MNRE Annual report 2002-03

BIOMASS POWER PROGRAMME

5.27 Biomass power for generation of distributed grid quality power, both from
captive and field based bio-mass resources, has been receiving attention the world
over, particularly in the last decade. The social, economic and environmental benefits
of biomass power are accepted for long term sustainability. The technologies are
progressively getting upgraded, attaining maturity, and reaching commercialisation.

5.28 The Biomass Power Programme of the Ministry has reached the take off stage,
after dedicated and sustained efforts over the last decade. The total potential is
about 19,500 MW, including 3,500 MW of exportable surplus power from bagasse-
based co-generation in sugar
mills, and 16,000 MW of grid
quality power from other
biomass resources. The total
installed capacity in the
country, as of December 31,
2002, is 468 MW, and
projects of capacity 530 MW
are in various stages of
implementation. Year-wise
installation of biomass
power/co-generation
capacity is given in Figure
5.2. A target of 700 MW has
been proposed for the 10th
Five Year Plan (2002-07),
including 450 MW from
bagasse/biomass co-
generation and 250 MW from biomass power.

Biomass Power/Co-generation Programme

Objectives

5.29 The Biomass Power/Co-generation Programme is being implemented during the

10th Plan, which commenced during 2002-03, with the following objectives:

i) To promote technologies of co-generation, biomass combustion, megawatt scale

gasification, and industrial co-generation for generation of power.

ii) To develop Biomass Resource Atlas based on biomass resource assessment

studies in different regions of the country.

iii) To support District-wise Resource Assessment Studies in potential States.

iv) To support R&D for development of technologies including Advanced Biomass

Gasification and 100% producer gas engines, as well as applications research for
enhancement of potential in identified areas of thrust.
v) To support and thus enlarge activities through awareness creation, publicity
measures, seminars/workshops/business meets etc.

5.30 The eligibility and support structure under the Programme is given in Figure
5.3. The Programme includes the following Components:

• Interest Subsidy for Bagasse/Biomass Co-generation projects, including IPP

mode projects;
• Interest Subsidy for Biomass Power Projects, including captive power
projects;
• Grants to MW-scale projects with 100% producer gas engines, and Advanced
Biomass Gasification projects;
• Promotion of Industrial Co-generation projects in core industry sector for
surplus power generation;
• Promotional Incentives for awareness creation, training and preparation of
Detailed Project Reports; and
• Grants for Biomass Resource Assessment Studies.

5.31 Pattern of Financial Assistance/Incentives for setting up of Biomass Power/Co-

generation Projects is given in Table 5.9.
Biomass Resource Assessment

5.32 The Ministry had undertaken taluka level biomass resource assessment studies
during the 9th Plan, with a view to assess surplus biomass availability for power
generation in 500 talukas in the country. The Programme was implemented through
a National Focal Point, Five Apex Institutions, and a number of consultants to carry
out field level surveys. 495 studies were taken up in 23 States; 299 studies have
been completed, and the remaining studies are likely to be completed during 2003.
District-level biomass resource assessment studies in six potential States will be
initiated during the year.

5.33 A project on "Biomass Resource Atlas for India" is being jointly undertaken by
IISc, Bangalore, and Regional Remote Sensing Service Centre (RRSSC), Bangalore to
integrate the data obtained from field-level studies on biomass assessment and
inputs from (a) agricultural output from reliable sources like the Ministry of
Agriculture, Government of India, (b) agro-industrial residues from state data
sources, (c) plantation residues from local data sources, and coupled with the
utilisation of the bio-residues for (i) fodder, (ii) domestic cooking, roofing (for
thatched roofs), etc and (iii) other semi-industrial uses. The actual location of the
bio-residue or at least biomass production area is sought to be made available on a
map to help in planning and development of biomass power projects in various
States. RRSSC provides GIS based maps for the identification of cropped areas
across the country. Additional work related to crop identification is being done using
the data on NDVI (Normalised Difference Vegetation Index). Some of these are at
the level of new knowledge and hence what is guaranteed from the maps would be
the cropped area with a probability index attached to the specific crop identified.

