A Mckinsey study of the Carbon Cost Curves reveals that energy efficiency has a negative cost per ton of CO2 avoided.

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1 SESSION 7: BIOMASS / WASTE TO ENERGY 11:15-12:30 Speech by M V Ananthakrishna Executive Summary: Fundamentals of the biomass market for India, where are the opportunities and what is the ideal project size? Feed-stock availability and feed-stock insurance. The role of appropriate technology in opening the biomass gasification market The need for a clear regulatory framework for waste to energy projects Speech Friends we are living in interesting times. India is growing at a rapid pace with one of the highest growth rates in the world. To sustain this forward momentum in the words of Abdul Kalam in his inaugural address at The South Asian Conference on Renewable Energy in New Delhi on April 18, Energy Independence has to be our nation s first and highest priority. Our target is to achieve Energy Security by 2020 leading to Energy Independence by 2030 and beyond.... power generated through renewable energy technologies has to be increased to 25% against the present 5%.... a major shift in the structure of energy sources from fossil to renewable energy sources is mandated. There is undoubtedly a vast potential. The biomass / Waste to Energy Potential is 174,000 MWe. The achievement as on March 31, 2006 is only 1043 MWe or less than 1%. Energy Efficiency is one of the most effective Waste to energy projects. MKRC experience with over 500 companies both in India and abroad indicates a potential savings of 20%. A Mckinsey study of the Carbon Cost Curves reveals that energy efficiency has a negative cost per ton of CO2 avoided. Waste Land Development A Sustainable Renewable Energy program needs to be commercially viable, involving all the stake holders including the farmers. The biomass that can be generated by greening the 60 Million Hectares of waste lands in India can lead to a power generation potential of 150,000 Mega Watts which is equivalent to the the projected demand supply gap in The direct employment generation potential just for greening waste lands is 1600 per MWe or 272 Million jobs. Cogeneration, for hot water, Air conditioning & cold storages, will double the savings and increase the employment potential. Page 1 of 7

2 The Fuel Linkage (A) Agricultural Waste to Energy The second is assessment of agricultural waste for a 5 MW biomass gasification plant in Andhra Pradesh (AP). Again I was personally involved in the survey. Several villages in coastal AP with a radius of 50 km were surveyed. We found plenty of agricultural waste: Rice Husk, Rice Straw, Coconut Fiber, Coconut Pith (1 Ton of coconut Fiber when processed will yield 60% to 70% of pith). The study clearly established that more that 2000 MT of waste of all types is being generated per day. Collection and use of this waste for gasification will increase employment and revenue to the farmers. It will be a win-win situation especially since a number of waste materials are currently not being utilized. The annexure outlines the agricultural waste being generated in each state and the potential for power generation. (B) Waste Land Development - Energy Plantations for Rural Employment and Sustainable Development Two experts from BAIF formerly known as Bharatiya Agro Industries Foundation visited a site during 21-23, November 2006 near Sirpur Khagaznagar of Adilabad District to explore the possibility of growing biomass for Gassification Project to be implemented by our client a large diversified group. The Vice President (Projects) of the client and I were also part of the team. Interaction with Mandal Agricultural Officer, Joint Manager Plantation of a nearby paper mill and the Village Sarpanch has revealed that the site is suitable for intensive Energy Plantation. We identified the scope as follows: 1. Pilot project at the 55 acre site now owned by the client. 2. Assist nearby farmers to undertake plantation under contract farming with support by way of inputs for farming and assuring a ready market by off take by the client. Considering the Agro climatic conditions of the area, the most prioritized species for the area is subabul (Leucaena leucocaephala) Specific gravity of 0.6 and Calorific value of (Kcal/kg): Sl No. Species Name Specific gravity Calorific value (Kcal/kg) 1 Leucaena leucocephala Acacia auriculiformis Prosopis juliflora Eucalyptus camaldulensis Subabul is a nitrogen fixing legume, to enrich the soil fertility and improve soil texture over a period of time. Its foliage adds organic matter to the soil beneath the shrubs. Its aggressive root system also breaks impervious subsoil layers, improving moisture penetration and decreasing surface run off. However other Page 2 of 7

