This collaboration signifies the growing interest of leading energy giants in exploring cleaner alternatives.
Additionally, Danish Biogas's collaboration with the Maharashtra Energy Development Agency (MEDA) brings together expertise in advanced biogas technologies with experience in promoting renewable energy and rural development in Maharashtra. This partnership contributes to a more sustainable waste management system through biogas generation..
These strategic partnerships are just a glimpse into the exciting developments propelling the Indian biomass sector forward. The government is also playing a crucial role in accelerating its growth through supportive initiatives like subsidies for setting up biomass power plants and briquette/pellet production units, promoting dedicated energy crops and efficient residue collection systems, and providing tax benefits for biomass projects. Investments in research and development are also being made to improve conversion technologies, optimize feedstock utilization, and develop cost-effective biomass solutions.
Navigating this complex ecosystem requires a comprehensive understanding of the key players involved. The Indian biomass value chain comprises various stakeholders, including biomass producers like farmers and forestry companies, collectors and aggregators responsible for managing feedstock collection and storage, processing and conversion companies that transform biomass into usable forms, original equipment manufacturers (OEMs) who create machinery for the sector, suppliers providing essential goods and services, power plants and industries utilizing biomass-based fuels, and government agencies responsible for regulation and promotion.
Beyond the core value chain, the adjacent value chain plays a crucial role in supporting the sector's growth. This includes financial institutions offering loans and investments for biomass projects, research institutions and universities engaged in R&D advancements, and non-governmental organizations (NGOs) promoting sustainable practices and advocating for policy changes.
Indigenization remains moderate to low currently, with reliance on imported technologies and equipment. However, government initiatives and rising demand are expected to gradually increase domestic capabilities in the coming years.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Primary Routes for Power from Biomass
The three primary routes for biomass to power are: Combustion, Gasification and Anaerobic Digestion. Combustion is easy to understand – instead of using coal or other fossil fuel, use biomass to produce steam that runs a turbine. Combustion of biomass for power could either be in the form of co-firing (when it is burned along with coal) or pure play biomass based combustion. In the case of gasification, the biomass is first gasified and this gas turn produces power in a gas engine. Anaerobic digestion is usually applied to biomass that typically have a high amount of water in them (anaerobic digestion is most used for treating organic waste such as kitchen waste and sewage waste into energy). Under this route, microorganisms act upon the organic matter present in the biomass under anaerobic (absence of air) and convert it into biogas. An emerging route for biomass based power is pyrolysis. In this, the biomass is rapidly heated to 450 - 600 °C in absence of air, and results in a bio-oil called the pyrolysis oil, which can in turn be used for firing the boilers. Typically, 50 - 75 % (by weight) of the feedstock is converted into pyrolysis oil. Pyrolysis as a method for power production is not well established currently in India or elsewhere in the world. Typically pyrolysis plants work well beyond 2 MW scale, while gasification plants work well until 2 MW scale, at the current technological progress. Thus, it can be said that pyrolysis takes off where gasification ends. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Prominent biomass feedstock for gasification
Biomass for power generation by combustion or gasification is normally variable in its chemical composition of electron rich reactants, ash content, moisture, sulphur and nitrogen content etc. As a result, selection of the most convenient feedstock is an issue of debate. The degree and diversity of contaminants strongly influence the production and purification of synthesis gas in gasification while they tend to have a minimum effect in the combustion process. Independant of these disturbances virtually any raw material applied in power generation process should be a matter with potentials. In India, a vast array of feed stocks are utilized for power generation but the most wide ones are farm and mill wastes, woody trees, energy plantations and other green manure crops. Preference is made on the basis of availability, cost, bulkiness of the material, pre-processing, storage etc. Biomass used in India yields varying level of energy but it is also the gas engine and generators whose efficiency equivalently determine power generation. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
REC Price Band Revised
The Central Electricity Regulatory Commission(CERC) has announced the floor and forbearance prices to be used for solar/non-solar projects from the FY 2012-13 upto 2016-17. The prices set are shown in the table below
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Prices (2012-2017) | Current | % Reduction | Prices (2012-2017) | Current | % Reduction | |
| Forbearance Price | 3300 | 3900 | 15.38 | 13400 | 17000 | 21.18 |
| Floor Price | 1500 | 1500 | 0.00 | 9300 | 12000 | 22.50 |
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Proposed | Current | % Reduction | Proposed | Current | % Reduction | |
| Forbearance Price | 3480 | 3900 | 10.77 | 13690 | 17000 | 19.47 |
| Floor Price | 1400 | 1500 | 6.67 | 9880 | 12000 | 17.67 |
- Non-solar – the floor price remains unchanged. Thus biomass/wind generators are expected to get the same minium revenue as they have been getting earlier.
- Solar – the floor price has seen a cut of about 23% from current levels. Although this might seem drastic, it is not likely to have a significant impact on solar power projects (refer section below).
- Average bid price under phase 1 batch 2 of JNNSM could be around Rs. 12.5 /kWh(on the higher side)
- APPC prices could rise by 15% annually (base price used is that of Tamil Nadu) - reasons for this were mentioned earlier.
- REC price after 2016-17 period (i.e. from FY 2017-18 onwards) is reduced by 25%
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| JNNSM Tariff (average) (Rs. per kWh) | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 |
| APPC (Rs. per kWh) | 3.38 | 3.89 | 4.38 | 5.04 | 5.38 | 6.19 | 6.38 | 7.34 | 7.38 | 8.49 |
| REC (Rs. per kWh) | 9.30 | 9.30 | 9.30 | 9.30 | 9.30 | 6.98 | 6.98 | 6.98 | 6.98 | 6.98 |
| Total (Rs. per kWh) | 12.68 | 13.19 | 13.68 | 14.34 | 14.68 | 13.16 | 13.36 | 14.31 | 14.36 | 15.46 |
| REC mechanism's Incremental revenue over PPA(Rs. per kWh) | 0.18 | 0.69 | 1.18 | 1.84 | 2.18 | 0.66 | 0.86 | 1.81 | 1.86 | 2.96 |
Table: REC vs preferential PPA for 10 years post 2012
As can be seen from the above table, the REC mechanism is quite comparable, if not better when compared to the assured tariff provided by NVVN over 10 years of operation of the solar powerplant. Overall, the REC mechanism can clearly drive the solar market, provided the Renewable Purchase Obligation (RPO) is strictly enforced by the various SERCs. The CERC release can be found here. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsREC Trading – November 2011
The REC trading for the month of November concluded yesterday. Figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 105,527 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 96,154 (90%) RECs traded while PXIL saw trading of 9,373 (10%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The price of REC varied between the two exchanges - IEX and PXIL. Non-solar RECs closed with a price of Rs. 2,900 at IEX while the RECs sold at Rs. 2,800 at the PXIL. At the IEX, the prices have seen a 7% rise over those paid last month where the trading price was Rs. 2,700 per REC.
| September | Non-Solar | Solar | ||||
| Buy Bids | Trade Volume | Sale Price | Buy Bids | Trade Volume | Sale Price | |
| IEX | 257,578 | 96,154 | 2,900 | 43 | - | - |
| PXIL | 51,199 | 9,373 | 2,800 | 0 | - | - |
| Total | 308,777 | 105,527 | - | 43 | - | - |
REC Trading – September 2011
The REC trading for the month of September concluded recently. Trading figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 46,362 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 41,385 (89%) RECs traded while PXIL saw trading of 4,977 (11%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The most encouraging part of the trading was the price paid for each certificate. The price of REC grew to Rs. 2300 from Rs. 1800 last month.
|
September |
Non-Solar |
Solar |
||||
|
Buy Bids |
Sell Bids |
Sale Price |
Buy Bids |
Sell Bids |
Sale Price |
|
|
IEX |
196,159 |
76,026 |
2,300 |
7 |
- |
- |
|
PXIL |
30,853 |
9,562 |
2,300 |
0 |
- |
- |
|
Total |
227,012 |
85,588 |
- |
7 |
- |
- |
Interestingly, there are 7 buy bids for solar REC; up from the lone buy bid last month, although this is promising, it highlights a serious issue. As with the previous months, there are no solar RECs available as no projects are registered under REC. This is a worrying trend and is going to put immense strain on the obligated entities to fulfil their solar RPO. The reasons for lack of solar projects registered under REC could include
- Higher payback period for solar projects
- REC prices guaranteed only up to 2016-17
- A combination of the above two greatly reduces the bankability of solar projects
Renewtech India 2011 Conference – Day 2
The details of the first day of the conference is available here. The second day of the The 3rd International Expo and Summit, Renewtech India 2011 conference started with a speech by Mr. D.C. Bhishikar, Managing Director, Clarke Energy India. The topic was “Application of Gas Generated from Waste Treatment for Combined Heat and Power(CHP) Solutions using GE Jenbacher Gas Engine Technology” He mentioned that the company has about 300 MW of installation base in India. He explained the various aspects of the Jenbacher Gas Engine Technology and explained that while a combustion based power generation(ranking cycle) has an efficiency of approximately 28%, the Gas engine technology has an efficiency of about 40%. The next speaker was Mr. Ravinder Tanwar, VP-Operations, Websol Energy Systems Ltd and he spoke on the topic “ Rural Electrification in Sagar Island through off Grid Solar PV Power plants”. In this session, Mr. Tanwar presented a case study of how an off-grid solar PV power plant in the Sagar island in Sunderbans, West Bengal changed the lifestyle of the inhabitants there. He explained the cost of setting up the plant and the challenges that Websol faced in putting up these plants. For example, the Solar PV modules had to be transported to the islands using boats.
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The next session was about “Solar Energy & Hybrids”. This session had speakers from Gadhia Solar Energy Systems, HCL Technologies, Soltigua-Italy and Mahindra Cleantech Ventures. Mr. Badal Shah, MD of Gadhia Solar, spoke about Solar Air conditioning. He briefly explained the principle behind how it works. He also talked about Solar cookers and highlighted the company’s projects in cooking meals at Tirupati and Shirdi temples. One key point he wanted people to remember was that Solar energy can only complement other sources of energy and cannot be a substitute for them. The next speaker was Mr. Vijaya Klnr Pingali, Group Technical Specialist at HCL Technologies Limited. The topic of his speech was “Monitoring for Better Monetization and Implementation” . In his speech, Mr. Pingali highlighted the need for effective monitoring of Solar PV farms. He also described the different types of monitoring with various examples. Mr. Francesco Orioli, Director-Marketing & Sales, Soltigua, Italy spoke on the topic of Concentrating Solar Power(CSP). The firm Soltigua is a market leader in the CSP Parabolic Solar Collectors. Mr. Orioli presented some case studies about some of the CSP projects his firm had undertaken. The next topic was “ Building Robust Ecosystem for Solar Energy in India” and the speaker was Mr. Vish Palekar, Business Head, Mahindra Cleantech Ventures. Mr. Palekar gave a very insightful speech on the development of the Solar sector in India, especially the grid-connected projects selected under the 1st part of the first phase of the JNNSM. He touched upon the following aspects of these projects- Growth drivers – Policy/PPA
- Project Implemention – Financing, Technology selection and execution.
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The third session of the day was on Wind Power. Two speakers spoke during the session – Mr. Renjith Viripullan, Engineering Manager, Onshore systems GE Energy and Mr. Bhagwat Divate, National Technical Manager, Kluber Lubrication India. Mr. Divate spoke on “Wind Turbine Maintenance Technology & Efficiency” and highlighted various challenges in the maintenance of Wind Turbines. He explained the tribological features to be kept in mind during maintenance and also the importance of lubricants. Mr. Virupullan spoke about “Wind Turbines for Low Wind Speed Market” . His speech included the definition of low speeds, challenges and opportunities in this segment.-
The final session was titled “Case Studies on Applications of Renewable Energy”. The following were the topics and the speakers.- “Innovative CDM Based Renewable Energy Projects” – Dr. Ram Babu of General Carbon
- “Solar PV Pumping system for Landscape Irrigation Application” – Mr. Vilas Erande of Samved Energy Systems
- “Waste-to-Energy Application” – Mr Soumya Bhattacharya, Concord Blue
- Tidal & Geo-Thermal Energy
- Energy Efficiency
- Quality and Certification of PV Solar Cells.
Renewtech India 2011 Conference – Day 3
This is my final post on the Renewtech India 2011 conference. Click here for details on Day 1 and click here for details of Day 2. The final day of the event had 3 sessions. The first session was titled “Tidal & Geo-Thermal Energy”. The first speaker was Dr. Ritesh Arya, Hydrogeologist & Groundwater Consulting in Himalayas. He gave a very insightful speech on the topic “Geothermal potential in India – A Review”. He highlighted the fact that India has more than 10 GW potential in the Geothermal space. He made an interesting point that while Solar, Wind and other forms of energy are renewable energy but not sustainable energy whereas Geothermal energy is a sustainable energy. He described how the heat of the magma under the ground can be harnessed to generate steam for heating applications and power generation. He explained his experiences in Ladakh and the Himachal region where there are natural hot springs. He also talked about his experiences in Iceland where geothermal energy is available in abundance. In Iceland, the people even grow tropical fruits like banana in green houses heated by the geothermal energy. The next speech of the session was by Prof. S. G. Kanitkar, Head-Green Energy Division, Enviro-Abrasion Resistance engineers Pvt. Ltd. His topic was “Tidal Wave energy”. He started off by describing the differences between the Tidal and Wave energy. The current scenario of harnessing these forms of energy were explained by him. He then provided the technological details about how the Wave energy can be harnessed. In particular, he provided the details of the device his team has developed. The second session of the day focused on “Energy Efficiency”. The following were the speakers 1. Mr. Jens Burgtorf, Director – GIZ-IGEN, Bureau of Energy Efficiency 2. Mr. Martin Wohlmuth of Arqum GmbH – “Resource Efficiency Network India – A Field Report” 3. Mr. G. Gururaja of Avni Energy Solutions Pvt. Ltd – “LED Technology: Its Role in Present Scenario for India’s Lighting Requirement” 4. Mr. Dinesh Shetty of Bureau Veritas Certification – BS/EN 16001:2009 – Energy Management Systems for Reduction of Energy Costs/Green House Gases Emission. As can be seen from the topics of the presentations, the session focused on various aspects of Energy Efficiency. “Quality and Certification of PV Solar Cells” was the title of the final session of the day. This session had two speakers – Mr. Srinivas Chakravarthy, Country Head – Industry Services, TUV Rheinland(India) and Ms. S. Vasanthi, Director – Technology and Marketing at Websol Energy Systems. Mr. Chakravarthy of TUV Rheinland spoke about the module certification process in general and TUV Rheinland in particular. He started off by explaining the various environmental influences during the long term operation of PV modules. This includes solar radiation, temperature, mechanical stress due to factors like wind, atmosphere,etc. He explained the different standards for Performance, safety and qualification. Subsequently, he described the different tests conducted for the IEC or other certification. This includes subjecting the modules to high level of different types of stresses(temperature, sunlight, handling, partial shading, wind, UV rays,etc).He concluded by talking about the various services offered by TUV Rheinland and also about the new test facility in Bangalore. The last speaker of the session was Ms. S. Vasanthi. Her topic was “ Improvement in Crystalline Si PV Modules Through Quality Control and Innovation in Manufacturing Processes”. She explained the various steps in the solar PV cell and module manufacturing process. She described the various quality control measures and some of the common defects like browning of cells. The effect of each of the raw material for a module(metallisation paste, ribbon, flux, encapsulant,etc) on the final quality of the PV module was also discussed. That concluded the 3rd edition of the Renewtech India conference. The 4th Renewtech India conference is scheduled for 16-18 February 2012 at the same venue – Bombay Exhibition Centre, Goregoan, Mumbai.
Rice husk used for power in one of India’s poorest states- A case Study
Whoever thought rice husk can generate power needs a medal! Considering how much rice husks go to waste in a country where rice is the staple food, it is comforting to know fossil fuels are not our only resort for power production. Thanks to Manoj Shinha, a renewable energy entrepreneur pioneered using discarded rice husks as biomass to provide energy to Bihar, one of India’s poorest states. Mr. Shinha along with his colleagues Gaynesh Pandey, Ratnesh Yadav and Charles W. Ransler developed Husk Power Systems to address the situation of poverty in their home state of Bihar. Many villages in India live off the grid in the darkness, this new advancement means that they need not depend on grid for electricity, rather generate their own clean, affordable electricity.The company generates and sells electricity for a price that is less than half of what the villagers pay for kerosene. This was possible because the whole concept is focused on research and development investment to simplify energy production and transmission, such as using bamboo instead of cement posts to install power lines.And, since communities no longer use kerosene, wood or dung for electricity, this way of electricity generation lowers the environmental and health hazards. In addition, rice husk ash, a byproduct of the gasification process, can be used for concrete production thus reducing the amount of high-carbon Portland restless leg syndrome cement.On average, a single power plant serves 400 houses, replacing 42,000 liters of kerosene and 18,000 liters of diesel yearly. As of August 2010, H.P.S. has sequestered 50,000 tons of carbon dioxide. Currently, they have installed over 60 mini-power plants that are 100 percent biomass-based which supply power to over 25,000 households in more than 250 villages.With the market opportunity in mind, they aim to expand their business to bring clean electricity to Indian villages by installing 2,000 new plants by 2014 beyond Bihar.
Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Sael: A $10 Million Spark for India’s Waste-to-Energy Future
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
In a move that highlights the growing potential of the waste-to-energy sector in India, Norfund, the Norwegian Investment Fund for Developing Countries, has invested $10 million in Sael, an Indian company that converts agricultural waste into clean energy. This investment will help Sael expand its operations and contribute to India's clean energy goals.
Sael is a leading player in the Indian waste-to-energy sector. The company uses a proprietary technology to convert agricultural waste, such as rice straw and sugarcane bagasse, into clean energy. Sael's plants generate electricity that is fed into the grid, helping to reduce India's reliance on fossil fuels.
Indian waste-to-energy market
The Indian waste-to-energy market is expected to grow at a CAGR of 20% over the next five years, driven by factors such as increasing waste generation, growing awareness of environmental issues, and government support for renewable energy. The market is currently estimated to be worth around $1 billion, and it is expected to reach $5 billion by 2025.
The market is booming with investments pouring in and cutting-edge technology emerging. However, hurdles like complex regulations, limited financing, and public concerns exist.
Key players include waste-to-energy companies, waste management companies, power producers, and government agencies. Recognizing the immense potential of the Indian market, foreign and domestic players are joining forces to unlock the power of waste-to-energy (WtE). Joint ventures like Sterling & Wilson and Hitachi Zosen's 50 MW plant, or Arc Energy and Wheelabrator's 60 MW project, are testaments to this collaborative spirit. Beyond developers, waste-to-energy companies are forging partnerships with waste management firms like Ramky Enviro Services to ensure consistent, high-quality feedstock.
This synergy extends to research institutions and technology providers as well, with Tata Power and IIT Bombay developing advanced gasification technology and Vedanta partnering with Neste for co-processing expertise. These collaborations are crucial for navigating local complexities, accelerating technological advancements, and ultimately achieving India's WtE ambitions.
The government also actively supports WtE with feed-in tariffs, tax breaks, and streamlining regulations. Recent investments and project announcements showcase the sector's potential. Technological advancements like plasma gasification and bioreactors promise improved efficiency.
Challenges include inadequate waste segregation, public opposition, and fly ash management. Continued government support, public awareness campaigns, and innovative solutions are crucial to overcome these hurdles.
Overall, India's WtE sector holds immense promise for sustainable waste management and clean energy generation. By addressing challenges and seizing opportunities, India can turn waste into a valuable resource for a brighter future.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Tamil Nadu’s Biomass Power Plans – Energy Plantations is the Answer?
Biomass is one of the renewable energy domains in which Tamil Nadu could have significant potential for progress in future. Estimates suggest only about 10% of the potential has so far been utilized. Of course, the lack of a robust supply chain that make create supply and price security is a problem as much in Tamil Nadu as it is in the rest of the country. Some inputs and updates for biomass power in Tamil Nadu are provided below.
- Potential for Biomass based power in Tamil Nadu is 1589.9 MW (1160 MW based on agricultural waste and 429.9 MW from forest and wasteland cultivation).
- 22 biomass power plants with total installed capacity of 169 MW are in operation.
- Ten biomass power plants with totaling to 120 MW, with over 80% plant load factor, have faced temporary shut downs owing to unviable tariff rates and increasing feedstock cost.
- Biomass power producers association has approached Tamil Nadu Electricity Regulatory Commission (TNERC) with a request to revise the tariff and offer higher annual tariff escalation. The viable rate for operating biomass power plants in years to come would run beyond Rs 6.50/kWh, but the current tariff of Rs 4.5/kWh is in no way adequate to sustain the projects in the long run.
- Tamil Nadu Energy Development Agency (TEDA), along with Tamil Nadu Biomass Power Producers Association, has been actively involved in promoting large scale energy plantations in marginal / waste land in the state with high potential crops.
- The Tamil Nadu Biomass Power Producers Association suggests that energy plantation would not only serve to provide cheap and continuous feedstock supply for power plants, but it would also improve the quality of life of the rural population. Estimates suggest that a 10 mw biomass power plant can ensure livelihood of over 2,000 marginalised families. They can be employed in collection, transportation, cutting, chipping of biomass and cultivation of wasteland with energy plants like Juliflora, Bheema Bamboo etc.
The man propelling the bio-energy movement in India – PRESPL
Welcoming Lt Col Monish Ahuja to CLIMAFIX SUMMIT 2022 - the 1st summit for Indian climate tech startups. I'm sure you have heard the saying, "Water, water everywhere, not a drop to drink" That applies quite well to the Indian agricultural residues as well. Hundreds of millions of tons of agro waste around the country, but very little available for the industries to use. And worse, a good portion gets burnt on the fields because the farmers do not know what to do with them. So where's the challenge? What is broken in this system? To a significant extent, logistics, or rather the lack of it. Securing and transporting millions of tons of agricultural waste from hundreds of thousands of farmers and transporting it reliably to end users is not rocket science. But it is systems science. Discipline science. Or patience science, if that term is more endearing to you. In EAI's decade long work in the bio-energy sector during which we consulted for dozens of clients including the likes of GSK (#Horlicks division, now part of Unilever), we have seen how unorganized the agro-waste supply has been, except for bagasse coming straight from large sugar mills and to a lesser extent saw dust from plywood factories. It is a complex challenge of logistics, societal & local traditions, and of course the omnipresent politics. The sector needed someone who could wade through all these, build an efficient system and evolve an organized biomass supply chain. Enter Lt Col Monish Ahuja. Army discipline, Systems thinking. Business acumen. These characteristics have helped him build Punjab Renewable Energy Systems Private Limited (PRESPL) into a force to reckon with countrywide in industrial biomass supply. PRESPL is today is one of the few organized players that has the ability to provide industrial decarbonization on scale through biomass, supplying thousands of tons of agro-waste based biomass every day to industries. I remember sitting with him in his office in Navi Mumbai a few years back when he patiently took me through the process by which he was building an effective front-end logistics system while also putting together a scalable digital back-end system. While coming out from the meeting, I thought - finally, here's someone who appears to be just what the doctor ordered for India's bio-energy sector. Since then, his company has - not surprisingly - grown and grown. Hats off to Monish, and we are proud to have him as one of the experts who will share his insights at the CLIMAFIX SUMMIT 2022, India's first climate startup summit, Nov 25 & 26, Chennai, organized by the Climate Startup Intelligence division CLIMAFIX of EAI (Energy Alternatives India) & Energy Consortium - IIT Madras Welcome Monish, and here's hoping you inspire more of your breed - and soon. More about CLIMAFIX SUMMIT, India's first summit for climate startups
VC / PE Perspectives and Opinions on Biomass Power
Indian VCs have not really done a good amount of investing in cleantech. Cleantech perhaps is not really a VC game as it is more of an engineering related discplie that does not offer the types of scalabilitiees that VCs desire or the exit periods. VCs also do not understand cleantech well enough to take calls. Many cleantech deals, especially in the power segment, are PPA based, with limited upsides, not typical VC games. Many cleantech and renewable energy startups require capital that is much higher than what VCs can typically offer to invest. Predictions for Cleantech VC in 2011 - Kachan & Co.'s Dallas Kachan looks at what 2011 will have in store for cleantech (http://alwayson.goingon.com/node/66783 ) Sustained worldwide venture capital investment will continue to cede importance to corporate and non-institutional capital. A return to early stage venture investments - predict a return to early stage venture capital investing in cleantech in 2011. Energy efficiency emerges as the clear rock star of cleantech. Biofuel investment could reach former highs. Recycling and mining will attract more investment. Natural gas emerges to threaten solar and wind for utility renewable power generation. China becomes the most important market for cleantech: if you're not selling in China, you won't matter. There is a significant amount of interest among PEs for investments in both traditional and renewable energy. PEs – not surprisingly – are not very keen on risky technology bets in renewable energy, but are OK with business model risks. Some of the PEs (such as IFC, ADB etc) are willing to take fairly long-term views (with over 10 year horizon). Investment sweet spot ( in terms of the quantum) varies from fund to fund, but obviously for most of the blue-chip, it is upwards of $50 million. PEs are well aware of the regulatory and societal bottlenecks that could arise in large-scale energy sector investing (especially for coal-based and large-hydro based sectors). Many PEs are clear that they wish to invest in businesses that can stand on their own revenues (even if takes a while) and are not keen on business plans that rely on getting bought out. Most every PE acknowledged that while they might not like coal, it is here to stay as the largest contributor to power for the foreseeable future. PE arms of organizations such as IFC and ADB, while not shutting out the option of investing in coal-based or natural gas based power plants, have a mandate to decrease their exposures to these “non-green” sectors. What a PE can bring to the table - Many private equity funds have been able to provide not just the financial support required but also strategic support and value-add for the firm’s growth. Disconnect in Valuation expectations - one of the issues faced by PE players while investing in cleantech companies is the disconnect in valuation expectations between the entrepreneur and investor with the buoyant public markets resulting in an increasing buoyancy in expectations! PEs feel that entrepreneurs should take a longer term view while setting their valuation expectations. Currently, 80% of infrastructure projects, and 46% of power projects, are funded by the banking system. So, PEs constitute only a small share of the infrastructure projects. While private equity folks could like IRRs of about 25%, power and infrastructure IRRs is only about 12%. Some private equity companies might wish to play a consolidator’s role as well where they consolidate a diverse portfolio of (say) energy companies such that they win even if 7/10 companies do well enough. Investors such as IFC have specialists/experts in every project to take care of social and environmental aspects. Private equity funds are interested in the macro factors (demand supply gap in electricity et al) as well strategic micro factors. One of the factors that seem to interest PEs is the method for companies to go diversified on green power that is having assets in wind, small hydro, biomass etc together, instead of betting just on one thing alone. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Why Biomass for Power Generation?
Biomass has been used as a source of energy right since mankind started its existence; In fact, one of the predominant energy sources today is biomass. Biomass as a source for power production is not entirely new either. Biomass has been used, in the place of coal, for steam generation at power plants, though in a limited way. Indeed, currently, the predominant method used for producing power using biomass still is the combustion route, At the same time, other processes, such as biomass gasification, which can work at much smaller scales and use the biomass more efficiently are emerging. The newer processes especially biomass gasification based power production, is relevant today especially in the Indian context mainly because of its potential to provide distributed power at rural level, especially for small remote villages that have good access to biomass but no access to grid power, and which require only small scale power production. Biomass based power is also relevant in the context of climate change and global warming as biomass based power production is net carbon neutral. The contribution of bioenergy to the total primary energy consumption in India is over 27% (Source: FAO). This is indeed the case for many other countries, because biomass is used in a significant way in rural areas in many countries. However, the contribution of biomass to power production is much smaller than this percentage – currently, biomass comprises only about 2650 MW of installed capacity, out of a total of 172000 MW of total electricity installed capacity in the country. Besides, biomass power has the following benefits- distributed generation, baseload power, ability to have small, kW scale power production, suited for rural areas and ideal for rural economic upliftment. I believe these are enough to justify why biomass is best suited for power production. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Cleantech Funds and Their Investments in Biomass in India
by admin | May 12, 2011 | Biomass Power
Several VCs/PEs/Companies have created funds which invest in clean technology or companies with partial clean technology operations, and have either invested, or are interested in investing in India. Some of these organizations and their investments are summarized as...A 900 MW Power Plant Running on Biomass? It Could be a Reality in Five Years!
