By Sarthak Takyar
Bioenergy is a versatile renewable energy source, having the potential to replace fossil fuels. However, it often gets overshadowed by the success of the solar and wind segments. Although India has already achieved its modest bioenergy target of 10 GW for 2022, the country’s growth in this segment has been relatively slow. As of September 2022, the country’s total installed bioenergy capacity stood at 10.7 GW, the approximate segment-wise break-up being 9.4 GW (biomass power/ bagasse cogeneration), 772 MW (non-bagasse biomass cogeneration), 223 MW [waste-to-energy (WtE)], and 272 MW (WtE off-grid). According to a study sponsored by the Ministry of New and Renewable Energy (MNRE), biomass availability in India could translate into a potential of about 28 GW. In addition, about 14 GW of additional power could be generated through bagasse-based cogeneration in the country’s 550 sugar mills. Therefore, the segment has an immense untapped potential.
Several developments have taken place in this space in the past year to harness the segment’s potential; however, a lot still needs to be done. Renewable Watch provides a brief overview of the key developments in this space in the past year…
National Bioenergy Programme
The MNRE notified the National Bioenergy Programme on November 2, 2022. It will continue from financial year 2021-22 to financial year 2025-26 and will be implemented in two phases. A budget outlay of Rs 8.58 billion has been approved for Phase I. The programme will comprise the following subschemes:
- Waste-to-Energy Programme: This programme on energy from urban, industrial and agricultural waste/residues will support the setting up of large biogas, bio-CNG and power plants (excluding municipal solid waste to power projects).
- Biomass Programme: It is an effort to support manufacturing of briquettes and pellets as well as promote biomass (non-bagasse)-based cogeneration across industries.
- Biogas Programme: It supports the setting up of family- and medium-size biogas plants in rural areas.
Co-firing of biomass pellets
In the Union Budget 2022 speech, the finance minister proposed co-firing of 5-7 per cent biomass pellets in thermal power plants, which would save 38 MMT of carbon dioxide annually. Co-firing of biomass pellets in thermal power plants is also seen as a key solution to the issue of stubble burning that causes severe air pollution in north India during the winter months.
In October 2022, an inter-ministerial meeting was held to review the progress of biomass co-firing in thermal power plants. In the meeting it was stated that while only 8 power plants had co-fired biomass pellets in financial year 2020-21, the number has increased to 39 currently. Of this, 10 thermal power plants have begun co-firing in the NCR. However, the amount of biomass co-fired remains low. Currently, 83,066 mt of biomass has been co-fired in 39 thermal power plants across the country, totalling 55,390 MW. The biomass co-fired in the NCR totals 22,696 MT, with NTPC accounting for 95 per cent of the total.
During the review it was observed that the target of 5 per cent biomass co-firing along with coal in thermal power plants in the country was still far off. However, most power plants have issued long-term tenders and the situation is expected to improve when the supply will start. Meanwhile, the union power minister directed that till the time supply does not start, power utilities should start procurement for the short term via alternative methods such as spot market or commission agents as the harvesting season has already started. Union Minister for Environment, Forest and Climate Change Bhupender Yadav suggested “must run” status for co-firing of biomass in thermal power stations and strict action against defaulters.
Waste-to-energy
Despite facing criticism on the grounds of being an environmental hazard especially when emission control norms are flouted by developers or when such projects are set up in the vicinity of residential areas, the segment continued to grow slowly during the past year.
In August 2022, the Brihanmumbai Municipal Corporation announced the setting up of nine mini-WtE or biomethanisation plants across Mumbai city. The plants, expected to reduce wet waste dumping at Mumbai’s Deonar and Kanjumarg landfills, will be able to process two metric tonnes (mt) of organic waste per day.
In a bid to convert the sludge from sewage treatment plants into energy, NTPC Limited partnered with the Delhi Jal Board in April 2022. The waste sludge was torrefied and burnt at NTPC’s Unit 4 boiler at Dadri. The technique used in this project is said to be an effective mechanism to utilise waste sludge while reducing NTPC’s carbon footprint.
