ficci-mnre workshop on opportunities for methane recovery ... · ficci-mnre workshop on...
TRANSCRIPT
Ministry of New and Renewable Energy
Government of India
Federation of Indian Chambers of Commerce
and Industry
FICCI-MNRE Workshop on Opportunities for
Methane Recovery & Utilization in the Dairy Sector in India
May 22, 2009 – Mumbai
Workshop Report
Jointly organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Ministry of
New and Renewable Energy, Government of India
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
2
Contents
S No Topic Page No
1 Introduction 3
2 Session I : Opening Session and Policy Framework on Methane Recovery and
Utilization in India
3
3 Session II: Dairy Livestock Sector: Methane Recovery and Utilisation- Possibilities,
Technologies and Case studies
6
4 Session III: Milk Processing Sector: Methane Recovery and Utilisation Possibilities,
Technologies and Case Studies
15
5 Session IV: Methane to Markets and FICCI’s Role as Facilitator 19
6 Session V: Financing Opportunities in Methane Recovery and Utilisation in the
Dairy and Livestock Sector
21
7 Session VI: Renewable Energy from Other Sources 22
8 Issues and Recommendations 24
9 List of Participants 26
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
3
FICCI-MNRE Workshop on Opportunities for
Methane Recovery & Utilization in the Dairy Sector in India
May 22, 2009 – Mumbai
INTRODUCTION
The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Ministry of New and
Renewable Energy, Government of India had organsied a workshop on “Opportunities for Methane
Recovery and Utilization in the Dairy Sector in India” on May 22, 2009 in Mumbai. The objective of the
workshop was to create awareness on opportunities for methane recovery and utilization in the dairy
(livestock and milk processing) sector in India as well as to highlight technologies, specific case studies of
biogas generation, and project development opportunities. The objective of the workshop was also to
apprise the sector on the various programmes and policies that are available for project development, and
also to bring forth the expectations, concerns and barriers for project development. The major outcome of
the workshop would be to develop an action plan to work with the concerned stakeholders and address the
issue of project development for projects with varying capacities as well as to implement ground level
projects.
The workshop highlighted that the livestock as well as the dairy sector (including milk processing) has a
huge potential for methane generation. This sector currently is among one of the untapped sectors, where
significant benefits can be derived from methane recovery and utilization projects. With the current
momentum in CDM (Clean Development Mechanism), these projects can also prove to be an efficient way
to mitigate GHG reductions. To advance work in this sector, the Government of India already has a well
developed policy framework. External support is also available through initiatives such as the Methane to
Markets Partnership.
The workshop was attended by milk federations, cooperatives, gaushalas (old age cattle homes), dairy
industry, research institutions, technology providers and financial institutions.
Session I - OPENING SESSION AND POLICY FRAMEWORK ON METHANE RECOVERY AND UTILIZATION IN
INDIA
Mr Anil Dhussa, Director, Ministry of New and Renewable Energy, Government of India
Mr Dhussa in his presentation highlighted the various policies and programmes that are available to
support project development from the sector. Mr Dhussa also briefly highlighted the case study of the 1
MW power project demonstration project based on cattle dung at Haebowal, Ludhiana. He also
emphasized upon the use of solar energy at farm levels, as a profitable proposition.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
4
The Ministry of New and Renewable Energy (MNRE) has been working with various industries for methane
recovery. Specifically from this sector there exists energy recovery opportunities through the process of
biomethanation of industry effluents and livestock waste. MNRE has actively been promoting the following:
o Household bio-gas plants, which are based on cattle dung manure for the purpose of cooking and
lighting
o Biogas plants based on cattle manure, slaughter house and vegetable market wastes for heat,
electricity or motive power
o Biogas from urban and industrial wastes and effluents
o Co-digestion of farm / agricultural residues with urban and industrial wastes
Under the livestock sector, MNRE has set up various demonstration projects which include:
o 1 MW Cattle manure based biogas project at a dairy colony in Ludhiana, Punjab
o 1.5 and 2.5 MW biogas projects based on poultry droppings in Tamil Nadu
o About 2000 small and medium size biogas plants based on cattle manure for heat, electricity or
motive power (5-25 kW)
o 4 M household plants
Technology Constraints of Cattle Dung Based Plants
Based on the experience of the MNRE, following are the technology constraints for cattle dung based
plants:
o Digesters are unstirred and unheated, causing:
o Low gas yields in non-summer months
o Sedimentation and scum formation
o Total dependence on cattle dung acts as a barrier as it is not rich in organic content
o Emphasis has been on low cost systems but these systems are not efficient
Biogas Potential
Mr Dhussa in his presentation highlighted the potential of biogas generation from different agro based
industries and their respective waste-to-energy capacities. These are illustrated below:
o Distilleries effluent : 1 MW / 30 kL
o Dairies (milk processing) : 100 kW / 3 lakh litres
o Poultry droppings : 1 MW / 0.5 - 1 Million birds
o Cattle dung : 100 kW / 25 TPD
Case Study – 1 MW Power Generation from Cattle Dung at Haebowal, Ludhiana
Mr Dhussa illustrated the use of cattle dung for biogas generation through the 1 MW power plant from
cattle dung at Haebowal, Ludhiana. The project has been set up as a demonstration project by the Ministry
of New and Renewable Energy and the Punjab Energy Development Agency (PEDA). The set up cost for the
project was INR 13.6 crore, based on the technology obtained from Austria. The plant generates about
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
5
20,000 kWH of power from 235 TPD of cattle dung. Imported components include the gas engine,
macerator, screw presses and gas holder. Indigenized spares include the macerator shaft and mechanical
seals, and sieve cylinders of screw press.
Issues in setting up the plant included, where technologies are highly temperature dependent, as in winters
the generation of gas would drop to 50%, therefore not allowing sustainable production of gas. At the
Ludhiana project however, the gas is produced at a constant level with the Austrian technology. Being a
demonstration project the installation cost was comparatively high. However, the project has proven that
viable technology is available along with the technical know-how and such projects can be implemented.
Requirements for Large Plants
Based on the experience of setting up the 1 MW power generation plant from cattle dung at Haebowal,
following are the requirements for setting up large plants:
o Proven technology – implementing technology is no longer a barrier, as the plant demonstrates
application and availability of technology for a successful project
o Availability of equipment – local availability of equipment is preferred
o Cost and financial viability – the cost for the project should be as low as possible. The project needs
to demonstrate financial viability, which can be met though various means such as sale of power,
sale of manure/compost, earning of carbon credits under the CDM, and through charging tipping
fees. Direct subsidies are also available for such projects.
Government Support for Biogas Projects
PROGRAMME ON ENERGY FROM URBAN AND INDUSTRIAL WASTE
o The programme covers municipal solid waste, cattle dung, vegetable market waste, slaughterhouse
wastes, their mix with agricultural wastes and residues. It also covers biogas generated at sewage
treatment plants, small scale decentralised projects in urban areas as well as industrial wastes and
effluents.
o Provisions of the programme include:
o For five Pilot Projects for MSW: CFA of Rs. 2.00 crore per MW with per project limit of Rs.
10.00 crore
o Energy from urban wastes other than MSW: CFA of upto Rs. 3.0 crore / MW (Rs. 8.00
crore/project)
o Power from biogas at Sewage Treatment Plants: CFA of upto Rs 2.0 crore/MW (Rs. 8.00
crore/project)
o The programme also provides assistance for project development, research and development as
well as information dissemination activities and awareness creation
FINANCIAL ASSISTANCE FOR INDUSTRIAL WASTE BASED PROJECTS
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
6
The Ministry of New and Renewable Energy provides the following financial assistance for industrial waste
based projects
o Rs. 0.50 to 1.0 crore / MWeq (12000 Cu.m. biogas per day) for biomethanation
o Rs. 0.80 – 1.00 crore / MW for Power Generation from Biogas through Steam Turbines and biogas
Engines.
o Rs. 0.80 crore / MW for Power Generation from Solid Industrial Waste through Boiler and Steam
Turbine.