I thought I was never going to see the day when a large power plant would run entirely on biomass. You can understand my pessimism when you are told that a MW of powerplant will require about 8000 T of biomass every year. A 300 MW power plant will hence require an awful 2.5 million T of biomass every year. That's a heck of a lot of, well, anything. Well, there are some courageous folks around the world. Drax in the UK, for one. They are building 3x300 MW furnaces on biomass, and are arranging for a 8 million T biomass supply from around the world. (By comparison, India's total biomass based power production - outside of bagasse power - is only about 1500 MW. So the Drax project alone would be about 60% of total Indian biomass installed capacity!) While I am certainly overawed, good news, I must say. If they can operate it sustainably for a few years, biomass power would have definitely reached a milestone. Will be really keen to know how they plan to manage the supply chain. This is what the news report has to say "The vast majority of the biomass will come from North America, but there will also be locally sourced supplies of willow and elephant grass to power the furnaces. "
A Case Study of Clenergen and Yuken’s Gasification Biomass Project
Yuken India Limited, set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company Limited, Japan, is a manufacturer of oil hydraulic equipment. Yuken has achieved one of the fastest growth rates in the Indian oil hydraulics industry, in the last 29 years. Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation, plans to enter into a minimum 15 years Power Purchase Agreement (PPA) with Yuken to supply up to 2.5MW/h, with the rest of the electricity generated being completely sold out to the National Grid System. The biomass power plants with a capacity of 4 MW/h will be installed and begin operation within 10 months upon signing of the PPA. Clenergen India plans to lease up to 800 acres of non arable land near the manufacturing site in order to grow a high yielding species of bamboo as a source of biomass for the gasification power plant. The bamboo produced is asexual, non-invasive, non-flowering plant with a lifespan of up to 50 years and above all, is a product of tissue culture. This is advancement in the sector of renewable energy, in that the cost savings created from the cultivation of biomass feedstock will allow the supply of electricity at a price lower than the current market prices and will also help to extend the industries’ vertical market penetration into these market sectors. This is certainly moving forward. With ever increasing fossil fuel prices, this is the ideal way to deal with the growing needs and the economy. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Agricultural biomass availability in India for power generation
India is primarily an agricultural nation with an extensive cultivation of different types of crops including cereal, pulses, oilseeds, fibre crops, spices and plantation crops. With the cultivation of these crops, availability of residual biomass after economic harvest makes power generation in a sustainable way. These raw materials are normally available in variable quantities depending on the acreage of cultivation, mass of residue part available. The total biomass is 511,041 kT/Yr for power generation. Among them, rice, wheat and cotton constitute a major portion with 160,000,111,000 and 21,000 kT/Yr to generate power of 5000, 3300 and 3500 MW respectively. The total power generation capacity is 17,400 MW. Besides these crops, maize, jowar, bajra, coconut, groundnut, banana, cassava and mustard are also potent generators of biomass for power to an appreciable extent. It is evident from the information stated above that the agricultural resources serve as excellent candidates for the power generation either by combustion or gasification. However it is important to note that these materials are variables by biochemical composition and moisture. So, standardization is mandatory by defining limits to make them appropriate for thermal decomposition and as consistently yielding materials of electric power. Further plans are required to efficiently collect and store for processing without time delay. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Benefits of Biomass Based Power
While we are striving hard to switch to more sustainable modes of living, there arise lots of issues questioning the efficiency of our choice of green. Despite all the issues they might have, they have more benefits than their petroleum counterpart. After all, petroleum is not going be here forever. So, this post will focus on the benefits of biomass based power, and why is it more suited as a sustainable alternative. Let us look at the distributed generation, because biomass is available in almost all places, and especially in rural areas, and more important, as gasification based power production can be done on small scales (as low as 20 kW), this process can be used for distributed generation of power as against the centralized power production method followed today. Also, biomass based power is well suited to remote villages with no access to grid but access to significant amounts of biomass Secondly, biomass gasification based power production can be done at small scales – as small as 20 kW – unlike other sources of power (say, nuclear) that require much larger scales. This will ideally suit small villages that have only a few households. Also, this whole process could be done in rural areas, where this could open a gateway of opportunities for rural population. Given that a 1 MW biomass based power generation could require biomass growth in over 150 hectares, the opportunities for rural employment are indeed significant. Thirdly, biomass power results in no new net GHG emissions as it is part of the carbon cycle. Unlike coal and others forms of fossil fuel which have been buried millions of years ago and burning them adds to carbon in the atmosphere, responsible biomass energy generation results in no new carbon emissions or pollution. Finally, the efficiency of the biomass power generation process to make use of mostly animal and crop wastes for energy is remarkable. Also, there is a large variety of feedstock which could be used for the process. Aside from these, they also significantly reduce methane in the atmosphere, which being able to be produced economically. I suppose these are enough reasons to switch to biomass power. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Bio-energy Software Development Assistance – Clixoo
Clixoo, a sister division of EAI, brings to the table a unique intersection of renewable energy domain knowledge and high quality software development expertise. Using these, the bio-energy software team at Clixoo can assist companies keen on development support for a range of biomass power plant/heating related software. These include
- Biomass Assessment
- Feasibility Analysis
- CHP
- Bio-reporting Software
Biomass based power
Biomass is a valuable physical mass of biotic factors and ideally suited for the energy generation in different forms for the fulfillment of human demands over time. Even though deep ground fuel resources of biological origin satisfy it comprehensively, the way it is oxidized today on a time scale for energy production alarms the world by a phenomenon called “Global warming”. It forces us to scan for a suitable and sustainable alternative to fossilized biomass and the answer lies with surface dwelling, active biomass which is derived either from live or dead sources for power generation. Biomass can be subjected to power generation by combustion principle which is exactly followed for fossil sources and also is found to have a greater flexibility to generate power than conventional sources. Besides combustion, biomass is readily amenable for gasification where energy as power, heat and synthetic fuels can be derived. Biomass based power proves to be highly profitable under conditions where natural resources such as wood from forests, agricultural and animal sources etc are at abundance. India is a potential hub for this alternative route of power generation but currently holds a marginal fraction of 2650 MW out of its total installed capacity of 172000 MW. It utilizes bagasse co-generation system as its major option for biomass based power production with a capacity of 1411.53 MW achieved till June, 2010. It is important to note that biomass based power is multi-dimensionally advantageous as follows Rural economic upliftment, Suited for rural areas, Ability to have small kW scale power production, Distributed generation, Carbon neutral, Efficient utilization of renewable biological sources and accession of low cost resource. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Boilers Guide – Guide to Pick Optimal Biomass, Processing & Boiler Type
Many companies in India, and worldwide, are shifting from the use of fossil fuels for their boilers to using biomass. Such a transition is not easy though, given the significant differences between biomass and coal or other fossil fuels - differences both in terms of product characteristics as well as the supply chain and other market characteristics. So, how can a company go about making the key decisions in its transition to a biomass boiler? The nice folks at Boilers.Guide have put together a guide that eases this transition, specifically from coal to biomass boilers. This guide helps you iron out many of the uncertainties and questions a typical stakeholder has. The guide provides pointers on what characteristics to look for while selecting the optimal biomass to be used in boilers, selecting the right form (i.e pellets, briquettes, loose) for transportation and storage and selecting the appropriate combustion system and pollution control equipment. The guide is divided into three stages of selection with each stage providing information on the parameters to be considered, the pros and cons and examples to help you set up the most optimal biomass boiler. Get more from the guide itself - Using Biomass for Boilers - the Way Forward. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass conversion to natural gas – is this being followed anywhere?
I and my team might be working on an interesting project where the company is trying to move away from natural gas for its heating purposes and into the use of biomass for the same. The reason of course has to do with economics, with natural gas prices shooting through the roof past couple of years. While we are figuring out ways in which the company could use biomass directly for heating instead of natural gas, this process poses some problems owing to the specific needs of the client. I am hence wondering if the process of converting biomass to natural gas is being followed anywhere. I know that this is pretty much feasible, but not sure about the technology maturity and economics. If there is anyone who is aware of commercial conversions of biomass to natural gas, do let me know. You can include your response in the comment section or send a note to narsi [at] eai dot in. Thank you.
Biomass Gasification for the Environment and Economy
There are a whole lot of benefits from biomass gasification, both economy wise and ecology wise. Speaking of environmental benefits, gasification plants produce significantly lower quantities of air pollutants, which is really a good thing. The process can also reduce the environmental impact of waste disposal because it can use waste products as feedstock, generating valuable products from materials that would otherwise be disposed as wastes. Gasification's byproducts are non-hazardous and are readily marketable and also use significantly less water than traditional coal-based power generation, and can be designed so they recycle their process water, discharging none into the surrounding environment. If that is not convincing, let us look at the economical benefits. Gasification can be used to turn lower-priced feedstocks into valuable products like electricity, substitute natural gas, fuels, chemicals, and fertilizers. For example, a chemical plant can gasify petcoke or high sulfur coal instead of using high-priced natural gas, thereby reducing its operating costs. While a gasification power plant is capital intensive (like any very large manufacturing plant), its operating costs are potentially lower than conventional processes or coal-fired plants because gasification plants are more efficient and require less back-end pollution control equipment. With continued research and development efforts and commercial operating experience, the cost of these units will continue to decrease. The process also offers wide fuel flexibility. A gasification plant can vary the mix of solid feedstocks, or run on gas or liquid feedstocks—giving it more freedom to adjust to the price and availability of its feedstocks. Many predict that coal-based power plants and other manufacturing facilities will be required to capture and store CO2, or participate in a carbon cap and trade market. In this scenario, gasification projects will have a cost advantage over conventional technologies. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Gasification in India to Generate Lakhs of Jobs
Emerging green economy in the country may see creation of nine lakh jobs in India by 2025, a top government official said.
"India could generate nine lakh jobs by 2025 in biomass gasification, of which three lakh would be in manufacturing of stoves and six lakh in areas such as processing into briquettes and pellets and the fuel supply chain," Ministry of Micro, Small and Medium Enterprises (MSME) Secretary Dinesh Rai said.
More from here.
I am not sure if biomass gasification alone could generate almost a million jobs. The secretary appears to have his numbers done for him all right, but I still wonder.
It will of course be good if it comes true. It was only yesterday that I met this gentleman whose company manufactures efficient burners for kerosene stoves and he was quite hopeful about the micro-gasifiers as well.
Let's see how it goes
Biomass Gasification Power Production – Bottlenecks and Barriers
Biomass gasification is a process where materials are transformed by thermal decomposition under partially oxygenated conditions to generate syn-gas for power generation. It seems to be a powerful technique where energy can be produced in a sustainable way along with valuable products such as green oil and biochar but it is multi step process where bottlenecks continuously arises at every step of the production pathway. The most commonly encountered limitations are batch to batch variation in energy content, purification of the syngas, contaminants influence in the performance of the engines, ash and biochar disposals, toxic gas emissions and operational efficiency of the gas engines and mandatory modifications required to make the engines energy effective. In addition to these prime technical problems, others notable hindrances are insufficient capacity of the stakeholders and inadequate institutional and policy framework at the national, regional and local levels and limited access to financing and lack of interest on part of the state electricity boards (SEBs) in promoting biomass power generation etc. In India, conditions are further complicate by lack of working capital, limited interest in power projects, lack of effective regulatory framework and absence of effective information dissemination etc. In spite of the limitations, the technology continues to gain acceptance. Its potential to meet the energy demands on a flexible scale makes a robust move to outweigh the magnitude of limitations associated with it. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Power Plant with Attractive PPA Looking for PE Investors
A contact of EAI is looking for an investor to assist them financially for a 15 MW biomass power plant.
What he is looking for is a capital infusion to the extent of 25 crores, as he has already completed most of the rest.
The promoter is an established entrepreneur who knows his business, and most important, has an attractive PPA with the state electricity board for power purchase at tariff upwards of Rs 7 per kWh. In addition, he has done a good job of ensuring that the biomass supply at excellent prices.
Overall, it appears to be quite a profitable opportunity and should be of interest to private equity investors keen on adding a profitable biomass power plant of a reasonable size to their portfolio.
Highlights
- Power plant is being set up in Maharashtra, and most of the plant construction has already been completed
- Has a strong 13 year PPA, tariff Rs 7.5/kWh for 13 years with state discom.
- Plant in strategic location for feedstock availability
- Have agreements with the local distributors and farmers for resources.
- Total project cost: Approx Rs 100 crores (about $16 million), required infusion: 25 crores (about $4 million)
Cleantech Funds and Their Investments in Biomass in India
Several VCs/PEs/Companies have created funds which invest in clean technology or companies with partial clean technology operations, and have either invested, or are interested in investing in India. Some of these organizations and their investments are summarized as follows.
Company Energy/Cleantech Specific Fund Activity/Investment Shell Group through their Shell Foundation (invested directly or through other funds invested in Husk Power ($1.1M), while New Israel Fund, Dorot Foundation, Nathan Cummings Foundation, Andrea and Charles Bronfman Philanthropies through their Green Environment Fund invested in Greenko Group ($46.3M). Chrys Capital directly and through ChyrsCapital V LLC (through subsidiary Van Dyck invested in Pratibha Industries Ltd (Rs. 50 Crore) and Suzlon Energy (Rs. 50 Crore). Barings Private Equity India Private limited through consortium of PEs invested in Auro Mira ($21 M) whose Investor share was not disclosed. Additionally, Blackstone via their Blackstone Advisors India Private Ltd invested in Moser Baer ($300 M), 3i Group through their 3i India Infrastructure Fund invested in GVK Power and Infrastructure (Rs. 800 Crore) in both conventional and renewable energy. Reliance through their Reliance India Power Fund invested in Su-Kam Power Systems (Rs. 45 Crores), Citi Group CVC International (PE) through Citi Group Venture Capital (VC) invested in Suzlon (Rs. 50 Crores). The above was only the list of highlighted events. The list is actually very exhaustive. As the population increases, and there arises a demand for a more sustainable form of energy, a lot of investments have been made in this sector. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsCons of Gasifiers
The use of biomass gasification for power production is not new, but its use has been so far been limited and its contribution to the overall power production has so far been negligible in India. The producer gas derived from biomass gasification can be used for either producing power (by use in a gas engine) or can be used for thermal applications. With better technologies evolving for both gasifiers and gas engines, it can be expected that biomass gasification could start contributing a lot more to the overall power production in India. For starters, biomass gasifiers are reactors that heat biomass in a low-oxygen environment to produce a fuel gas called the producer gas. The gas produced from a gasifier can drive highly efficient devices such as gensets, turbines and fuel cells to generate electricity. A biomass gasification system consists primarily of a reactor or container into which fuel is fed along with a limited (less than stoichiometric, that required for complete combustion) supply of air. Heat for gasification is generated through partial combustion of the feed material. The resulting chemical breakdown of the fuel and internal reactions result in a combustible gas usually called producer gas. Though gasifiers are really special in their own way, they have their limitations. Gasification is a complex and sensitive process. There exists high level of disagreement about gasification among engineers, researchers, and manufacturers. Several manufacturers claim that their unit can be operated on all kinds of biomass. But it is a questionable fact as physical and chemical properties varies fuel to fuel. Gasifiers require atleast half an hour or more to start the process. Raw material is bulky and frequent refuelling is often required for continuous running of the system. Handling residues such as ash, tarry condensates is time consuming and dirty work. Driving with producer gas fueled vehicles requires much more and frequent attention than gasoline or diesel fueled vehlicles. Getting the producer gas is not difficult, but obtaining in the proper state is the challenging task. The physical and chemical properties of producer gas such as energy content, gas composition and impurities vary time to time. All the gasifiers have fairly strict requirements for fuel size, moisture and ash content. Inadequate fuel preparation is an important cause of technical problems with gasifiers. Gasifier is too often thought of as simple device that can generate a combustible gas from any biomass fuel. A hundred years of research has clearly shown that key to successful gasification is gasifier specifically designed for a particular type of fuel. Hence, biomass gasification technology requires hard work and tolerance. As I said, gasifiers are indeed special in their own way. I’d rather we just wait for the technology to advance in the future to go far beyond its limitations. After all, as I said then and I will again, petroleum is not here forever, and we need more sustainable feedstock and advanced technologies for processing. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Cool Solutions for Your Hot Problems – Getting Your Heating Costs Under Control
Sustainable Industrial & Commercial Heating Solutions - A Critical Pain Point
No, this blog post is not about those hot problems. It is about problems companies, especially in the manufacturing sector, face for their heating requirements!
With the prices of furnace oil, diesel and LPG increasing alarmingly in the past few years, companies suddenly find their costs of their energy shooting up to unaffordable levels.
Suddenly, using renewable and sustainable energy sources such as solar and biomass, and utilizing heat that was wasted earlier appear to be the way forward.
I hence thought I’d provide an overview of renewable and sustainable options available for heating requirements in factories.
The following are the sustainable heating avenues that are technically feasible today:
- Solar Water Heater
- Biomass
- Waste Heat Recovery/CHP/Cogen
- CST (concentrating solar thermal)
- Energy efficiency heating equipment
- Back pressure steam turbine
Biomass Energy for Reducing Dependency on Furnace Oil, LPG or Diesel
Reducing Fossil Fuel Use at Industries & Commercial Units through Use of Biomass Energy
Also check out:
EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Product
Costs of feedstock for Biomass gasification
Biomass gasification utilizes renewable feed stocks for liberating the synthesis gas by thermal decomposition under high temperature conditions. Among the factors affecting the production protocol, cost economics play a critical role and is well pronounced in cases when the scale of operation is magnified. Entrepreneurs of gasification technology often make contracts with farmers or traders so as to ensure a price security and timely uninterrupted availability of their concerned feed commodity. In spite of the strategies, price fluctuations in gasification feed stocks have been witnessed, for instance cost of rice husk was at Rs: 600/tonne in 2009 but has steeply increased to Rs 1800/tonne by the end of 2010 and such an extreme volatility in market prices causes a concern to buyers and affect the final price of the power/unit produced by biomass gasification technology. Lack of price security has produced an unique trend in gasification where the venturers start their own farms for feed stock production which they claim that it can cut costs by two-third of the actual cost and seems to be working well in particular with dedicated energy crops. Gasification technology is well balanced economically as entrepreneurs have a scope to sell biochar by-product which fetches good market price to compensate for the cost procurement of the feedstock. Socio-economic and technical factors continuing to challenge the progression of gasification but the productivity makes it a superior choice that cannot be camouflaged. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Current Status of Biomass Gasification in India
India has initiated its power generation from renewable sources by several different principles namely gasification and combustion. Biomass gasification is carried out at different power capacity levels ranging from 25 kW to 2 MW and above. When a comparative analysis is made between combustion and gasification of biomass, the former technology is best operational under high capacity installations while the inverse is true for the gasification. This peculiar advantage seen in gasification to operate at smaller ranges makes the technology suitable for adoption in rural and by small entrepreneurs where power generation is required rather than efficiency. The technology even though best functions with high range installations of 2 MW, its utility is obstructed by the demand for a series for engines and India has less than 10 installations so far. Gasification technology is really ideal where resources are randomized and adoption of any other technology is tedious on a financial scale. Gasifiers are flexible to operate which makes the user to follow any technology depending on his requirements to a limited extent. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Decarbonizing India’s Energy Sector by Biomass and Biofuels
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
In India, 22% of the total energy supply is renewables, with biomass contributing 85%. Biomass use is shifting from traditional residential heating to power production. Biofuels represent less than 1% of transport fuels, with bioethanol at 3% of gasoline consumption. The biomass market is projected to reach INR 32,000 crore by FY2030-31. India produces 450-500 million tonnes of biomass annually, with a surplus of 230 MMT/year. Biomass-derived energy constitutes 32% of India’s primary energy use. The biomass pellet manufacturing capacity is 2.38 MMT, with 83,066 MT co-fired in 39 thermal power plants.
Reliance Industries Limited (RIL) is transitioning from fossil fuels to renewable energy, including biofuels, for its energy demand. This involves using bio-pathways to fix CO2 and recycling materials across value chains. RIL plans to set up around 100 Compressed Biogas (CBG) plants over the next five years, consuming over 5.5 million tonnes per annum of agricultural residue and organic waste. This initiative is projected to reduce nearly 2 million tonnes of carbon dioxide emissions annually. In essence, RIL’s decarbonization strategy involves renewable energy, biofuels, recycling, and CBG plants.
Thermax, an Indian energy and environment engineering company, is decarbonizing its manufacturing processes using biomass and biofuels. Its subsidiary, TOESL, installs biomass-fired plants and sells steam. Thermax’s solutions include the Atmospheric Fluidised Bed Combustion Boiler, capable of using various fuels including coal, lignite, rice husk, petcoke, spent coffee ground, washery rejects, low ash coal, paper sludge, roasted chaffs, DOB, bagasse, pith woodchips, coffee husks, mustard stalk, cotton stalk, and char. Thermax has secured an order worth over Rs 500 crore to set up five bio-CNG plants across India, with a capacity to produce 110 Tonnes Per Day of bio-CNG, utilizing local feedstock exceeding 1,000 TPD. This initiative contributes to the decarbonization of manufacturing processes.
The shift from fossil fuels to renewable energy sources is a key aspect of the company's strategies. This transition is driven by the need for cleaner energy sources and the potential economic benefits of renewable energy. Development of advanced biofuels like bioethanol, biodiesel, and biogas from sustainable feedstocks like algae and dedicated energy crops can further reduce reliance on fossil fuels and enhance energy security.
Looking ahead, the focus will be on enhancing the efficiency of biomass and biofuel technologies, developing second-generation bioconversion processes, and ensuring the sustainable sourcing of feedstocks. The potential of biomass and biofuels extends beyond just energy production. It opens up opportunities for waste management, rural development, and job creation, contributing to a circular economy. Companies like Reliance Industries and Thermax are pioneering this transition, demonstrating the viability and benefits of these renewable energy sources.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
Emerging Feedstock for Biomass Power
Following my previous post on the industry perspectives on the various methods that have to be adopted for sustainable feedstock procurement (http://eai.in/blog/2011/12/industry-perspectives-and-strategies-for-effective-biomass-feedstock-procurement.html), today’s article showcases the various feedstock (emerging) that could be used as a potential source for biomass-based power generation. As you might be well aware, the first generation feedstock such as sugars, starches from wheat, sorghum, sweet potato etc are not widely used for bioenergy production owing to the food-fuel conflicts. Similarly, even the second generation feedstock such as mustard are not being used in a big way for bioenergy production. These days, more focus is being thrown on the advanced feedstock such as the third-generation biofuels ( these seek to improve yields through improving the feedstocks themselves instead of the processes). These feedstocks include those sources that promise to generate greater than 500 gallons of oil per acre per year. Examples include palm oil and algae oil, rapeseed and jatropha oil, grasses (switchgrass, miscanthus), trees (willow), halophytes (saltwater plants). Provided are some details of the emerging biomass feedstock such as camelina, miscanthus and bamboo and their potential to perform as a bio-fuel. Miscanthus: Miscanthus, also known as Elephant grass can grow up to 3 meters high and it is native to tropical and sub-tropical regions of Africa and South Asia. Miscanthus is mentioned as a biofuel crop because of its relatively high dry matter yields across a range of environmental and soil conditions. The Miscanthus genotype most commonly recommended for biofuel production is a sterile hybrid (Miscanthus x giganteus) believed to be a M. sacchariflorus x M. sinensis hybrid. Miscanthus utilization in the biofuel industry is primarily for combustion in power plants – it has the desirable properties of low water and ash contents. Current research is focused on its potential as a biomass crop for direct combustion and for lignocellulosic conversion to ethanol. Giant miscanthus has been studied in the European Union and is now used commercially there for bedding, heat, and electricity generation. Most production currently occurs in England but also in Spain, Italy, Hungary, France, and Germany. Recently, Japan and China have taken renewed interest in this native species and started multiple research and commercialization projects. In the United States, research began at the University of Illinois at Urbana-Champaign in 2001 and has expanded rapidly to other U.S. universities. However there is currently little published information on giant miscanthus yields in the United States. Bamboo: Recently, bamboo has received increasing attention for producing biofuel because of its easy propagation, vigorous regeneration, fast growth, high productivity and quick maturity. Bamboo is an efficient user of land, and produces more biomass per unit area than most tree species. But the process of converting bamboo cellulose into liquid fuel is difficult to execute efficiently because of the extraordinary density of the plant. However, new research from Mississippi State University hold clues for how scientists can learn to more easily break down bamboo, and thus more efficiently extract biofuels from all other cellulose sources using the bacteria from pandas’ waste. If the researchers are successful, the manufactured enzymes could be used in a new, much cheaper and more efficient process for converting bamboo and other woody plants into biofuels. Fuel properties and potential as a bio-fuel of different bamboo species:
| Species | Moisture content | Density | Ash content | Energy content |
| % | g/cm3 | % | MJ/Kg | |
| B.pallida | 44 | 0.61 | 1.91 | 18.63 |
| B.tulda | 37 | 0.65 | 1.92 | 18.61 |
| D.asper | 37 | 0.77 | 4.23 | 17.92 |
| D.membranaceus | 43 | 0.62 | 4.99 | 18.81 |
| G.apus | 35 | 0.76 | 2.00 | 18.14 |
Future Feed-in-Tariff Trends for India – for Wind, Solar and Other Renewable Power Sources
It is an open secret that renewable power requires incentives - these usually are in the form of capital subsidies, tax incentives and most importantly, via feed in tariffs. It is a million dollar (make that Billion Dollar) question what the future of feed in tariffs will be for the mainstream renewable power sources. I picked up some resources on these. Wouldn't say they provide a peek into the future, but at least one of these try telling us how the government arrives at these numbers, so that will provide us with some clues. Go through the following links when time permits Link 1 Link 2 Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
How Biogas-based Power Generation is Picking up Pace in India
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Most of us have come across the gobar gas – literally meaning gas from the cow. It is the same as what is called biogas. This is the gas that is released when bacteria feast on organic matter – typically human and animal feces – and release a gas that is about 50% methane. While biogas had predominantly been used earlier for heating purposes, its use for power production is also beginning to show a marked rise across the world, and in India too. How is power produced from biogas? The process is actually quite simple. Step 1 is generation of biogas. This is done typically using what are anaerobic called digesters. Animal (or human) waste is fed into the digester, where the microorganisms (called methanogenic bacteria) act upon it. Depending on the type of digester, it could take anywhere between 10 days to 15 days for the waste to have been "digested" by the bacteria and the release of biogas. The biogas thus produced can be used in IC engines specially devised for the use of biogas. These engines are similar in working principles to diesel engines and natural gas engines. These engines produce electricity from biogas. A bit of observation will lead us to easily understand why this concept will be of enormous interest to specific industry segments. Two segments stand out - industries that employ large numbers of animals and sewage treatment plants that treat human waste. Both these segments have started benefitting from this concept; as a result, we have a few STPs (sewage treatment plants) already generating power from the sludge generated (one of the STPs at Chennai, at a town called Nesapakkam, generates about 500 kW of power from the waste, and uses the power generated for all its electricity purposes). Some numbers will help understand the potential available for power generation from biogas. The cow population of India (about 225 million) alone generates about 800 million tons of wet dung which translates to about 150 million T of dry weight. 1 Kg of dry cow dung can generate about 1.2 kWh of electricity (it can generate the equivalent of about 4 kWh thermal). Thus, if all cow dung were converted to electricity, that would be 1.2*150*1000 million kWh = 180 TWh. India generated a total of 855 TWh in 2011-12. This implies that cow dung, if entirely converted to power, would have produced about 20% of total India's power! If the waste of other cattle and human waste were also taken into account, this could be about 30%. That is an awesome number. Of course, these data hide the actual difficulty in converting even a small portion of animal or human waste into electricity, owing to the infrastructural and social problems associated with these. All the same, waste -> biogas -> power is quite practical to a whole host of industries for whom such waste is available on premises. More information about waste to energy in general in the Indian context, is available from EAI's waste to energy resource section. Some of the following YouTube videos provide a more visual account of how to generate biogas from organic waste: Biogas from food waste - ARTI - http://www.youtube.com/watch?v=BGSl72xZHNk&feature=related Bio-gas from kitchen waste and bio mass - http://www.youtube.com/watch?v=uppVZGS7bYI&feature=related Biogas from Vegetarian Food Waste - http://www.youtube.com/watch?v=NZFrPZZIFTs&feature=related Biogas from Human Waste - http://www.youtube.com/watch?v=_m1nr2v5S8o And while on sewage, human waste and toilets, etc, a couple of interesting articles on things are emerging New toilet technology after 150 years of waste The seat of power - Better sewage treatment is the latest thing in clean energy Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsHow Punjab Will Benefit from All Its Agricultural Residue- A Case Study
Agricultural residues never go to waste. Not when they can be used for generating energy. In this context, the government of Punjab, India, plans to produce about 1,000 MW of green energy from livestock residues by 2015. When you think about it, this has huge economical and environmental benefits. In a region where large quantities of cattle manure become a major pollutant, this could be seen as an opportunity that could open a lot of doors. Aside livestock residues, the state also generates nearly 21 million tons of rice stalks and similar biomass plant wastes annually, which can all go into the production of green power. The state government is thus planning to make renewable resources as the source of their power to contribute 10% of its total energy production in the next five years. It is worthy to mention that Punjab already runs a biomethanation facility with a capacity of 1 MW, in a location close to Ludhiana. The facility uses methanogens (microbes that produce methane as a metabolic by-product) for the manufacture of methane gas. It currently uses 235 tons of cattle wastes to generate 18,000 kWh of electricity in addition to producing 45 tons of organic fertilizer every day. Also, the Punjab Energy Development Agency has developed 318 MW of green power projects, which includes the Ludhiana plant, till date. These projects comprise 37 MW of small hydro facilities, 28 MW of biomass power facilities, 250 MW of biomass co-generation facilities and 2 MW of solar projects. The agency also develops 132 MW of green power projects currently, which include 11 MW of hydropower, 100 MW of biomass co-generation and 20 MW of traditional biomass. If everything goes right and operational, the state will generate 700 MW of green power by 2012. That’s big! It is worthwhile to note that the planters are also getting an income of nearly RS. 4,000 per acre every year in the process of marketing agro wastes to biomass facilities. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Industry Perspectives and Strategies for Effective Biomass Feedstock Procurement
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
One of the most critical bottlenecks for biomass power plants is the supply chain bottlenecks that could result in non-availability of feedstock. A related problem is the volatility, or more precisely increase, in the feedstock price. Both these could render the project unviable. Highlighted in this article are some of the industrial perspectives in overcoming barriers for procuring a balanced feedstock supply. EAI’s research with industry experts suggest that there is no established biomass value chain that exists in India for the procurement and transportation of the biomass feedstock. Typically, the facility staffs from a biomass gasification plant acquires biomass from several to dozens of small-scale biomass suppliers on a relatively informal, non contractual basis; although some have considered the use of aggregators, there is no data or proof available from the Indian biomass gasification companies that have engaged such a service as yet. The biomass procurement model that is typically followed in India is discussed below: Route #1 – Biomass Producer -->Transport Contractor --> Biomass Collection Centres (BCC’s) --> Power Producers The biomass producer i.e. the farmers/mill owners hands over the feedstock to a transport contractor who in turn delivers the feedstock to the biomass consumers or BCC’s. The BCC’s (managed by the biomass consumer) pay the farmers and the power producers collect the feedstock from these collection centres as and when required. At some instances, the farmers deliver the feedstock in the power producer’s facility and get directly paid for it. Route #2 - Biomass Producers --> Waste Processing Mills -->Biomass Power Producers For feedstock where further processing is required, the farmers/mill owners deposit the feedstock in waste processing mills. From the waste processing mills through a transport contractor the feedstock is deposited in the BCC’s or directly in the power producer’s facility. In some cases, especially in briquetting, the processing is done in the collection centres itself where a mobile briquetter is taken and the briquettes that are processed are directly delivered to the facility or collected by the power producers. Key Strategies to be Followed for Effective Biomass Feedstock Procurement EAI’s interactions with the industry reveal that the following strategies have to be adopted in order to bring both the availability and price of biomass under control:- Security should be addressed by obtaining a written formal supply agreement with a reputable, local supplier. A five-year signed supply agreement with pricing and minimum volumes can go a long way in helping to secure necessary financing. A bioenergy project that is totally reliant on only one source of feedstock will be at risk, so two supply contracts are even better. This will also allow one to negotiate a better feedstock price, as the supplier will benefit from a long-term relationship and a guaranteed market. An interested lender needs to know that both the feedstock supplier and bioenergy processor are committed to the project.