Research & Development

5.34 The R&D component of the Programme aims at the development of biomass
conversion technologies, technology application packages; strategic developmental
demonstration pilot projects; improvement in efficiency; reduction in cost; and,
eventual commercialisation and development of biomass power/cogeneration on an
industrial scale. An R&D project on "Strategic Development of Bio-energy" (SDB) is
being implemented, which entails development of technology packages for a variety
of biomass materials for power generation, as well as industrial applications. The
important development relates to producer gas based reciprocating engines.
Experimental work on an industrial natural gas engine of 360 kWe produced 195 kWe
with a gas calorific value of 4.5 MJ/kg. The specific fuel consumption of the engine
was 1.1kg/kWh. Peak output of 214 kWe, with a gas calorific value of 5 MJ/kg, is
likely to be achieved in the field systems with an enhanced design of the reactor,
slightly different from the one used in the laboratory. The modelling of the
reciprocating engine for predicting the pressure-crank angle diagram using fluid
dynamic inputs from three dimensional flow computational tools has been taken to a
logical conclusion in predicting the performance of the engine with varying
compression ratio or ignition timing.

5.35 A multi-institutional co-ordinated

project on "Advanced Biomass
Gasification" (ABG) is being implemented,
which aims at the development of a high
pressure gasifier coupled with gas turbine
engines for generation of power. The
progress during the year relate to the
procurement of a micro-turbine derived
from an Auxiliary Propulsion Unit (APU) of
an aircraft with aviation kerosene as the
fuel, and the establishment of all the
elements of the high pressure gasifier.
They have been individually run and they
are to be coupled. The full automation
system is being put together to enable
the operation of the gasifier and the
power generation system run by the gas
turbine.

Progress and New Initiatives

5.36 43 bagasse based co-generation

projects with aggregate capacity of 304
MW capacity have so far been
commissioned; 31 projects with
aggregate capacity of 312 MW are under implementation; 34 commercial grid
connected biomass based power projects with aggregate capacity of 164 MW
capacity have so far been commissioned, and 36 projects of 218 MW capacity are
under implementation. The status of projects commissioned and under
implementation is given in Table5.10. The State-wise list of commissioned biomass
power/co-generation projects is given in Table 5.11.

5.37 Capacity addition of 86 MW in three States has been achieved, up to December

2002, against the annual target of 100 MW. Another 25 MW of capacity addition is
expected to be achieved during the year. High pressure & temperature configurations
of 67 kg/cm2 and 495oC have been demonstrated in several bagasse co-generation
and biomass power projects in the country. Extra high pressure configuration at 87
kg/cm2 and temperature of 515oC was established during the year in bagasse co-
generation projects in Andhra Pradesh and Tamil Nadu; a number of projects are
being planned with similar pressure and temperature configurations.

A 40 MW Bagasse Co-generation Power Plant with 87 bar boiler in Tamil Nadu

5.38 The Ministry has taken a number of steps to create widespread awareness and
promote the acceptance of biomass power/cogeneration. A number of workshops,
business meets and training programmes on biomass/bagasse cogeneration, and
industrial co-generation projects were organised during the year. Interaction
meetings were held with State Governments, financial institutions, State Nodal
Agencies, State Electricity Boards, manufacturers, developers, investors and
consultants to stimulate their interest and generate support for the biomass power
generation programmes.

5.39 Promotion of industrial co-generation in core industry sectors such as textiles,

paper, food processing, petro-chemicals etc. was initiated during the year. Industrial
co-generation has a potential of about 10,000 MW surplus power generation in the
industry. These projects could effectively meet the industry's requirements of power
and steam, and surplus could be sold to SEBs.

