biomass resource

Biomass Sector in India – Problems and Challenges

Biomass power plants in India are based mostly on agricultural wastes. Gasifier-based power plants are providing a great solution for off-grid decentralized power and are lighting homes in several Indian states. While for providing grid-based power 8-15 MW thermal biomass power plants are suitable for Indian conditions, they stand nowhere when compared to power plants being set up in Europe which are at least 20 times larger.

biomass India

Energy from biomass is reliable as it is free of fluctuation unlike wind power and does not need storage to be used in times of non-availability as is the case with solar. Still it is not the preferred renewable energy source till now, the primary reason that may be cited is the biomass supply chain.

Biomass availability is not certain for whole year. Biomass from agriculture is available only after harvesting period which can stretch only for 2-3 months in a year. So there is a need to procure and then store required quantity of biomass within this stipulated time.

Some of the Indian states leading the pack in establishing biomass-based power projects are Karnataka, Andhra Pradesh, and Maharashtra. Ironically, states having agricultural-based economy have not properly been able to utilize the opportunity and figure low on biomass energy utilization. Only Uttar Pradesh has utilized large part of the biomass potential in north Indian States and that is mainly due to the sugarcane industry and the co-generation power plants.

Interestingly Punjab and Haryana don’t have much installed capacity in comparison to potential even though tariff rates are more than Rs. 5 per unit, which are better than most of the states. This can be attributed to the fact that these tariffs were implemented very recently and it will take time to reflect the capacity utilization.

Table: Biomass Potential and Installed Capacity in Key Indian States

State

Power Potential (MWe) Installed Capacity (by 2011)

Tariff

Punjab 2413.2 74.5

@ Rs 5.25 per unit, (2010-11)

Uttar Pradesh 1594.3 592.5 @ Rs 4.70
Haryana 1120.8 35.8 @Rs 5.24 per unit
Rajasthan 1093.5 73.3

@ Rs 4.72/unit water cooled (2010-11)

Maharashtra 1014.2 403 @ Rs 4.98 (2010-11)
Madhya Pradesh 841.7 1.0

@ Rs 3.33 to 5.14/unit paise for 20 years with escalation of 3-8 paise

Karnataka 631.9 365.18

@ Rs 3.66 per unit (PPA signing date)

Rs 4.13 (10th year)

Andhra Pradesh 625 363.25 @ Rs 4.28 per unit  (2010-11)
Gujarat 457.7 0.5

@ Rs 4.40 per unit (with accelerated depreciation)

Chhattisgarh 248.5 231.9 @Rs 3.93 per unit (2010-11)
Kerala 195.9 @ Rs 2.80 per unit escalated at 5% for
five years (2000-01
Source: Biomass Atlas by IISc, Bangalore and MNRE website

The electricity generation could be cheaper than coal if biomass could be sourced economically but ssome established biomass power plants tend to misuse the limit of coal use provided to them (generally 10-15% of biomass use) to keep it operational in lean period of biomass supply. They are not able to run power plants solely on biomass economically which can be attributed to :

  • Biomass price increases very fast after commissioning of power project and therefore government tariff policy needs an annual revision
  • Lack of mechanization in Indian Agriculture Sector
  • Defragmented land holdings
  • Most of the farmers are small or marginal

Government policy is the biggest factor behind lack of investment in biopower sector in states with high biomass potential. Defragmented nature of agricultural lands do not allow high mechanization which results in reduction of efficiency and increase in procurement cost.

Transportation cost constitutes a significant portion of  the costs associated with the establishment and running of biomass power plants. There is need of processing in form of shredding the biomass onsite before transportation to increase its density when procurement is done from more than a particular distance. While transportation in any kind or form from more than 50 Km becomes unviable for a power plant of size 10-15MW. European power plants are importing their biomass in form of pellets from other countries to meet the requirement of the huge biopower plants.

Not all the biomass which is regarded as agri-waste is usually a waste; part of it is used as fuel for cooking while some part is necessary to go back to soil to retain the soil nutrients. According to conservative estimates, only two-third of agricultural residues could be procured for power production.

And as human mentality goes waste is nothing but a heap of ash for the farmer till someone finds a way to make profit out of it, and from there on the demand of waste increases and so its price. Though there is nothing wrong in transferring benefits to the farmers and providing them a competitive cost of the agri-waste but operations becomes increasingly unviable with time.

