DIREC 2010 Workshop on Bio-methanation - Upscaling Challenges and Opportunities

27th October 2010

Policy Development Requirements for Biogas Upscaling in India

Dr. A.R. Shukla Adviser (Bio-energy) Ministry of New and Renewable Energy

Email: shuklaar@nic.in

Ministry of New and Renewable Energy Bio-energy Technology Development Group

Biogas Dissemination Programmes: National Biogas and Manure Management Programme (NBMMP). Biogas Based Distributed/Grid Power Generation Programme. Recovery of Energy from Industrial Wastes. Recovery of Energy from Urban Wastes.

Ministry of New and Renewable Energy Bio-energy Technology Development Group

Biogas R&D and Technology Demonstration Programme: Demonstration of Integrated Technology Package on Biogas-Fertilizer Plants (BGFP) for Generation, Purification/ Enrichment, Bottling and Piped Distribution of Biogas. Establishment of Business Model for Demonstration of an Integrated Technology Package for creation of smokeless villages using biogas/ bio-energy systems and meeting Life-line Energy envisaged in Integrated Energy Policy R&D and technology development in biogas, biofertilizer and bio-energy refinery.

Government Support for Biogas Programmes

CFA/ Subsidy for installation 20-50% of cost Administrative costs Capacity building through: Training of officials, plant operators/users Information dissemination Sponsorship for Research and Development Provisions in the Electricity Act 2003 Open access to grid for RE power Preferential tariffs by State regulators Targets for RE power Introduction of Renewable Energy Certificates Captive generation decontrolled 11/16/2010

Approved CFA under National Biogas and Manure Management Programme for 11th Plan
Category CFA (2-4 m3 Plant) (Rs.) 14,700/10,000/8,000/2000 67,500/1500/5

CFA (1 m3 Plant) (Rs.) 14,700/9,000/4,000/-

1. NER States

2. Notified hilly areas, J&K and Plain areas of Assam

3. All other States 4. Support for Training courses 5. Turn key Job-fee

Large Sized Biogas-Fertilizer Plant Technology Demonstration Projects**

Proposals have been received under Demonstration of Integrated Technology Package on BGFPs for generation, purification, bottling and piped distribution of biogas in the capacity range of 200 20,000 m3 and above in response to EOI of the Ministry.
Sl. No. Biogas Generation Capacity (m3)
1. 2. 3. 4. 200-1000

CFA for Biogas Purification, Bottling/ Distribution Applications*

50% of the cost of the project

1,100 - 5,000 5,100 - 10,000 10,100 - 20,000 and above

40% of the cost of the project 35% of the cost of the project 30% of the cost of the project

* Excluding

cost of land. **Limited nos.

Biogas based Distributed/ Grid Power Generation Programme: Central Financial

Assistance
Power generating capacity Biogas plant capacity CFA/subsidy limited to the following ceiling or 40% of the cost of the system whichever is less. `40,000 per kW `35,000 per kW

3 -20 kW >20 kW to 100 kW

25 cu. m to 85 cu.m Any combination of above plants or alternate capacity /design Any combination of above plants or alternate capacity / design

>100 kW to 250 kW

`30,000 per kW

Programme for Energy Recovery from Industrial Wastes: Central Financial

Assistance*
Bio-methanation of Low Energy Density & Difficult Wastes: `10 million/ MWeq (12000 Cu.m. biogas per day) Power generation from Solid Industrial Waste (Boiler + Steam Turbine): `2.0 million/ MW Power generation from Biogas (Boiler + Steam Turbine): `2.0 million/ MW

Bio-methanation of other Wastes: `5.0 million/ MWeq (12000 Cu.m. biogas per day)

Power generation from Biogas (Biogas Engine/ Turbine): `10 million/ MW

*For Special Category States: 20% higher than that of other States
8

*Limited to 20% of Project cost

11/16/2010

*Limited to `50 million per Project

Programme for Energy Recovery from Urban Wastes: Central Financial Assistance
Projects based on Biomethanation Technology from cattle dung, vegetable market & slaughterhouse wastes generated in urban areas:
For Power generation: `30 million*/ MW

Projects based on Bio-methanation Technology from a mix of cattle dung, vegetable market & slaughterhouse wastes and agricultural Wastes:

Projects based on Biogas generated at Sewage Treatment Plants: For Power generation: `20 million*/ MW
*Limited to 40% of Project cost

For Power For Thermal Applications: generation: `10 million*/ MWeq `20 million*/ MW (12000 Cu.m. biogas per day) *Limited to 50% of cost
11/16/2010

Project

*Limited to 30% of Project cost

9

Financial Viability of Biogas-Fertilizer Projects

Revenue sources from the project Sale of Power Sale of Biogas Sale of Bio-fertilizer and Bio-pesticide CERs Sale of CO2 Government Support Financial Incentives Fiscal Incentives Customs and Excise Duty Exemption Income Tax concessions
11/16/2010 10

Application-wise Biogas Plants installed, Estimated Biogas Production and Power Generation capacity
Sl. Type of Biogas Plants No. No. of Biogas Plants installed 4,274,831
73

Estimated Biogas Production capacity

In million Power m3 per day Generation

1.
2.

Family size Biogas Plants for cooking applications.

Small size Biogas plants for electricity generation.

8.5072 For cooking requirement

0.0042 0.44 MW

3.

Large size Biogas Plants based on Urban and Industrial wastes for power generation.
Total

70

0.5466

91.11 MW

4,274,974

9.0580

91.55 MW

Desired Policy for Promoting Bio-methanation Sector

Mandatory provision for installation of BiogasFertilizer plants. Introduction of Generatation based Incentives for biogas based Power. Introduction of financial incentives for Biofertilizers and Bio-pesticides similar to chemical fertilizers. Exemption from VAT and other taxes. Preparation of Standards for Compressed Biogas (CBG) and Bio-fertilizer and bio-pesticide. Acceptance as vehicular fuel. 11/16/2010 12 Development of CBG cylinders.

THANK YOU
Website: mnre.gov.in shuklaar@nic.in shuklaar@yahoo.com