5.40 Advanced Biomass Gasification (ABG) has been identified as a thrust area for
the 10th Plan. Development and application of advanced technologies such as,
Biomass Integrated Gasification-cum-Gas Turbine Combined Cycle (IGCC);
Integrated Pyrolisis Combined Cycle (IPCC); and MW scale reciprocating engines with
very high diesel replacement (exceeding 90%), are proposed to be supported. These
technologies offer a number of advantages, which include higher efficiency of
conversion, and ease of operation, enable cleaner combustion, and are environment
friendly. Limited numbers of demonstration projects are proposed to be supported
during the Plan period. It is also proposed to support captive biomass power projects
through combustion and gasification routes.
External Assistance

5.41 The Project Brief on UNDP / GEF / MNES Project on "Removal of Barriers to Bio-
mass Power Generation in India" was approved during the year. The objective of this
two part project is to remove barriers to the increased use of bio-mass energy
sources for generating electricity for own consumption and / or export to the grid,
and accelerate adoption of environmentally sustainable bio-mass power and
cogeneration technologies in India. It will promote combustion, gasification and
cogeneration technologies for electricity generation using different types of captive
and distributed bio-mass resources. The project will focus on bio-mass power
projects to be undertaken in three specific scenarios, viz. co-operative sugar mills,
agro-processors / bio-mass producers and distributed bio-mass. Apart from the
Technical Assistance component for removing the remaining technical, regulatory
and institutional barriers, the project will provide investment support to model
investment projects in the focused sectors in candidate States for risk mitigation.
The project is expected to become operational in April / May 2003.

Policies, Fiscal Incentives and Institutional Arrangements

5.42 The promotion of biomass-based power generation in the country is being

encouraged through policies introduced at the Central and State levels. A package of
fiscal incentives such as concessional custom duties; exemptions from excise duty
and sales tax; tax holiday and accelerated depreciation; and, soft loans are available
for commercial projects. The Ministry continued its efforts during the year to
persuade the State Governments/State Electricity Boards/State Electricity Regulatory
Commissions to announce remunerative polices for purchase/wheeling/banking or
power generated from biomass power/co-generation projects. Kerala, Gujarat, and
Chattisgarh States have announced policies for purchase/wheeling/banking of power
from biomass power projects during the
year. A Tariff Order for bagasse based co-
generation projects was announced by
Maharashtra Energy Regulatory
Commission. A summary of policies
introduced by the various State
Governments and Central incentives is
given in Table 5.12 & 5.13. The Ministry
continued its endeavour to bring about a
sustainable policy framework through
appropriate provisions in the Electricity
Bill 2001, and continuous facilitation and
awareness campaigns within all major
stakeholders.

5.43 The programmes are being

implemented with the active involvement
of the State Nodal Agencies, State
Governments, State Electricity Boards,
Industry Associations and Federations,
NGOs, financial institutions,
manufacturers, developers,
entrepreneurs, R&D Institutions,
consultants and experts. The State
agencies are responsible for development of proposals from their respective States;
monitoring of the progress of implementation; and, for providing post-installation
feedback to MNES.

COUNTRY'S FIRST 87 ATA/515oC BAGASSE CO-GENERATION PROJECT AT

M/S KAKATIYA CEMENT, SUGAR & INDUSTRIES LTD. IN ANDHRA PRADESH

An important milestone reached during the year was the commissioning of the 17
MW co-generation power project set up by M/s Kakatiya Cement Sugar & Industries
Ltd., at Peruvancha village, Kallur Mandal, Khammam District, Andhra Pradesh. The
project is the first of its kind for a sugar mill. A high pressure boiler of 87 ata./515
deg C has been installed, which ensures high energy efficiency & better utilisation of
bagasse resulting in more steam and hence more electricity.

The project envisages generation of power to meet captive sugar plant requirements,
cement plant requirements and export of about 10.85 MW of surplus power during
season and 14.70 MW during off-season, to the State grid. The project uses bagasse
generated from the crushing operations of the sugar mill during season, and stored
bagasse, cane trash & coal during off-season.

The project was completed in a record period of 18 months and has already supplied
about 84.90 million units to the State grid. It has achieved a PLF of around 90% in
the very first year. The cost of the co-generation project was Rs.50.17 crore. IREDA
has extended a term loan of Rs.36.60 Crore under ADB line of credit and MNES
provided an interest subsidy of Rs.4.09 Crore. The technology used was indigenous,
except for the turbo-generator, which was imported. The project has generated
direct employment opportunities to about 100 persons and has also contributed to
economic development of the area.

BIO-MASS BASED POWER PROJECT AT M/S NAGARJUNA GREEN POWER LTD.