- It can be beneficial to hire an independent professional to verify one’s biomass supply projections and double-check that the feedstock supply is sustainable over the long term
- Backward integration and own captive biomass source (one company, Orient Green Power, is even trying out a novel technique of going for energy plantations on their own wind farms)
- According to the Washington based biomass supply company ‘Powerstock’, for a well-managed supply, an inclusive definition of biomass is needed. The company is also taking efforts to educate the public on the value of well-managed, productive forests.
- The bottom line of feedstock security is composed of several aspects: grower relations, harvesting, marketing, equipment utilization, proprietary techniques and agricultural economics. Hence it's important to manage the entire process from seed to market.
- The supply sector needs to make the transition from a residues-based approach to an integrated, dedicated feedstock supply system using energy crops, plus residues.
Key Indian Players in Biomass Gasification based Power Production
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Biomass gasification, with its capability to work in kW scales (as low as 20 kW) and its ability to utilize a wide and diverse range of biomass feedstock is ideally suited for rural areas without access to power but with easy access to significant amount of biomass. Discussed in this post are some of the prominent players in India which use biomass gasification for power production Summary of Prominent Independent Power Producers using Biomass Gasification in India| Company | Location | Plant Location(s) | Cumulative Installations |
| Clenergen Corporation | Chennai | Tamil Nadu, Karnataka | Cumulative capacity of 19.5 MW in operation and 20.5 MW under construction |
| Green Infra | Delhi | Orissa and Bihar | The company is developing five biomass power projects with a cumulative capacity of 68 MW. |
| Greenko Group | Bangalore | Chattisgarh, Karnataka, Andhra Pradesh | 41.5 MW from 6 biomass power plants |
| Husk Power | Bihar | Bihar | HPS had 65 fully operational plants, and a further 10 under construction or starting operation. 48 plants are wholly owned and operated by HPS, and the other 17 run under some type of franchise or partnership. HPS’ plants have capacity of 35-100 kW each. |
| All Green energy | Bengaluru | Karnataka, Tamilnadu and Madhya Pradesh | 10 biomass plants have been proposed to set up with a capacity of 6.5 MW each. |
- 8 MW Ecofren power project in Chhattisgarh
- 8 MW ISA power project in Chhattisgarh
- 7.5 MW power project in Karnataka
- 6 MW project in GEPL, Kadapa, Andhra Pradesh
- 6 MW project in Andhra Pradesh
- 6 MW Roshini Power Project in Andhra Pradesh
Potential for Biomass Power in India
Biomass based power generation is a choice of reality under the geographical regions where a sustainability exists in the flow of biologically raw materials for the production of power and India is one of the most notable universal giants for the production of biomass based power which can be best understood from the estimates of its biomass availability and the power produced from it. India has biomass production of 546 million tonnes per year from the agricultural sources alone to generate electricity at a capacity of 17,982 MW and its overall production of power from renewable sources stands at 34961 MWe in 2010.A calculated annual growth rate for the next decade realistically and optimistically is above 42,000 MWe and 48640 MWe respectively. The development of biomass based power is further enhanced by the Government regulatory policies by declaring duty exemptions’, tax breaks and financial incentives etc. The cost of producing electricity from biomass is affordable at Rs: 2.25-3.25 / kWh. In spite of all these attempts biomass based power generation is at its infant stage because of hindering factors such as feedstock availability, transportation, price volatility etc. India to emerge as a role model must utilize its renewable energy sources to a large extent, develop dedicated energy crops, establish end user market for co-products such as charcoal, biochar, activated carbon, and implement energy efficient technology for economically feasible power generation on a massive scale. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
PRESPL Secures ₹4.1 Million Investment from Mitsui for Biomass Growth
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Mitsui, a leading Japanese conglomerate, has recently invested ₹4.1 million in Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), a company focused on collecting agricultural residues and converting them into biomass briquettes and pellets. This investment underscores the growing potential of the Indian biomass sector, which is expected to witness significant growth in the coming years.
The Indian biomass market is estimated to be valued at around ₹50,000 crore and is projected to reach ₹1,00,000 crore by 2025, driven by factors such as the Increasing demand for renewable energy, Growing awareness of environmental concerns, and Supportive government policies.
The Indian biomass sector is also witnessing a surge in international collaborations, with several prominent companies entering the market through partnerships and alliances. For instance, Aramco, a prominent oil and gas company, joins forces with ReNew Power, India's largest renewable energy company, to explore opportunities in developing and deploying low-carbon technologies, including biomass-based power solutions. This collaboration signifies the growing interest of leading energy giants in exploring cleaner alternatives.
Additionally, Danish Biogas's collaboration with the Maharashtra Energy Development Agency (MEDA) brings together expertise in advanced biogas technologies with experience in promoting renewable energy and rural development in Maharashtra. This partnership contributes to a more sustainable waste management system through biogas generation..
These strategic partnerships are just a glimpse into the exciting developments propelling the Indian biomass sector forward. The government is also playing a crucial role in accelerating its growth through supportive initiatives like subsidies for setting up biomass power plants and briquette/pellet production units, promoting dedicated energy crops and efficient residue collection systems, and providing tax benefits for biomass projects. Investments in research and development are also being made to improve conversion technologies, optimize feedstock utilization, and develop cost-effective biomass solutions.
Navigating this complex ecosystem requires a comprehensive understanding of the key players involved. The Indian biomass value chain comprises various stakeholders, including biomass producers like farmers and forestry companies, collectors and aggregators responsible for managing feedstock collection and storage, processing and conversion companies that transform biomass into usable forms, original equipment manufacturers (OEMs) who create machinery for the sector, suppliers providing essential goods and services, power plants and industries utilizing biomass-based fuels, and government agencies responsible for regulation and promotion.
Beyond the core value chain, the adjacent value chain plays a crucial role in supporting the sector's growth. This includes financial institutions offering loans and investments for biomass projects, research institutions and universities engaged in R&D advancements, and non-governmental organizations (NGOs) promoting sustainable practices and advocating for policy changes.
Indigenization remains moderate to low currently, with reliance on imported technologies and equipment. However, government initiatives and rising demand are expected to gradually increase domestic capabilities in the coming years.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Primary Routes for Power from Biomass
The three primary routes for biomass to power are: Combustion, Gasification and Anaerobic Digestion. Combustion is easy to understand – instead of using coal or other fossil fuel, use biomass to produce steam that runs a turbine. Combustion of biomass for power could either be in the form of co-firing (when it is burned along with coal) or pure play biomass based combustion. In the case of gasification, the biomass is first gasified and this gas turn produces power in a gas engine. Anaerobic digestion is usually applied to biomass that typically have a high amount of water in them (anaerobic digestion is most used for treating organic waste such as kitchen waste and sewage waste into energy). Under this route, microorganisms act upon the organic matter present in the biomass under anaerobic (absence of air) and convert it into biogas. An emerging route for biomass based power is pyrolysis. In this, the biomass is rapidly heated to 450 - 600 °C in absence of air, and results in a bio-oil called the pyrolysis oil, which can in turn be used for firing the boilers. Typically, 50 - 75 % (by weight) of the feedstock is converted into pyrolysis oil. Pyrolysis as a method for power production is not well established currently in India or elsewhere in the world. Typically pyrolysis plants work well beyond 2 MW scale, while gasification plants work well until 2 MW scale, at the current technological progress. Thus, it can be said that pyrolysis takes off where gasification ends. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Prominent biomass feedstock for gasification
Biomass for power generation by combustion or gasification is normally variable in its chemical composition of electron rich reactants, ash content, moisture, sulphur and nitrogen content etc. As a result, selection of the most convenient feedstock is an issue of debate. The degree and diversity of contaminants strongly influence the production and purification of synthesis gas in gasification while they tend to have a minimum effect in the combustion process. Independant of these disturbances virtually any raw material applied in power generation process should be a matter with potentials. In India, a vast array of feed stocks are utilized for power generation but the most wide ones are farm and mill wastes, woody trees, energy plantations and other green manure crops. Preference is made on the basis of availability, cost, bulkiness of the material, pre-processing, storage etc. Biomass used in India yields varying level of energy but it is also the gas engine and generators whose efficiency equivalently determine power generation. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
REC Price Band Revised
The Central Electricity Regulatory Commission(CERC) has announced the floor and forbearance prices to be used for solar/non-solar projects from the FY 2012-13 upto 2016-17. The prices set are shown in the table below
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Prices (2012-2017) | Current | % Reduction | Prices (2012-2017) | Current | % Reduction | |
| Forbearance Price | 3300 | 3900 | 15.38 | 13400 | 17000 | 21.18 |
| Floor Price | 1500 | 1500 | 0.00 | 9300 | 12000 | 22.50 |
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Proposed | Current | % Reduction | Proposed | Current | % Reduction | |
| Forbearance Price | 3480 | 3900 | 10.77 | 13690 | 17000 | 19.47 |
| Floor Price | 1400 | 1500 | 6.67 | 9880 | 12000 | 17.67 |
- Non-solar – the floor price remains unchanged. Thus biomass/wind generators are expected to get the same minium revenue as they have been getting earlier.
- Solar – the floor price has seen a cut of about 23% from current levels. Although this might seem drastic, it is not likely to have a significant impact on solar power projects (refer section below).
- Average bid price under phase 1 batch 2 of JNNSM could be around Rs. 12.5 /kWh(on the higher side)
- APPC prices could rise by 15% annually (base price used is that of Tamil Nadu) - reasons for this were mentioned earlier.
- REC price after 2016-17 period (i.e. from FY 2017-18 onwards) is reduced by 25%
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| JNNSM Tariff (average) (Rs. per kWh) | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 |
| APPC (Rs. per kWh) | 3.38 | 3.89 | 4.38 | 5.04 | 5.38 | 6.19 | 6.38 | 7.34 | 7.38 | 8.49 |
| REC (Rs. per kWh) | 9.30 | 9.30 | 9.30 | 9.30 | 9.30 | 6.98 | 6.98 | 6.98 | 6.98 | 6.98 |
| Total (Rs. per kWh) | 12.68 | 13.19 | 13.68 | 14.34 | 14.68 | 13.16 | 13.36 | 14.31 | 14.36 | 15.46 |
| REC mechanism's Incremental revenue over PPA(Rs. per kWh) | 0.18 | 0.69 | 1.18 | 1.84 | 2.18 | 0.66 | 0.86 | 1.81 | 1.86 | 2.96 |
Table: REC vs preferential PPA for 10 years post 2012
As can be seen from the above table, the REC mechanism is quite comparable, if not better when compared to the assured tariff provided by NVVN over 10 years of operation of the solar powerplant. Overall, the REC mechanism can clearly drive the solar market, provided the Renewable Purchase Obligation (RPO) is strictly enforced by the various SERCs. The CERC release can be found here. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsREC Trading – November 2011
The REC trading for the month of November concluded yesterday. Figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 105,527 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 96,154 (90%) RECs traded while PXIL saw trading of 9,373 (10%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The price of REC varied between the two exchanges - IEX and PXIL. Non-solar RECs closed with a price of Rs. 2,900 at IEX while the RECs sold at Rs. 2,800 at the PXIL. At the IEX, the prices have seen a 7% rise over those paid last month where the trading price was Rs. 2,700 per REC.
| September | Non-Solar | Solar | ||||
| Buy Bids | Trade Volume | Sale Price | Buy Bids | Trade Volume | Sale Price | |
| IEX | 257,578 | 96,154 | 2,900 | 43 | - | - |
| PXIL | 51,199 | 9,373 | 2,800 | 0 | - | - |
| Total | 308,777 | 105,527 | - | 43 | - | - |
REC Trading – September 2011
The REC trading for the month of September concluded recently. Trading figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 46,362 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 41,385 (89%) RECs traded while PXIL saw trading of 4,977 (11%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The most encouraging part of the trading was the price paid for each certificate. The price of REC grew to Rs. 2300 from Rs. 1800 last month.
|
September |
Non-Solar |
Solar |
||||
|
Buy Bids |
Sell Bids |
Sale Price |
Buy Bids |
Sell Bids |
Sale Price |
|
|
IEX |
196,159 |
76,026 |
2,300 |
7 |
- |
- |
|
PXIL |
30,853 |
9,562 |
2,300 |
0 |
- |
- |
|
Total |
227,012 |
85,588 |
- |
7 |
- |
- |
Interestingly, there are 7 buy bids for solar REC; up from the lone buy bid last month, although this is promising, it highlights a serious issue. As with the previous months, there are no solar RECs available as no projects are registered under REC. This is a worrying trend and is going to put immense strain on the obligated entities to fulfil their solar RPO. The reasons for lack of solar projects registered under REC could include
- Higher payback period for solar projects
- REC prices guaranteed only up to 2016-17
- A combination of the above two greatly reduces the bankability of solar projects
Renewtech India 2011 Conference – Day 2
The details of the first day of the conference is available here. The second day of the The 3rd International Expo and Summit, Renewtech India 2011 conference started with a speech by Mr. D.C. Bhishikar, Managing Director, Clarke Energy India. The topic was “Application of Gas Generated from Waste Treatment for Combined Heat and Power(CHP) Solutions using GE Jenbacher Gas Engine Technology” He mentioned that the company has about 300 MW of installation base in India. He explained the various aspects of the Jenbacher Gas Engine Technology and explained that while a combustion based power generation(ranking cycle) has an efficiency of approximately 28%, the Gas engine technology has an efficiency of about 40%. The next speaker was Mr. Ravinder Tanwar, VP-Operations, Websol Energy Systems Ltd and he spoke on the topic “ Rural Electrification in Sagar Island through off Grid Solar PV Power plants”. In this session, Mr. Tanwar presented a case study of how an off-grid solar PV power plant in the Sagar island in Sunderbans, West Bengal changed the lifestyle of the inhabitants there. He explained the cost of setting up the plant and the challenges that Websol faced in putting up these plants. For example, the Solar PV modules had to be transported to the islands using boats.
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The next session was about “Solar Energy & Hybrids”. This session had speakers from Gadhia Solar Energy Systems, HCL Technologies, Soltigua-Italy and Mahindra Cleantech Ventures. Mr. Badal Shah, MD of Gadhia Solar, spoke about Solar Air conditioning. He briefly explained the principle behind how it works. He also talked about Solar cookers and highlighted the company’s projects in cooking meals at Tirupati and Shirdi temples. One key point he wanted people to remember was that Solar energy can only complement other sources of energy and cannot be a substitute for them. The next speaker was Mr. Vijaya Klnr Pingali, Group Technical Specialist at HCL Technologies Limited. The topic of his speech was “Monitoring for Better Monetization and Implementation” . In his speech, Mr. Pingali highlighted the need for effective monitoring of Solar PV farms. He also described the different types of monitoring with various examples. Mr. Francesco Orioli, Director-Marketing & Sales, Soltigua, Italy spoke on the topic of Concentrating Solar Power(CSP). The firm Soltigua is a market leader in the CSP Parabolic Solar Collectors. Mr. Orioli presented some case studies about some of the CSP projects his firm had undertaken. The next topic was “ Building Robust Ecosystem for Solar Energy in India” and the speaker was Mr. Vish Palekar, Business Head, Mahindra Cleantech Ventures. Mr. Palekar gave a very insightful speech on the development of the Solar sector in India, especially the grid-connected projects selected under the 1st part of the first phase of the JNNSM. He touched upon the following aspects of these projects- Growth drivers – Policy/PPA
- Project Implemention – Financing, Technology selection and execution.
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The third session of the day was on Wind Power. Two speakers spoke during the session – Mr. Renjith Viripullan, Engineering Manager, Onshore systems GE Energy and Mr. Bhagwat Divate, National Technical Manager, Kluber Lubrication India. Mr. Divate spoke on “Wind Turbine Maintenance Technology & Efficiency” and highlighted various challenges in the maintenance of Wind Turbines. He explained the tribological features to be kept in mind during maintenance and also the importance of lubricants. Mr. Virupullan spoke about “Wind Turbines for Low Wind Speed Market” . His speech included the definition of low speeds, challenges and opportunities in this segment.-
The final session was titled “Case Studies on Applications of Renewable Energy”. The following were the topics and the speakers.- “Innovative CDM Based Renewable Energy Projects” – Dr. Ram Babu of General Carbon
- “Solar PV Pumping system for Landscape Irrigation Application” – Mr. Vilas Erande of Samved Energy Systems
- “Waste-to-Energy Application” – Mr Soumya Bhattacharya, Concord Blue
- Tidal & Geo-Thermal Energy
- Energy Efficiency
- Quality and Certification of PV Solar Cells.
Renewtech India 2011 Conference – Day 3
This is my final post on the Renewtech India 2011 conference. Click here for details on Day 1 and click here for details of Day 2. The final day of the event had 3 sessions. The first session was titled “Tidal & Geo-Thermal Energy”. The first speaker was Dr. Ritesh Arya, Hydrogeologist & Groundwater Consulting in Himalayas. He gave a very insightful speech on the topic “Geothermal potential in India – A Review”. He highlighted the fact that India has more than 10 GW potential in the Geothermal space. He made an interesting point that while Solar, Wind and other forms of energy are renewable energy but not sustainable energy whereas Geothermal energy is a sustainable energy. He described how the heat of the magma under the ground can be harnessed to generate steam for heating applications and power generation. He explained his experiences in Ladakh and the Himachal region where there are natural hot springs. He also talked about his experiences in Iceland where geothermal energy is available in abundance. In Iceland, the people even grow tropical fruits like banana in green houses heated by the geothermal energy. The next speech of the session was by Prof. S. G. Kanitkar, Head-Green Energy Division, Enviro-Abrasion Resistance engineers Pvt. Ltd. His topic was “Tidal Wave energy”. He started off by describing the differences between the Tidal and Wave energy. The current scenario of harnessing these forms of energy were explained by him. He then provided the technological details about how the Wave energy can be harnessed. In particular, he provided the details of the device his team has developed. The second session of the day focused on “Energy Efficiency”. The following were the speakers 1. Mr. Jens Burgtorf, Director – GIZ-IGEN, Bureau of Energy Efficiency 2. Mr. Martin Wohlmuth of Arqum GmbH – “Resource Efficiency Network India – A Field Report” 3. Mr. G. Gururaja of Avni Energy Solutions Pvt. Ltd – “LED Technology: Its Role in Present Scenario for India’s Lighting Requirement” 4. Mr. Dinesh Shetty of Bureau Veritas Certification – BS/EN 16001:2009 – Energy Management Systems for Reduction of Energy Costs/Green House Gases Emission. As can be seen from the topics of the presentations, the session focused on various aspects of Energy Efficiency. “Quality and Certification of PV Solar Cells” was the title of the final session of the day. This session had two speakers – Mr. Srinivas Chakravarthy, Country Head – Industry Services, TUV Rheinland(India) and Ms. S. Vasanthi, Director – Technology and Marketing at Websol Energy Systems. Mr. Chakravarthy of TUV Rheinland spoke about the module certification process in general and TUV Rheinland in particular. He started off by explaining the various environmental influences during the long term operation of PV modules. This includes solar radiation, temperature, mechanical stress due to factors like wind, atmosphere,etc. He explained the different standards for Performance, safety and qualification. Subsequently, he described the different tests conducted for the IEC or other certification. This includes subjecting the modules to high level of different types of stresses(temperature, sunlight, handling, partial shading, wind, UV rays,etc).He concluded by talking about the various services offered by TUV Rheinland and also about the new test facility in Bangalore. The last speaker of the session was Ms. S. Vasanthi. Her topic was “ Improvement in Crystalline Si PV Modules Through Quality Control and Innovation in Manufacturing Processes”. She explained the various steps in the solar PV cell and module manufacturing process. She described the various quality control measures and some of the common defects like browning of cells. The effect of each of the raw material for a module(metallisation paste, ribbon, flux, encapsulant,etc) on the final quality of the PV module was also discussed. That concluded the 3rd edition of the Renewtech India conference. The 4th Renewtech India conference is scheduled for 16-18 February 2012 at the same venue – Bombay Exhibition Centre, Goregoan, Mumbai.
Rice husk used for power in one of India’s poorest states- A case Study
Whoever thought rice husk can generate power needs a medal! Considering how much rice husks go to waste in a country where rice is the staple food, it is comforting to know fossil fuels are not our only resort for power production. Thanks to Manoj Shinha, a renewable energy entrepreneur pioneered using discarded rice husks as biomass to provide energy to Bihar, one of India’s poorest states. Mr. Shinha along with his colleagues Gaynesh Pandey, Ratnesh Yadav and Charles W. Ransler developed Husk Power Systems to address the situation of poverty in their home state of Bihar. Many villages in India live off the grid in the darkness, this new advancement means that they need not depend on grid for electricity, rather generate their own clean, affordable electricity.The company generates and sells electricity for a price that is less than half of what the villagers pay for kerosene. This was possible because the whole concept is focused on research and development investment to simplify energy production and transmission, such as using bamboo instead of cement posts to install power lines.And, since communities no longer use kerosene, wood or dung for electricity, this way of electricity generation lowers the environmental and health hazards. In addition, rice husk ash, a byproduct of the gasification process, can be used for concrete production thus reducing the amount of high-carbon Portland restless leg syndrome cement.On average, a single power plant serves 400 houses, replacing 42,000 liters of kerosene and 18,000 liters of diesel yearly. As of August 2010, H.P.S. has sequestered 50,000 tons of carbon dioxide. Currently, they have installed over 60 mini-power plants that are 100 percent biomass-based which supply power to over 25,000 households in more than 250 villages.With the market opportunity in mind, they aim to expand their business to bring clean electricity to Indian villages by installing 2,000 new plants by 2014 beyond Bihar.
Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Sael: A $10 Million Spark for India’s Waste-to-Energy Future
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
In a move that highlights the growing potential of the waste-to-energy sector in India, Norfund, the Norwegian Investment Fund for Developing Countries, has invested $10 million in Sael, an Indian company that converts agricultural waste into clean energy. This investment will help Sael expand its operations and contribute to India's clean energy goals.
Sael is a leading player in the Indian waste-to-energy sector. The company uses a proprietary technology to convert agricultural waste, such as rice straw and sugarcane bagasse, into clean energy. Sael's plants generate electricity that is fed into the grid, helping to reduce India's reliance on fossil fuels.
Indian waste-to-energy market
The Indian waste-to-energy market is expected to grow at a CAGR of 20% over the next five years, driven by factors such as increasing waste generation, growing awareness of environmental issues, and government support for renewable energy. The market is currently estimated to be worth around $1 billion, and it is expected to reach $5 billion by 2025.
The market is booming with investments pouring in and cutting-edge technology emerging. However, hurdles like complex regulations, limited financing, and public concerns exist.
Key players include waste-to-energy companies, waste management companies, power producers, and government agencies. Recognizing the immense potential of the Indian market, foreign and domestic players are joining forces to unlock the power of waste-to-energy (WtE). Joint ventures like Sterling & Wilson and Hitachi Zosen's 50 MW plant, or Arc Energy and Wheelabrator's 60 MW project, are testaments to this collaborative spirit. Beyond developers, waste-to-energy companies are forging partnerships with waste management firms like Ramky Enviro Services to ensure consistent, high-quality feedstock.
This synergy extends to research institutions and technology providers as well, with Tata Power and IIT Bombay developing advanced gasification technology and Vedanta partnering with Neste for co-processing expertise. These collaborations are crucial for navigating local complexities, accelerating technological advancements, and ultimately achieving India's WtE ambitions.
The government also actively supports WtE with feed-in tariffs, tax breaks, and streamlining regulations. Recent investments and project announcements showcase the sector's potential. Technological advancements like plasma gasification and bioreactors promise improved efficiency.