A robust business model is necessary to motivate local entrepreneurs to take up the responsibility of supplying biomass to processing facilities. Collection centres covering 2-3 villages can be set up to facilitate decentralization of biomass supply mechanism. Biomass power plant operators may explore the possibility of using energy crops as a substitute for crop wastes, in case of crop failure. Bamboo and napier grass can be grown on marginal and degraded lands.

author avatar
Achal Gupta
Achal Gupta is working as Manager (Biomass Procurement) with Harvest Energy Pvt. Ltd, Bhopal (India) since April 2011. He is a Post Graduate in Forestry Management from Indian Institute of Forest Management, Bhopal. Achal is In the process of establishing biomass supply chain for 6 upcoming power plants each of 10MW capacity in state of Madhya Pradesh. He can be reached at achal.contact@gmail.com

58 thoughts on “Biomass Sector in India – Problems and Challenges

  1. Great post! I have had the exact same experience in Gujarat (length and breadth of it). West Bengal is ofcourse the ultimate entrepreneurial challenge. Too good to be true kind of resources but complete lack of any cooperative infrastructure or attitude. But I am plodding on..

    All the best..

    1. Aman, on which Biomass are you working in Gujarat? I guess it should be cotton. We are also targetting cotton stalks in Madhya Pradesh as primary fuel for our power plants. These above experiences are just from the 2 months of biomass procurement test piloting done by us, a lot of challenges are yet to come.

  2. Mr Achal,
    It is nice to get an synthesized overview of the Biomass industry. However, the issues highlighted are limited and is not that simple to summarize. there are institutional factors associated, local politics, market networking of suppliers, monopolization of market in some areas, availability of biomass, seasonality do impose a challenge, Govt initiatives and encouragements (eg renewable energy forum).

    Biomass based power plants is facing a tough time to run and very apprehensive of the future. The EIA would probably redone to reassess the plant survival. It is just an addition to your findings.
    susanta (IIFM-1999 batch)

  3. Nice post. I am in the field of speciality chemicals, fuel and fireside additives to be specific. Most of the biomass fired power plants experience moderate to severe fireside deposit causing immense loss in terms of reduced capacity, forced shut down, cleaning, tube failures, etc. After many years of trial now I have a better idea about the problem. I also have solutions that really work. If that is also your problem please do get in touch with me.

  4. Great post!Let me share my views.
    I am presently working with AREVA RENEWABLES.Here we work on various new technologies related to biomass.As the company’s business is mostly abroad so we design acoording to their parameters.Our technical know how goes for them at the end of the day.Sitting on chair,thinking for their growing economy hits somewhere deep down what about my economy?I belong to punjab and there its like huge piles of biomass but somehow i am not able to help my country in some way.I just need one right way to go and make the REAL CHANGE.I hope to get it soon.

    1. Thanks for sharing your views Anushka. It is indeed sad that tremendous biomass energy potential still remains untapped across the country. Even the high-profile biomass power plants that came up in India in recent years are struggling due to poor planning, lack of supply chain, infrastructure etc.

      1. Where is the best biomass power generation plant in india..
        Want contact no..
        We have a particular biomass to provide them regularly..
        No – 7020123001

    2. I am from Punjab too.. I need your help in this sector. I have 6 acre land in Punjab to invest for in Punjab (Bathinda disst.).. Here we can get rice straw very easily at high quantities at reliable prices. If you can invest in this sector and want to invest money in punjab, you can contact me at bikramjeetc@gmail.com or +91 98763-32104

      I want to help nature to sustain itself.. We are entering to very last steps to ruin our nature!!

    3. Dear Anushka
      we are in the business of manufacturing a renewable product called as Pellets which is made from agro waste such as bagasse, sawdust, mustard stem etc. we have put up a plant in roorkee uttarakhand to manufacture pellets to be used as green fuel. this product is carbon neutral and has no SO2, NOX and hence is pollution free to make the environment clean.
      your require more details please write to me.

      1. May Pls share manufacturing cost per ton cost fir Bio mass pellet.
        If Possible pls share contact details

        Pls revert back at the earliest.

        Harvinder SIngh
        Haryana
        M-9401583845

    4. I feel like Solar shall take a Lead to address Transport Issues and so BioEnergy can be more Focussed on addressing Power Shortages & in HouseHold Uses for Eg. in GreenBuildings. 🙂

  5. Hi, thank you for this wonderful post. Makes an entrepreneur like myself think a little differently to overcome such hurdles.

  6. Iam having agricultural waste of daily 6 to 8 tons continously in year (365 days) can u pleas suggest me how much capacity of biopower plant I can install……

    1. The major hurdles in Biomass is Transporting & handling.If a portable Briquette machine is developed,things will become manageable.

  7. Regarding your table, the source is the Biomass Atlas but the value for potential doesn’t match what is given in the source. Can you just clarify that for me please?

  8. Dear Sir,

    We are the manufacturer of Biomass Pellets and Wood Pellets.
    I want to export my product in all over the world.
    Please kind help me to sell my product.

    Thanking you,

    From,
    Harsh Thacker (India)
    +91 88 666 91 885

  9. Hi , I am just working on the high kcal/kg biomass fuel. Need inputs from all of you on the same.
    The other important aspect is of ash disposal . Not sure what is the correct way of doing the same . Is any agency working on the same to leverage value out of that.