o 50% of cost of DPR, limited to Rs. 1.0 lakh per project.
o 1% of financial assistance to SNAs upto Rs. 5.0 lakh / project
GOVERNMENT SUPPORT FOR BIOGAS PROGRAMME IN INDIA
o Subsidy for installation – MNRE can provide 20-40% of the project cost
o Preferential tariff for sale of power
o Capacity building through:
o Training of officials and constructors
o Information dissemination
o Training of plant users
o Sponsorship for Research and Development
o Monitoring and evaluation
o Provisions in the Electricity Act 2003
o Open access to grid for RE power
o Preferential tariffs by State regulators
o Targets for RE power
o Captive generation decontrolled
o Fiscal Incentives / Concessions
o Customs duty for imports
o Excise duty for manufacture of RE devices
o Income Tax
Mr Dhussa in his concluding remarks stated that there exists tremendous potential for project development
in the livestock as well as in the milk processing sector. The milk processing sector has a potential of 69
MW, but the advantage is that the waste takes less time to digest, therefore the cost is comparably less.
Cattle dung mixed with other materials also is a viable option and increases the quantum of gas generation.
Mixing with other materials increases efficiency and also reduces per unit cost of production.
Session II: DAIRY LIVESTOCK SECTOR: METHANE RECOVERY AND UTILIZATION- POSSIBILITIES,
TECHNOLOGIES AND CASE STUDIES
Mr K Krishan, Chairman, Malavalli Power
Possibilities of the productive use of livestock manure for methane recovery and use in the Indian dairy
and livestock sector
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
7
Mr Krishan, in his presentation highlighted the global potential of bio-energy as well as the potential for
project development in India. He also highlighted the possibility combining different farm level activities
such as preparation of silage and organic manure to support financial viability of projects.
Global Potential for Bio-energy
The global primary energy needs are to the tune of 10 billion TOE per year and solar energy that is
biologically absorbed in biomass is to the tune of 150 billion TOE per year. Therefore bio-energy can be a
huge source of energy.
Mr Krishan in his presentation illustrated the example of Germany as a country deriving energy from
biomass. Germany by 2020 will require an estimated 220 million TOE, where 25% of this requirement will
be met through renewable energy. Most of this will be from biogas generated from agricultural sources,
which is found to give highest energy yield per hectare. Germany also has incentives in place where,
feedstock for biogas generation comprises more than 30% of cow manure. The total farmland available in
Germany is about 17 million hectares, of which approximately 15% of the farmland will be used for
cultivation of energy crops and approximately 2% for biogas. It is seen that bioethanol in one hectare of
land will provide 22,400 diesel eq in km, biodiesel will provide 23,300 and biogas will generate 67,600.
Clearly showing that biogas generates the highest energy content per hectare.
Biogas Plants based on Agricultural, Animal and Horticultural Waste
Mr Krishnan in his presentation explained the working of industrial level biogas plants. Following are the
steps involved in production of biogas from animal, agricultural and horticultural waste:
o Preparation and pre-treatment of
feedstock
o Feedstock blending
o Crushing
o Separation of contaminants before
inserting into the fermenter
o Recirculation from digester
o Biogas production through fermentation
(system tank)
o Wet fermentation
o Mesophilic process
o Fully blended system
o Retention time of 60 – 70 days of
feedstock inside the fermenter
o Volume load <3 kg oDM(1) / m3
per day
o Fermented residue storage
o Usage of fermented slurry as
fertilizer
o Biogas utilization (CHP)
o Electricity and heat generation
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
8
Following is an illustrative diagram of an industrial biogas plant:
Importance of Silage and Organic Fertilizers
Mr Krishnan highlighted the importance of using silage as a feedstock for biogas plants. He recommended
that even small old age cattle homes should consider the option of preparation of silage and integrating it
with other farm level activities. Besides acting as a feedstock, silage is an excellent nutrient rich source to
feed cattle. Organic fertilizer produced from the biogas plant can be used during cultivation of silage
plants, hence adopting a holistic approach.
