28/10/2020 - Environment

KEY POINTS

·       The MNRE supported ‘pilot projects’ of manure to bio-CNG. Task forces made recommendations on farm waste to advanced biofuels. It was only in 2018 that these morphed into the Galvanising Organic Bio-Agro Resources Dhan (GOBAR-DHAN) scheme and the National Policy on Biofuels, albeit with lacuna related to offtake agreements and financing instruments, which is impeding capacity creation.

·        Furthermore, mulching carbon-rich stubble impacts soil’s carbon-to-nitrogen ratio, necessitating proper nitrogenous fertiliser management, apart from potential surface accumulation of potassium (which is less mobile than nitrogen).

·       Processing to biofuels: The full spectrum of solid, liquid and gaseous biofuels would take reams to describe, so we will restrict to commercialised technologies across the full value chain.

·       Solid biofuels: These comprise briquettes and pellets. Briquettes are fired in industrial boilers or combustors, but the demand in Punjab and Haryana is not high. Pellets can be co-fired in utility-range boilers, and the NTPC has issued Expression of Interest (EoI) for 5 million tonnes of pellets (at the rate of Rs 5,500-6,000 per tonne) for firing in 17 of their power plants.

·       However, investor response has been muted, as the production of pellets is capital intensive, coupled with high energy and operation & maintenance costs, apart from stubble bale costs, for year-round operations. It’s also a moot point as to whether the NTPC can better deploy the Rs 2,000 crore annual incremental cost (for displacing grade E coal by 5 million tonnes of pellets).

·       Liquid biofuels: These encompass bioethanol, drop-in fuels, bio-oil and bio-methanol. The current focus is on 2G ethanol. Oil marketing companies (OMCs) have announced 12 2G ethanol projects, each rated at 100 kl per day, needing 1,50,000 tonnes/year stubble.

·       Gaseous biofuels: These encompass producer gas, biogas, green hydrogen, etc. The current focus is on biogas upgraded to bio-CNG, with the co-product being compost.

·       This matter requires serious consideration by the MoP&NG and the earliest revision of bio-CNG offtake rates as well as issuing ‘bankable’ offtake agreement for 15 years, to facilitate low-cost project financing. It’s imperative that India adopts a technology-agnostic policy for promoting advanced biofuels.

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