IN ANDHRA PRADESH

The 8 MW Biomass based Power Project with export of 7.20 MW of surplus power
after meeting 0.80 MW for in-house auxiliary consumption has been set up at
Patancheru in Medak District of Andhra Pradesh. The project utilises a variety of
agricultural wastes and industrial wastes for generation of power, such as sugar cane
trash, coffee shells, toor dal stalks, corn cobs, ground nut shells, poultry manure,
jowar husk, waste crops, juliflora, eucalyptus, cotton stalks, saw dust, wood husk,
rice husk and bagasse.

The project was commissioned in February 2002 and in a record period of 11 months
and has already supplied 38.43 million units to the State grid. A PLF of 90% has
been achieved in the first full year of commercial operation. The technology used is
totally indigenous with the Boiler supplied by M/s Walchandnagar Industries Limited.

The company has tied up with M/s AP Forest Development Corporation Limited for
developing fast growing clonal euclayptus plantations in about 500 acres of barren
land for fuel supply to the plant. The Plant has generated direct employment to over
110 persons, and has also contributed to the economic development of the region.

Biomass Gasifier Programme

5.44 Biomass gasifiers convert solid biomass (woody and non-woody) materials such
as wood, agricultural residues and agro-industrial wastes etc. into producer gas
through thermo-chemical gasification process. The producer gas could be either
burnt directly for thermal applications, or used for replacing diesel oil in dual-fuel
engines for mechanical and electrical applications. Biomass gasifier systems from 3
kW up to 500 kW unit capacity which use wood, non-woody and powdery biomass,
have been developed indigenously. Conversion of dual-fuel engines to 100%
producer gas engines has also been achieved under R&D Projects. A total of 1806
biomass gasifier systems aggregating to 53.16 MW have been commissioned in 22
States and UTs of the country.

5.45 The programme has been restructured and modified to promote and encourage
development of viable application packages; deployment of gasifier systems for
different end-use applications and higher capacity utilisation; and to bring about
greater market orientation and commercialisation. Additional features that have been
included in the programme include demonstration of indigenous 100% producer gas
engines coupled with gasifiers for power generation, and retrofitting of existing diesel
based power plants in the North Eastern Region with biomass gasifiers for power
generation.

Objectives:

5.46 The objectives of the Programme in the 10th Plan, which commenced in 2002-
03, are given below:

• To demonstrate an integral approach of biomass production, gasification and

utilisation.
• To promote R&D on biomass production, briquetting, gasification and
producer gas engines.
• To develop and promote commercialisation of technologies for various end-
uses in rural and urban sectors.
• To intensify electrification of remote villages.
• To take up demonstration projects for 100% indigenous producer gas engines
coupled with gasifiers for power generation.
• To expand manufacturing capacity, decentralised service facilities and
introduce testing and certification.
• To support and thus enlarge activities through awareness creation, publicity
measures, seminars/ workshops / business meets/training programmes etc.

R&D on Biomass Production

5.47 Five R&D projects on biomass production were taken up. Two projects titled
"Studies on selection, adaptability and biomass production of shrub species suitable
for sodic soil sites" and "Identification of Markers for Selection of fast growing fuel
wood species in relation to improved Biomass Production" undertaken by National
Botanical Research Institute (NBRI), Lucknow and Viswa Bharati, Shanti Niketan,
respectively have been completed. Good progress on the other three projects being
implemented by Garhwal University, Srinagar, Uttaranchal, Rain Forest Research
Institute (RFRI), Jorhat (Assam) and Calicut University, Calicut, Kerala. was made
during the year.

R&D on Biomass Gasifiers

5.48 The Gasifier Action Research Projects (GARPs), supported at Indian Institute of
Technology (IIT), Delhi; IIT, Mumbai; Indian Institute of Science (IISc), Bangalore;
Madurai Kamaraj University (MKU), Madurai; and, at Sardar Patel Renewable Energy
Research Institute (SPRERI), Vallabh Vidyanagar, were completed during the year.