Potential of liquid organic fertilizer is as follows:
o Average input of the feedstock (cow dung/ forage crops & agricultural residues mix) to the biogas
plant would be 71.2 KL/day, to produce 3,786 cubic meters of biogas, as required for a 350 KWe gas
engine to operate at 90% plant load factor
o The digester effluent would produced to the tune of 75 KL/day with 5.46 % TS. This is high quality
organic fertilizer.
o The digester effluent has wide range of applications, including application for grains and sugar cane
farming. The effluent can also be applied for short cycle, forage/energy crops & horticulture
products farming.
Advantages of using digester effluent as fertilizer
o There is a positive impact on environment through decrease of odour of the manure, reduced
methane emissions and also reduces contamination of ground water
o Using biogas plant effluent as a fertilizer closes the nutrient cycle and the nutrients therefore
remain within the system
o Nutrients in feedstock of biogas plants can be reused after anaerobic digestion
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
9
o There is limited loss of nutrients during storage, transport and biogas process
o There is improvement in manure quality through anaerobic digestion
o Anaerobic digestion helps in degradation of cells, organic acids and long chain organic matter, which
is then easily available for absorption by seedlings and saplings
o The nutrient availability increases (especially nitrogen) and there is an increase in the humus
content of the soil
Prof Anil Dikshit, Centre for Environmental Science & Engineering, Indian Institute of Technology
Review of anaerobic digestion technologies in India
Prof Dikshit in his presentation highlighted the importance of the anaerobic process as well as the available
technologies and their applicability.
The energy crisis in 1973 greatly increased the interest in anaerobic digestion for all biodegradable
wastewater. Advanced methods such as the upflow anaerobic sludge blanket (UASB) process and various
fixed film reactor types based on the principle of sludge immobilization were introduced. At present,
anaerobic digestion is a popular option and is a widely used wastewater treatment method. Following are
the advantages of using anaerobic process:
o Less energy requirement as no aeration is
needed
o Energy generation in the form of methane
gas
o Less biomass (sludge) generation
o Less nutrients (N & P) requirement
o Application of higher organic loading rate
o Space saving
o Ability to transform several hazardous
solvents
o Best candidates for anaerobic digestion
include breweries and wineries, sugar,
starch (barley, corn, potato, wheat,
tapioca and desizing waste from textile
industry), food processing, bakeries, pulp
and paper, dairy, slaughter houses and
petrochemical waste.
Anaerobic Treatment Processes
Prof Dikshit elaborated on the following technologies for anaerobic treatment:
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
10
Anaerobic Treatment in Dairy Industry
Following are the characteristics of dairy effluent waste:
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
11
Prof Dikshit also in his presentation elaborated on the anaerobic treatment performance levels for dairy
wastewater. These are illustrated in the table below:
Energy Generation Potential of Dairy Effluent – A Case Study of Vidya Dairy
Vidya Dairy produces processed cheese, which leads to the production of 12000 liters of cheese whey
everyday. Previously the dairy used to collect, aerate and then mix this whey with effluent from other
departments. However, being concentrated organically, the whey had a serious impact on the existing
aerobic effluent treatment plant.
SPRERI (Sardar Patel Renewable Energy Research Institute) contacted Vidya Dairy and proposed installation
of a high rate anaerobic treatment plant which could save electricity consumption as well as utlise the
methane gas, which could be used for power generation. Vidya Dairy installed the plant on a cost sharing
basis. It was initially designed to handle 12000 liters of cheese effluent everyday with 4 day hydraulic
retention time. The system consists of a collection sump, an anaerobic filter, a gas storage unit and a 25
kVA biogas engine.
M P Singh, Joint Director (Projects), Punjab Energy Development Agency (PEDA)
Biomethanation plant based on animal manure at Haebowal, Ludhiana – A case study
PEDA is the State nodal agency for promotion and development of renewable energy programmes, projects
in the state of Punjab under the aegis of Ministry of New and Renewable Energy, Government of India and
also the designated agency by Bureau of Energy Efficiency, Ministry of Power, Government of India for
implementation of the Energy Conservation Act, 2001. PEDA is also the state nodal agency for facilitating
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
12
projects for availing carbon credits under CDM. Objectives of the organization include promotion and
development of non-conventional and renewable energy programmes and projects, implementation and
enforcement of energy conservation measures and regulations in the agricultural, industrial, transport and
domestic sectors as well as to promote and facilitate CDM projects.