Challenges include inadequate waste segregation, public opposition, and fly ash management. Continued government support, public awareness campaigns, and innovative solutions are crucial to overcome these hurdles.
Overall, India's WtE sector holds immense promise for sustainable waste management and clean energy generation. By addressing challenges and seizing opportunities, India can turn waste into a valuable resource for a brighter future.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Tamil Nadu’s Biomass Power Plans – Energy Plantations is the Answer?
Biomass is one of the renewable energy domains in which Tamil Nadu could have significant potential for progress in future. Estimates suggest only about 10% of the potential has so far been utilized. Of course, the lack of a robust supply chain that make create supply and price security is a problem as much in Tamil Nadu as it is in the rest of the country. Some inputs and updates for biomass power in Tamil Nadu are provided below.
- Potential for Biomass based power in Tamil Nadu is 1589.9 MW (1160 MW based on agricultural waste and 429.9 MW from forest and wasteland cultivation).
- 22 biomass power plants with total installed capacity of 169 MW are in operation.
- Ten biomass power plants with totaling to 120 MW, with over 80% plant load factor, have faced temporary shut downs owing to unviable tariff rates and increasing feedstock cost.
- Biomass power producers association has approached Tamil Nadu Electricity Regulatory Commission (TNERC) with a request to revise the tariff and offer higher annual tariff escalation. The viable rate for operating biomass power plants in years to come would run beyond Rs 6.50/kWh, but the current tariff of Rs 4.5/kWh is in no way adequate to sustain the projects in the long run.
- Tamil Nadu Energy Development Agency (TEDA), along with Tamil Nadu Biomass Power Producers Association, has been actively involved in promoting large scale energy plantations in marginal / waste land in the state with high potential crops.
- The Tamil Nadu Biomass Power Producers Association suggests that energy plantation would not only serve to provide cheap and continuous feedstock supply for power plants, but it would also improve the quality of life of the rural population. Estimates suggest that a 10 mw biomass power plant can ensure livelihood of over 2,000 marginalised families. They can be employed in collection, transportation, cutting, chipping of biomass and cultivation of wasteland with energy plants like Juliflora, Bheema Bamboo etc.
The man propelling the bio-energy movement in India – PRESPL
Welcoming Lt Col Monish Ahuja to CLIMAFIX SUMMIT 2022 - the 1st summit for Indian climate tech startups. I'm sure you have heard the saying, "Water, water everywhere, not a drop to drink" That applies quite well to the Indian agricultural residues as well. Hundreds of millions of tons of agro waste around the country, but very little available for the industries to use. And worse, a good portion gets burnt on the fields because the farmers do not know what to do with them. So where's the challenge? What is broken in this system? To a significant extent, logistics, or rather the lack of it. Securing and transporting millions of tons of agricultural waste from hundreds of thousands of farmers and transporting it reliably to end users is not rocket science. But it is systems science. Discipline science. Or patience science, if that term is more endearing to you. In EAI's decade long work in the bio-energy sector during which we consulted for dozens of clients including the likes of GSK (#Horlicks division, now part of Unilever), we have seen how unorganized the agro-waste supply has been, except for bagasse coming straight from large sugar mills and to a lesser extent saw dust from plywood factories. It is a complex challenge of logistics, societal & local traditions, and of course the omnipresent politics. The sector needed someone who could wade through all these, build an efficient system and evolve an organized biomass supply chain. Enter Lt Col Monish Ahuja. Army discipline, Systems thinking. Business acumen. These characteristics have helped him build Punjab Renewable Energy Systems Private Limited (PRESPL) into a force to reckon with countrywide in industrial biomass supply. PRESPL is today is one of the few organized players that has the ability to provide industrial decarbonization on scale through biomass, supplying thousands of tons of agro-waste based biomass every day to industries. I remember sitting with him in his office in Navi Mumbai a few years back when he patiently took me through the process by which he was building an effective front-end logistics system while also putting together a scalable digital back-end system. While coming out from the meeting, I thought - finally, here's someone who appears to be just what the doctor ordered for India's bio-energy sector. Since then, his company has - not surprisingly - grown and grown. Hats off to Monish, and we are proud to have him as one of the experts who will share his insights at the CLIMAFIX SUMMIT 2022, India's first climate startup summit, Nov 25 & 26, Chennai, organized by the Climate Startup Intelligence division CLIMAFIX of EAI (Energy Alternatives India) & Energy Consortium - IIT Madras Welcome Monish, and here's hoping you inspire more of your breed - and soon. More about CLIMAFIX SUMMIT, India's first summit for climate startups
VC / PE Perspectives and Opinions on Biomass Power
Indian VCs have not really done a good amount of investing in cleantech. Cleantech perhaps is not really a VC game as it is more of an engineering related discplie that does not offer the types of scalabilitiees that VCs desire or the exit periods. VCs also do not understand cleantech well enough to take calls. Many cleantech deals, especially in the power segment, are PPA based, with limited upsides, not typical VC games. Many cleantech and renewable energy startups require capital that is much higher than what VCs can typically offer to invest. Predictions for Cleantech VC in 2011 - Kachan & Co.'s Dallas Kachan looks at what 2011 will have in store for cleantech (http://alwayson.goingon.com/node/66783 ) Sustained worldwide venture capital investment will continue to cede importance to corporate and non-institutional capital. A return to early stage venture investments - predict a return to early stage venture capital investing in cleantech in 2011. Energy efficiency emerges as the clear rock star of cleantech. Biofuel investment could reach former highs. Recycling and mining will attract more investment. Natural gas emerges to threaten solar and wind for utility renewable power generation. China becomes the most important market for cleantech: if you're not selling in China, you won't matter. There is a significant amount of interest among PEs for investments in both traditional and renewable energy. PEs – not surprisingly – are not very keen on risky technology bets in renewable energy, but are OK with business model risks. Some of the PEs (such as IFC, ADB etc) are willing to take fairly long-term views (with over 10 year horizon). Investment sweet spot ( in terms of the quantum) varies from fund to fund, but obviously for most of the blue-chip, it is upwards of $50 million. PEs are well aware of the regulatory and societal bottlenecks that could arise in large-scale energy sector investing (especially for coal-based and large-hydro based sectors). Many PEs are clear that they wish to invest in businesses that can stand on their own revenues (even if takes a while) and are not keen on business plans that rely on getting bought out. Most every PE acknowledged that while they might not like coal, it is here to stay as the largest contributor to power for the foreseeable future. PE arms of organizations such as IFC and ADB, while not shutting out the option of investing in coal-based or natural gas based power plants, have a mandate to decrease their exposures to these “non-green” sectors. What a PE can bring to the table - Many private equity funds have been able to provide not just the financial support required but also strategic support and value-add for the firm’s growth. Disconnect in Valuation expectations - one of the issues faced by PE players while investing in cleantech companies is the disconnect in valuation expectations between the entrepreneur and investor with the buoyant public markets resulting in an increasing buoyancy in expectations! PEs feel that entrepreneurs should take a longer term view while setting their valuation expectations. Currently, 80% of infrastructure projects, and 46% of power projects, are funded by the banking system. So, PEs constitute only a small share of the infrastructure projects. While private equity folks could like IRRs of about 25%, power and infrastructure IRRs is only about 12%. Some private equity companies might wish to play a consolidator’s role as well where they consolidate a diverse portfolio of (say) energy companies such that they win even if 7/10 companies do well enough. Investors such as IFC have specialists/experts in every project to take care of social and environmental aspects. Private equity funds are interested in the macro factors (demand supply gap in electricity et al) as well strategic micro factors. One of the factors that seem to interest PEs is the method for companies to go diversified on green power that is having assets in wind, small hydro, biomass etc together, instead of betting just on one thing alone. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Why Biomass for Power Generation?
Biomass has been used as a source of energy right since mankind started its existence; In fact, one of the predominant energy sources today is biomass. Biomass as a source for power production is not entirely new either. Biomass has been used, in the place of coal, for steam generation at power plants, though in a limited way. Indeed, currently, the predominant method used for producing power using biomass still is the combustion route, At the same time, other processes, such as biomass gasification, which can work at much smaller scales and use the biomass more efficiently are emerging. The newer processes especially biomass gasification based power production, is relevant today especially in the Indian context mainly because of its potential to provide distributed power at rural level, especially for small remote villages that have good access to biomass but no access to grid power, and which require only small scale power production. Biomass based power is also relevant in the context of climate change and global warming as biomass based power production is net carbon neutral. The contribution of bioenergy to the total primary energy consumption in India is over 27% (Source: FAO). This is indeed the case for many other countries, because biomass is used in a significant way in rural areas in many countries. However, the contribution of biomass to power production is much smaller than this percentage – currently, biomass comprises only about 2650 MW of installed capacity, out of a total of 172000 MW of total electricity installed capacity in the country. Besides, biomass power has the following benefits- distributed generation, baseload power, ability to have small, kW scale power production, suited for rural areas and ideal for rural economic upliftment. I believe these are enough to justify why biomass is best suited for power production. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Costs of feedstock for Biomass gasification
by admin | May 4, 2011 | Biomass Power
Biomass gasification utilizes renewable feed stocks for liberating the synthesis gas by thermal decomposition under high temperature conditions. Among the factors affecting the production protocol, cost economics play a critical role and is well pronounced in cases...A 900 MW Power Plant Running on Biomass? It Could be a Reality in Five Years!
I thought I was never going to see the day when a large power plant would run entirely on biomass. You can understand my pessimism when you are told that a MW of powerplant will require about 8000 T of biomass every year. A 300 MW power plant will hence require an awful 2.5 million T of biomass every year. That's a heck of a lot of, well, anything. Well, there are some courageous folks around the world. Drax in the UK, for one. They are building 3x300 MW furnaces on biomass, and are arranging for a 8 million T biomass supply from around the world. (By comparison, India's total biomass based power production - outside of bagasse power - is only about 1500 MW. So the Drax project alone would be about 60% of total Indian biomass installed capacity!) While I am certainly overawed, good news, I must say. If they can operate it sustainably for a few years, biomass power would have definitely reached a milestone. Will be really keen to know how they plan to manage the supply chain. This is what the news report has to say "The vast majority of the biomass will come from North America, but there will also be locally sourced supplies of willow and elephant grass to power the furnaces. "
A Case Study of Clenergen and Yuken’s Gasification Biomass Project
Yuken India Limited, set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company Limited, Japan, is a manufacturer of oil hydraulic equipment. Yuken has achieved one of the fastest growth rates in the Indian oil hydraulics industry, in the last 29 years. Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation, plans to enter into a minimum 15 years Power Purchase Agreement (PPA) with Yuken to supply up to 2.5MW/h, with the rest of the electricity generated being completely sold out to the National Grid System. The biomass power plants with a capacity of 4 MW/h will be installed and begin operation within 10 months upon signing of the PPA. Clenergen India plans to lease up to 800 acres of non arable land near the manufacturing site in order to grow a high yielding species of bamboo as a source of biomass for the gasification power plant. The bamboo produced is asexual, non-invasive, non-flowering plant with a lifespan of up to 50 years and above all, is a product of tissue culture. This is advancement in the sector of renewable energy, in that the cost savings created from the cultivation of biomass feedstock will allow the supply of electricity at a price lower than the current market prices and will also help to extend the industries’ vertical market penetration into these market sectors. This is certainly moving forward. With ever increasing fossil fuel prices, this is the ideal way to deal with the growing needs and the economy. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Agricultural biomass availability in India for power generation
India is primarily an agricultural nation with an extensive cultivation of different types of crops including cereal, pulses, oilseeds, fibre crops, spices and plantation crops. With the cultivation of these crops, availability of residual biomass after economic harvest makes power generation in a sustainable way. These raw materials are normally available in variable quantities depending on the acreage of cultivation, mass of residue part available. The total biomass is 511,041 kT/Yr for power generation. Among them, rice, wheat and cotton constitute a major portion with 160,000,111,000 and 21,000 kT/Yr to generate power of 5000, 3300 and 3500 MW respectively. The total power generation capacity is 17,400 MW. Besides these crops, maize, jowar, bajra, coconut, groundnut, banana, cassava and mustard are also potent generators of biomass for power to an appreciable extent. It is evident from the information stated above that the agricultural resources serve as excellent candidates for the power generation either by combustion or gasification. However it is important to note that these materials are variables by biochemical composition and moisture. So, standardization is mandatory by defining limits to make them appropriate for thermal decomposition and as consistently yielding materials of electric power. Further plans are required to efficiently collect and store for processing without time delay. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Benefits of Biomass Based Power
While we are striving hard to switch to more sustainable modes of living, there arise lots of issues questioning the efficiency of our choice of green. Despite all the issues they might have, they have more benefits than their petroleum counterpart. After all, petroleum is not going be here forever. So, this post will focus on the benefits of biomass based power, and why is it more suited as a sustainable alternative. Let us look at the distributed generation, because biomass is available in almost all places, and especially in rural areas, and more important, as gasification based power production can be done on small scales (as low as 20 kW), this process can be used for distributed generation of power as against the centralized power production method followed today. Also, biomass based power is well suited to remote villages with no access to grid but access to significant amounts of biomass Secondly, biomass gasification based power production can be done at small scales – as small as 20 kW – unlike other sources of power (say, nuclear) that require much larger scales. This will ideally suit small villages that have only a few households. Also, this whole process could be done in rural areas, where this could open a gateway of opportunities for rural population. Given that a 1 MW biomass based power generation could require biomass growth in over 150 hectares, the opportunities for rural employment are indeed significant. Thirdly, biomass power results in no new net GHG emissions as it is part of the carbon cycle. Unlike coal and others forms of fossil fuel which have been buried millions of years ago and burning them adds to carbon in the atmosphere, responsible biomass energy generation results in no new carbon emissions or pollution. Finally, the efficiency of the biomass power generation process to make use of mostly animal and crop wastes for energy is remarkable. Also, there is a large variety of feedstock which could be used for the process. Aside from these, they also significantly reduce methane in the atmosphere, which being able to be produced economically. I suppose these are enough reasons to switch to biomass power. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Bio-energy Software Development Assistance – Clixoo
Clixoo, a sister division of EAI, brings to the table a unique intersection of renewable energy domain knowledge and high quality software development expertise. Using these, the bio-energy software team at Clixoo can assist companies keen on development support for a range of biomass power plant/heating related software. These include
- Biomass Assessment
- Feasibility Analysis
- CHP
- Bio-reporting Software
Biomass based power
Biomass is a valuable physical mass of biotic factors and ideally suited for the energy generation in different forms for the fulfillment of human demands over time. Even though deep ground fuel resources of biological origin satisfy it comprehensively, the way it is oxidized today on a time scale for energy production alarms the world by a phenomenon called “Global warming”. It forces us to scan for a suitable and sustainable alternative to fossilized biomass and the answer lies with surface dwelling, active biomass which is derived either from live or dead sources for power generation. Biomass can be subjected to power generation by combustion principle which is exactly followed for fossil sources and also is found to have a greater flexibility to generate power than conventional sources. Besides combustion, biomass is readily amenable for gasification where energy as power, heat and synthetic fuels can be derived. Biomass based power proves to be highly profitable under conditions where natural resources such as wood from forests, agricultural and animal sources etc are at abundance. India is a potential hub for this alternative route of power generation but currently holds a marginal fraction of 2650 MW out of its total installed capacity of 172000 MW. It utilizes bagasse co-generation system as its major option for biomass based power production with a capacity of 1411.53 MW achieved till June, 2010. It is important to note that biomass based power is multi-dimensionally advantageous as follows Rural economic upliftment, Suited for rural areas, Ability to have small kW scale power production, Distributed generation, Carbon neutral, Efficient utilization of renewable biological sources and accession of low cost resource. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Boilers Guide – Guide to Pick Optimal Biomass, Processing & Boiler Type
Many companies in India, and worldwide, are shifting from the use of fossil fuels for their boilers to using biomass. Such a transition is not easy though, given the significant differences between biomass and coal or other fossil fuels - differences both in terms of product characteristics as well as the supply chain and other market characteristics. So, how can a company go about making the key decisions in its transition to a biomass boiler? The nice folks at Boilers.Guide have put together a guide that eases this transition, specifically from coal to biomass boilers. This guide helps you iron out many of the uncertainties and questions a typical stakeholder has. The guide provides pointers on what characteristics to look for while selecting the optimal biomass to be used in boilers, selecting the right form (i.e pellets, briquettes, loose) for transportation and storage and selecting the appropriate combustion system and pollution control equipment. The guide is divided into three stages of selection with each stage providing information on the parameters to be considered, the pros and cons and examples to help you set up the most optimal biomass boiler. Get more from the guide itself - Using Biomass for Boilers - the Way Forward. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass conversion to natural gas – is this being followed anywhere?
I and my team might be working on an interesting project where the company is trying to move away from natural gas for its heating purposes and into the use of biomass for the same. The reason of course has to do with economics, with natural gas prices shooting through the roof past couple of years. While we are figuring out ways in which the company could use biomass directly for heating instead of natural gas, this process poses some problems owing to the specific needs of the client. I am hence wondering if the process of converting biomass to natural gas is being followed anywhere. I know that this is pretty much feasible, but not sure about the technology maturity and economics. If there is anyone who is aware of commercial conversions of biomass to natural gas, do let me know. You can include your response in the comment section or send a note to narsi [at] eai dot in. Thank you.
Biomass Gasification for the Environment and Economy
There are a whole lot of benefits from biomass gasification, both economy wise and ecology wise. Speaking of environmental benefits, gasification plants produce significantly lower quantities of air pollutants, which is really a good thing. The process can also reduce the environmental impact of waste disposal because it can use waste products as feedstock, generating valuable products from materials that would otherwise be disposed as wastes. Gasification's byproducts are non-hazardous and are readily marketable and also use significantly less water than traditional coal-based power generation, and can be designed so they recycle their process water, discharging none into the surrounding environment. If that is not convincing, let us look at the economical benefits. Gasification can be used to turn lower-priced feedstocks into valuable products like electricity, substitute natural gas, fuels, chemicals, and fertilizers. For example, a chemical plant can gasify petcoke or high sulfur coal instead of using high-priced natural gas, thereby reducing its operating costs. While a gasification power plant is capital intensive (like any very large manufacturing plant), its operating costs are potentially lower than conventional processes or coal-fired plants because gasification plants are more efficient and require less back-end pollution control equipment. With continued research and development efforts and commercial operating experience, the cost of these units will continue to decrease. The process also offers wide fuel flexibility. A gasification plant can vary the mix of solid feedstocks, or run on gas or liquid feedstocks—giving it more freedom to adjust to the price and availability of its feedstocks. Many predict that coal-based power plants and other manufacturing facilities will be required to capture and store CO2, or participate in a carbon cap and trade market. In this scenario, gasification projects will have a cost advantage over conventional technologies. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Gasification in India to Generate Lakhs of Jobs
Emerging green economy in the country may see creation of nine lakh jobs in India by 2025, a top government official said.
"India could generate nine lakh jobs by 2025 in biomass gasification, of which three lakh would be in manufacturing of stoves and six lakh in areas such as processing into briquettes and pellets and the fuel supply chain," Ministry of Micro, Small and Medium Enterprises (MSME) Secretary Dinesh Rai said.
More from here.
I am not sure if biomass gasification alone could generate almost a million jobs. The secretary appears to have his numbers done for him all right, but I still wonder.
It will of course be good if it comes true. It was only yesterday that I met this gentleman whose company manufactures efficient burners for kerosene stoves and he was quite hopeful about the micro-gasifiers as well.
Let's see how it goes
Biomass Gasification Power Production – Bottlenecks and Barriers
Biomass gasification is a process where materials are transformed by thermal decomposition under partially oxygenated conditions to generate syn-gas for power generation. It seems to be a powerful technique where energy can be produced in a sustainable way along with valuable products such as green oil and biochar but it is multi step process where bottlenecks continuously arises at every step of the production pathway. The most commonly encountered limitations are batch to batch variation in energy content, purification of the syngas, contaminants influence in the performance of the engines, ash and biochar disposals, toxic gas emissions and operational efficiency of the gas engines and mandatory modifications required to make the engines energy effective. In addition to these prime technical problems, others notable hindrances are insufficient capacity of the stakeholders and inadequate institutional and policy framework at the national, regional and local levels and limited access to financing and lack of interest on part of the state electricity boards (SEBs) in promoting biomass power generation etc. In India, conditions are further complicate by lack of working capital, limited interest in power projects, lack of effective regulatory framework and absence of effective information dissemination etc. In spite of the limitations, the technology continues to gain acceptance. Its potential to meet the energy demands on a flexible scale makes a robust move to outweigh the magnitude of limitations associated with it. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Power Plant with Attractive PPA Looking for PE Investors
A contact of EAI is looking for an investor to assist them financially for a 15 MW biomass power plant.
What he is looking for is a capital infusion to the extent of 25 crores, as he has already completed most of the rest.
The promoter is an established entrepreneur who knows his business, and most important, has an attractive PPA with the state electricity board for power purchase at tariff upwards of Rs 7 per kWh. In addition, he has done a good job of ensuring that the biomass supply at excellent prices.
Overall, it appears to be quite a profitable opportunity and should be of interest to private equity investors keen on adding a profitable biomass power plant of a reasonable size to their portfolio.
Highlights
- Power plant is being set up in Maharashtra, and most of the plant construction has already been completed
- Has a strong 13 year PPA, tariff Rs 7.5/kWh for 13 years with state discom.
- Plant in strategic location for feedstock availability
- Have agreements with the local distributors and farmers for resources.
- Total project cost: Approx Rs 100 crores (about $16 million), required infusion: 25 crores (about $4 million)
Cleantech Funds and Their Investments in Biomass in India
Several VCs/PEs/Companies have created funds which invest in clean technology or companies with partial clean technology operations, and have either invested, or are interested in investing in India. Some of these organizations and their investments are summarized as follows.
Company Energy/Cleantech Specific Fund Activity/Investment Shell Group through their Shell Foundation (invested directly or through other funds invested in Husk Power ($1.1M), while New Israel Fund, Dorot Foundation, Nathan Cummings Foundation, Andrea and Charles Bronfman Philanthropies through their Green Environment Fund invested in Greenko Group ($46.3M). Chrys Capital directly and through ChyrsCapital V LLC (through subsidiary Van Dyck invested in Pratibha Industries Ltd (Rs. 50 Crore) and Suzlon Energy (Rs. 50 Crore). Barings Private Equity India Private limited through consortium of PEs invested in Auro Mira ($21 M) whose Investor share was not disclosed. Additionally, Blackstone via their Blackstone Advisors India Private Ltd invested in Moser Baer ($300 M), 3i Group through their 3i India Infrastructure Fund invested in GVK Power and Infrastructure (Rs. 800 Crore) in both conventional and renewable energy. Reliance through their Reliance India Power Fund invested in Su-Kam Power Systems (Rs. 45 Crores), Citi Group CVC International (PE) through Citi Group Venture Capital (VC) invested in Suzlon (Rs. 50 Crores). The above was only the list of highlighted events. The list is actually very exhaustive. As the population increases, and there arises a demand for a more sustainable form of energy, a lot of investments have been made in this sector. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsCons of Gasifiers
The use of biomass gasification for power production is not new, but its use has been so far been limited and its contribution to the overall power production has so far been negligible in India. The producer gas derived from biomass gasification can be used for either producing power (by use in a gas engine) or can be used for thermal applications. With better technologies evolving for both gasifiers and gas engines, it can be expected that biomass gasification could start contributing a lot more to the overall power production in India. For starters, biomass gasifiers are reactors that heat biomass in a low-oxygen environment to produce a fuel gas called the producer gas. The gas produced from a gasifier can drive highly efficient devices such as gensets, turbines and fuel cells to generate electricity. A biomass gasification system consists primarily of a reactor or container into which fuel is fed along with a limited (less than stoichiometric, that required for complete combustion) supply of air. Heat for gasification is generated through partial combustion of the feed material. The resulting chemical breakdown of the fuel and internal reactions result in a combustible gas usually called producer gas. Though gasifiers are really special in their own way, they have their limitations. Gasification is a complex and sensitive process. There exists high level of disagreement about gasification among engineers, researchers, and manufacturers. Several manufacturers claim that their unit can be operated on all kinds of biomass. But it is a questionable fact as physical and chemical properties varies fuel to fuel. Gasifiers require atleast half an hour or more to start the process. Raw material is bulky and frequent refuelling is often required for continuous running of the system. Handling residues such as ash, tarry condensates is time consuming and dirty work. Driving with producer gas fueled vehicles requires much more and frequent attention than gasoline or diesel fueled vehlicles. Getting the producer gas is not difficult, but obtaining in the proper state is the challenging task. The physical and chemical properties of producer gas such as energy content, gas composition and impurities vary time to time. All the gasifiers have fairly strict requirements for fuel size, moisture and ash content. Inadequate fuel preparation is an important cause of technical problems with gasifiers. Gasifier is too often thought of as simple device that can generate a combustible gas from any biomass fuel. A hundred years of research has clearly shown that key to successful gasification is gasifier specifically designed for a particular type of fuel. Hence, biomass gasification technology requires hard work and tolerance. As I said, gasifiers are indeed special in their own way. I’d rather we just wait for the technology to advance in the future to go far beyond its limitations. After all, as I said then and I will again, petroleum is not here forever, and we need more sustainable feedstock and advanced technologies for processing. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Cool Solutions for Your Hot Problems – Getting Your Heating Costs Under Control
Sustainable Industrial & Commercial Heating Solutions - A Critical Pain Point
No, this blog post is not about those hot problems. It is about problems companies, especially in the manufacturing sector, face for their heating requirements!
With the prices of furnace oil, diesel and LPG increasing alarmingly in the past few years, companies suddenly find their costs of their energy shooting up to unaffordable levels.
Suddenly, using renewable and sustainable energy sources such as solar and biomass, and utilizing heat that was wasted earlier appear to be the way forward.
I hence thought I’d provide an overview of renewable and sustainable options available for heating requirements in factories.
The following are the sustainable heating avenues that are technically feasible today:
- Solar Water Heater
- Biomass
- Waste Heat Recovery/CHP/Cogen
- CST (concentrating solar thermal)
- Energy efficiency heating equipment
- Back pressure steam turbine
Biomass Energy for Reducing Dependency on Furnace Oil, LPG or Diesel
Reducing Fossil Fuel Use at Industries & Commercial Units through Use of Biomass Energy
Also check out:
EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Product
Costs of feedstock for Biomass gasification
Biomass gasification utilizes renewable feed stocks for liberating the synthesis gas by thermal decomposition under high temperature conditions. Among the factors affecting the production protocol, cost economics play a critical role and is well pronounced in cases when the scale of operation is magnified. Entrepreneurs of gasification technology often make contracts with farmers or traders so as to ensure a price security and timely uninterrupted availability of their concerned feed commodity. In spite of the strategies, price fluctuations in gasification feed stocks have been witnessed, for instance cost of rice husk was at Rs: 600/tonne in 2009 but has steeply increased to Rs 1800/tonne by the end of 2010 and such an extreme volatility in market prices causes a concern to buyers and affect the final price of the power/unit produced by biomass gasification technology. Lack of price security has produced an unique trend in gasification where the venturers start their own farms for feed stock production which they claim that it can cut costs by two-third of the actual cost and seems to be working well in particular with dedicated energy crops. Gasification technology is well balanced economically as entrepreneurs have a scope to sell biochar by-product which fetches good market price to compensate for the cost procurement of the feedstock. Socio-economic and technical factors continuing to challenge the progression of gasification but the productivity makes it a superior choice that cannot be camouflaged. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Current Status of Biomass Gasification in India
India has initiated its power generation from renewable sources by several different principles namely gasification and combustion. Biomass gasification is carried out at different power capacity levels ranging from 25 kW to 2 MW and above. When a comparative analysis is made between combustion and gasification of biomass, the former technology is best operational under high capacity installations while the inverse is true for the gasification. This peculiar advantage seen in gasification to operate at smaller ranges makes the technology suitable for adoption in rural and by small entrepreneurs where power generation is required rather than efficiency. The technology even though best functions with high range installations of 2 MW, its utility is obstructed by the demand for a series for engines and India has less than 10 installations so far. Gasification technology is really ideal where resources are randomized and adoption of any other technology is tedious on a financial scale. Gasifiers are flexible to operate which makes the user to follow any technology depending on his requirements to a limited extent. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Decarbonizing India’s Energy Sector by Biomass and Biofuels
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
In India, 22% of the total energy supply is renewables, with biomass contributing 85%. Biomass use is shifting from traditional residential heating to power production. Biofuels represent less than 1% of transport fuels, with bioethanol at 3% of gasoline consumption. The biomass market is projected to reach INR 32,000 crore by FY2030-31. India produces 450-500 million tonnes of biomass annually, with a surplus of 230 MMT/year. Biomass-derived energy constitutes 32% of India’s primary energy use. The biomass pellet manufacturing capacity is 2.38 MMT, with 83,066 MT co-fired in 39 thermal power plants.
