For net-zero, we need more waste-to-energy plants, decentralised biobank storage: Sangita M Kasture, Scientist ‘G', MNRE
As India targets a net-zero goal by 2070, a crucial element of this objective is the transition from fossil fuels to renewable energy and sustainable resources. In 2022, the Ministry of New and Renewable Energy (MNRE) launched the
National Bioenergy Programme
to promote waste-to-energy initiatives, as well as
biogas
and biomass production. With the first phase of this programme nearing completion this financial year,
Sangita M Kasture
, Scientist 'G' at
MNRE
, discusses the sector's potential, progress, and challenges with
ET Digital
. Edited Excerpts.
Economic Times (ET): Tell us about Phase I of the National Bioenergy Programme. What types of subsidies are available to support this programme?
Sangita M Kasture (SMK):
The basic objective of this programme is to utilise the waste available in the country and generate energy. It is also meant to solve environmental issues and provide rural and women empowerment.
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Phase I had been approved with a budget of Rs 858 crore, and this was broken up into three components: waste-to-energy, biomass, and the biogas programme. We are trying to cover various waste, including agricultural residue, industrial waste, and cattle dung. We are looking at household-level biogas plants as well as medium-scale-level biogas plants. The final application here is either power generation from biogas or thermal applications for heating, etc.
The major focus of waste-to-energy, where the larger component is Rs 600 crore, is given. Their major focus has been compressed biogas. We call it bioCNG, a substitute for CNG, which comes from fossil fuel, which is imported. So here, we are trying to provide the central finance assistance (CFA), which is a subsidy that is provided after commissioning and successfully operating the plant. We are not providing it in advance.
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Suppose any plant is of a certain capacity, for example, 10 tonnes per day; then it has to produce 88 tonnes per day. It has to show a capacity at 80% efficiency; then only we provide the subsidy. So, that is where we have received a good, overwhelming response to this scheme.
Almost 95% of the budget has been exhausted, so we are now asking for an additional budget for this.
Under the biomass programme, we are promoting densification of biomass because logistics is another issue, as this biomass is lightweight. It has to be densified for further usage. So for that we are promoting briquetting and palletisation of this. We are also providing subsidies for such plants. For briquette manufacturing plants, the CFA is Rs 9 lakh/tph (tonnes per hour). For non-torrefied pellet manufacturing plant is Rs 21 lakh/mtph and Rs 42 lakh/mtph, or 30% of the capital cost (whichever is lower) for torrefied pellet manufacturing plants. The torrified plants retain more moisture in pellets. These pellets are then used in thermal power plants, and hence, their demand is increasing as they are replacing coal.
Similarly, we have provided CFA for the biogas programme but with a cap. For small biogas plants (1-25 cubic metre/day capacity), there is a subsidy of Rs 9,800-Rs 70,400 based on the size of the plant. Then we have a subsidy for larger plants (25-2500 cubic metre/day capacity) for power generation and thermal applications: Rs 35,000-45,000 per kilowatt for power generation and Rs 17,500-22,500 per kilowatt equivalent for thermal applications.
ET: What is the market size and potential for this sector?
SMK: Currently, the estimated CBG (compressed biogas) potential in India is around 87,000 tonnes per day, or we can say 32 million metric tonnes per annum. Last year, we sold 31,423 tonnes, which is very less. Earlier it was 15 million metric tonnes when the scheme was launched in 2022. So, this is a huge amount; we have not even reached 1 million metric tonnes. A lot of potential is there. We have continuous demand—right from transportation to cooking. But about 88% of oil and CNG is imported, so we must replace it using Indian sustainable resources. The availability of biomass is around 230 million metric tonnes, plus we have so much cattle dung.
In India, we have a huge surplus of waste but we need more waste-to-energy plants. In Germany alone, there are about 10,000 waste-to-energy plants where the energy generated is used for heating and thermal applications because they need it for winter. Whereas, since we have enough solar energy available, we can use the energy generated from waste in other applications, such as transportation.
ET: The biogas industry in India faces challenges related to the feedstock supply chain. How can we overcome that?
SKM:
The supply chain is very important because farmers need to stock residue, and huge space is required for that. So, a few industries are using that and storing it if they have enough space and land, or sometimes they give it on contract. There are some subsidies available for that, like the agriculture ministry provides for CRM (crop residue management) machines. There is another scheme for biomass aggregation machinery by the ministry of petroleum. They provide that for certain projects. I personally feel that we should have decentralised biobank storage, and we need some support to create that facility. Biomass storage needs certain care and safety measures. Carrying biomass is very difficult because it is of lighter volume and the weight is very less. This increases the surface area, and then logistics is also higher accordingly. Which is why we need it to be densified and converted into pellets before being supplied to the industry. Other industries, like the hotel and food processing industries, need to come forward here.
ET: How are you driving awareness around waste-to-energy and biogas programme?
SKM:
We have our own campaign, which we have been doing for the last two years. We have a mobile van, which goes to rural areas. We specifically targeted northern states like Punjab and Haryana, and our social media channels are also active in promoting the schemes. We also have state nodal agencies as well, helping us in spreading awareness about programme. We have eight biogas development and training centres across India driving the training and awareness.
ET: What can we expect from Phase II of this programme?
SKM:
We are currently expecting some additional budget. There is a very good response from developers to this scheme, so they have already submitted applications and have started project commissioning also. To consider subsidy support, we have asked for some additional budget. That proposal is under consideration by the finance ministry.
This sector is evolving; only initial investment costs are higher, but it gets good returns over time. We are trying to work and help various ministries to make this a viable business opportunity.
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