Mr Singh stated that one of instrumental factors in establishment of the plant has been the facilitating
policy framework of the State, particularly the NRSE Policy, 2006 which states addition of 1000 MW
generation capacity by 2020 bringing the share of NRSE to the level of 10% of conventional power. Major
thrust areas of the policy include generation of power from biomass, agro residue and bagasse
cogeneration projects. Under this policy PEDA has set up 8 micro hydro projects, 4 solar power projects and
1 waste-to-energy project.
Salient features of the 1 MW biomethanation plant based on animal manure at Haebowal, Ludhiana
o The total project cost is INR 13.66 crore, where a 50% grant of INR 6.83 crore has been provided by
the MNRE, GoI under the UNDP-GEF programme. The State has invested INR 3.42 crores and PEDA’s
share is INR 3.41 crores.
o The project is based on the BIMA technology provided by Entec, Austria and the project was
commissioned on November 4, 2004. The plant has been operating at a load capacity of 75%
o Besides biogas generation, the organic manure produced in the process is supplied to the local
farmers
o The greenhouse gas emission abatement is in the order of 802 kg CO2 eqv/hr
o The project requires 235 tonnes/day of cattle dung as the feedstock
o 9115 m3/day is the amount of biogas produced per day
o Major components of the plant include:
o Collection tanks
o Dry well
o BIMA Digesters
o Effluent buffer tank
o De-watering station
o Drying yard
o Effluent treatment plant
o Gas holder
o Gas blowers
o Gas Engine
o Flare System
o PLC Scada system
o Electrical Control Room
o Outdoor yard
o Fire Fighting System
Following is the schematic diagram, illustrating the working of the biogas plant:
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
13
Material Balance
Raw feed 235 ton/day
Dilution water 141 m3/day
Volatile solids loading rate 3.0 ton/day
Hydraulic retention time 27 days
Digester efficiency 55 %
Biogas produced 9116 m3/day
Biofertilizer production 37.5 ton/day
Energy Balance
Biogas generation 9116 m3/day
Engine efficiency 39 %
Auxiliary power requirement 2400 kWh/day
Power generation from plant 20000 – 22000 kWh/day
Power exported to grid 17600 – 19600 kWh/day
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
14
Highlights of the BIMA technology:
o Ability to handle high solids concentration
o Absence of mechanical moving parts
o Effective control of scum, sediments etc.
o Minimum operating power requirements
Socio-economic benefits of the technology:
o Power being sold to Utility at Rs 3.49/Kwh
o Slurry after dewatering being sold at Rs 1000/tonne to farmers/horticulturists
o Revenue from sale of VER’s is Rs 30 lac/annum
o Direct employment of 20 people
o In-direct employment of 150 people
Mr Nayan Khambati, Econ Pollution Control Consultants
Examples of anaerobic digestion technologies – status of market
Mr Khambati presented the case study on the capture and utilization of methane from the effluent
treatment plant at the Chitale Dairy located in Maharashtra. He presented the practical problems that are
faced in implementation of such plants and the solutions to allow their replicability.
Case Study – Capture and Utilization of Methane from an Effluent Treatment Plant (ETP)
The Chitale Dairy has an effluent treatment plant (ETP), which handles about about 8-10 lakh liters of diary
effluent per day. The chemical oxygen demand (COD) varies from 1200 ppm (parts per million) - 2100 ppm.
To self sustain the ETP, the dairy also wants to utilize the recycled water for the purpose of irrigation as
well as capture methane for power generation and at the same time gain environmental benefits.