In January 2022, the Solar Energy Corporation of India (SECI) floated a tender to set up an 8 MW grid-connected WtE project in Kanpur, Uttar Pradesh. The project will be interconnected with the existing grid network to supply power to SECI. Furthermore, in November 2021, NTPC Vidyut Vyapar Nigam Limited, a wholly owned subsidiary of NTPC Limited, signed a Rs 1.8 billion agreement with the Varanasi Nagar Nigam for the construction of a WtE plant. Approximately 20 acres of land in Ramana has been set aside for the plant’s development. The project includes the construction of a plant with a waste segregation facility capable of processing roughly 600-800 tonnes of municipal solid trash per day. The waste will be converted into torrefied charcoal when put into the reactor at a relatively lower temperature vis-à-vis previously adopted technologies. This will create a substitute for natural coal, which would be combined with fuel to generate power in thermal power plants.
Ethanol blending and biofuels
One of the more active subsets of bioenergy, which has received considerable policy impetus, is ethanol blending and biofuels.
In March 2022, Union Minister of State for Consumer Affairs, Food and Public Distribution Sadhvi Niranjan Jyoti informed the Rajya Sabha about a state-wise list of supplied quantities of ethanol, produced by distilleries in the country and supplied to oil marketing companies (OMCs) for blending with petrol, along with the blending percentage achieved under the Ethanol Blended Petrol programme during ethanol supply years (ESY) – 2018-19, 2019-20, 2020-21 and 2021-22.
According to data, the supply of ethanol to OMCs was a meagre 380 million litres, with blending levels of only 1.53 per cent in ESY 2013-14. From 2013-14 to 2020-21, the production of fuel-grade ethanol and its supply to OMCs increased by eight times. In ESY 2020-21, 3,023 million litres of ethanol was supplied to OMCs, thereby achieving 8.1 per cent blending levels. In ESY 2021-22, about 1.13 billion litres of ethanol was blended with petrol as of March 13, 2022, amounting to a blending of 9.45 per cent.
In June 2022, owing to coordinated efforts of the state-owned OMCs, the target of 10 per cent blending under the programme was achieved much ahead of the targeted deadline of November 2022. According to a government press release, the development translated into a forex impact of over Rs 415 billion and reduced greenhouse gas emissions of 2,700,000 MT, leading to the payment of over Rs 406 billion to farmers. The government also stated that OMCs have started to sign long-term ethanol offtake agreements with prospective project proponents to set up dedicated ethanol plants in ethanol-deficit states.
In April 2022, Minister of State for Petroleum and Natural Gas Rameswar Teli informed the Rajya Sabha that based on the encouraging initiatives on the supply side of ethanol, the government had decided to advance the target of 20 per cent ethanol blending in petrol from 2030 to 2025-26.
Subsequently, the MoPNG notified that oil companies will be selling up to 20 per cent ethanol-blended petrol from April 1, 2023. Similarly, an indicative target of 5 per cent biodiesel blending in diesel was proposed to be implemented by 2030.
In May 2022, the union cabinet amended the National Policy on Biofuels, 2018. The main amendments are as follows:
- Allowing more feedstock for the production of biofuels;
- Advancing the ethanol blending target of 20 per cent for blending in petrol to 2025-26 from 2030;
- Promoting the production of biofuels in the country under the Make in India initiative, by units located in SEZs as well as export-oriented units;
- Adding new members to the National Biofuel Coordination Committee (NBCC);
- Granting permission for export of biofuels in specific cases; and
- Deleting/Amending certain phrases in the policy, in line with decisions taken during NBCC meetings.
Going forward, amendments are expected to facilitate domestic manufacturing of biofuels, thereby leading to a reduction in import of petroleum products.
Outlook
The bioenergy sector is key to India’s rural development and employment generation, waste mitigation and energy security apart from meeting the country’s climate goals. Going forward, it is imperative for the bioenergy industry to focus more on the development of efficient and cost-effective technologies. Industry stakeholders believe that as bioenergy has diverse social benefits for farmers, the rural economy, as well as for mitigating air pollution in north India during the winter months, it is important to promote it further with appropriate incentives and not view it only from the cost perspective.
In the coming years, the biomass segment is expected to see tremendous growth, given the potential if offers of producing green hydrogen.