    Virendra
    9654366525

    1. Congratulations Gautam !
      Please note that, there is no need to dispose the ash.
      Ask your team to work little on Geo-polymer. It is one of the best way to utilize this ash.

  10. Respected Sir,

    Thanks for the wonderful post. I wish to know whether there is any mechanism available through which we can convert household wastes of all/most kinds into any form of energy.

  11. HI to respected Salman jafar Sir and Everyone,

    First i will wish to congregates to Mr, Achal Gupta Sir, MD of M/s. Harvest Energy Pvt. Ltd. for establishment biomass power Plant project at Khargone and Barwani Disst. of MP State,
    after that Myself Imran Khan from Khargone and i am also supplier of Biomass Fuels like Bagasse and pressmate, i have approximately 5000 tonne bagasse (Dry) and our annual turn over of bagasse is near about about 10000 tonne. i am also interested to Supply bagasse to your Khargone and barwani Plant.if u need same please contact.

    Thanking you and assuring you our best services always.
    Regard’s
    M. Imran Khan
    9977870793

  12. sir,
    We have biomass plant at andhra pradesh and the cost of fuel is very high and need some help in procurement system in season time ., pl advise

  13. Dear Mr. Zafar,

    I will not be able to help you with procurement of fuel. But I would like to draw your attention towards another problem which is moderate to severe in biomass fired boilers. And that is fireside deposit. If you have that problem I do not have to explain you what it is and how it reduces your boiler efficiency. I have been working in the field of fireside chemical treatment for the last few years. If you need help in this respect do get in touch with me.

    Supratim Bhowmick
    Mob: 09330325566

  14. I want to establish a Biomas brackets manufacturing plant in bhopal can anyone give me any suggestion for this.

  15. Iam having agricultural waste of daily 6 to 8 tons continously in year (365 days) can u pleas suggest me how much capacity of biopower plant I can install……I am from haryana too.. I need your help in this sector. I have 7 acre land in haryna to invest for in Haryana (Kurkshetra disst.).. Here we can get rice straw very easily at high quantities at reliable prices. If you can invest in this sector and want to invest money in Haryana, you can contact me at………
    sunandan85 @gmail.com

    1. It is very small quantity.Our daily consumption is 90/100 tons for 20 TPH Boiler Start with trading/Palleting work

  16. wheat straw and rice husk is have sufficient density for pallet ,i want to installed this plant in MP Hoshangabad disst.

    please help any suggestion for min density of pallate??

    satyam malviya
    sk2204mech@gmail.com

  17. i need to know how much biomass need for generation of one megawatt electricity
    in biomass electricity plant. if any body could tell me about this i shall be very grateful for him.

  18. We are an NGO based out of Maharashtra running free meal seva at 50+ towns to the underprivileged. Can you help us with details about sourcing Cotton Stalk, Saw Dust or Soyabean waste for briquette manufacturing. This is entirely for our own consumption in free meal canteens. We are planning to set up a plant very soon. Any help regarding suppliers of raw materials in this will be highly appreciated

    Kindly email at premalpipalia@gmail.com or 9321490260

    Thanks in advance for the help.

  19. I want to establish a Bio pellets manufacturing plant in haryan can u give me any suggestion for this.Please share some information regarding challanges, profitability and future scope of this business.

  20. Dear All,

    We are into manufacturing of Pellet and Briquetting machine based out from Europe. If anyone have any planning to go for expanding your business or want to set up plant of pellet or briquette. Please do contact me via below details, And the plant capacity would be from 1Tph till 6Tph.

    Regards,
    Bharath
    vs.bharath@nxt-group.com

  21. Sir,
    I want to establish a Biomass Brackets manufacturing plant in Karauli distt. (Rajasthan) can anyone give me any information about supplier of biomass fuels like Bagasse etc. in my location karauli ( Rajasthan)

    Regards,
    Satish
    er.satish.gupta@gmail.com

    1. I want to setup biomass plant in Thane… Need expert opinion on the opportunity and challenges???

      Sandeep,
      9967065883

  22. Consumption of Used cooking oil in India is quite common and that is the biggest threat to our nation. Used cooking oil not only harms humans but the environment too. Did you know that rather than disposing of used cooking oil by pouring into the sink and throwing it in the garbage, we can donate the used cooking oil to Aris Bioenergy? They collect a large amount of used cooking oil from homes or F&B aggregators to convert the used cooking oil into Biodiesel and other types of biofuels. Biodiesel is the best substitute for petroleum diesel. Now that the Government is taking sustainable initiative and empowering people to incline toward biofuels, it is our duty as well to contribute to a better Earth.

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