The effluent treatment plant consists of the following standard equipment - bio digester, dissolved air
floatation (DAF), aerobic digester, secondary clarifier, sand filtration, carbon filtration and decanter. The
unit generates about240 -400 m3 of methane which is 75% of the biogas. The treated water has a biological
oxygen demand (BOD) of 25 to 50 ppm and 50 to 100 ppm of COD. The unit generates about 800 kg of solid
sludge per day.
Following are the operational issues which have come forth:
o Biogas containing more than 75% methane content may also have suphides of sulphur and
ammonia present as its constituents. These constituents may result in corrosion and therefore
requires a caustic scrub, before the methane can be utilized.
o Since an anaerobic pathway is being utilized in this process, there needs to be a constant monitoring
mechanism. It is required that the acidity of the system be regulated, because if the acidity slips the
regeneration of the process needs to be initiated from the beginning, which may take 1-2 months.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
15
o The consistency of methane also needs to be uniform and has to be constant.
o Considerable amount of sludge is generated, which can be used has compost since it has acceptable
quantities of nitrogen and phosphorous.
Way forward
o There need to be proper mechanisms for knowledge dissemination and the associated benefits of
adopting anaerobic digestion for methane generation
o Bad experiences need to be put behind and benchmarks need to be created for technologies
o Need to set-up demonstration projects
o Indian treatment plants need to be benchmarked with international plants to widen acceptability
o Anaerobic ETPs need to be advocated
Maj Gen (Retd) Dr R M Kharb
Prospects of Methane Recovery and Utilisation in Gaushalas
Maj Gen (Retd) Dr R M Kharb, Chairman of the Animal Welfare Board of India (AWBI) in his presentation
drew attention to the need for animal welfare and the efforts that are being made by the AWBI towards
this. He informed the gathering about the constitution and organisation of the Board and also highlighted
the various activities undertaken to fulfil the mandate of AWBI. He elaborated on the concept of setting up
gaushalas for the welfare of old and stray cattle and said that currently there were 4000 gaushalas
functioning under the AWBI and the cattle strength in each varies from 500 to 1000. These gaushalas are
faced with problems such as lack of trained manpower, and paucity of funds and adequate infrastructure,
lack of exploitation of local resources and improper marketing strategies and finally the non-existence of a
proper animal waste management system. He shared the Board’s plans for modernization of gaushalas
which included proper utilisation of available biomass in the form of cow dung, cow urine, and local flora
and fauna; to empower gaushalas to act as training and demonstration centres on organic farming for local
farmers and also as centres for local breed improvement and conservation; Farmers capacity building to
utilise the local resources through Gaushala platform; to develop marketing strategies for Gaushala
produce; to gainfully utilise the animal and agricultural waste in Gaushala and rural areas and; To meet the
rural energy requirement.
Dr Kharb said that gaushalas already have biogas plants but only 10% of these were functional. His
expectations from the workshop were that it would help to initiate the process of development of demo
plants in select gaushalas in each state which would serve as a model for replication. He re-emphasised the
urgent need to control methane emissions from cattle.
SESSION III: MILK PROCESSING SECTOR: METHANE RECOVERY AND UTILIZATION- POSSIBILITIES,
TECHNOLOGIES AND CASE STUDIES
Mr B Anil Kumar, International Institute for Energy Conservation
Possibilities of the productive use of methane in Indian dairies
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
16
Mr B Anil Kumar of the International Institute for Energy Conservation gave a presentation on the Methane
to Markets programme and the opportunities in the productive use of methane in dairies. In his
presentation he gave an overview of the Indian dairy sector with special emphasis on the milk processing
segment. He informed that although it is now mandatory for the dairies to set up waste water treatment
plants to treat waste water before discharge, in most of the dairies these do not operate efficiently. He also
mentioned that there was huge potential for CDM projects in the dairy sector. The methane emission
reduction strategies include, reducing enteric fermentation in cattle as well as capture of methane resulting
from manure management and wastewater treatment. In the case of organized cattle rearing i.e. milk
cooperatives and private dairies, capture of methane through anaerobic digestion would result in energy
savings, sale of electricity, byproducts (fertiliser) and methane emission reductions.