3 species like Acacia auriculiformis, Prosopis juliflora, Eucalyptus camaldulensis can be planted, where stray browsing is a serious problem. BAIF are prepared to help in nursery raising, land preparation, spacing of crops, irrigation, protection and harvesting. Average yield is expected to be 20 tons / ha and can reach 25 tons/ha on better sites. Wood of four year old tree has about % moisture at harvesting time. This medium hard wood is preferred fuel wood that burns with little smoke or ash. Additionally, the annual fall of leaves, twigs and branches can be 3-4 tons/ha. Cost of production- Approximate cost of production will be Rs /per ton of wood. Nursery Raising can be done by the Company in their land, by raising seedlings. Also with a community approach, providing inputs such as, seeds, poly bags, water can, chemical fertilizers etc and training, seedlings can be raised. Six months old seedlings will be purchased from the villagers by the company and redistributed to farmers involved in plantation programs. This will ensure availability of seedlings and employment opportunities for villagers during the offseason. Similarly, small and willing farmers from each village will be selected to raise the nursery. They will be provided with seeds and poly bags. They will use their manure, soil, water and labor to raise the seedlings. Once the seedlings are six month old they will be purchased from the farmers by the client. A buy back guarantee may be provided to the farmers by a written contract. On a long term, this will provide excellent employment opportunities, retaining the lands in the farmers own hands, with a guarantee buy back of the output. The experts from BAIF indicated that for each type of waste land depending on the soil and rain fall conditions the most suitable fuel wood can be grown on a sustainable basis which means potentially all the 60 Million Hectares of waste land in India can be greened in a profitable way. With proper technology the power generation potential is 170,000 MWe. The Proposal Our proposal is to assist in setting up a biomass gasification power plant of 5 MWe to electrify villages and provide power to each house and farm and transfer the surplus power to the grid. In the long run to create a robust fuel linkage Waste Land Development can be pursued for providing fuel at an economic price. To begin with before the wood from waste land development is available agricultural waste will be used an input to the project to obtain power at an economical rate. Page 3 of 7

4 After the initial implementation in one site, to establish the concept a blue print will be developed for replication. The cost of power will be Rs.1 to 2 / kwh depending on the raw material that will be gasified and the project can be implemented within 2 years from the date of all clear. A Cooperative Movement A cooperative Society, in whose name the waste land will be allotted, with membership of all the stake holders the villagers and farmers, can be formed to reap the vast benefits of this rural electrification program. Biomass Gasification Technology in a nutshell What is Gasification? Gasification is the process by which the solid biomass is converted to combustible gas. PRM Energy Systems, Inc. (PRME) of USA is a pioneer in biomass gasification systems. The entire gasification process, from in feed to ash discharge, is computer controlled. The PRME Gasification System A complete Biomass gasification system includes a fuel metering bin, the reactor/gasifier, the combustion tube and chamber, the gasifier cooling water system, water cooled ash discharge conveyors, multi-zoned combustion air supply, rotary feeders and instrumentation required to provide automatic control over the process. Case Studies A paper plant will save over Rs.10 Crores by simply gassifying over 1 lac tons of all the waste being generated at the plant. A Particle Board Manufacturing plant will stand to save over Rs. 6 Crores annually by replacing of both SKO and furnace oil in dryer and calciner. Apart from the financial attractiveness this technology gives a means to substitute fossil fuels with green renewable energy reducing the Nations dependance on costly imports. Uses of Syn gas The syn gas can be combusted in a gas fired boiler to produce steam or can be cleaned using gas cleaning systems to be used in gas engines to produce power. Thermal Applications: Syngas is an excellent substitute for petroleum fuels like, High Speed Diesel (HSD), Light Diesel Oil (LDO), Superior Kerosene Oil (SKO), Furnace Oil (FO), LPG etc. in boilers, thermic fluid heaters, ovens, furnaces etc. The exhaust Page 4 of 7