5.49 R&D activities at IIT, Delhi focused on thermo-chemical characterisation of

about 450 samples of different biomass from different areas in terms of moisture
content, fixed carbon, volatile matter, ash content, ash fusion temperature, calorific
values and devolatisation characteristics and density, etc. These have been
documented in the form of a book, which was published during the year. The model
village electrification project based on 100 kW biomass gasifier system using local
biomass being implemented by IIT, Delhi and an NGO at village Fatehpur Taga in
Faridabad District of Haryana, is likely to be commissioned during the year. This
would provide electricity connections to about 140 households and would be
managed for day-to-day operation, maintenance and revenue management by the
local Village Energy Society.

5.50 GARP, IIT, Mumbai, laid emphasis on formulation and updating of the Test
Procedures, Standards and Methodology Protocols for biomass gasifiers up to 500 kW
unit size. Application specific two-stage and single-stage premixed producer gas
burners developed awaits commercialisation. A non-throat type downdraft rice husk
gasification unit with rotating grate type and an up-draft biomass flexible throat-less
designs have already been commercialised. 100% Spark Ignition Producer Gas
Engine has been developed. A State-of-art Report on Biomass Gasification (SAROBG)
with updated information on the technology and Indian achievements was prepared.

5.51 At MKU, Madurai, efforts were concentrated on developing and testing a 120
kW thermal gasifier for use in high temperature applications particularly ceramic
industries, with novel features of tapered hopper and air nozzles that promotes
efficient firing. A gasifier based continuous zigzag Ceramic Kiln (CZZ) has been
designed, and is being tested for commercial use. Fast-firing kilns have been
developed, along with rubber combustion gasification of old used tyres. Development
of cardamom drier to dry 50 kg. per run was developed, designed, fabricated and
tested as per the field conditions, with encouraging results. Development and
fabrication of 100 kW (equivalent) thermal gasifier using long sticks, avoiding cutting
expenses and fuel loss while cutting, has also been undertaken.

5.52 SPRERI, Vallabh Vidyanagar designed and tested a 125,000 kcal/hr thermal
open core gasifier using groundnut shells and their briquettes. Powdered groundnut
shells were successfully briquetted in a modified punch and die unit. Gasification
efficiency levels of 60-70% were achieved. A one million kcal/hr thermal gasifier
using groundnut shells was installed in a ceramic industry in Morbi to test and
demonstrate the feasibility of replacement of LDO/kerosene oil with producer gas for
firing the kilns with encouraging results. SPRERI's gasifier-based community
cookstove was demonstrated to 16 owners of roadside food stalls and
representatives of seven NGOs engaged in relief and rehabilitation work in
earthquake-affected Bhuj District of Gujarat. Nominees of the seven NGOs were
trained in the operation and maintenance of the cookstoves. Ten such community
cookstoves were supplied to the NGOs for cooking food in different relief camps.

5.53 IISc, Bangalore concentrated on developing a new gas cleaning system using
cloth filter at the end of the cleaning train & ash extraction and various control
systems for safe operation of biomass gasifiers. A 500 kWe biomass gasifier system
was developed and commissioned at M/s. Senapati Whitely, Ramanagaram.
Modifications of natural gas based engines to 100% producer gas engines in unit
sizes up to 250 kWe was achieved. These engines will now be taken up for
demonstration and field trials.

Applied R&D Projects

5.54 Innovative R&D projects covering applied, associated and other strategic
industry-wise sectoral studies on scientific, technical, engineering, management,
financing and evaluation aspects, were supported at various research institutions and
universities. Progress made in these projects is given below:

