View: Bio data of a wonder bio fuel

Petroleum and natural gas minister Dharmendra Pradhan recently announced that India will see an investment of Rs 2 lakh crore in setting up 5,000 compressed biogas (CBG) plants. This comes at a time when the annual discussion on air quality has once again renewed the discourse on the desperate need for renewables.CBG is derived from agri-waste and other forms of organic waste — a hi-tech version of gobar gas. Unlike the latter, though, a CBG plant produces sulphur stripped of methane of automotive-grade, producing high-quality solid and liquid organic fertilisers as byproducts. Decomposing garbage dumps spew methane, which can cause fire-related accidents and a cocktail of carbon monoxide, nitric oxide and hydrogen sulphide emissions. Coal-bed methane has its own challenges, its ‘nongreen’ generation being key. CBG, instead, converts the very garbage that causes problems into sustainable solutions.There are several advantages of CBG:Social: CBG plants can revitalise rural economies. A hub-and-spoke model to service a CBG plant can create vast employment opportunities in biomass creation, agroforestry, logistics and other support functions. A 15 tons per day (TPD) CBG plant combined with a 750-acre food forest (FF) can generate sustainable employment for 400 people. This holds a real potential to reduce and reverse rural migrations.Environmental: CBG produced and consumed locally would burn cleaner, whether in tractors, trucks, buses or motorbikes, and have a negligible carbon footprint compared to fossil fuels. Carbon credits at various levels are generated: one, significant carbon-fixing when the biomass is building; two, reduction of greenhouse gases; three, organic fertiliser replacing chemical fertilisers. Use of crop stubble and agri waste as CBG feedstock will keep air and groundwater cleaner.Financial: For the exchequer, significant energy security and savings can be made in foreign exchange. At 20% blending with ethanol and substitution of compressed natural gas (CNG) by CBG, Rs 22,400 crore may be saved annually.The impact on the ecosystem, if quantified in terms of savings on healthcare, etc., would be staggering. The elimination of imported chemical fertiliser will lead to a host of tangible and intangible benefits.For the farmer, agri-waste hitherto burnt or dumped in the open will be supplied to CBG plants at Rs 2 a kg.This could boost farmer incomes by 25-50%. Significant savings can be made in farm input costs, as the organic fertiliser will replace all inorganic varieties. Organic agri produce would guarantee better prices, easier access to export markets, and boost health and wealth of all constituents.For the rural economy, the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme envisages installation of 5,000 CBG plants. This, combined with FF initiatives, could well provide sustainable employment to 20 lakh people.High internal rates of return of over 20% for standalone CBG plants and 30%, when combined with FF, is possible. A payback period of about four years makes this an attractive proposition for entrepreneurs. 5,000 15 tonne CBG plants combined with an FF at an approximate revenue of up to Rs 50 crore per plant would boost the rural economy by an estimated Rs 150,000 crore.GoI, on its part, has cleared roadblocks to encourage investment in this area. Environmental clearances and availability of finance are significant tailwinds. The technology is also ready for roll-out. With these factors coming together, CBG plants should start working their magic for India’s rural economy.The writer is chairman, Nasscom

from Economic Times https://ift.tt/39cWHjI