IIEC had studied 521 dairy units in Maharashtra to establish that 182,469 m3/day of waste water was
generated which has a biogas generation potential of 300,141 m3/day resulting in 2779 tons/Co2e carbon
credits from methane avoidance and 5878 tons/Co2e carbon credit potential from electricity generation.
Mr Anil Kumar further mentioned the social and environmental benefits of treating dairy waste water as a
resource. He presented the results of IIEC’s demo projects undertaken in two dairies in Maharashtra
namely Chitale and Warna Dairy. He said that their demo projects on biogas generation from waste water
have shown attractive pay back periods. He also explained about Agstar and said that it is an outreach
effort and provides an array of information and tools designed to assist producers in the evaluation and
implementation of energy recovery systems. He concluded with a brief on the proposed Agstar India
Programme under the M2M grant, a proposal for which has already been submitted to MNRE.
Mr Vinayak Jadhav, Clarke Energy
Engine Technologies for Waste-to-Energy Projects in the Milk Processing Sector
Mr Jadhav of Clarke Energy India Pvt Ltd, a subsidiary of the Clarke Group, UK made a presentation on
Engine Technologies for Waste-to-Energy Projects in the Milk Processing Sector. Clarke Energy India Pvt Ltd.
is an authorized distributor and service provider for GE Jenbacher gas gensets with a wide network all over
India. The company provides services to various sectors such as distillery, sewage treatment plants,
abattoirs, poultry etc. Power plants already installed and under execution by the company amount to over
225 MW, of which over 25 MW is from biogas plants. He started with an overview on the activities and
services of the Clarke Group and went on to explain about 100% waste-to-energy projects. The salient
features of GE Jenbacher Biogas Engines are:
• Designed to use gas as a fuel (Not Converted Diesel Engine).
• Designed for base load operation.
• Rugged engine, demonstrated experience in India on biogas for over 10 years.
• High electrical efficiency.
• Low lube oil consumption.
• PLC based DiaNe-XT Engine Management System.
• Hermes Remote Monitoring System.
• Patented LEANOX® Controller to use gases with varying low calorific value, important for biogas
fuel.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
17
• High availability of NG Gensets, 95-97% and greater achieved in India.
• High durability, major overhaul after 60,000 operating hours.
• Needs low inlet fuel gas pressure.
• Black start capability (no compressed air required).
• Meets stringent emission norms.
• Operates best on 100% full load in grid parallel mode, designed for unmanned operation (Grid
Parallel mode). Suitable for synchronised operation amongst gensets and for operating in parallel
with grid.
• Wide product range available in steps, providing flexibility to choose optimized configuration.
• Common spare parts in the same type/ family.
• No special requirements of foundation.
• Full power for low methane content.
• Compact in size, requires less space, can be installed on rooftop.
Mr Jadhav also explained the technology used in 100% biogas genset based power/cogeneration. The
schematic diagram below depicts the process in detail and the table gives an overview of the typical energy
balance for biogas genset based power generation.
The economic benefits of 100% biogas generation based cogeneration are:
• Capital Subsidy of INR 10 Mn. /MW is available from MNRE.
• Accelerated Depreciation Benefit available (80% Depreciation in the first year itself).
• Concessional Import Duties.
• CDM benefits available.
• Opportunity to generate more revenue from Sale of Power to Grid or Power Trading Company or
Third Party.
• Opportunity of Cash Savings through “Wheeling” to Group Company.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
18
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
19
SESSION IV: METHANE TO MARKETS AND FICCI’S ROLE AS FACILITATOR
Ms Rita Roy Choudhury, Joint Director and Head – Environment and Climate Change, FICCI
About Methane to Markets
Ms Rita Roy Choudhury made a presentation on the Methane to Markets Partnership Programme and
explained about FICCI’s role as a project network member in the programme. Methane to Markets is an
international initiative set up on Nov 16, 2004 that encourages development of cost-effective methane
recovery and use opportunities in: coal mines, landfills, oil and gas systems and, agriculture, livestock and
agro-based industry. There are over 28 Partner Governments including India and active participation from
over 850 private companies, multilateral development banks and other relevant organizations engaged in
methane recovery and use projects.
