biogas.pdf

www.biogas-india.com
Indian Biogas Association (iba)
“Current trends and developments for biogas in India”
Gaurav Kedia,
Chairman, iba
MD, Arka BRENStech Pvt. Ltd.
IHK, Düsseldorf, 06 November 2013

Structure
IBA and Biogas in India - an introduction
Biogas potential and present scenario
Biogas: A need for Indian rural and Industrial sector
Socio-economic model of Biogas
Financial analysis of Biogas based business model
Challenges for Biogas
Biogas potential and present scenario
Socio-economic model of Biogas
Financial analysis of Biogas based business model
Challenges for Biogas

Indian Biogas Association
The association was founded in 2011 and is
now mushrooming. The sole motto of the
association is “propagating Biogas in a
sustainable way”.

Award, Recognition….
The 2014 Global Green Award

Renewable energy country attractiveness indices
“Plans to make India an emerging bio-economy have led to talks with
the US Department of Energy on creating a biomass ‘roadmap',
similar to that employed by China.”
Total biomass potential in India is estimated at more than 70
gigawatt (GW)”
- E&Y, 2012, URL: goo.gl/4Ghkw

Bio Gas Technology - Quick facts
• Biogas is produced by the anaerobic decomposition of
organic matter
Principle
• Flexibility in scale of system is possible.
Modularization leads to easily expandability.
Capacity
• Customized solution can be found for Biogas plant
Area Required
• The system functions for 365 days a year on 24 hrs
basis
Period of
Functioning
• System can be used for thermal application, vehicle
filling and power generation
Biogas utility

Drying,
Desulfurization
Boiler
Heat
Gas conditioning with or
without CO2 separation
Bottling or
gas grid
Compression
Substitute
for LPG or
nature gas
Filling station
Reformation
(possibly)
Fuel
Electricity &
Heat
CHP
BIOGAS
Electricity
&heat
Fuel cell
Utilization of Biogas

Biogas in India – An Analysis

Development of the number of biogas plants and the total
installed electric output in MW as of 11/2012
Project Uniqueness

Challenges
Challenges
Finance
Technical
Social
engineering
Cost
Policy
O&M
Energy
management

Indian Biogas Scenario
Scattered market
No established player at national level
Market needs someone offering end to end solution
Experienced and skilled workforce is lacking
Government active intervention is needed
Promotion of organic crops is lacking
Different approach is needed for small, medium and large
scale biogas plant promotion
Supply chain management is to be streamlined

Substrate from Agricultural, Urban and Industrial origin
Cow Dung, poultry litter
Agricultural residues as rice
straw, banana stem, maize
stalks
Sugar mill press mud,
Distilleries spent wash, Sago
plant effluent
Municipal Solid Waste,
slaughter house waste,
vegetable market waste,
kitchen waste
Silage from agricultural crops
as Napier grass, Sugar beet,
Sugar cane, Maize

Professional Feedstock Storage

Cattle dung alone can generate ~4.9 X 107 m3 (~5000 MW) of
biogas from 980 million tones produced annually in India (ref:
CRDT, IIT-Delhi)
Only ~5% of the potential is utilized till date that too in a
decentralized manner and in unorganized sector
Available Substrates potential in India
363
58
129
503
69
94 65
Biogas Potential (in MW)
Sugar
Pulp and paper
Starch
Distillery
Milk processing
Slaughterhouse
Poultry

Small biogas plant upto 85 Ncum per day biogas generation

Financial Analysis
1.8-2.1 Units of Electricity
0.4 Kg of Compressed Biogas
INR 14.7 @ INR 7/KWh*
(Euro 0.17)
INR 24 @ INR 60/Kg*
(Euro 0.29)
INR 5 @ INR 5/Ncum
(Euro 0.06)
Not to forget – Biofertilizer is an intrinsic part of revenue
for Biogas business!
* CAPEX & OPEX almost similar for both type of plants
1 Ncum of Biogas

Biofuels in Comparison

Biogas upgradation plants identified by IEA Bioenergy Task 37

Annual Biogas Generation
0 200 400 600 800 1000 1200 1400
Distillery
STPs
Paper
Tanneries
Others
Biogas in Million NCum
MW
Full Market Potential ~ USD 3 billion
Target Market Potential ~ USD 1.2 billion
Annual Biogas 2000 million NCum
Annual CBG potential 900 million kgs
320 Nos
300 Nos
500 Ncum/hr
300 Ncum/hr,
600 Nos, Potential sites: 210
300 Ncum/hr,
3000 Nos, Potential sites: 159
300 Ncum/hr,

Small CBG Demostration plants sanctioned by MNRE

Warana Bio-CNG Project

Highlights
• Developed on a BOOT (Build, Own, Operate and Transfer) basis
• Daily capacity of approximately 100 tons, or 35,000 annual tons, of
sugarcane waste (pressmud)
• Daily production of approximately 7,000 to 9,000 kg’s of Bio-CNG per day
• PESO (Petroleum and Explosives Safety Organization) License for storage
and filing of Bio-CNG in high pressure cylinders
• Daily production of organic manure/soil conditioner after further
processing for commercial sale
• NOCA (National Organic Certification Association) approved organic
manure for further sale to farmers
• MNRE (Ministry of New and Renewable Energy) approved investment
subsidy received in early 2013
• Substantial cost savings for industrial customers due to low-cost Bio-CNG
use
• Climate friendly – CO2 negative: Biogas-to-CNG conversation is the most
productive use of agricultural waste

