The rise in power demand has triggered a shortage in domestic coal in India to an extent that the government has directed the thermal plants to import costlier fuel for blending.
Besides, efforts are in place to prioritise coal supply to the power sector by curtailing supplies to the non-power sector. This caused a shortage and a spike in domestic coal prices.
In this regard, use of biomass has gained momentum as it is available at a much lower price.
Biomass pellets are bio-fuels made from compressed organic matter (or biomass) that include agro-wastes like corn stalk pellets, wheat straw, rice husk, coconut shells, sugarcane bagasse and others. These were primarily used in small quantities, but with the prevailing supply tightness in coal, their application has grown on a wide scale.
At present, 35 thermal power plants have initiated bio-mass co-firing till July, 2022 which is significantly higher against 7 such plants that were using biomass in FY2020-21. Biomass has also found application in the non-power segment.
Apart from cost-effectiveness, biomass pellets hold several advantages, such as:
- Reduction in amount of coal used for power generation resulting in considerable savings in CO2 emissions.
- Reduced dependence on coal.
- Income generation for farmers and job creation by pellet manufacturers.
- Reduction in air pollution due to reduction in stubble burning.
Government initiative
To encourage the manufacturing of biomass pellets, the government has launched a national mission on use of biomass under the policy named ‘Sustainable Agrarian Mission on Use of Agro-residue in Thermal Power Plants’ (SAMARTH). The objective of this mission is to increase the level of co-firing from the present 5%.
“Substituting 5-7% of coal with biomass in coal-based power plants can save 38 mnt of carbon dioxide emissions,” said finance minister Nirmala Sitharaman in her Budget speech in 2022.
Nearly 0.25-0.3 mnt of biomass pellets are required to generate 1 GW of electricity at 7% co-firing, according to the power ministry’s policy on biomass utilisation.
Use in non-power sector
Many industries with small boilers have shifted to biomass pellets. In the case of larger capacity boilers the shift is minimal because they are not designed to co-fire biomass pellets. But users are looking for means and ways to adapt to the same.
Challenges
There is no dearth of demand for biomass pellets. The problem is, there are few manufacturing units to supply the same. Power plants are not able to procure biomass pellets against their floated tenders. However, because of government initiatives and increase in awareness, this problem can be resolved.
Meanwhile, the bigger problem is due to seasonal unavailability as these agro residues are only available after the harvesting of crops. The other challenge is with storage as these can absorb moisture especially during monsoon.
Outlook
India has 225 mnt per year of surplus biomass available which are susceptible to catching fire. This damages soil and causes air pollution.
However, as per a report, biomass pellets can produce 6% of India’s total electricity by 2030, in addition to direct biomass co-firing.
This is an opportunity for India to encourage manufacturing and consumption of biomass pellets as it creates a win-win situations for all stakeholders. But, in the medium term, biomass pellets cannot overcome the coal shortage.
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