Reliance Industries Limited (RIL) is transitioning from fossil fuels to renewable energy, including biofuels, for its energy demand. This involves using bio-pathways to fix CO2 and recycling materials across value chains. RIL plans to set up around 100 Compressed Biogas (CBG) plants over the next five years, consuming over 5.5 million tonnes per annum of agricultural residue and organic waste. This initiative is projected to reduce nearly 2 million tonnes of carbon dioxide emissions annually. In essence, RIL’s decarbonization strategy involves renewable energy, biofuels, recycling, and CBG plants.
Thermax, an Indian energy and environment engineering company, is decarbonizing its manufacturing processes using biomass and biofuels. Its subsidiary, TOESL, installs biomass-fired plants and sells steam. Thermax’s solutions include the Atmospheric Fluidised Bed Combustion Boiler, capable of using various fuels including coal, lignite, rice husk, petcoke, spent coffee ground, washery rejects, low ash coal, paper sludge, roasted chaffs, DOB, bagasse, pith woodchips, coffee husks, mustard stalk, cotton stalk, and char. Thermax has secured an order worth over Rs 500 crore to set up five bio-CNG plants across India, with a capacity to produce 110 Tonnes Per Day of bio-CNG, utilizing local feedstock exceeding 1,000 TPD. This initiative contributes to the decarbonization of manufacturing processes.
The shift from fossil fuels to renewable energy sources is a key aspect of the company's strategies. This transition is driven by the need for cleaner energy sources and the potential economic benefits of renewable energy. Development of advanced biofuels like bioethanol, biodiesel, and biogas from sustainable feedstocks like algae and dedicated energy crops can further reduce reliance on fossil fuels and enhance energy security.
Looking ahead, the focus will be on enhancing the efficiency of biomass and biofuel technologies, developing second-generation bioconversion processes, and ensuring the sustainable sourcing of feedstocks. The potential of biomass and biofuels extends beyond just energy production. It opens up opportunities for waste management, rural development, and job creation, contributing to a circular economy. Companies like Reliance Industries and Thermax are pioneering this transition, demonstrating the viability and benefits of these renewable energy sources.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
Emerging Feedstock for Biomass Power
Following my previous post on the industry perspectives on the various methods that have to be adopted for sustainable feedstock procurement (http://eai.in/blog/2011/12/industry-perspectives-and-strategies-for-effective-biomass-feedstock-procurement.html), today’s article showcases the various feedstock (emerging) that could be used as a potential source for biomass-based power generation. As you might be well aware, the first generation feedstock such as sugars, starches from wheat, sorghum, sweet potato etc are not widely used for bioenergy production owing to the food-fuel conflicts. Similarly, even the second generation feedstock such as mustard are not being used in a big way for bioenergy production. These days, more focus is being thrown on the advanced feedstock such as the third-generation biofuels ( these seek to improve yields through improving the feedstocks themselves instead of the processes). These feedstocks include those sources that promise to generate greater than 500 gallons of oil per acre per year. Examples include palm oil and algae oil, rapeseed and jatropha oil, grasses (switchgrass, miscanthus), trees (willow), halophytes (saltwater plants). Provided are some details of the emerging biomass feedstock such as camelina, miscanthus and bamboo and their potential to perform as a bio-fuel. Miscanthus: Miscanthus, also known as Elephant grass can grow up to 3 meters high and it is native to tropical and sub-tropical regions of Africa and South Asia. Miscanthus is mentioned as a biofuel crop because of its relatively high dry matter yields across a range of environmental and soil conditions. The Miscanthus genotype most commonly recommended for biofuel production is a sterile hybrid (Miscanthus x giganteus) believed to be a M. sacchariflorus x M. sinensis hybrid. Miscanthus utilization in the biofuel industry is primarily for combustion in power plants – it has the desirable properties of low water and ash contents. Current research is focused on its potential as a biomass crop for direct combustion and for lignocellulosic conversion to ethanol. Giant miscanthus has been studied in the European Union and is now used commercially there for bedding, heat, and electricity generation. Most production currently occurs in England but also in Spain, Italy, Hungary, France, and Germany. Recently, Japan and China have taken renewed interest in this native species and started multiple research and commercialization projects. In the United States, research began at the University of Illinois at Urbana-Champaign in 2001 and has expanded rapidly to other U.S. universities. However there is currently little published information on giant miscanthus yields in the United States. Bamboo: Recently, bamboo has received increasing attention for producing biofuel because of its easy propagation, vigorous regeneration, fast growth, high productivity and quick maturity. Bamboo is an efficient user of land, and produces more biomass per unit area than most tree species. But the process of converting bamboo cellulose into liquid fuel is difficult to execute efficiently because of the extraordinary density of the plant. However, new research from Mississippi State University hold clues for how scientists can learn to more easily break down bamboo, and thus more efficiently extract biofuels from all other cellulose sources using the bacteria from pandas’ waste. If the researchers are successful, the manufactured enzymes could be used in a new, much cheaper and more efficient process for converting bamboo and other woody plants into biofuels. Fuel properties and potential as a bio-fuel of different bamboo species:
| Species | Moisture content | Density | Ash content | Energy content |
| % | g/cm3 | % | MJ/Kg | |
| B.pallida | 44 | 0.61 | 1.91 | 18.63 |
| B.tulda | 37 | 0.65 | 1.92 | 18.61 |
| D.asper | 37 | 0.77 | 4.23 | 17.92 |
| D.membranaceus | 43 | 0.62 | 4.99 | 18.81 |
| G.apus | 35 | 0.76 | 2.00 | 18.14 |
Future Feed-in-Tariff Trends for India – for Wind, Solar and Other Renewable Power Sources
It is an open secret that renewable power requires incentives - these usually are in the form of capital subsidies, tax incentives and most importantly, via feed in tariffs. It is a million dollar (make that Billion Dollar) question what the future of feed in tariffs will be for the mainstream renewable power sources. I picked up some resources on these. Wouldn't say they provide a peek into the future, but at least one of these try telling us how the government arrives at these numbers, so that will provide us with some clues. Go through the following links when time permits Link 1 Link 2 Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
How Biogas-based Power Generation is Picking up Pace in India
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Most of us have come across the gobar gas – literally meaning gas from the cow. It is the same as what is called biogas. This is the gas that is released when bacteria feast on organic matter – typically human and animal feces – and release a gas that is about 50% methane. While biogas had predominantly been used earlier for heating purposes, its use for power production is also beginning to show a marked rise across the world, and in India too. How is power produced from biogas? The process is actually quite simple. Step 1 is generation of biogas. This is done typically using what are anaerobic called digesters. Animal (or human) waste is fed into the digester, where the microorganisms (called methanogenic bacteria) act upon it. Depending on the type of digester, it could take anywhere between 10 days to 15 days for the waste to have been "digested" by the bacteria and the release of biogas. The biogas thus produced can be used in IC engines specially devised for the use of biogas. These engines are similar in working principles to diesel engines and natural gas engines. These engines produce electricity from biogas. A bit of observation will lead us to easily understand why this concept will be of enormous interest to specific industry segments. Two segments stand out - industries that employ large numbers of animals and sewage treatment plants that treat human waste. Both these segments have started benefitting from this concept; as a result, we have a few STPs (sewage treatment plants) already generating power from the sludge generated (one of the STPs at Chennai, at a town called Nesapakkam, generates about 500 kW of power from the waste, and uses the power generated for all its electricity purposes). Some numbers will help understand the potential available for power generation from biogas. The cow population of India (about 225 million) alone generates about 800 million tons of wet dung which translates to about 150 million T of dry weight. 1 Kg of dry cow dung can generate about 1.2 kWh of electricity (it can generate the equivalent of about 4 kWh thermal). Thus, if all cow dung were converted to electricity, that would be 1.2*150*1000 million kWh = 180 TWh. India generated a total of 855 TWh in 2011-12. This implies that cow dung, if entirely converted to power, would have produced about 20% of total India's power! If the waste of other cattle and human waste were also taken into account, this could be about 30%. That is an awesome number. Of course, these data hide the actual difficulty in converting even a small portion of animal or human waste into electricity, owing to the infrastructural and social problems associated with these. All the same, waste -> biogas -> power is quite practical to a whole host of industries for whom such waste is available on premises. More information about waste to energy in general in the Indian context, is available from EAI's waste to energy resource section. Some of the following YouTube videos provide a more visual account of how to generate biogas from organic waste: Biogas from food waste - ARTI - http://www.youtube.com/watch?v=BGSl72xZHNk&feature=related Bio-gas from kitchen waste and bio mass - http://www.youtube.com/watch?v=uppVZGS7bYI&feature=related Biogas from Vegetarian Food Waste - http://www.youtube.com/watch?v=NZFrPZZIFTs&feature=related Biogas from Human Waste - http://www.youtube.com/watch?v=_m1nr2v5S8o And while on sewage, human waste and toilets, etc, a couple of interesting articles on things are emerging New toilet technology after 150 years of waste The seat of power - Better sewage treatment is the latest thing in clean energy Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsHow Punjab Will Benefit from All Its Agricultural Residue- A Case Study
Agricultural residues never go to waste. Not when they can be used for generating energy. In this context, the government of Punjab, India, plans to produce about 1,000 MW of green energy from livestock residues by 2015. When you think about it, this has huge economical and environmental benefits. In a region where large quantities of cattle manure become a major pollutant, this could be seen as an opportunity that could open a lot of doors. Aside livestock residues, the state also generates nearly 21 million tons of rice stalks and similar biomass plant wastes annually, which can all go into the production of green power. The state government is thus planning to make renewable resources as the source of their power to contribute 10% of its total energy production in the next five years. It is worthy to mention that Punjab already runs a biomethanation facility with a capacity of 1 MW, in a location close to Ludhiana. The facility uses methanogens (microbes that produce methane as a metabolic by-product) for the manufacture of methane gas. It currently uses 235 tons of cattle wastes to generate 18,000 kWh of electricity in addition to producing 45 tons of organic fertilizer every day. Also, the Punjab Energy Development Agency has developed 318 MW of green power projects, which includes the Ludhiana plant, till date. These projects comprise 37 MW of small hydro facilities, 28 MW of biomass power facilities, 250 MW of biomass co-generation facilities and 2 MW of solar projects. The agency also develops 132 MW of green power projects currently, which include 11 MW of hydropower, 100 MW of biomass co-generation and 20 MW of traditional biomass. If everything goes right and operational, the state will generate 700 MW of green power by 2012. That’s big! It is worthwhile to note that the planters are also getting an income of nearly RS. 4,000 per acre every year in the process of marketing agro wastes to biomass facilities. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Industry Perspectives and Strategies for Effective Biomass Feedstock Procurement
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
One of the most critical bottlenecks for biomass power plants is the supply chain bottlenecks that could result in non-availability of feedstock. A related problem is the volatility, or more precisely increase, in the feedstock price. Both these could render the project unviable. Highlighted in this article are some of the industrial perspectives in overcoming barriers for procuring a balanced feedstock supply. EAI’s research with industry experts suggest that there is no established biomass value chain that exists in India for the procurement and transportation of the biomass feedstock. Typically, the facility staffs from a biomass gasification plant acquires biomass from several to dozens of small-scale biomass suppliers on a relatively informal, non contractual basis; although some have considered the use of aggregators, there is no data or proof available from the Indian biomass gasification companies that have engaged such a service as yet. The biomass procurement model that is typically followed in India is discussed below: Route #1 – Biomass Producer -->Transport Contractor --> Biomass Collection Centres (BCC’s) --> Power Producers The biomass producer i.e. the farmers/mill owners hands over the feedstock to a transport contractor who in turn delivers the feedstock to the biomass consumers or BCC’s. The BCC’s (managed by the biomass consumer) pay the farmers and the power producers collect the feedstock from these collection centres as and when required. At some instances, the farmers deliver the feedstock in the power producer’s facility and get directly paid for it. Route #2 - Biomass Producers --> Waste Processing Mills -->Biomass Power Producers For feedstock where further processing is required, the farmers/mill owners deposit the feedstock in waste processing mills. From the waste processing mills through a transport contractor the feedstock is deposited in the BCC’s or directly in the power producer’s facility. In some cases, especially in briquetting, the processing is done in the collection centres itself where a mobile briquetter is taken and the briquettes that are processed are directly delivered to the facility or collected by the power producers. Key Strategies to be Followed for Effective Biomass Feedstock Procurement EAI’s interactions with the industry reveal that the following strategies have to be adopted in order to bring both the availability and price of biomass under control:- Security should be addressed by obtaining a written formal supply agreement with a reputable, local supplier. A five-year signed supply agreement with pricing and minimum volumes can go a long way in helping to secure necessary financing. A bioenergy project that is totally reliant on only one source of feedstock will be at risk, so two supply contracts are even better. This will also allow one to negotiate a better feedstock price, as the supplier will benefit from a long-term relationship and a guaranteed market. An interested lender needs to know that both the feedstock supplier and bioenergy processor are committed to the project.
- It can be beneficial to hire an independent professional to verify one’s biomass supply projections and double-check that the feedstock supply is sustainable over the long term
- Backward integration and own captive biomass source (one company, Orient Green Power, is even trying out a novel technique of going for energy plantations on their own wind farms)
- According to the Washington based biomass supply company ‘Powerstock’, for a well-managed supply, an inclusive definition of biomass is needed. The company is also taking efforts to educate the public on the value of well-managed, productive forests.
- The bottom line of feedstock security is composed of several aspects: grower relations, harvesting, marketing, equipment utilization, proprietary techniques and agricultural economics. Hence it's important to manage the entire process from seed to market.
- The supply sector needs to make the transition from a residues-based approach to an integrated, dedicated feedstock supply system using energy crops, plus residues.
Key Indian Players in Biomass Gasification based Power Production
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Biomass gasification, with its capability to work in kW scales (as low as 20 kW) and its ability to utilize a wide and diverse range of biomass feedstock is ideally suited for rural areas without access to power but with easy access to significant amount of biomass. Discussed in this post are some of the prominent players in India which use biomass gasification for power production Summary of Prominent Independent Power Producers using Biomass Gasification in India| Company | Location | Plant Location(s) | Cumulative Installations |
| Clenergen Corporation | Chennai | Tamil Nadu, Karnataka | Cumulative capacity of 19.5 MW in operation and 20.5 MW under construction |
| Green Infra | Delhi | Orissa and Bihar | The company is developing five biomass power projects with a cumulative capacity of 68 MW. |
| Greenko Group | Bangalore | Chattisgarh, Karnataka, Andhra Pradesh | 41.5 MW from 6 biomass power plants |
| Husk Power | Bihar | Bihar | HPS had 65 fully operational plants, and a further 10 under construction or starting operation. 48 plants are wholly owned and operated by HPS, and the other 17 run under some type of franchise or partnership. HPS’ plants have capacity of 35-100 kW each. |
| All Green energy | Bengaluru | Karnataka, Tamilnadu and Madhya Pradesh | 10 biomass plants have been proposed to set up with a capacity of 6.5 MW each. |
- 8 MW Ecofren power project in Chhattisgarh
- 8 MW ISA power project in Chhattisgarh
- 7.5 MW power project in Karnataka
- 6 MW project in GEPL, Kadapa, Andhra Pradesh
- 6 MW project in Andhra Pradesh
- 6 MW Roshini Power Project in Andhra Pradesh
Potential for Biomass Power in India
Biomass based power generation is a choice of reality under the geographical regions where a sustainability exists in the flow of biologically raw materials for the production of power and India is one of the most notable universal giants for the production of biomass based power which can be best understood from the estimates of its biomass availability and the power produced from it. India has biomass production of 546 million tonnes per year from the agricultural sources alone to generate electricity at a capacity of 17,982 MW and its overall production of power from renewable sources stands at 34961 MWe in 2010.A calculated annual growth rate for the next decade realistically and optimistically is above 42,000 MWe and 48640 MWe respectively. The development of biomass based power is further enhanced by the Government regulatory policies by declaring duty exemptions’, tax breaks and financial incentives etc. The cost of producing electricity from biomass is affordable at Rs: 2.25-3.25 / kWh. In spite of all these attempts biomass based power generation is at its infant stage because of hindering factors such as feedstock availability, transportation, price volatility etc. India to emerge as a role model must utilize its renewable energy sources to a large extent, develop dedicated energy crops, establish end user market for co-products such as charcoal, biochar, activated carbon, and implement energy efficient technology for economically feasible power generation on a massive scale. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
PRESPL Secures ₹4.1 Million Investment from Mitsui for Biomass Growth
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Mitsui, a leading Japanese conglomerate, has recently invested ₹4.1 million in Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), a company focused on collecting agricultural residues and converting them into biomass briquettes and pellets. This investment underscores the growing potential of the Indian biomass sector, which is expected to witness significant growth in the coming years.
The Indian biomass market is estimated to be valued at around ₹50,000 crore and is projected to reach ₹1,00,000 crore by 2025, driven by factors such as the Increasing demand for renewable energy, Growing awareness of environmental concerns, and Supportive government policies.
The Indian biomass sector is also witnessing a surge in international collaborations, with several prominent companies entering the market through partnerships and alliances. For instance, Aramco, a prominent oil and gas company, joins forces with ReNew Power, India's largest renewable energy company, to explore opportunities in developing and deploying low-carbon technologies, including biomass-based power solutions. This collaboration signifies the growing interest of leading energy giants in exploring cleaner alternatives.
Additionally, Danish Biogas's collaboration with the Maharashtra Energy Development Agency (MEDA) brings together expertise in advanced biogas technologies with experience in promoting renewable energy and rural development in Maharashtra. This partnership contributes to a more sustainable waste management system through biogas generation..
These strategic partnerships are just a glimpse into the exciting developments propelling the Indian biomass sector forward. The government is also playing a crucial role in accelerating its growth through supportive initiatives like subsidies for setting up biomass power plants and briquette/pellet production units, promoting dedicated energy crops and efficient residue collection systems, and providing tax benefits for biomass projects. Investments in research and development are also being made to improve conversion technologies, optimize feedstock utilization, and develop cost-effective biomass solutions.
Navigating this complex ecosystem requires a comprehensive understanding of the key players involved. The Indian biomass value chain comprises various stakeholders, including biomass producers like farmers and forestry companies, collectors and aggregators responsible for managing feedstock collection and storage, processing and conversion companies that transform biomass into usable forms, original equipment manufacturers (OEMs) who create machinery for the sector, suppliers providing essential goods and services, power plants and industries utilizing biomass-based fuels, and government agencies responsible for regulation and promotion.
Beyond the core value chain, the adjacent value chain plays a crucial role in supporting the sector's growth. This includes financial institutions offering loans and investments for biomass projects, research institutions and universities engaged in R&D advancements, and non-governmental organizations (NGOs) promoting sustainable practices and advocating for policy changes.
Indigenization remains moderate to low currently, with reliance on imported technologies and equipment. However, government initiatives and rising demand are expected to gradually increase domestic capabilities in the coming years.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Primary Routes for Power from Biomass
The three primary routes for biomass to power are: Combustion, Gasification and Anaerobic Digestion. Combustion is easy to understand – instead of using coal or other fossil fuel, use biomass to produce steam that runs a turbine. Combustion of biomass for power could either be in the form of co-firing (when it is burned along with coal) or pure play biomass based combustion. In the case of gasification, the biomass is first gasified and this gas turn produces power in a gas engine. Anaerobic digestion is usually applied to biomass that typically have a high amount of water in them (anaerobic digestion is most used for treating organic waste such as kitchen waste and sewage waste into energy). Under this route, microorganisms act upon the organic matter present in the biomass under anaerobic (absence of air) and convert it into biogas. An emerging route for biomass based power is pyrolysis. In this, the biomass is rapidly heated to 450 - 600 °C in absence of air, and results in a bio-oil called the pyrolysis oil, which can in turn be used for firing the boilers. Typically, 50 - 75 % (by weight) of the feedstock is converted into pyrolysis oil. Pyrolysis as a method for power production is not well established currently in India or elsewhere in the world. Typically pyrolysis plants work well beyond 2 MW scale, while gasification plants work well until 2 MW scale, at the current technological progress. Thus, it can be said that pyrolysis takes off where gasification ends. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Prominent biomass feedstock for gasification
Biomass for power generation by combustion or gasification is normally variable in its chemical composition of electron rich reactants, ash content, moisture, sulphur and nitrogen content etc. As a result, selection of the most convenient feedstock is an issue of debate. The degree and diversity of contaminants strongly influence the production and purification of synthesis gas in gasification while they tend to have a minimum effect in the combustion process. Independant of these disturbances virtually any raw material applied in power generation process should be a matter with potentials. In India, a vast array of feed stocks are utilized for power generation but the most wide ones are farm and mill wastes, woody trees, energy plantations and other green manure crops. Preference is made on the basis of availability, cost, bulkiness of the material, pre-processing, storage etc. Biomass used in India yields varying level of energy but it is also the gas engine and generators whose efficiency equivalently determine power generation. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
REC Price Band Revised
The Central Electricity Regulatory Commission(CERC) has announced the floor and forbearance prices to be used for solar/non-solar projects from the FY 2012-13 upto 2016-17. The prices set are shown in the table below
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Prices (2012-2017) | Current | % Reduction | Prices (2012-2017) | Current | % Reduction | |
| Forbearance Price | 3300 | 3900 | 15.38 | 13400 | 17000 | 21.18 |
| Floor Price | 1500 | 1500 | 0.00 | 9300 | 12000 | 22.50 |
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Proposed | Current | % Reduction | Proposed | Current | % Reduction | |
| Forbearance Price | 3480 | 3900 | 10.77 | 13690 | 17000 | 19.47 |
| Floor Price | 1400 | 1500 | 6.67 | 9880 | 12000 | 17.67 |
- Non-solar – the floor price remains unchanged. Thus biomass/wind generators are expected to get the same minium revenue as they have been getting earlier.
- Solar – the floor price has seen a cut of about 23% from current levels. Although this might seem drastic, it is not likely to have a significant impact on solar power projects (refer section below).
- Average bid price under phase 1 batch 2 of JNNSM could be around Rs. 12.5 /kWh(on the higher side)
- APPC prices could rise by 15% annually (base price used is that of Tamil Nadu) - reasons for this were mentioned earlier.
- REC price after 2016-17 period (i.e. from FY 2017-18 onwards) is reduced by 25%
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| JNNSM Tariff (average) (Rs. per kWh) | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 |
| APPC (Rs. per kWh) | 3.38 | 3.89 | 4.38 | 5.04 | 5.38 | 6.19 | 6.38 | 7.34 | 7.38 | 8.49 |
| REC (Rs. per kWh) | 9.30 | 9.30 | 9.30 | 9.30 | 9.30 | 6.98 | 6.98 | 6.98 | 6.98 | 6.98 |
| Total (Rs. per kWh) | 12.68 | 13.19 | 13.68 | 14.34 | 14.68 | 13.16 | 13.36 | 14.31 | 14.36 | 15.46 |
| REC mechanism's Incremental revenue over PPA(Rs. per kWh) | 0.18 | 0.69 | 1.18 | 1.84 | 2.18 | 0.66 | 0.86 | 1.81 | 1.86 | 2.96 |
Table: REC vs preferential PPA for 10 years post 2012
As can be seen from the above table, the REC mechanism is quite comparable, if not better when compared to the assured tariff provided by NVVN over 10 years of operation of the solar powerplant. Overall, the REC mechanism can clearly drive the solar market, provided the Renewable Purchase Obligation (RPO) is strictly enforced by the various SERCs. The CERC release can be found here. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsREC Trading – November 2011
The REC trading for the month of November concluded yesterday. Figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 105,527 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 96,154 (90%) RECs traded while PXIL saw trading of 9,373 (10%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The price of REC varied between the two exchanges - IEX and PXIL. Non-solar RECs closed with a price of Rs. 2,900 at IEX while the RECs sold at Rs. 2,800 at the PXIL. At the IEX, the prices have seen a 7% rise over those paid last month where the trading price was Rs. 2,700 per REC.
| September | Non-Solar | Solar | ||||
| Buy Bids | Trade Volume | Sale Price | Buy Bids | Trade Volume | Sale Price | |
| IEX | 257,578 | 96,154 | 2,900 | 43 | - | - |
| PXIL | 51,199 | 9,373 | 2,800 | 0 | - | - |
| Total | 308,777 | 105,527 | - | 43 | - | - |
REC Trading – September 2011
The REC trading for the month of September concluded recently. Trading figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 46,362 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 41,385 (89%) RECs traded while PXIL saw trading of 4,977 (11%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The most encouraging part of the trading was the price paid for each certificate. The price of REC grew to Rs. 2300 from Rs. 1800 last month.
|
September |
Non-Solar |
Solar |
||||
|
Buy Bids |
Sell Bids |
Sale Price |
Buy Bids |
Sell Bids |
Sale Price |
|
|
IEX |
196,159 |
76,026 |
2,300 |
7 |
- |
- |
|
PXIL |
30,853 |
9,562 |
2,300 |
0 |
- |
- |
|
Total |
227,012 |
85,588 |
- |
7 |
- |
- |
Interestingly, there are 7 buy bids for solar REC; up from the lone buy bid last month, although this is promising, it highlights a serious issue. As with the previous months, there are no solar RECs available as no projects are registered under REC. This is a worrying trend and is going to put immense strain on the obligated entities to fulfil their solar RPO. The reasons for lack of solar projects registered under REC could include
- Higher payback period for solar projects
- REC prices guaranteed only up to 2016-17
- A combination of the above two greatly reduces the bankability of solar projects
Renewtech India 2011 Conference – Day 2
The details of the first day of the conference is available here. The second day of the The 3rd International Expo and Summit, Renewtech India 2011 conference started with a speech by Mr. D.C. Bhishikar, Managing Director, Clarke Energy India. The topic was “Application of Gas Generated from Waste Treatment for Combined Heat and Power(CHP) Solutions using GE Jenbacher Gas Engine Technology” He mentioned that the company has about 300 MW of installation base in India. He explained the various aspects of the Jenbacher Gas Engine Technology and explained that while a combustion based power generation(ranking cycle) has an efficiency of approximately 28%, the Gas engine technology has an efficiency of about 40%. The next speaker was Mr. Ravinder Tanwar, VP-Operations, Websol Energy Systems Ltd and he spoke on the topic “ Rural Electrification in Sagar Island through off Grid Solar PV Power plants”. In this session, Mr. Tanwar presented a case study of how an off-grid solar PV power plant in the Sagar island in Sunderbans, West Bengal changed the lifestyle of the inhabitants there. He explained the cost of setting up the plant and the challenges that Websol faced in putting up these plants. For example, the Solar PV modules had to be transported to the islands using boats.