Biogas, Enrichment and Bottling unit at Jaipur - I
Indigenously developed LPSA system

Biogas, Enrichment and Bottling unit at Jaipur - II
Buffer balloons

PEDA 1 MW Biogas Plant, Ludhiana

Organic fertilizer
Weighted average arable land of world:
~40% of land area, whereas India has
~61% of land area as arable land i.e.
1,697,000 square kilometers
Weighted average organic farming in
world: 242,708 hectares (Total =
21,358,307 hectares), whereas organic
farming in India is just 41,000 hectares
Chemical fertilizer consumption in India:
16,122,580 metric tons, which could be
reduced by the use of organic fertlizer
Rates for organic fertilizer can be veryfied
between 2500 – 7000 INR for 70% TDS
If you think organic food is expensive, have you priced cancer lately?
- Joel Salatin, founder of Polyace farms

Fertilizer production I

Fertilizer production II

Modularisation

Modular Biogas plant in Germany
Ca. 45,000 m3 biogas/day,
Liquid fertilizer storage capacity ca. 48,000 m3

Comparison

Competitive Matrix
CBG – Compressed Biogas, LPG- Liquefied Petroleum Gas, CNG – Compressed Natural Gas

• India has the natural resources.
• It provides a buffer against energy security concerns.
• It offers a hedge against fossil fuel price hikes and volatility.
• Off-grid energy supply can meet demand in un-served rural
areas.
• It can be supplied to both urban and rural poor.
• It can support attainment of India’s climate change goals.
• India aims to be a global leader in renewable energy!

Source: emapsworld.com
Socio-economic model of Biogas: An example

Gobar Bank Concept

• Bhitbhudrak model showed the importance of social
engineering along with technology to make biogas a success
Project Uniqueness
• The design was kept very simple and yet robust
• The length of pipeline in the village is 2500 meters
• The villagers are facilitated with cleaner and consistent source
of energy for cooking
• Improved economics of village:
- By way of providing more earnings from dung
- By way of improved crop production because of use of
organic fertilizer
• Improved health and hygiene
• Providing smoke free atmosphere into kitchen
• Providing cleaner environment in to village
• Women empowerment

Financial Projections (I)
Years
2 4 6 8 10 12
Amount
in
Lacs
5
10
15
20
25
30
Years
1 2 3 4 5 6 7 8 9 10
Amount
in
Lacs
10
20
30
40
Illustrative Example of ROI Analysis for 85 and 170 m3/day Biogas Plant
85 m3/day 170 m3/day
Without taking into account 90% and 80% government subsidy, investment in project
could be recovered within 10-12 year for 85 m3/day and 7-8 year for 170 m3/day
respectively.
Subsidy 90% Subsidy 80%

Financial Projections (II)
Years
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Amount
in
Lacs
0
500
1000
1500
2000
2500
Years
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Amount
in
Lacs
0
500
1000
1500
2000
2500
Project Cost
Project Cost with Grantt
Grantt
Cumulative Cash Accrual - CBG
Cash Accrual
Years
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Amount
in
Lacs
0
500
1000
1500
2000
2500
Electricity
CBG
CBG & SUC

SWOT Analysis
Strength
• Proven and reliable Technology;
• Cheapest sustainable energy solution;
• Energy efficient process;
• Business process expertise;
• PPP mode is possible;
• No shortage of human resources for
Technology;
• The financial model can grow with the
increase in gas price;
Opportunity
• Conventional fuel prices are going up;
• Shortage of gas supply;
• Gas grid is still not in place;
• Focus on enterprise customers opens a
new dimension in value creation, further
enhancing income for many stakeholders;
• Huge premium valuation for projects and
great opportunities to investors;
• Partnership as energy providers with small
– medium scale enterprises and other
industries will hedge income drivers
Weakness
• Usual practice of using conventional
energy;
• Unsecured capital structure for the project;
• Untrained man power;
• Weak work culture and ethics across cross
section of Indian society;
Threat
• Repeated break in supply chain;
• Acceptance of organic manure;
• No proper policy framework

Summary
• Biogas: Versatile and efficient
• R&D: Improvement of efficiency and environmental performance of biogas
production and utilization
• For Biogas development, clear governmental policies are crucial
• Integration and compensation of biogas – technically, financially and
socially
• Trees can be retained
• Biogas is a quick, easily controlled fuel
• No smoke or smell (unless there is a leak)
• Clean pots
• Sludge is a better fertilizer than manure or synthetic fertilizers (and
is cheaper than manufactured products)
• Reduced pathogen transmission compared to untreated waste

Q&A
Commonsense is the realised sense of proportion!
Gaurav Kedia
E: info@biogas-india.com
M: +91-9983498904
A: #B-2/2392, Vasant Kunj,
New Delhi – 110 070, India

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