• At Anna University, Chennai, a Biomass Gasifier based direct fired vapour

absorption cold storage system for rural areas has been designed; and 60-
75% diesel replacement has been achieved.
• Energy Systems Department at
IIT, Mumbai has developed a
cashew shell gasifier integrated to
cashew processing unit with
simultaneous extraction of cashew
shell liquid using the heat available
from the engine exhaust. Oil
obtained is of commercial quality
with high pH value and low
moisture content reducing an
additional step of further 100 KVA Gas Engine developed under an R&D
distillation carried out project to eliminate use of diesel completely
conventionally. IIT, Mumbai has
also conducted experimental investigations to compare various practised
methods for standardisation of tar and particulate measurement from a
gasifier system. Modified sampling unit and revised procedure for making
such measurements has now been suggested. In another project at IIT,
Mumbai, detailed characterisation of particulate matter in biomass based
producer gas from different types of gasifiers, is being experimented for
formulation of guidelines and recommendations for design of particulate
control devices for gas borne particulates.
• In the project on Development of Technology for the Production of Gypsum
Plaster utilising eco-friendly 100 kg/hr biomass gasifier, CBRI Roorkee has re-
designed systems for providing adequate agitation in the charge and power
 operated screw feeder for continuous
feeding of gypsum powder in the shell.
Integrated experimentation of the
system is planned during this year.
• In another project entitled
"Development of Environment-friendly
alternate fuel based system for lime
burning utilising biomass gasifiers"
CBRI, Roorkee has designed a pilot
plant of 90 kg/hr. capacity for
continuous production of quick lime of
consistent quality with biomass gasifier
based firing system. Design
specifications and drawings of steel shell
lime shaft kiln of 2 T per day capacity
have been finalised. The temperature
required for calcination of limestone are
of the order of 1000 oC. The kiln is
under fabrication and will be connected
with biomass gasifier already installed in
the premises of the Institute.
• M/s. Ankur Scientific Energy
Technologies Pvt. Ltd., Vadodara are
conducting initial trials for converting a
2,50,000 k.cal/hr. (100 kW) Thermal Mode
slow-speed, reconditioned marine Gasifier System installed at M/s. TVS
genset to 100% producer gas operation. Srichakra Ltd., Madurai
• Tata Energy Research Institute (TERI),
New Delhi has designed, fabricated and commissioned a biomass gasifier-
based crematorium at Ambarnath Municipal Crematorium, in Thane district of
Maharashtra, being run by an NGO. It was observed that a gasifier based
system takes 60-80 minutes, and consumes 100-150 kg wood, as against
400-600 kg in traditional way, and about 250-300 kg in improved open fire
systems using metal grate. The fuel cost saved per cremation is Rs.350 and
the system will pay back its cost in 430 cremations.

Progress and New Initiatives:

5.55 1.870 MW capacity was commissioned under ten projects in the States of
Chhattisgarh, Kerala, Tamil Nadu, Uttar Pradesh and West Bengal during 2002-03.
The State-wise details are given in Table-5.14.
5.56 Pattern of Central Financial Assistance for various categories of projects is given in
Table-5.15 (I-IV). Other promotional features include support for preparation of DPRs,
awareness creation, applied R&D, service centres, and other professional /technical
services.

5.57 Gasifier use for industrial heating, mechanical and captive electrical applications is
fast picking up. During the year, special emphasis was given for electrification of remote
un-electrified villages. Another special feature of the Programme during the current year
is retrofitting of biomass gasifier systems to existing diesel power stations in the North-
Eastern States. In order to encourage the use of indigenous 100% producer gas
technology in the country, demonstration of 100% producer gas engines has been taken
up.

Raipur shows the way

IIT Mumbai designed and developed an industrial package for a Steel Re-rolling Mill in
Raipur, Chhattisgarh State, producing 50 T/day of re-rolled steel. The mill was
consuming 2800 litres of furnace oil on an average shift of 10 hrs per day. The target
was to replace 50% of furnace oil by producer gas. An updraft gasifier of 12,50,000
kcal/hr. capacity was designed using 500 kg per hr of wood or 700 Kg of rice husk as
the input biomass and along with specially designed and developed producer gas
burners of fully premixed type.

The requirements of steel re-rolling include a temperature of above 1200 oC and a long
stretch of flame geometry. The gasifier- retrofitted mill works on dual-fuel mode with
50% of the thermal energy supplied by producer gas. The retrofitted re-rolling furnace
has successfully logged over 1000 hours of proving trials. 50% furnace oil substitution
by producer gas implies annual conservation of 400 tonnes of furnace oil, saving 25%
in the energy cost of steel re-rolling. At present costs, the payback period for the
package works out to less than one year.

It is important to underline the environmental benefits of replication of this package. It

would yield an annual reduction of 1000 Tonnes of CO2 and 30 Tonnes of SO2 per steel
mill. This project can be replicated in an estimated 150 units in the Chhatisgarh steel
belt alone.