Co-Firing Biomass Pellets in Thermal Power Plants | 09 Aug 2023

Source: PIB

Why in News?

Recently, the Union Minister for Power and New & Renewable Energy provided valuable insights into the Revised Biomass Policy and 47 Thermal Power Plants that have successfully incorporated the co-firing of coal with biomass pellets derived from agro residues during a written reply in the Rajya Sabha.

• According to Ministry of Power, approximately 1,64,976 Metric Tonnes of agri residues-based biomass has been co-fired in 47 coal based thermal power plants till May 2023

What is the Revised Biomass Policy?

• About:
  • The Ministry of Power and Ministry of New & Renewable Energy (MNRE) have taken significant steps towards integrating agro residue-based biomass pellets into the operations of Thermal Power Plants (TPPs).
  • This marks a crucial step towards transitioning the energy sector to a more sustainable and environmentally friendly direction.
• Revised Policy:
  • On June 16, 2023, the Ministry of Power issued a modification to the biomass policy dated October 8, 2021.
    • The revised policy mandates a 5% biomass co-firing in Thermal Power Plants (TPPs) starting from the fiscal year 2024-25.
    • The biomass co-firing obligation will further increase to 7% from the fiscal year 2025-26.

What are the Government Interventions Related to Biomass Co-firing?

• Financial Assistance:
  • The MNRE and Central Pollution Control Board (CPCB) have introduced Finance Assistance Schemes to support biomass pellet manufacturing units.
  • The Reserve Bank of India (RBI) has approved 'Biomass pellet manufacturing' as an eligible activity under Priority Sector Lending (PSL), fostering financial viability for such endeavors.
• Procurement and Supply Chain:
  • A dedicated Procurement Provision of Biomass Category has been established on the Government e-Marketplace (GeM) portal.
  • Ministry of Power has introduced a Revised Model Long-Term Contract for Biomass Supply, ensuring a consistent supply chain.
  • The provision of Udyam Aadhaar on the National Single Window System streamlines administrative processes for biomass-related projects.
    • The Udyam Aadhaar registration process is based on the concept of self-declaration, enabling MSMEs to register themselves for free and obtain the Udyam Aadhaar number.

What is Biomass Co-Firing?

• About:
  • Biomass co-firing is a process in which biomass-based fuels are combusted together with traditional fossil fuels (such as coal, oil, or natural gas) in the same power plant or industrial boiler to generate energy.
• Advantages of Co-firing Coal with Biomass Pellets:
  • Carbon Emission Reduction: The concept behind biomass co-firing is to reduce the environmental impact of energy generation by substituting a portion of the fossil fuel with biomass, which is considered carbon-neutral over its lifecycle.
    • Substituting 5-7 % of coal with biomass in coal-based power plants can save 38 million tonnes of carbon dioxide emissions.
  • Renewable Energy Integration: Co-firing helps in integrating renewable energy sources (biomass) with conventional energy sources (coal), aiding in the transition to a cleaner energy mix.
  • Economic and Regulatory Benefits: Co-firing can help power plants meet environmental regulations and carbon reduction targets without requiring significant infrastructure changes.
  • Utilization of Biomass Waste: Co-firing provides a valuable use for agricultural and forestry residues that might otherwise go to waste.
• Agro Residues for Biomass Pellet Production: The Ministry of Power has identified various surplus agro residues that can be utilized for biomass pellet production. These include:
  • Crop Residues:
    • Agro-residues from crops such as Paddy, Soya, Arhar, Gwar, Cotton, Gram, Jawar, Bajra, Moong, Mustard, Sesame, Til, Maize, Sunflower, Jute, Coffee, etc.
  • Shell Waste:
    • Waste products like Groundnut Shell, Coconut Shell, Castor Seed Shell, etc.
  • Additional Biomass Sources:
    • Bamboo and its by-products, horticulture waste, and other biomass materials like Pine Cone/Needle, Elephant Grass, Sarkanda, etc.