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The next session was about “Solar Energy & Hybrids”. This session had speakers from Gadhia Solar Energy Systems, HCL Technologies, Soltigua-Italy and Mahindra Cleantech Ventures. Mr. Badal Shah, MD of Gadhia Solar, spoke about Solar Air conditioning. He briefly explained the principle behind how it works. He also talked about Solar cookers and highlighted the company’s projects in cooking meals at Tirupati and Shirdi temples. One key point he wanted people to remember was that Solar energy can only complement other sources of energy and cannot be a substitute for them. The next speaker was Mr. Vijaya Klnr Pingali, Group Technical Specialist at HCL Technologies Limited. The topic of his speech was “Monitoring for Better Monetization and Implementation” . In his speech, Mr. Pingali highlighted the need for effective monitoring of Solar PV farms. He also described the different types of monitoring with various examples. Mr. Francesco Orioli, Director-Marketing & Sales, Soltigua, Italy spoke on the topic of Concentrating Solar Power(CSP). The firm Soltigua is a market leader in the CSP Parabolic Solar Collectors. Mr. Orioli presented some case studies about some of the CSP projects his firm had undertaken. The next topic was “ Building Robust Ecosystem for Solar Energy in India” and the speaker was Mr. Vish Palekar, Business Head, Mahindra Cleantech Ventures. Mr. Palekar gave a very insightful speech on the development of the Solar sector in India, especially the grid-connected projects selected under the 1st part of the first phase of the JNNSM. He touched upon the following aspects of these projects- Growth drivers – Policy/PPA
- Project Implemention – Financing, Technology selection and execution.
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The third session of the day was on Wind Power. Two speakers spoke during the session – Mr. Renjith Viripullan, Engineering Manager, Onshore systems GE Energy and Mr. Bhagwat Divate, National Technical Manager, Kluber Lubrication India. Mr. Divate spoke on “Wind Turbine Maintenance Technology & Efficiency” and highlighted various challenges in the maintenance of Wind Turbines. He explained the tribological features to be kept in mind during maintenance and also the importance of lubricants. Mr. Virupullan spoke about “Wind Turbines for Low Wind Speed Market” . His speech included the definition of low speeds, challenges and opportunities in this segment.-
The final session was titled “Case Studies on Applications of Renewable Energy”. The following were the topics and the speakers.- “Innovative CDM Based Renewable Energy Projects” – Dr. Ram Babu of General Carbon
- “Solar PV Pumping system for Landscape Irrigation Application” – Mr. Vilas Erande of Samved Energy Systems
- “Waste-to-Energy Application” – Mr Soumya Bhattacharya, Concord Blue
- Tidal & Geo-Thermal Energy
- Energy Efficiency
- Quality and Certification of PV Solar Cells.
Renewtech India 2011 Conference – Day 3
This is my final post on the Renewtech India 2011 conference. Click here for details on Day 1 and click here for details of Day 2. The final day of the event had 3 sessions. The first session was titled “Tidal & Geo-Thermal Energy”. The first speaker was Dr. Ritesh Arya, Hydrogeologist & Groundwater Consulting in Himalayas. He gave a very insightful speech on the topic “Geothermal potential in India – A Review”. He highlighted the fact that India has more than 10 GW potential in the Geothermal space. He made an interesting point that while Solar, Wind and other forms of energy are renewable energy but not sustainable energy whereas Geothermal energy is a sustainable energy. He described how the heat of the magma under the ground can be harnessed to generate steam for heating applications and power generation. He explained his experiences in Ladakh and the Himachal region where there are natural hot springs. He also talked about his experiences in Iceland where geothermal energy is available in abundance. In Iceland, the people even grow tropical fruits like banana in green houses heated by the geothermal energy. The next speech of the session was by Prof. S. G. Kanitkar, Head-Green Energy Division, Enviro-Abrasion Resistance engineers Pvt. Ltd. His topic was “Tidal Wave energy”. He started off by describing the differences between the Tidal and Wave energy. The current scenario of harnessing these forms of energy were explained by him. He then provided the technological details about how the Wave energy can be harnessed. In particular, he provided the details of the device his team has developed. The second session of the day focused on “Energy Efficiency”. The following were the speakers 1. Mr. Jens Burgtorf, Director – GIZ-IGEN, Bureau of Energy Efficiency 2. Mr. Martin Wohlmuth of Arqum GmbH – “Resource Efficiency Network India – A Field Report” 3. Mr. G. Gururaja of Avni Energy Solutions Pvt. Ltd – “LED Technology: Its Role in Present Scenario for India’s Lighting Requirement” 4. Mr. Dinesh Shetty of Bureau Veritas Certification – BS/EN 16001:2009 – Energy Management Systems for Reduction of Energy Costs/Green House Gases Emission. As can be seen from the topics of the presentations, the session focused on various aspects of Energy Efficiency. “Quality and Certification of PV Solar Cells” was the title of the final session of the day. This session had two speakers – Mr. Srinivas Chakravarthy, Country Head – Industry Services, TUV Rheinland(India) and Ms. S. Vasanthi, Director – Technology and Marketing at Websol Energy Systems. Mr. Chakravarthy of TUV Rheinland spoke about the module certification process in general and TUV Rheinland in particular. He started off by explaining the various environmental influences during the long term operation of PV modules. This includes solar radiation, temperature, mechanical stress due to factors like wind, atmosphere,etc. He explained the different standards for Performance, safety and qualification. Subsequently, he described the different tests conducted for the IEC or other certification. This includes subjecting the modules to high level of different types of stresses(temperature, sunlight, handling, partial shading, wind, UV rays,etc).He concluded by talking about the various services offered by TUV Rheinland and also about the new test facility in Bangalore. The last speaker of the session was Ms. S. Vasanthi. Her topic was “ Improvement in Crystalline Si PV Modules Through Quality Control and Innovation in Manufacturing Processes”. She explained the various steps in the solar PV cell and module manufacturing process. She described the various quality control measures and some of the common defects like browning of cells. The effect of each of the raw material for a module(metallisation paste, ribbon, flux, encapsulant,etc) on the final quality of the PV module was also discussed. That concluded the 3rd edition of the Renewtech India conference. The 4th Renewtech India conference is scheduled for 16-18 February 2012 at the same venue – Bombay Exhibition Centre, Goregoan, Mumbai.
Rice husk used for power in one of India’s poorest states- A case Study
Whoever thought rice husk can generate power needs a medal! Considering how much rice husks go to waste in a country where rice is the staple food, it is comforting to know fossil fuels are not our only resort for power production. Thanks to Manoj Shinha, a renewable energy entrepreneur pioneered using discarded rice husks as biomass to provide energy to Bihar, one of India’s poorest states. Mr. Shinha along with his colleagues Gaynesh Pandey, Ratnesh Yadav and Charles W. Ransler developed Husk Power Systems to address the situation of poverty in their home state of Bihar. Many villages in India live off the grid in the darkness, this new advancement means that they need not depend on grid for electricity, rather generate their own clean, affordable electricity.The company generates and sells electricity for a price that is less than half of what the villagers pay for kerosene. This was possible because the whole concept is focused on research and development investment to simplify energy production and transmission, such as using bamboo instead of cement posts to install power lines.And, since communities no longer use kerosene, wood or dung for electricity, this way of electricity generation lowers the environmental and health hazards. In addition, rice husk ash, a byproduct of the gasification process, can be used for concrete production thus reducing the amount of high-carbon Portland restless leg syndrome cement.On average, a single power plant serves 400 houses, replacing 42,000 liters of kerosene and 18,000 liters of diesel yearly. As of August 2010, H.P.S. has sequestered 50,000 tons of carbon dioxide. Currently, they have installed over 60 mini-power plants that are 100 percent biomass-based which supply power to over 25,000 households in more than 250 villages.With the market opportunity in mind, they aim to expand their business to bring clean electricity to Indian villages by installing 2,000 new plants by 2014 beyond Bihar.
Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Sael: A $10 Million Spark for India’s Waste-to-Energy Future
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
In a move that highlights the growing potential of the waste-to-energy sector in India, Norfund, the Norwegian Investment Fund for Developing Countries, has invested $10 million in Sael, an Indian company that converts agricultural waste into clean energy. This investment will help Sael expand its operations and contribute to India's clean energy goals.
Sael is a leading player in the Indian waste-to-energy sector. The company uses a proprietary technology to convert agricultural waste, such as rice straw and sugarcane bagasse, into clean energy. Sael's plants generate electricity that is fed into the grid, helping to reduce India's reliance on fossil fuels.
Indian waste-to-energy market
The Indian waste-to-energy market is expected to grow at a CAGR of 20% over the next five years, driven by factors such as increasing waste generation, growing awareness of environmental issues, and government support for renewable energy. The market is currently estimated to be worth around $1 billion, and it is expected to reach $5 billion by 2025.
The market is booming with investments pouring in and cutting-edge technology emerging. However, hurdles like complex regulations, limited financing, and public concerns exist.
Key players include waste-to-energy companies, waste management companies, power producers, and government agencies. Recognizing the immense potential of the Indian market, foreign and domestic players are joining forces to unlock the power of waste-to-energy (WtE). Joint ventures like Sterling & Wilson and Hitachi Zosen's 50 MW plant, or Arc Energy and Wheelabrator's 60 MW project, are testaments to this collaborative spirit. Beyond developers, waste-to-energy companies are forging partnerships with waste management firms like Ramky Enviro Services to ensure consistent, high-quality feedstock.
This synergy extends to research institutions and technology providers as well, with Tata Power and IIT Bombay developing advanced gasification technology and Vedanta partnering with Neste for co-processing expertise. These collaborations are crucial for navigating local complexities, accelerating technological advancements, and ultimately achieving India's WtE ambitions.
The government also actively supports WtE with feed-in tariffs, tax breaks, and streamlining regulations. Recent investments and project announcements showcase the sector's potential. Technological advancements like plasma gasification and bioreactors promise improved efficiency.
Challenges include inadequate waste segregation, public opposition, and fly ash management. Continued government support, public awareness campaigns, and innovative solutions are crucial to overcome these hurdles.
Overall, India's WtE sector holds immense promise for sustainable waste management and clean energy generation. By addressing challenges and seizing opportunities, India can turn waste into a valuable resource for a brighter future.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Tamil Nadu’s Biomass Power Plans – Energy Plantations is the Answer?
Biomass is one of the renewable energy domains in which Tamil Nadu could have significant potential for progress in future. Estimates suggest only about 10% of the potential has so far been utilized. Of course, the lack of a robust supply chain that make create supply and price security is a problem as much in Tamil Nadu as it is in the rest of the country. Some inputs and updates for biomass power in Tamil Nadu are provided below.
- Potential for Biomass based power in Tamil Nadu is 1589.9 MW (1160 MW based on agricultural waste and 429.9 MW from forest and wasteland cultivation).
- 22 biomass power plants with total installed capacity of 169 MW are in operation.
- Ten biomass power plants with totaling to 120 MW, with over 80% plant load factor, have faced temporary shut downs owing to unviable tariff rates and increasing feedstock cost.
- Biomass power producers association has approached Tamil Nadu Electricity Regulatory Commission (TNERC) with a request to revise the tariff and offer higher annual tariff escalation. The viable rate for operating biomass power plants in years to come would run beyond Rs 6.50/kWh, but the current tariff of Rs 4.5/kWh is in no way adequate to sustain the projects in the long run.
- Tamil Nadu Energy Development Agency (TEDA), along with Tamil Nadu Biomass Power Producers Association, has been actively involved in promoting large scale energy plantations in marginal / waste land in the state with high potential crops.
- The Tamil Nadu Biomass Power Producers Association suggests that energy plantation would not only serve to provide cheap and continuous feedstock supply for power plants, but it would also improve the quality of life of the rural population. Estimates suggest that a 10 mw biomass power plant can ensure livelihood of over 2,000 marginalised families. They can be employed in collection, transportation, cutting, chipping of biomass and cultivation of wasteland with energy plants like Juliflora, Bheema Bamboo etc.
The man propelling the bio-energy movement in India – PRESPL
Welcoming Lt Col Monish Ahuja to CLIMAFIX SUMMIT 2022 - the 1st summit for Indian climate tech startups. I'm sure you have heard the saying, "Water, water everywhere, not a drop to drink" That applies quite well to the Indian agricultural residues as well. Hundreds of millions of tons of agro waste around the country, but very little available for the industries to use. And worse, a good portion gets burnt on the fields because the farmers do not know what to do with them. So where's the challenge? What is broken in this system? To a significant extent, logistics, or rather the lack of it. Securing and transporting millions of tons of agricultural waste from hundreds of thousands of farmers and transporting it reliably to end users is not rocket science. But it is systems science. Discipline science. Or patience science, if that term is more endearing to you. In EAI's decade long work in the bio-energy sector during which we consulted for dozens of clients including the likes of GSK (#Horlicks division, now part of Unilever), we have seen how unorganized the agro-waste supply has been, except for bagasse coming straight from large sugar mills and to a lesser extent saw dust from plywood factories. It is a complex challenge of logistics, societal & local traditions, and of course the omnipresent politics. The sector needed someone who could wade through all these, build an efficient system and evolve an organized biomass supply chain. Enter Lt Col Monish Ahuja. Army discipline, Systems thinking. Business acumen. These characteristics have helped him build Punjab Renewable Energy Systems Private Limited (PRESPL) into a force to reckon with countrywide in industrial biomass supply. PRESPL is today is one of the few organized players that has the ability to provide industrial decarbonization on scale through biomass, supplying thousands of tons of agro-waste based biomass every day to industries. I remember sitting with him in his office in Navi Mumbai a few years back when he patiently took me through the process by which he was building an effective front-end logistics system while also putting together a scalable digital back-end system. While coming out from the meeting, I thought - finally, here's someone who appears to be just what the doctor ordered for India's bio-energy sector. Since then, his company has - not surprisingly - grown and grown. Hats off to Monish, and we are proud to have him as one of the experts who will share his insights at the CLIMAFIX SUMMIT 2022, India's first climate startup summit, Nov 25 & 26, Chennai, organized by the Climate Startup Intelligence division CLIMAFIX of EAI (Energy Alternatives India) & Energy Consortium - IIT Madras Welcome Monish, and here's hoping you inspire more of your breed - and soon. More about CLIMAFIX SUMMIT, India's first summit for climate startups
VC / PE Perspectives and Opinions on Biomass Power
Indian VCs have not really done a good amount of investing in cleantech. Cleantech perhaps is not really a VC game as it is more of an engineering related discplie that does not offer the types of scalabilitiees that VCs desire or the exit periods. VCs also do not understand cleantech well enough to take calls. Many cleantech deals, especially in the power segment, are PPA based, with limited upsides, not typical VC games. Many cleantech and renewable energy startups require capital that is much higher than what VCs can typically offer to invest. Predictions for Cleantech VC in 2011 - Kachan & Co.'s Dallas Kachan looks at what 2011 will have in store for cleantech (http://alwayson.goingon.com/node/66783 ) Sustained worldwide venture capital investment will continue to cede importance to corporate and non-institutional capital. A return to early stage venture investments - predict a return to early stage venture capital investing in cleantech in 2011. Energy efficiency emerges as the clear rock star of cleantech. Biofuel investment could reach former highs. Recycling and mining will attract more investment. Natural gas emerges to threaten solar and wind for utility renewable power generation. China becomes the most important market for cleantech: if you're not selling in China, you won't matter. There is a significant amount of interest among PEs for investments in both traditional and renewable energy. PEs – not surprisingly – are not very keen on risky technology bets in renewable energy, but are OK with business model risks. Some of the PEs (such as IFC, ADB etc) are willing to take fairly long-term views (with over 10 year horizon). Investment sweet spot ( in terms of the quantum) varies from fund to fund, but obviously for most of the blue-chip, it is upwards of $50 million. PEs are well aware of the regulatory and societal bottlenecks that could arise in large-scale energy sector investing (especially for coal-based and large-hydro based sectors). Many PEs are clear that they wish to invest in businesses that can stand on their own revenues (even if takes a while) and are not keen on business plans that rely on getting bought out. Most every PE acknowledged that while they might not like coal, it is here to stay as the largest contributor to power for the foreseeable future. PE arms of organizations such as IFC and ADB, while not shutting out the option of investing in coal-based or natural gas based power plants, have a mandate to decrease their exposures to these “non-green” sectors. What a PE can bring to the table - Many private equity funds have been able to provide not just the financial support required but also strategic support and value-add for the firm’s growth. Disconnect in Valuation expectations - one of the issues faced by PE players while investing in cleantech companies is the disconnect in valuation expectations between the entrepreneur and investor with the buoyant public markets resulting in an increasing buoyancy in expectations! PEs feel that entrepreneurs should take a longer term view while setting their valuation expectations. Currently, 80% of infrastructure projects, and 46% of power projects, are funded by the banking system. So, PEs constitute only a small share of the infrastructure projects. While private equity folks could like IRRs of about 25%, power and infrastructure IRRs is only about 12%. Some private equity companies might wish to play a consolidator’s role as well where they consolidate a diverse portfolio of (say) energy companies such that they win even if 7/10 companies do well enough. Investors such as IFC have specialists/experts in every project to take care of social and environmental aspects. Private equity funds are interested in the macro factors (demand supply gap in electricity et al) as well strategic micro factors. One of the factors that seem to interest PEs is the method for companies to go diversified on green power that is having assets in wind, small hydro, biomass etc together, instead of betting just on one thing alone. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Why Biomass for Power Generation?
Biomass has been used as a source of energy right since mankind started its existence; In fact, one of the predominant energy sources today is biomass. Biomass as a source for power production is not entirely new either. Biomass has been used, in the place of coal, for steam generation at power plants, though in a limited way. Indeed, currently, the predominant method used for producing power using biomass still is the combustion route, At the same time, other processes, such as biomass gasification, which can work at much smaller scales and use the biomass more efficiently are emerging. The newer processes especially biomass gasification based power production, is relevant today especially in the Indian context mainly because of its potential to provide distributed power at rural level, especially for small remote villages that have good access to biomass but no access to grid power, and which require only small scale power production. Biomass based power is also relevant in the context of climate change and global warming as biomass based power production is net carbon neutral. The contribution of bioenergy to the total primary energy consumption in India is over 27% (Source: FAO). This is indeed the case for many other countries, because biomass is used in a significant way in rural areas in many countries. However, the contribution of biomass to power production is much smaller than this percentage – currently, biomass comprises only about 2650 MW of installed capacity, out of a total of 172000 MW of total electricity installed capacity in the country. Besides, biomass power has the following benefits- distributed generation, baseload power, ability to have small, kW scale power production, suited for rural areas and ideal for rural economic upliftment. I believe these are enough to justify why biomass is best suited for power production. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
VC / PE Perspectives and Opinions on Biomass Power
by admin | May 3, 2011 | Biomass Power, Financial Investors, Net Zero by Narsi, Renewable Energy, Solar Energy
Indian VCs have not really done a good amount of investing in cleantech. Cleantech perhaps is not really a VC game as it is more of an engineering related discplie that does not offer the types of scalabilitiees that VCs desire or the exit periods. VCs also do not...A 900 MW Power Plant Running on Biomass? It Could be a Reality in Five Years!
I thought I was never going to see the day when a large power plant would run entirely on biomass. You can understand my pessimism when you are told that a MW of powerplant will require about 8000 T of biomass every year. A 300 MW power plant will hence require an awful 2.5 million T of biomass every year. That's a heck of a lot of, well, anything. Well, there are some courageous folks around the world. Drax in the UK, for one. They are building 3x300 MW furnaces on biomass, and are arranging for a 8 million T biomass supply from around the world. (By comparison, India's total biomass based power production - outside of bagasse power - is only about 1500 MW. So the Drax project alone would be about 60% of total Indian biomass installed capacity!) While I am certainly overawed, good news, I must say. If they can operate it sustainably for a few years, biomass power would have definitely reached a milestone. Will be really keen to know how they plan to manage the supply chain. This is what the news report has to say "The vast majority of the biomass will come from North America, but there will also be locally sourced supplies of willow and elephant grass to power the furnaces. "
A Case Study of Clenergen and Yuken’s Gasification Biomass Project
Yuken India Limited, set up in 1976 under a technical and financial collaboration with Yuken Kogyo Company Limited, Japan, is a manufacturer of oil hydraulic equipment. Yuken has achieved one of the fastest growth rates in the Indian oil hydraulics industry, in the last 29 years. Clenergen India Private Limited, a wholly owned subsidiary of Clenergen Corporation, plans to enter into a minimum 15 years Power Purchase Agreement (PPA) with Yuken to supply up to 2.5MW/h, with the rest of the electricity generated being completely sold out to the National Grid System. The biomass power plants with a capacity of 4 MW/h will be installed and begin operation within 10 months upon signing of the PPA. Clenergen India plans to lease up to 800 acres of non arable land near the manufacturing site in order to grow a high yielding species of bamboo as a source of biomass for the gasification power plant. The bamboo produced is asexual, non-invasive, non-flowering plant with a lifespan of up to 50 years and above all, is a product of tissue culture. This is advancement in the sector of renewable energy, in that the cost savings created from the cultivation of biomass feedstock will allow the supply of electricity at a price lower than the current market prices and will also help to extend the industries’ vertical market penetration into these market sectors. This is certainly moving forward. With ever increasing fossil fuel prices, this is the ideal way to deal with the growing needs and the economy. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Agricultural biomass availability in India for power generation
India is primarily an agricultural nation with an extensive cultivation of different types of crops including cereal, pulses, oilseeds, fibre crops, spices and plantation crops. With the cultivation of these crops, availability of residual biomass after economic harvest makes power generation in a sustainable way. These raw materials are normally available in variable quantities depending on the acreage of cultivation, mass of residue part available. The total biomass is 511,041 kT/Yr for power generation. Among them, rice, wheat and cotton constitute a major portion with 160,000,111,000 and 21,000 kT/Yr to generate power of 5000, 3300 and 3500 MW respectively. The total power generation capacity is 17,400 MW. Besides these crops, maize, jowar, bajra, coconut, groundnut, banana, cassava and mustard are also potent generators of biomass for power to an appreciable extent. It is evident from the information stated above that the agricultural resources serve as excellent candidates for the power generation either by combustion or gasification. However it is important to note that these materials are variables by biochemical composition and moisture. So, standardization is mandatory by defining limits to make them appropriate for thermal decomposition and as consistently yielding materials of electric power. Further plans are required to efficiently collect and store for processing without time delay. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Benefits of Biomass Based Power
While we are striving hard to switch to more sustainable modes of living, there arise lots of issues questioning the efficiency of our choice of green. Despite all the issues they might have, they have more benefits than their petroleum counterpart. After all, petroleum is not going be here forever. So, this post will focus on the benefits of biomass based power, and why is it more suited as a sustainable alternative. Let us look at the distributed generation, because biomass is available in almost all places, and especially in rural areas, and more important, as gasification based power production can be done on small scales (as low as 20 kW), this process can be used for distributed generation of power as against the centralized power production method followed today. Also, biomass based power is well suited to remote villages with no access to grid but access to significant amounts of biomass Secondly, biomass gasification based power production can be done at small scales – as small as 20 kW – unlike other sources of power (say, nuclear) that require much larger scales. This will ideally suit small villages that have only a few households. Also, this whole process could be done in rural areas, where this could open a gateway of opportunities for rural population. Given that a 1 MW biomass based power generation could require biomass growth in over 150 hectares, the opportunities for rural employment are indeed significant. Thirdly, biomass power results in no new net GHG emissions as it is part of the carbon cycle. Unlike coal and others forms of fossil fuel which have been buried millions of years ago and burning them adds to carbon in the atmosphere, responsible biomass energy generation results in no new carbon emissions or pollution. Finally, the efficiency of the biomass power generation process to make use of mostly animal and crop wastes for energy is remarkable. Also, there is a large variety of feedstock which could be used for the process. Aside from these, they also significantly reduce methane in the atmosphere, which being able to be produced economically. I suppose these are enough reasons to switch to biomass power. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Bio-energy Software Development Assistance – Clixoo
Clixoo, a sister division of EAI, brings to the table a unique intersection of renewable energy domain knowledge and high quality software development expertise. Using these, the bio-energy software team at Clixoo can assist companies keen on development support for a range of biomass power plant/heating related software. These include
- Biomass Assessment
- Feasibility Analysis
- CHP
- Bio-reporting Software
Biomass based power
Biomass is a valuable physical mass of biotic factors and ideally suited for the energy generation in different forms for the fulfillment of human demands over time. Even though deep ground fuel resources of biological origin satisfy it comprehensively, the way it is oxidized today on a time scale for energy production alarms the world by a phenomenon called “Global warming”. It forces us to scan for a suitable and sustainable alternative to fossilized biomass and the answer lies with surface dwelling, active biomass which is derived either from live or dead sources for power generation. Biomass can be subjected to power generation by combustion principle which is exactly followed for fossil sources and also is found to have a greater flexibility to generate power than conventional sources. Besides combustion, biomass is readily amenable for gasification where energy as power, heat and synthetic fuels can be derived. Biomass based power proves to be highly profitable under conditions where natural resources such as wood from forests, agricultural and animal sources etc are at abundance. India is a potential hub for this alternative route of power generation but currently holds a marginal fraction of 2650 MW out of its total installed capacity of 172000 MW. It utilizes bagasse co-generation system as its major option for biomass based power production with a capacity of 1411.53 MW achieved till June, 2010. It is important to note that biomass based power is multi-dimensionally advantageous as follows Rural economic upliftment, Suited for rural areas, Ability to have small kW scale power production, Distributed generation, Carbon neutral, Efficient utilization of renewable biological sources and accession of low cost resource. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Boilers Guide – Guide to Pick Optimal Biomass, Processing & Boiler Type
Many companies in India, and worldwide, are shifting from the use of fossil fuels for their boilers to using biomass. Such a transition is not easy though, given the significant differences between biomass and coal or other fossil fuels - differences both in terms of product characteristics as well as the supply chain and other market characteristics. So, how can a company go about making the key decisions in its transition to a biomass boiler? The nice folks at Boilers.Guide have put together a guide that eases this transition, specifically from coal to biomass boilers. This guide helps you iron out many of the uncertainties and questions a typical stakeholder has. The guide provides pointers on what characteristics to look for while selecting the optimal biomass to be used in boilers, selecting the right form (i.e pellets, briquettes, loose) for transportation and storage and selecting the appropriate combustion system and pollution control equipment. The guide is divided into three stages of selection with each stage providing information on the parameters to be considered, the pros and cons and examples to help you set up the most optimal biomass boiler. Get more from the guide itself - Using Biomass for Boilers - the Way Forward. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass conversion to natural gas – is this being followed anywhere?
I and my team might be working on an interesting project where the company is trying to move away from natural gas for its heating purposes and into the use of biomass for the same. The reason of course has to do with economics, with natural gas prices shooting through the roof past couple of years. While we are figuring out ways in which the company could use biomass directly for heating instead of natural gas, this process poses some problems owing to the specific needs of the client. I am hence wondering if the process of converting biomass to natural gas is being followed anywhere. I know that this is pretty much feasible, but not sure about the technology maturity and economics. If there is anyone who is aware of commercial conversions of biomass to natural gas, do let me know. You can include your response in the comment section or send a note to narsi [at] eai dot in. Thank you.
Biomass Gasification for the Environment and Economy
There are a whole lot of benefits from biomass gasification, both economy wise and ecology wise. Speaking of environmental benefits, gasification plants produce significantly lower quantities of air pollutants, which is really a good thing. The process can also reduce the environmental impact of waste disposal because it can use waste products as feedstock, generating valuable products from materials that would otherwise be disposed as wastes. Gasification's byproducts are non-hazardous and are readily marketable and also use significantly less water than traditional coal-based power generation, and can be designed so they recycle their process water, discharging none into the surrounding environment. If that is not convincing, let us look at the economical benefits. Gasification can be used to turn lower-priced feedstocks into valuable products like electricity, substitute natural gas, fuels, chemicals, and fertilizers. For example, a chemical plant can gasify petcoke or high sulfur coal instead of using high-priced natural gas, thereby reducing its operating costs. While a gasification power plant is capital intensive (like any very large manufacturing plant), its operating costs are potentially lower than conventional processes or coal-fired plants because gasification plants are more efficient and require less back-end pollution control equipment. With continued research and development efforts and commercial operating experience, the cost of these units will continue to decrease. The process also offers wide fuel flexibility. A gasification plant can vary the mix of solid feedstocks, or run on gas or liquid feedstocks—giving it more freedom to adjust to the price and availability of its feedstocks. Many predict that coal-based power plants and other manufacturing facilities will be required to capture and store CO2, or participate in a carbon cap and trade market. In this scenario, gasification projects will have a cost advantage over conventional technologies. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Gasification in India to Generate Lakhs of Jobs
Emerging green economy in the country may see creation of nine lakh jobs in India by 2025, a top government official said.
