New Program Cuts Costs, Boosts Use of Green Biomass Energy for Homes & Businesses!
By CCN News | Published: July 22, 2024
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This initiative aims to promote the use of biomass—organic material derived from forestry waste, agricultural residues, and municipal solid waste—as a sustainable energy source.
In a significant move towards greener energy solutions and better air quality management, the Ministry of New and Renewable Energy has updated financial incentives under the National Bioenergy Programme (NBP).
What Is Biomass?
Biomass refers to organic materials that can be used as fuel to produce energy. This includes forestry waste, agricultural by-products, and even municipal and industrial waste. In our country, biomass production reaches approximately 750 million metric tons (MMT) annually. Of this, around 228 MMT is considered surplus and can be harnessed for various uses, including generating heat and energy, and producing briquettes and pellets.
The National Bioenergy Programme (NBP)
Launched on November 2, 2022, the NBP is a comprehensive initiative aimed at enhancing the utilization of biomass. A key component of this programme is the support scheme designed to foster the development of biomass-based energy solutions, specifically focusing on briquettes and pellets. These are compacted forms of biomass that can be used as clean and efficient fuel sources.
Updated Financial Support for Biomass Projects
Originally, the scheme offered a Central Financial Assistance (CFA) of Rs. 9 lakhs per metric ton per hour (MTPH) of production capacity for briquette and pellet manufacturing plants, with a maximum limit of Rs. 45 lakhs per project. However, as of July 16, 2024, the Ministry has revised these rates to better support the industry and encourage more advanced technologies.
The new CFA rates are as follows:
Non-Torrefied Pellet Manufacturing Plants: Rs. 21 lakhs per MTPH, with a maximum of Rs. 105 lakhs per project.
Torrefied Pellet Manufacturing Plants: Rs. 42 lakhs per MTPH, with a maximum of Rs. 210 lakhs per project. For torrefied pellets, the assistance is also capped at 30% of the total capital cost for plant and machinery for a 1 MTPH plant.
Benefits of the Updated Scheme
This revision aims to significantly boost the use of biomass in the country, especially in states like Punjab, Haryana, and Uttar Pradesh, where paddy straw is a major agricultural residue. By supporting the production of both non-torrefied and torrefied pellets, the scheme seeks to address several critical issues:
1. Reduction in Stubble Burning: Utilization of paddy straw as biomass can help reduce the practice of stubble burning, which contributes to air pollution and poor air quality.
2. Sustainable Energy Production: The updated CFA will support the establishment of more efficient biomass-based energy plants, promoting cleaner energy sources and reducing dependence on fossil fuels.
3. Economic Growth: Enhanced support for biomass projects will stimulate the green energy sector, creating jobs and fostering industrial growth.
Overall, the revised financial support under the NBP represents a crucial step towards more sustainable energy solutions and improved environmental practices. It underscores the government’s commitment to harnessing the potential of biomass to address both energy and environmental challenges in the country.
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