5 gas from thermal equipment can also be used in food grade drying applications. Steam Cycle: PRME Gasifier is used for gasification of biomass. Automatic continuous ash discharge and precise control of the zoning of gasification air produces a clean, low Btu content gas that is burned in the radiant section of the gas fired boiler. The steam produced from the boiler will run the steam turbine to produce electricity. Engine Cycle: PRME Gasifier is used for gasification of biomass and the syn gas from the gasifier is cooled in a heat exchanger from 900 Deg. C to 200 Deg. C. Gas Cleaning: The Engine Cycle requires Gas cleaning equipment to clean the syn gas, which contains nitrogen, carbon-di-oxide, trace amounts of carry over ash and tar and calorific constituents of carbon-mono-oxide, hydrogen and some alkalis. The syn gas is cooled to 70 to 80 Deg. C using water tar mixture and fed to the Disintegrator Gas Washer, where fine gas cleaning takes place. The cleaned syn gas will be fed to the engine system. Engine System: The Cooled and cleaned Syn gas is fed to the gas engine. The Gas engine produces electricity and the engine exhaust is passed through heat exchangers to extract hot water/steam. The Benefits of PRME Technology Multi-Fuel Flexibility The PRME Gasification system can accept all kind of biomass fuel and also conventional fuel such as coal, lignite, etc. during off-season: PRIME ENERGY, INC. established one model KC 8 test/demonstration research center in 1996 to demonstrate the successful gasification of all types of biomass fuels, including: Types of Waste & Biomass that can be used in The PRME Gassifier Bagasse Palm Fiber Sawdust Bark Palm Shell Shavings Coconut Shell Paper Mill Sludge Spent Refinery Catalyst Corn Cobs/Stubble Peanut Hulls Switch Grass Cotton Gin Waste Peat Trimmings Cotton Stalks Petroleum Coke Tyre Shreds Page 5 of 7

6 Lignite Reject Fiber Waste Water Sludge Manure Rice Husk Wheat Straw Municipal Solid Waste Rice Straw Other Waste Fuels Palm Empty Fruit Bunch Sander Dust The biogas produced at this center has been successfully applied to firing internal combustion engines for power generation and is designed to provide the fuel for the biological production of ethanol. Energy Conversion Efficiency The recoverable energy from the biomass feed was experimentally demonstrated to be the available energy content less the residual carbon energy in the ash unlike the conventional system. Low Maintenance and High Availablity The Gasification System has very low maintenance cost compared to the conventional boilers. The system has more than 98% availability in the existing installations. Environmental Benefits The gasification of biomass fuels reduces greenhouse gas inventory. Energy is produced with no net gain of CO2. Acid gas emissions are reduced due to the typically low sulfur content of biomass feedstock s. Environmental Advantage over conventional Burning Route We believe that the energy conversion solution can be dramatically improved by gasification process. The advantage of using PRM gassification technology is that unlike conventional technology of mass burning the production of potentially harmful contaminants is significantly minimized by the gasification process in that the total burning does not occur in the gasifier because there is not enough oxygen present. Avoidance of greenhouse gas emissions The gasification of sustainable biomass recycles CO2 from the atmosphere. Gasifying waste biomass rather than land filling avoids potential methane emissions. Reduced acid rain emissions Biomass has minimal sulfur content and thus can offset fossil fuel emissions of SO2, a key contributor to acid rain. Waste management benefits The gasification of waste biomass reduces the volume of material sent to landfills, extending the life of existing landfills. PRME gasification is an excellent technology for achieving zero solid waste. Page 6 of 7

7 Sustainable development As a renewable fuel, biomass use contributes to sustainable development goals, less dependency on imported fossil fuels, savings on foreign exchange, rural development and diversification and increased rural employment opportunities. Conclusion MKRC is convinced that the scheme is totally viable and it is easily replicable. In the overall context of the Country s requirements of power, we believe, this model, if it gets created in one village, will pave the way for setting up of similar plants in about 100 villages generating about 1000 MWe. This will completely meet the present as well as the future requirements of power in each State as well as empower the Panchayats to have a viable revenue source. In short, rural sector will enjoy rural employment, rural welfare and rural prosperity. Page 7 of 7