"India could generate nine lakh jobs by 2025 in biomass gasification, of which three lakh would be in manufacturing of stoves and six lakh in areas such as processing into briquettes and pellets and the fuel supply chain," Ministry of Micro, Small and Medium Enterprises (MSME) Secretary Dinesh Rai said.
More from here.
I am not sure if biomass gasification alone could generate almost a million jobs. The secretary appears to have his numbers done for him all right, but I still wonder.
It will of course be good if it comes true. It was only yesterday that I met this gentleman whose company manufactures efficient burners for kerosene stoves and he was quite hopeful about the micro-gasifiers as well.
Let's see how it goes
Biomass Gasification Power Production – Bottlenecks and Barriers
Biomass gasification is a process where materials are transformed by thermal decomposition under partially oxygenated conditions to generate syn-gas for power generation. It seems to be a powerful technique where energy can be produced in a sustainable way along with valuable products such as green oil and biochar but it is multi step process where bottlenecks continuously arises at every step of the production pathway. The most commonly encountered limitations are batch to batch variation in energy content, purification of the syngas, contaminants influence in the performance of the engines, ash and biochar disposals, toxic gas emissions and operational efficiency of the gas engines and mandatory modifications required to make the engines energy effective. In addition to these prime technical problems, others notable hindrances are insufficient capacity of the stakeholders and inadequate institutional and policy framework at the national, regional and local levels and limited access to financing and lack of interest on part of the state electricity boards (SEBs) in promoting biomass power generation etc. In India, conditions are further complicate by lack of working capital, limited interest in power projects, lack of effective regulatory framework and absence of effective information dissemination etc. In spite of the limitations, the technology continues to gain acceptance. Its potential to meet the energy demands on a flexible scale makes a robust move to outweigh the magnitude of limitations associated with it. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Biomass Power Plant with Attractive PPA Looking for PE Investors
A contact of EAI is looking for an investor to assist them financially for a 15 MW biomass power plant.
What he is looking for is a capital infusion to the extent of 25 crores, as he has already completed most of the rest.
The promoter is an established entrepreneur who knows his business, and most important, has an attractive PPA with the state electricity board for power purchase at tariff upwards of Rs 7 per kWh. In addition, he has done a good job of ensuring that the biomass supply at excellent prices.
Overall, it appears to be quite a profitable opportunity and should be of interest to private equity investors keen on adding a profitable biomass power plant of a reasonable size to their portfolio.
Highlights
- Power plant is being set up in Maharashtra, and most of the plant construction has already been completed
- Has a strong 13 year PPA, tariff Rs 7.5/kWh for 13 years with state discom.
- Plant in strategic location for feedstock availability
- Have agreements with the local distributors and farmers for resources.
- Total project cost: Approx Rs 100 crores (about $16 million), required infusion: 25 crores (about $4 million)
Cleantech Funds and Their Investments in Biomass in India
Several VCs/PEs/Companies have created funds which invest in clean technology or companies with partial clean technology operations, and have either invested, or are interested in investing in India. Some of these organizations and their investments are summarized as follows.
Company Energy/Cleantech Specific Fund Activity/Investment Shell Group through their Shell Foundation (invested directly or through other funds invested in Husk Power ($1.1M), while New Israel Fund, Dorot Foundation, Nathan Cummings Foundation, Andrea and Charles Bronfman Philanthropies through their Green Environment Fund invested in Greenko Group ($46.3M). Chrys Capital directly and through ChyrsCapital V LLC (through subsidiary Van Dyck invested in Pratibha Industries Ltd (Rs. 50 Crore) and Suzlon Energy (Rs. 50 Crore). Barings Private Equity India Private limited through consortium of PEs invested in Auro Mira ($21 M) whose Investor share was not disclosed. Additionally, Blackstone via their Blackstone Advisors India Private Ltd invested in Moser Baer ($300 M), 3i Group through their 3i India Infrastructure Fund invested in GVK Power and Infrastructure (Rs. 800 Crore) in both conventional and renewable energy. Reliance through their Reliance India Power Fund invested in Su-Kam Power Systems (Rs. 45 Crores), Citi Group CVC International (PE) through Citi Group Venture Capital (VC) invested in Suzlon (Rs. 50 Crores). The above was only the list of highlighted events. The list is actually very exhaustive. As the population increases, and there arises a demand for a more sustainable form of energy, a lot of investments have been made in this sector. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsCons of Gasifiers
The use of biomass gasification for power production is not new, but its use has been so far been limited and its contribution to the overall power production has so far been negligible in India. The producer gas derived from biomass gasification can be used for either producing power (by use in a gas engine) or can be used for thermal applications. With better technologies evolving for both gasifiers and gas engines, it can be expected that biomass gasification could start contributing a lot more to the overall power production in India. For starters, biomass gasifiers are reactors that heat biomass in a low-oxygen environment to produce a fuel gas called the producer gas. The gas produced from a gasifier can drive highly efficient devices such as gensets, turbines and fuel cells to generate electricity. A biomass gasification system consists primarily of a reactor or container into which fuel is fed along with a limited (less than stoichiometric, that required for complete combustion) supply of air. Heat for gasification is generated through partial combustion of the feed material. The resulting chemical breakdown of the fuel and internal reactions result in a combustible gas usually called producer gas. Though gasifiers are really special in their own way, they have their limitations. Gasification is a complex and sensitive process. There exists high level of disagreement about gasification among engineers, researchers, and manufacturers. Several manufacturers claim that their unit can be operated on all kinds of biomass. But it is a questionable fact as physical and chemical properties varies fuel to fuel. Gasifiers require atleast half an hour or more to start the process. Raw material is bulky and frequent refuelling is often required for continuous running of the system. Handling residues such as ash, tarry condensates is time consuming and dirty work. Driving with producer gas fueled vehicles requires much more and frequent attention than gasoline or diesel fueled vehlicles. Getting the producer gas is not difficult, but obtaining in the proper state is the challenging task. The physical and chemical properties of producer gas such as energy content, gas composition and impurities vary time to time. All the gasifiers have fairly strict requirements for fuel size, moisture and ash content. Inadequate fuel preparation is an important cause of technical problems with gasifiers. Gasifier is too often thought of as simple device that can generate a combustible gas from any biomass fuel. A hundred years of research has clearly shown that key to successful gasification is gasifier specifically designed for a particular type of fuel. Hence, biomass gasification technology requires hard work and tolerance. As I said, gasifiers are indeed special in their own way. I’d rather we just wait for the technology to advance in the future to go far beyond its limitations. After all, as I said then and I will again, petroleum is not here forever, and we need more sustainable feedstock and advanced technologies for processing. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Cool Solutions for Your Hot Problems – Getting Your Heating Costs Under Control
Sustainable Industrial & Commercial Heating Solutions - A Critical Pain Point
No, this blog post is not about those hot problems. It is about problems companies, especially in the manufacturing sector, face for their heating requirements!
With the prices of furnace oil, diesel and LPG increasing alarmingly in the past few years, companies suddenly find their costs of their energy shooting up to unaffordable levels.
Suddenly, using renewable and sustainable energy sources such as solar and biomass, and utilizing heat that was wasted earlier appear to be the way forward.
I hence thought I’d provide an overview of renewable and sustainable options available for heating requirements in factories.
The following are the sustainable heating avenues that are technically feasible today:
- Solar Water Heater
- Biomass
- Waste Heat Recovery/CHP/Cogen
- CST (concentrating solar thermal)
- Energy efficiency heating equipment
- Back pressure steam turbine
Biomass Energy for Reducing Dependency on Furnace Oil, LPG or Diesel
Reducing Fossil Fuel Use at Industries & Commercial Units through Use of Biomass Energy
Also check out:
EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Product
Costs of feedstock for Biomass gasification
Biomass gasification utilizes renewable feed stocks for liberating the synthesis gas by thermal decomposition under high temperature conditions. Among the factors affecting the production protocol, cost economics play a critical role and is well pronounced in cases when the scale of operation is magnified. Entrepreneurs of gasification technology often make contracts with farmers or traders so as to ensure a price security and timely uninterrupted availability of their concerned feed commodity. In spite of the strategies, price fluctuations in gasification feed stocks have been witnessed, for instance cost of rice husk was at Rs: 600/tonne in 2009 but has steeply increased to Rs 1800/tonne by the end of 2010 and such an extreme volatility in market prices causes a concern to buyers and affect the final price of the power/unit produced by biomass gasification technology. Lack of price security has produced an unique trend in gasification where the venturers start their own farms for feed stock production which they claim that it can cut costs by two-third of the actual cost and seems to be working well in particular with dedicated energy crops. Gasification technology is well balanced economically as entrepreneurs have a scope to sell biochar by-product which fetches good market price to compensate for the cost procurement of the feedstock. Socio-economic and technical factors continuing to challenge the progression of gasification but the productivity makes it a superior choice that cannot be camouflaged. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Current Status of Biomass Gasification in India
India has initiated its power generation from renewable sources by several different principles namely gasification and combustion. Biomass gasification is carried out at different power capacity levels ranging from 25 kW to 2 MW and above. When a comparative analysis is made between combustion and gasification of biomass, the former technology is best operational under high capacity installations while the inverse is true for the gasification. This peculiar advantage seen in gasification to operate at smaller ranges makes the technology suitable for adoption in rural and by small entrepreneurs where power generation is required rather than efficiency. The technology even though best functions with high range installations of 2 MW, its utility is obstructed by the demand for a series for engines and India has less than 10 installations so far. Gasification technology is really ideal where resources are randomized and adoption of any other technology is tedious on a financial scale. Gasifiers are flexible to operate which makes the user to follow any technology depending on his requirements to a limited extent. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Decarbonizing India’s Energy Sector by Biomass and Biofuels
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
In India, 22% of the total energy supply is renewables, with biomass contributing 85%. Biomass use is shifting from traditional residential heating to power production. Biofuels represent less than 1% of transport fuels, with bioethanol at 3% of gasoline consumption. The biomass market is projected to reach INR 32,000 crore by FY2030-31. India produces 450-500 million tonnes of biomass annually, with a surplus of 230 MMT/year. Biomass-derived energy constitutes 32% of India’s primary energy use. The biomass pellet manufacturing capacity is 2.38 MMT, with 83,066 MT co-fired in 39 thermal power plants.
Reliance Industries Limited (RIL) is transitioning from fossil fuels to renewable energy, including biofuels, for its energy demand. This involves using bio-pathways to fix CO2 and recycling materials across value chains. RIL plans to set up around 100 Compressed Biogas (CBG) plants over the next five years, consuming over 5.5 million tonnes per annum of agricultural residue and organic waste. This initiative is projected to reduce nearly 2 million tonnes of carbon dioxide emissions annually. In essence, RIL’s decarbonization strategy involves renewable energy, biofuels, recycling, and CBG plants.
Thermax, an Indian energy and environment engineering company, is decarbonizing its manufacturing processes using biomass and biofuels. Its subsidiary, TOESL, installs biomass-fired plants and sells steam. Thermax’s solutions include the Atmospheric Fluidised Bed Combustion Boiler, capable of using various fuels including coal, lignite, rice husk, petcoke, spent coffee ground, washery rejects, low ash coal, paper sludge, roasted chaffs, DOB, bagasse, pith woodchips, coffee husks, mustard stalk, cotton stalk, and char. Thermax has secured an order worth over Rs 500 crore to set up five bio-CNG plants across India, with a capacity to produce 110 Tonnes Per Day of bio-CNG, utilizing local feedstock exceeding 1,000 TPD. This initiative contributes to the decarbonization of manufacturing processes.
The shift from fossil fuels to renewable energy sources is a key aspect of the company's strategies. This transition is driven by the need for cleaner energy sources and the potential economic benefits of renewable energy. Development of advanced biofuels like bioethanol, biodiesel, and biogas from sustainable feedstocks like algae and dedicated energy crops can further reduce reliance on fossil fuels and enhance energy security.
Looking ahead, the focus will be on enhancing the efficiency of biomass and biofuel technologies, developing second-generation bioconversion processes, and ensuring the sustainable sourcing of feedstocks. The potential of biomass and biofuels extends beyond just energy production. It opens up opportunities for waste management, rural development, and job creation, contributing to a circular economy. Companies like Reliance Industries and Thermax are pioneering this transition, demonstrating the viability and benefits of these renewable energy sources.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
DIL stands for Decarbonization for India's Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI's strategy consulting team. More about our consulting from here.
Emerging Feedstock for Biomass Power
Following my previous post on the industry perspectives on the various methods that have to be adopted for sustainable feedstock procurement (http://eai.in/blog/2011/12/industry-perspectives-and-strategies-for-effective-biomass-feedstock-procurement.html), today’s article showcases the various feedstock (emerging) that could be used as a potential source for biomass-based power generation. As you might be well aware, the first generation feedstock such as sugars, starches from wheat, sorghum, sweet potato etc are not widely used for bioenergy production owing to the food-fuel conflicts. Similarly, even the second generation feedstock such as mustard are not being used in a big way for bioenergy production. These days, more focus is being thrown on the advanced feedstock such as the third-generation biofuels ( these seek to improve yields through improving the feedstocks themselves instead of the processes). These feedstocks include those sources that promise to generate greater than 500 gallons of oil per acre per year. Examples include palm oil and algae oil, rapeseed and jatropha oil, grasses (switchgrass, miscanthus), trees (willow), halophytes (saltwater plants). Provided are some details of the emerging biomass feedstock such as camelina, miscanthus and bamboo and their potential to perform as a bio-fuel. Miscanthus: Miscanthus, also known as Elephant grass can grow up to 3 meters high and it is native to tropical and sub-tropical regions of Africa and South Asia. Miscanthus is mentioned as a biofuel crop because of its relatively high dry matter yields across a range of environmental and soil conditions. The Miscanthus genotype most commonly recommended for biofuel production is a sterile hybrid (Miscanthus x giganteus) believed to be a M. sacchariflorus x M. sinensis hybrid. Miscanthus utilization in the biofuel industry is primarily for combustion in power plants – it has the desirable properties of low water and ash contents. Current research is focused on its potential as a biomass crop for direct combustion and for lignocellulosic conversion to ethanol. Giant miscanthus has been studied in the European Union and is now used commercially there for bedding, heat, and electricity generation. Most production currently occurs in England but also in Spain, Italy, Hungary, France, and Germany. Recently, Japan and China have taken renewed interest in this native species and started multiple research and commercialization projects. In the United States, research began at the University of Illinois at Urbana-Champaign in 2001 and has expanded rapidly to other U.S. universities. However there is currently little published information on giant miscanthus yields in the United States. Bamboo: Recently, bamboo has received increasing attention for producing biofuel because of its easy propagation, vigorous regeneration, fast growth, high productivity and quick maturity. Bamboo is an efficient user of land, and produces more biomass per unit area than most tree species. But the process of converting bamboo cellulose into liquid fuel is difficult to execute efficiently because of the extraordinary density of the plant. However, new research from Mississippi State University hold clues for how scientists can learn to more easily break down bamboo, and thus more efficiently extract biofuels from all other cellulose sources using the bacteria from pandas’ waste. If the researchers are successful, the manufactured enzymes could be used in a new, much cheaper and more efficient process for converting bamboo and other woody plants into biofuels. Fuel properties and potential as a bio-fuel of different bamboo species:
| Species | Moisture content | Density | Ash content | Energy content |
| % | g/cm3 | % | MJ/Kg | |
| B.pallida | 44 | 0.61 | 1.91 | 18.63 |
| B.tulda | 37 | 0.65 | 1.92 | 18.61 |
| D.asper | 37 | 0.77 | 4.23 | 17.92 |
| D.membranaceus | 43 | 0.62 | 4.99 | 18.81 |
| G.apus | 35 | 0.76 | 2.00 | 18.14 |
Future Feed-in-Tariff Trends for India – for Wind, Solar and Other Renewable Power Sources
It is an open secret that renewable power requires incentives - these usually are in the form of capital subsidies, tax incentives and most importantly, via feed in tariffs. It is a million dollar (make that Billion Dollar) question what the future of feed in tariffs will be for the mainstream renewable power sources. I picked up some resources on these. Wouldn't say they provide a peek into the future, but at least one of these try telling us how the government arrives at these numbers, so that will provide us with some clues. Go through the following links when time permits Link 1 Link 2 Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
How Biogas-based Power Generation is Picking up Pace in India
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Most of us have come across the gobar gas – literally meaning gas from the cow. It is the same as what is called biogas. This is the gas that is released when bacteria feast on organic matter – typically human and animal feces – and release a gas that is about 50% methane. While biogas had predominantly been used earlier for heating purposes, its use for power production is also beginning to show a marked rise across the world, and in India too. How is power produced from biogas? The process is actually quite simple. Step 1 is generation of biogas. This is done typically using what are anaerobic called digesters. Animal (or human) waste is fed into the digester, where the microorganisms (called methanogenic bacteria) act upon it. Depending on the type of digester, it could take anywhere between 10 days to 15 days for the waste to have been "digested" by the bacteria and the release of biogas. The biogas thus produced can be used in IC engines specially devised for the use of biogas. These engines are similar in working principles to diesel engines and natural gas engines. These engines produce electricity from biogas. A bit of observation will lead us to easily understand why this concept will be of enormous interest to specific industry segments. Two segments stand out - industries that employ large numbers of animals and sewage treatment plants that treat human waste. Both these segments have started benefitting from this concept; as a result, we have a few STPs (sewage treatment plants) already generating power from the sludge generated (one of the STPs at Chennai, at a town called Nesapakkam, generates about 500 kW of power from the waste, and uses the power generated for all its electricity purposes). Some numbers will help understand the potential available for power generation from biogas. The cow population of India (about 225 million) alone generates about 800 million tons of wet dung which translates to about 150 million T of dry weight. 1 Kg of dry cow dung can generate about 1.2 kWh of electricity (it can generate the equivalent of about 4 kWh thermal). Thus, if all cow dung were converted to electricity, that would be 1.2*150*1000 million kWh = 180 TWh. India generated a total of 855 TWh in 2011-12. This implies that cow dung, if entirely converted to power, would have produced about 20% of total India's power! If the waste of other cattle and human waste were also taken into account, this could be about 30%. That is an awesome number. Of course, these data hide the actual difficulty in converting even a small portion of animal or human waste into electricity, owing to the infrastructural and social problems associated with these. All the same, waste -> biogas -> power is quite practical to a whole host of industries for whom such waste is available on premises. More information about waste to energy in general in the Indian context, is available from EAI's waste to energy resource section. Some of the following YouTube videos provide a more visual account of how to generate biogas from organic waste: Biogas from food waste - ARTI - http://www.youtube.com/watch?v=BGSl72xZHNk&feature=related Bio-gas from kitchen waste and bio mass - http://www.youtube.com/watch?v=uppVZGS7bYI&feature=related Biogas from Vegetarian Food Waste - http://www.youtube.com/watch?v=NZFrPZZIFTs&feature=related Biogas from Human Waste - http://www.youtube.com/watch?v=_m1nr2v5S8o And while on sewage, human waste and toilets, etc, a couple of interesting articles on things are emerging New toilet technology after 150 years of waste The seat of power - Better sewage treatment is the latest thing in clean energy Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsHow Punjab Will Benefit from All Its Agricultural Residue- A Case Study
Agricultural residues never go to waste. Not when they can be used for generating energy. In this context, the government of Punjab, India, plans to produce about 1,000 MW of green energy from livestock residues by 2015. When you think about it, this has huge economical and environmental benefits. In a region where large quantities of cattle manure become a major pollutant, this could be seen as an opportunity that could open a lot of doors. Aside livestock residues, the state also generates nearly 21 million tons of rice stalks and similar biomass plant wastes annually, which can all go into the production of green power. The state government is thus planning to make renewable resources as the source of their power to contribute 10% of its total energy production in the next five years. It is worthy to mention that Punjab already runs a biomethanation facility with a capacity of 1 MW, in a location close to Ludhiana. The facility uses methanogens (microbes that produce methane as a metabolic by-product) for the manufacture of methane gas. It currently uses 235 tons of cattle wastes to generate 18,000 kWh of electricity in addition to producing 45 tons of organic fertilizer every day. Also, the Punjab Energy Development Agency has developed 318 MW of green power projects, which includes the Ludhiana plant, till date. These projects comprise 37 MW of small hydro facilities, 28 MW of biomass power facilities, 250 MW of biomass co-generation facilities and 2 MW of solar projects. The agency also develops 132 MW of green power projects currently, which include 11 MW of hydropower, 100 MW of biomass co-generation and 20 MW of traditional biomass. If everything goes right and operational, the state will generate 700 MW of green power by 2012. That’s big! It is worthwhile to note that the planters are also getting an income of nearly RS. 4,000 per acre every year in the process of marketing agro wastes to biomass facilities. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Industry Perspectives and Strategies for Effective Biomass Feedstock Procurement
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
One of the most critical bottlenecks for biomass power plants is the supply chain bottlenecks that could result in non-availability of feedstock. A related problem is the volatility, or more precisely increase, in the feedstock price. Both these could render the project unviable. Highlighted in this article are some of the industrial perspectives in overcoming barriers for procuring a balanced feedstock supply. EAI’s research with industry experts suggest that there is no established biomass value chain that exists in India for the procurement and transportation of the biomass feedstock. Typically, the facility staffs from a biomass gasification plant acquires biomass from several to dozens of small-scale biomass suppliers on a relatively informal, non contractual basis; although some have considered the use of aggregators, there is no data or proof available from the Indian biomass gasification companies that have engaged such a service as yet. The biomass procurement model that is typically followed in India is discussed below: Route #1 – Biomass Producer -->Transport Contractor --> Biomass Collection Centres (BCC’s) --> Power Producers The biomass producer i.e. the farmers/mill owners hands over the feedstock to a transport contractor who in turn delivers the feedstock to the biomass consumers or BCC’s. The BCC’s (managed by the biomass consumer) pay the farmers and the power producers collect the feedstock from these collection centres as and when required. At some instances, the farmers deliver the feedstock in the power producer’s facility and get directly paid for it. Route #2 - Biomass Producers --> Waste Processing Mills -->Biomass Power Producers For feedstock where further processing is required, the farmers/mill owners deposit the feedstock in waste processing mills. From the waste processing mills through a transport contractor the feedstock is deposited in the BCC’s or directly in the power producer’s facility. In some cases, especially in briquetting, the processing is done in the collection centres itself where a mobile briquetter is taken and the briquettes that are processed are directly delivered to the facility or collected by the power producers. Key Strategies to be Followed for Effective Biomass Feedstock Procurement EAI’s interactions with the industry reveal that the following strategies have to be adopted in order to bring both the availability and price of biomass under control:- Security should be addressed by obtaining a written formal supply agreement with a reputable, local supplier. A five-year signed supply agreement with pricing and minimum volumes can go a long way in helping to secure necessary financing. A bioenergy project that is totally reliant on only one source of feedstock will be at risk, so two supply contracts are even better. This will also allow one to negotiate a better feedstock price, as the supplier will benefit from a long-term relationship and a guaranteed market. An interested lender needs to know that both the feedstock supplier and bioenergy processor are committed to the project.
- It can be beneficial to hire an independent professional to verify one’s biomass supply projections and double-check that the feedstock supply is sustainable over the long term
- Backward integration and own captive biomass source (one company, Orient Green Power, is even trying out a novel technique of going for energy plantations on their own wind farms)
- According to the Washington based biomass supply company ‘Powerstock’, for a well-managed supply, an inclusive definition of biomass is needed. The company is also taking efforts to educate the public on the value of well-managed, productive forests.
- The bottom line of feedstock security is composed of several aspects: grower relations, harvesting, marketing, equipment utilization, proprietary techniques and agricultural economics. Hence it's important to manage the entire process from seed to market.
- The supply sector needs to make the transition from a residues-based approach to an integrated, dedicated feedstock supply system using energy crops, plus residues.
Key Indian Players in Biomass Gasification based Power Production
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Are you looking to get energy security for your company through reduction in the use of diesel, furnace oil, LPG and costly grid power? EAI can do a feasibility study for the use of solar PV & thermal, biomass for heat and power, waste heat recovery and energy efficiency to dramatically cut down fossil fuel use and reduce your energy bills. See EAI's SURE-FIRE offering for more.===========================================
Biomass gasification, with its capability to work in kW scales (as low as 20 kW) and its ability to utilize a wide and diverse range of biomass feedstock is ideally suited for rural areas without access to power but with easy access to significant amount of biomass. Discussed in this post are some of the prominent players in India which use biomass gasification for power production Summary of Prominent Independent Power Producers using Biomass Gasification in India| Company | Location | Plant Location(s) | Cumulative Installations |
| Clenergen Corporation | Chennai | Tamil Nadu, Karnataka | Cumulative capacity of 19.5 MW in operation and 20.5 MW under construction |
| Green Infra | Delhi | Orissa and Bihar | The company is developing five biomass power projects with a cumulative capacity of 68 MW. |
| Greenko Group | Bangalore | Chattisgarh, Karnataka, Andhra Pradesh | 41.5 MW from 6 biomass power plants |
| Husk Power | Bihar | Bihar | HPS had 65 fully operational plants, and a further 10 under construction or starting operation. 48 plants are wholly owned and operated by HPS, and the other 17 run under some type of franchise or partnership. HPS’ plants have capacity of 35-100 kW each. |
| All Green energy | Bengaluru | Karnataka, Tamilnadu and Madhya Pradesh | 10 biomass plants have been proposed to set up with a capacity of 6.5 MW each. |
- 8 MW Ecofren power project in Chhattisgarh
- 8 MW ISA power project in Chhattisgarh
- 7.5 MW power project in Karnataka
- 6 MW project in GEPL, Kadapa, Andhra Pradesh
- 6 MW project in Andhra Pradesh
- 6 MW Roshini Power Project in Andhra Pradesh
Potential for Biomass Power in India
Biomass based power generation is a choice of reality under the geographical regions where a sustainability exists in the flow of biologically raw materials for the production of power and India is one of the most notable universal giants for the production of biomass based power which can be best understood from the estimates of its biomass availability and the power produced from it. India has biomass production of 546 million tonnes per year from the agricultural sources alone to generate electricity at a capacity of 17,982 MW and its overall production of power from renewable sources stands at 34961 MWe in 2010.A calculated annual growth rate for the next decade realistically and optimistically is above 42,000 MWe and 48640 MWe respectively. The development of biomass based power is further enhanced by the Government regulatory policies by declaring duty exemptions’, tax breaks and financial incentives etc. The cost of producing electricity from biomass is affordable at Rs: 2.25-3.25 / kWh. In spite of all these attempts biomass based power generation is at its infant stage because of hindering factors such as feedstock availability, transportation, price volatility etc. India to emerge as a role model must utilize its renewable energy sources to a large extent, develop dedicated energy crops, establish end user market for co-products such as charcoal, biochar, activated carbon, and implement energy efficient technology for economically feasible power generation on a massive scale. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
PRESPL Secures ₹4.1 Million Investment from Mitsui for Biomass Growth
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Mitsui, a leading Japanese conglomerate, has recently invested ₹4.1 million in Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), a company focused on collecting agricultural residues and converting them into biomass briquettes and pellets. This investment underscores the growing potential of the Indian biomass sector, which is expected to witness significant growth in the coming years.
The Indian biomass market is estimated to be valued at around ₹50,000 crore and is projected to reach ₹1,00,000 crore by 2025, driven by factors such as the Increasing demand for renewable energy, Growing awareness of environmental concerns, and Supportive government policies.
The Indian biomass sector is also witnessing a surge in international collaborations, with several prominent companies entering the market through partnerships and alliances. For instance, Aramco, a prominent oil and gas company, joins forces with ReNew Power, India's largest renewable energy company, to explore opportunities in developing and deploying low-carbon technologies, including biomass-based power solutions. This collaboration signifies the growing interest of leading energy giants in exploring cleaner alternatives.
Additionally, Danish Biogas's collaboration with the Maharashtra Energy Development Agency (MEDA) brings together expertise in advanced biogas technologies with experience in promoting renewable energy and rural development in Maharashtra. This partnership contributes to a more sustainable waste management system through biogas generation..
These strategic partnerships are just a glimpse into the exciting developments propelling the Indian biomass sector forward. The government is also playing a crucial role in accelerating its growth through supportive initiatives like subsidies for setting up biomass power plants and briquette/pellet production units, promoting dedicated energy crops and efficient residue collection systems, and providing tax benefits for biomass projects. Investments in research and development are also being made to improve conversion technologies, optimize feedstock utilization, and develop cost-effective biomass solutions.
Navigating this complex ecosystem requires a comprehensive understanding of the key players involved. The Indian biomass value chain comprises various stakeholders, including biomass producers like farmers and forestry companies, collectors and aggregators responsible for managing feedstock collection and storage, processing and conversion companies that transform biomass into usable forms, original equipment manufacturers (OEMs) who create machinery for the sector, suppliers providing essential goods and services, power plants and industries utilizing biomass-based fuels, and government agencies responsible for regulation and promotion.
Beyond the core value chain, the adjacent value chain plays a crucial role in supporting the sector's growth. This includes financial institutions offering loans and investments for biomass projects, research institutions and universities engaged in R&D advancements, and non-governmental organizations (NGOs) promoting sustainable practices and advocating for policy changes.
Indigenization remains moderate to low currently, with reliance on imported technologies and equipment. However, government initiatives and rising demand are expected to gradually increase domestic capabilities in the coming years.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Primary Routes for Power from Biomass
The three primary routes for biomass to power are: Combustion, Gasification and Anaerobic Digestion. Combustion is easy to understand – instead of using coal or other fossil fuel, use biomass to produce steam that runs a turbine. Combustion of biomass for power could either be in the form of co-firing (when it is burned along with coal) or pure play biomass based combustion. In the case of gasification, the biomass is first gasified and this gas turn produces power in a gas engine. Anaerobic digestion is usually applied to biomass that typically have a high amount of water in them (anaerobic digestion is most used for treating organic waste such as kitchen waste and sewage waste into energy). Under this route, microorganisms act upon the organic matter present in the biomass under anaerobic (absence of air) and convert it into biogas. An emerging route for biomass based power is pyrolysis. In this, the biomass is rapidly heated to 450 - 600 °C in absence of air, and results in a bio-oil called the pyrolysis oil, which can in turn be used for firing the boilers. Typically, 50 - 75 % (by weight) of the feedstock is converted into pyrolysis oil. Pyrolysis as a method for power production is not well established currently in India or elsewhere in the world. Typically pyrolysis plants work well beyond 2 MW scale, while gasification plants work well until 2 MW scale, at the current technological progress. Thus, it can be said that pyrolysis takes off where gasification ends. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Prominent biomass feedstock for gasification
Biomass for power generation by combustion or gasification is normally variable in its chemical composition of electron rich reactants, ash content, moisture, sulphur and nitrogen content etc. As a result, selection of the most convenient feedstock is an issue of debate. The degree and diversity of contaminants strongly influence the production and purification of synthesis gas in gasification while they tend to have a minimum effect in the combustion process. Independant of these disturbances virtually any raw material applied in power generation process should be a matter with potentials. In India, a vast array of feed stocks are utilized for power generation but the most wide ones are farm and mill wastes, woody trees, energy plantations and other green manure crops. Preference is made on the basis of availability, cost, bulkiness of the material, pre-processing, storage etc. Biomass used in India yields varying level of energy but it is also the gas engine and generators whose efficiency equivalently determine power generation. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
REC Price Band Revised
The Central Electricity Regulatory Commission(CERC) has announced the floor and forbearance prices to be used for solar/non-solar projects from the FY 2012-13 upto 2016-17. The prices set are shown in the table below
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Prices (2012-2017) | Current | % Reduction | Prices (2012-2017) | Current | % Reduction | |
| Forbearance Price | 3300 | 3900 | 15.38 | 13400 | 17000 | 21.18 |
| Floor Price | 1500 | 1500 | 0.00 | 9300 | 12000 | 22.50 |
| Non Solar (Rs.) | Solar (Rs.) | |||||
| Proposed | Current | % Reduction | Proposed | Current | % Reduction | |
| Forbearance Price | 3480 | 3900 | 10.77 | 13690 | 17000 | 19.47 |
| Floor Price | 1400 | 1500 | 6.67 | 9880 | 12000 | 17.67 |
- Non-solar – the floor price remains unchanged. Thus biomass/wind generators are expected to get the same minium revenue as they have been getting earlier.
- Solar – the floor price has seen a cut of about 23% from current levels. Although this might seem drastic, it is not likely to have a significant impact on solar power projects (refer section below).
- Average bid price under phase 1 batch 2 of JNNSM could be around Rs. 12.5 /kWh(on the higher side)
- APPC prices could rise by 15% annually (base price used is that of Tamil Nadu) - reasons for this were mentioned earlier.
- REC price after 2016-17 period (i.e. from FY 2017-18 onwards) is reduced by 25%
| Year | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| JNNSM Tariff (average) (Rs. per kWh) | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 | 12.5 |
| APPC (Rs. per kWh) | 3.38 | 3.89 | 4.38 | 5.04 | 5.38 | 6.19 | 6.38 | 7.34 | 7.38 | 8.49 |
| REC (Rs. per kWh) | 9.30 | 9.30 | 9.30 | 9.30 | 9.30 | 6.98 | 6.98 | 6.98 | 6.98 | 6.98 |
| Total (Rs. per kWh) | 12.68 | 13.19 | 13.68 | 14.34 | 14.68 | 13.16 | 13.36 | 14.31 | 14.36 | 15.46 |
| REC mechanism's Incremental revenue over PPA(Rs. per kWh) | 0.18 | 0.69 | 1.18 | 1.84 | 2.18 | 0.66 | 0.86 | 1.81 | 1.86 | 2.96 |
Table: REC vs preferential PPA for 10 years post 2012
As can be seen from the above table, the REC mechanism is quite comparable, if not better when compared to the assured tariff provided by NVVN over 10 years of operation of the solar powerplant. Overall, the REC mechanism can clearly drive the solar market, provided the Renewable Purchase Obligation (RPO) is strictly enforced by the various SERCs. The CERC release can be found here. Also check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added ProductsREC Trading – November 2011
The REC trading for the month of November concluded yesterday. Figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 105,527 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 96,154 (90%) RECs traded while PXIL saw trading of 9,373 (10%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The price of REC varied between the two exchanges - IEX and PXIL. Non-solar RECs closed with a price of Rs. 2,900 at IEX while the RECs sold at Rs. 2,800 at the PXIL. At the IEX, the prices have seen a 7% rise over those paid last month where the trading price was Rs. 2,700 per REC.
| September | Non-Solar | Solar | ||||
| Buy Bids | Trade Volume | Sale Price | Buy Bids | Trade Volume | Sale Price | |
| IEX | 257,578 | 96,154 | 2,900 | 43 | - | - |
| PXIL | 51,199 | 9,373 | 2,800 | 0 | - | - |
| Total | 308,777 | 105,527 | - | 43 | - | - |
REC Trading – September 2011
The REC trading for the month of September concluded recently. Trading figures reveal that the trading has increased significantly both in volume of RECs traded as well as the price. In total 46,362 RECs were sold. Keeping with the trend of previous months, IEX had a higher share of the market with 41,385 (89%) RECs traded while PXIL saw trading of 4,977 (11%) certificates. The large volumes of trading indicate that the obligated entities are trying to fulfil their RPO as soon as possible as REC prices are showing an upward trend. The most encouraging part of the trading was the price paid for each certificate. The price of REC grew to Rs. 2300 from Rs. 1800 last month.
|
September |
Non-Solar |
Solar |
||||
|
Buy Bids |
Sell Bids |
Sale Price |
Buy Bids |
Sell Bids |
Sale Price |
|
|
IEX |
196,159 |
76,026 |
2,300 |
7 |
- |
- |
|
PXIL |
30,853 |
9,562 |
2,300 |
0 |
- |
- |
|
Total |
227,012 |
85,588 |
- |
7 |
- |
- |
Interestingly, there are 7 buy bids for solar REC; up from the lone buy bid last month, although this is promising, it highlights a serious issue. As with the previous months, there are no solar RECs available as no projects are registered under REC. This is a worrying trend and is going to put immense strain on the obligated entities to fulfil their solar RPO. The reasons for lack of solar projects registered under REC could include
- Higher payback period for solar projects
- REC prices guaranteed only up to 2016-17
- A combination of the above two greatly reduces the bankability of solar projects
Renewtech India 2011 Conference – Day 2
The details of the first day of the conference is available here. The second day of the The 3rd International Expo and Summit, Renewtech India 2011 conference started with a speech by Mr. D.C. Bhishikar, Managing Director, Clarke Energy India. The topic was “Application of Gas Generated from Waste Treatment for Combined Heat and Power(CHP) Solutions using GE Jenbacher Gas Engine Technology” He mentioned that the company has about 300 MW of installation base in India. He explained the various aspects of the Jenbacher Gas Engine Technology and explained that while a combustion based power generation(ranking cycle) has an efficiency of approximately 28%, the Gas engine technology has an efficiency of about 40%. The next speaker was Mr. Ravinder Tanwar, VP-Operations, Websol Energy Systems Ltd and he spoke on the topic “ Rural Electrification in Sagar Island through off Grid Solar PV Power plants”. In this session, Mr. Tanwar presented a case study of how an off-grid solar PV power plant in the Sagar island in Sunderbans, West Bengal changed the lifestyle of the inhabitants there. He explained the cost of setting up the plant and the challenges that Websol faced in putting up these plants. For example, the Solar PV modules had to be transported to the islands using boats.
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The next session was about “Solar Energy & Hybrids”. This session had speakers from Gadhia Solar Energy Systems, HCL Technologies, Soltigua-Italy and Mahindra Cleantech Ventures. Mr. Badal Shah, MD of Gadhia Solar, spoke about Solar Air conditioning. He briefly explained the principle behind how it works. He also talked about Solar cookers and highlighted the company’s projects in cooking meals at Tirupati and Shirdi temples. One key point he wanted people to remember was that Solar energy can only complement other sources of energy and cannot be a substitute for them. The next speaker was Mr. Vijaya Klnr Pingali, Group Technical Specialist at HCL Technologies Limited. The topic of his speech was “Monitoring for Better Monetization and Implementation” . In his speech, Mr. Pingali highlighted the need for effective monitoring of Solar PV farms. He also described the different types of monitoring with various examples. Mr. Francesco Orioli, Director-Marketing & Sales, Soltigua, Italy spoke on the topic of Concentrating Solar Power(CSP). The firm Soltigua is a market leader in the CSP Parabolic Solar Collectors. Mr. Orioli presented some case studies about some of the CSP projects his firm had undertaken. The next topic was “ Building Robust Ecosystem for Solar Energy in India” and the speaker was Mr. Vish Palekar, Business Head, Mahindra Cleantech Ventures. Mr. Palekar gave a very insightful speech on the development of the Solar sector in India, especially the grid-connected projects selected under the 1st part of the first phase of the JNNSM. He touched upon the following aspects of these projects- Growth drivers – Policy/PPA
- Project Implemention – Financing, Technology selection and execution.
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The third session of the day was on Wind Power. Two speakers spoke during the session – Mr. Renjith Viripullan, Engineering Manager, Onshore systems GE Energy and Mr. Bhagwat Divate, National Technical Manager, Kluber Lubrication India. Mr. Divate spoke on “Wind Turbine Maintenance Technology & Efficiency” and highlighted various challenges in the maintenance of Wind Turbines. He explained the tribological features to be kept in mind during maintenance and also the importance of lubricants. Mr. Virupullan spoke about “Wind Turbines for Low Wind Speed Market” . His speech included the definition of low speeds, challenges and opportunities in this segment.-
The final session was titled “Case Studies on Applications of Renewable Energy”. The following were the topics and the speakers.- “Innovative CDM Based Renewable Energy Projects” – Dr. Ram Babu of General Carbon
- “Solar PV Pumping system for Landscape Irrigation Application” – Mr. Vilas Erande of Samved Energy Systems
- “Waste-to-Energy Application” – Mr Soumya Bhattacharya, Concord Blue
- Tidal & Geo-Thermal Energy
- Energy Efficiency
- Quality and Certification of PV Solar Cells.
Renewtech India 2011 Conference – Day 3
This is my final post on the Renewtech India 2011 conference. Click here for details on Day 1 and click here for details of Day 2. The final day of the event had 3 sessions. The first session was titled “Tidal & Geo-Thermal Energy”. The first speaker was Dr. Ritesh Arya, Hydrogeologist & Groundwater Consulting in Himalayas. He gave a very insightful speech on the topic “Geothermal potential in India – A Review”. He highlighted the fact that India has more than 10 GW potential in the Geothermal space. He made an interesting point that while Solar, Wind and other forms of energy are renewable energy but not sustainable energy whereas Geothermal energy is a sustainable energy. He described how the heat of the magma under the ground can be harnessed to generate steam for heating applications and power generation. He explained his experiences in Ladakh and the Himachal region where there are natural hot springs. He also talked about his experiences in Iceland where geothermal energy is available in abundance. In Iceland, the people even grow tropical fruits like banana in green houses heated by the geothermal energy. The next speech of the session was by Prof. S. G. Kanitkar, Head-Green Energy Division, Enviro-Abrasion Resistance engineers Pvt. Ltd. His topic was “Tidal Wave energy”. He started off by describing the differences between the Tidal and Wave energy. The current scenario of harnessing these forms of energy were explained by him. He then provided the technological details about how the Wave energy can be harnessed. In particular, he provided the details of the device his team has developed. The second session of the day focused on “Energy Efficiency”. The following were the speakers 1. Mr. Jens Burgtorf, Director – GIZ-IGEN, Bureau of Energy Efficiency 2. Mr. Martin Wohlmuth of Arqum GmbH – “Resource Efficiency Network India – A Field Report” 3. Mr. G. Gururaja of Avni Energy Solutions Pvt. Ltd – “LED Technology: Its Role in Present Scenario for India’s Lighting Requirement” 4. Mr. Dinesh Shetty of Bureau Veritas Certification – BS/EN 16001:2009 – Energy Management Systems for Reduction of Energy Costs/Green House Gases Emission. As can be seen from the topics of the presentations, the session focused on various aspects of Energy Efficiency. “Quality and Certification of PV Solar Cells” was the title of the final session of the day. This session had two speakers – Mr. Srinivas Chakravarthy, Country Head – Industry Services, TUV Rheinland(India) and Ms. S. Vasanthi, Director – Technology and Marketing at Websol Energy Systems. Mr. Chakravarthy of TUV Rheinland spoke about the module certification process in general and TUV Rheinland in particular. He started off by explaining the various environmental influences during the long term operation of PV modules. This includes solar radiation, temperature, mechanical stress due to factors like wind, atmosphere,etc. He explained the different standards for Performance, safety and qualification. Subsequently, he described the different tests conducted for the IEC or other certification. This includes subjecting the modules to high level of different types of stresses(temperature, sunlight, handling, partial shading, wind, UV rays,etc).He concluded by talking about the various services offered by TUV Rheinland and also about the new test facility in Bangalore. The last speaker of the session was Ms. S. Vasanthi. Her topic was “ Improvement in Crystalline Si PV Modules Through Quality Control and Innovation in Manufacturing Processes”. She explained the various steps in the solar PV cell and module manufacturing process. She described the various quality control measures and some of the common defects like browning of cells. The effect of each of the raw material for a module(metallisation paste, ribbon, flux, encapsulant,etc) on the final quality of the PV module was also discussed. That concluded the 3rd edition of the Renewtech India conference. The 4th Renewtech India conference is scheduled for 16-18 February 2012 at the same venue – Bombay Exhibition Centre, Goregoan, Mumbai.
Rice husk used for power in one of India’s poorest states- A case Study
Whoever thought rice husk can generate power needs a medal! Considering how much rice husks go to waste in a country where rice is the staple food, it is comforting to know fossil fuels are not our only resort for power production. Thanks to Manoj Shinha, a renewable energy entrepreneur pioneered using discarded rice husks as biomass to provide energy to Bihar, one of India’s poorest states. Mr. Shinha along with his colleagues Gaynesh Pandey, Ratnesh Yadav and Charles W. Ransler developed Husk Power Systems to address the situation of poverty in their home state of Bihar. Many villages in India live off the grid in the darkness, this new advancement means that they need not depend on grid for electricity, rather generate their own clean, affordable electricity.The company generates and sells electricity for a price that is less than half of what the villagers pay for kerosene. This was possible because the whole concept is focused on research and development investment to simplify energy production and transmission, such as using bamboo instead of cement posts to install power lines.And, since communities no longer use kerosene, wood or dung for electricity, this way of electricity generation lowers the environmental and health hazards. In addition, rice husk ash, a byproduct of the gasification process, can be used for concrete production thus reducing the amount of high-carbon Portland restless leg syndrome cement.On average, a single power plant serves 400 houses, replacing 42,000 liters of kerosene and 18,000 liters of diesel yearly. As of August 2010, H.P.S. has sequestered 50,000 tons of carbon dioxide. Currently, they have installed over 60 mini-power plants that are 100 percent biomass-based which supply power to over 25,000 households in more than 250 villages.With the market opportunity in mind, they aim to expand their business to bring clean electricity to Indian villages by installing 2,000 new plants by 2014 beyond Bihar.
Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Sael: A $10 Million Spark for India’s Waste-to-Energy Future
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
In a move that highlights the growing potential of the waste-to-energy sector in India, Norfund, the Norwegian Investment Fund for Developing Countries, has invested $10 million in Sael, an Indian company that converts agricultural waste into clean energy. This investment will help Sael expand its operations and contribute to India's clean energy goals.
Sael is a leading player in the Indian waste-to-energy sector. The company uses a proprietary technology to convert agricultural waste, such as rice straw and sugarcane bagasse, into clean energy. Sael's plants generate electricity that is fed into the grid, helping to reduce India's reliance on fossil fuels.
Indian waste-to-energy market
The Indian waste-to-energy market is expected to grow at a CAGR of 20% over the next five years, driven by factors such as increasing waste generation, growing awareness of environmental issues, and government support for renewable energy. The market is currently estimated to be worth around $1 billion, and it is expected to reach $5 billion by 2025.
The market is booming with investments pouring in and cutting-edge technology emerging. However, hurdles like complex regulations, limited financing, and public concerns exist.
Key players include waste-to-energy companies, waste management companies, power producers, and government agencies. Recognizing the immense potential of the Indian market, foreign and domestic players are joining forces to unlock the power of waste-to-energy (WtE). Joint ventures like Sterling & Wilson and Hitachi Zosen's 50 MW plant, or Arc Energy and Wheelabrator's 60 MW project, are testaments to this collaborative spirit. Beyond developers, waste-to-energy companies are forging partnerships with waste management firms like Ramky Enviro Services to ensure consistent, high-quality feedstock.
This synergy extends to research institutions and technology providers as well, with Tata Power and IIT Bombay developing advanced gasification technology and Vedanta partnering with Neste for co-processing expertise. These collaborations are crucial for navigating local complexities, accelerating technological advancements, and ultimately achieving India's WtE ambitions.
The government also actively supports WtE with feed-in tariffs, tax breaks, and streamlining regulations. Recent investments and project announcements showcase the sector's potential. Technological advancements like plasma gasification and bioreactors promise improved efficiency.
Challenges include inadequate waste segregation, public opposition, and fly ash management. Continued government support, public awareness campaigns, and innovative solutions are crucial to overcome these hurdles.
Overall, India's WtE sector holds immense promise for sustainable waste management and clean energy generation. By addressing challenges and seizing opportunities, India can turn waste into a valuable resource for a brighter future.
This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India's leading climate-tech consulting firm.
G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here
Tamil Nadu’s Biomass Power Plans – Energy Plantations is the Answer?
Biomass is one of the renewable energy domains in which Tamil Nadu could have significant potential for progress in future. Estimates suggest only about 10% of the potential has so far been utilized. Of course, the lack of a robust supply chain that make create supply and price security is a problem as much in Tamil Nadu as it is in the rest of the country. Some inputs and updates for biomass power in Tamil Nadu are provided below.
- Potential for Biomass based power in Tamil Nadu is 1589.9 MW (1160 MW based on agricultural waste and 429.9 MW from forest and wasteland cultivation).
- 22 biomass power plants with total installed capacity of 169 MW are in operation.
- Ten biomass power plants with totaling to 120 MW, with over 80% plant load factor, have faced temporary shut downs owing to unviable tariff rates and increasing feedstock cost.
- Biomass power producers association has approached Tamil Nadu Electricity Regulatory Commission (TNERC) with a request to revise the tariff and offer higher annual tariff escalation. The viable rate for operating biomass power plants in years to come would run beyond Rs 6.50/kWh, but the current tariff of Rs 4.5/kWh is in no way adequate to sustain the projects in the long run.
- Tamil Nadu Energy Development Agency (TEDA), along with Tamil Nadu Biomass Power Producers Association, has been actively involved in promoting large scale energy plantations in marginal / waste land in the state with high potential crops.
- The Tamil Nadu Biomass Power Producers Association suggests that energy plantation would not only serve to provide cheap and continuous feedstock supply for power plants, but it would also improve the quality of life of the rural population. Estimates suggest that a 10 mw biomass power plant can ensure livelihood of over 2,000 marginalised families. They can be employed in collection, transportation, cutting, chipping of biomass and cultivation of wasteland with energy plants like Juliflora, Bheema Bamboo etc.
The man propelling the bio-energy movement in India – PRESPL
Welcoming Lt Col Monish Ahuja to CLIMAFIX SUMMIT 2022 - the 1st summit for Indian climate tech startups. I'm sure you have heard the saying, "Water, water everywhere, not a drop to drink" That applies quite well to the Indian agricultural residues as well. Hundreds of millions of tons of agro waste around the country, but very little available for the industries to use. And worse, a good portion gets burnt on the fields because the farmers do not know what to do with them. So where's the challenge? What is broken in this system? To a significant extent, logistics, or rather the lack of it. Securing and transporting millions of tons of agricultural waste from hundreds of thousands of farmers and transporting it reliably to end users is not rocket science. But it is systems science. Discipline science. Or patience science, if that term is more endearing to you. In EAI's decade long work in the bio-energy sector during which we consulted for dozens of clients including the likes of GSK (#Horlicks division, now part of Unilever), we have seen how unorganized the agro-waste supply has been, except for bagasse coming straight from large sugar mills and to a lesser extent saw dust from plywood factories. It is a complex challenge of logistics, societal & local traditions, and of course the omnipresent politics. The sector needed someone who could wade through all these, build an efficient system and evolve an organized biomass supply chain. Enter Lt Col Monish Ahuja. Army discipline, Systems thinking. Business acumen. These characteristics have helped him build Punjab Renewable Energy Systems Private Limited (PRESPL) into a force to reckon with countrywide in industrial biomass supply. PRESPL is today is one of the few organized players that has the ability to provide industrial decarbonization on scale through biomass, supplying thousands of tons of agro-waste based biomass every day to industries. I remember sitting with him in his office in Navi Mumbai a few years back when he patiently took me through the process by which he was building an effective front-end logistics system while also putting together a scalable digital back-end system. While coming out from the meeting, I thought - finally, here's someone who appears to be just what the doctor ordered for India's bio-energy sector. Since then, his company has - not surprisingly - grown and grown. Hats off to Monish, and we are proud to have him as one of the experts who will share his insights at the CLIMAFIX SUMMIT 2022, India's first climate startup summit, Nov 25 & 26, Chennai, organized by the Climate Startup Intelligence division CLIMAFIX of EAI (Energy Alternatives India) & Energy Consortium - IIT Madras Welcome Monish, and here's hoping you inspire more of your breed - and soon. More about CLIMAFIX SUMMIT, India's first summit for climate startups
VC / PE Perspectives and Opinions on Biomass Power
Indian VCs have not really done a good amount of investing in cleantech. Cleantech perhaps is not really a VC game as it is more of an engineering related discplie that does not offer the types of scalabilitiees that VCs desire or the exit periods. VCs also do not understand cleantech well enough to take calls. Many cleantech deals, especially in the power segment, are PPA based, with limited upsides, not typical VC games. Many cleantech and renewable energy startups require capital that is much higher than what VCs can typically offer to invest. Predictions for Cleantech VC in 2011 - Kachan & Co.'s Dallas Kachan looks at what 2011 will have in store for cleantech (http://alwayson.goingon.com/node/66783 ) Sustained worldwide venture capital investment will continue to cede importance to corporate and non-institutional capital. A return to early stage venture investments - predict a return to early stage venture capital investing in cleantech in 2011. Energy efficiency emerges as the clear rock star of cleantech. Biofuel investment could reach former highs. Recycling and mining will attract more investment. Natural gas emerges to threaten solar and wind for utility renewable power generation. China becomes the most important market for cleantech: if you're not selling in China, you won't matter. There is a significant amount of interest among PEs for investments in both traditional and renewable energy. PEs – not surprisingly – are not very keen on risky technology bets in renewable energy, but are OK with business model risks. Some of the PEs (such as IFC, ADB etc) are willing to take fairly long-term views (with over 10 year horizon). Investment sweet spot ( in terms of the quantum) varies from fund to fund, but obviously for most of the blue-chip, it is upwards of $50 million. PEs are well aware of the regulatory and societal bottlenecks that could arise in large-scale energy sector investing (especially for coal-based and large-hydro based sectors). Many PEs are clear that they wish to invest in businesses that can stand on their own revenues (even if takes a while) and are not keen on business plans that rely on getting bought out. Most every PE acknowledged that while they might not like coal, it is here to stay as the largest contributor to power for the foreseeable future. PE arms of organizations such as IFC and ADB, while not shutting out the option of investing in coal-based or natural gas based power plants, have a mandate to decrease their exposures to these “non-green” sectors. What a PE can bring to the table - Many private equity funds have been able to provide not just the financial support required but also strategic support and value-add for the firm’s growth. Disconnect in Valuation expectations - one of the issues faced by PE players while investing in cleantech companies is the disconnect in valuation expectations between the entrepreneur and investor with the buoyant public markets resulting in an increasing buoyancy in expectations! PEs feel that entrepreneurs should take a longer term view while setting their valuation expectations. Currently, 80% of infrastructure projects, and 46% of power projects, are funded by the banking system. So, PEs constitute only a small share of the infrastructure projects. While private equity folks could like IRRs of about 25%, power and infrastructure IRRs is only about 12%. Some private equity companies might wish to play a consolidator’s role as well where they consolidate a diverse portfolio of (say) energy companies such that they win even if 7/10 companies do well enough. Investors such as IFC have specialists/experts in every project to take care of social and environmental aspects. Private equity funds are interested in the macro factors (demand supply gap in electricity et al) as well strategic micro factors. One of the factors that seem to interest PEs is the method for companies to go diversified on green power that is having assets in wind, small hydro, biomass etc together, instead of betting just on one thing alone. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
Why Biomass for Power Generation?
Biomass has been used as a source of energy right since mankind started its existence; In fact, one of the predominant energy sources today is biomass. Biomass as a source for power production is not entirely new either. Biomass has been used, in the place of coal, for steam generation at power plants, though in a limited way. Indeed, currently, the predominant method used for producing power using biomass still is the combustion route, At the same time, other processes, such as biomass gasification, which can work at much smaller scales and use the biomass more efficiently are emerging. The newer processes especially biomass gasification based power production, is relevant today especially in the Indian context mainly because of its potential to provide distributed power at rural level, especially for small remote villages that have good access to biomass but no access to grid power, and which require only small scale power production. Biomass based power is also relevant in the context of climate change and global warming as biomass based power production is net carbon neutral. The contribution of bioenergy to the total primary energy consumption in India is over 27% (Source: FAO). This is indeed the case for many other countries, because biomass is used in a significant way in rural areas in many countries. However, the contribution of biomass to power production is much smaller than this percentage – currently, biomass comprises only about 2650 MW of installed capacity, out of a total of 172000 MW of total electricity installed capacity in the country. Besides, biomass power has the following benefits- distributed generation, baseload power, ability to have small, kW scale power production, suited for rural areas and ideal for rural economic upliftment. I believe these are enough to justify why biomass is best suited for power production. Check out: EAI Consulting for Bio-energy & Biofuels, Bioplastics & Other Biomass-based Value Added Products