The M2M Agriculture programme which was the primary focus of this workshop is designed to have a
positive impact on environment through an integrated waste management approach and also to facilitate
rural and economic development, through income generation or cost-reducing activities. It is designed to
demonstrate targeted technologies through resource assessments and capacity building. Case Studies of
M2M activities in other Asian countries were presented to explain the scope of activities possible in the
Indian context.
Under the FICCI-M2M Partnership, FICCI’s role entails:
� Creating awareness on the M2M initiative and strengthening the partnership in India among
stakeholders including concerned Ministries.
� Strengthening the involvement of key industry stakeholders with respect to issues related to Policy,
Technology and Finance.
� Capacity building and awareness generation on methane recovery and use opportunities in India.
FICCI is currently implementing a project on Facilitating Mechanisms for Advancing Methane Recovery and
Use Projects in India. The project aims at policy analysis, awareness creation, information dissemination,
stakeholder feedback and capacity building to facilitate methane recovery and use projects in India as well
as building linkages between other M2M projects being carried out in India. And further, creation of an
interface between interested private sector companies, project developers, technology providers and
financing institutions to facilitate methane recovery and utilisation projects in India.
The presentation concluded with an overview of the activities that FICCI would undertake in future under
the programme and this included:
• Study tours and site visits for interested and potential companies from the dairy and livestock
sector.
• A larger workshop for the dairy, agriculture, livestock and agro-based industry.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
20
• Facilitating pre-feasibility studies for potential project interests
• Identifying successful case studies to showcase at the Methane to Markets Partnership Expo to be
held in on March 2-5, 2010 in New Delhi.
Ms Rita Roy Choudhury, Joint Director and Head – Environment and Climate Change, FICCI
Introduction to CDM
Ms Rita Roy Choudhury made a presentation to explain to the audience the basic features of the Clean
Development Mechanism. She started with a definition of Climate Change and went on to explain about
the United Nations Framework Convention on Climate Change and the Kyoto Protocol. She gave a brief on
the CDM project cycle and the different project categories. She also mentioned about the type of projects
being implemented under each category in India. She informed the participants that as on April 2009, the
Indian CDM pipeline had 1275 projects which together account for 58.2 million CERs.
CDM projects in the Indian Livestock sector:
Poultry litter based power generation: 7
6 companies have 7 CDM projects (1 registered)
• 5 RE(biomass), 1 RE, 1 EE
• 1.5 million CERs
Methane recovery in Livestock Farm: 1
CDM project based on Manure Management System
• RE (biomass)
• 0.0003 million CERs
Methane recovery in other sectors
Number of projects: 14
14 companies have CDM projects based on methane recovery
• 11 IP, 2 RE(biomass), 1 EE
• Sectors: Agro-industry, Cement, FMCG, P&P, Sugar Waste Management, Water Supply and
Sewerage
• 0.41 million CERs
Way forward for the dairy sector
� Dairy livestock sector is one of the highest emitters of methane and the global warming
potential of methane is about 21 times higher that carbon dioxide.
� There is high potential for realization of carbon credits and high earnings.
� There is potential for bundling of projects in the sector
� Since the sector is organised, there is scope for programmatic CDM also.
The dairy sector should therefore, explore the CDM route.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
21
SESSION V: FINANCING OPPORTUNITIES IN METHANE RECOVERY AND UTILIZATION IN THE DAIRY AND
LIVESTOCK SECTOR
Mr Srinivasulu Reddy, State Bank of India
Carbon financing options for CDM projects
Mr Reddy explained the State Bank of India’s initiatives in carbon financing for CDM projects. He informed
the participants about the proposed loans/ products under the Bank’s carbon finance activities:
Finance to CDM products
Term loans to implement such projects are being considered at concessional rate of interest
Advisory services
These services include:
o Empanelment of consultants for extending assistance in identifying CDM opportunities
o Overall assistance in CDM registration and sale of CERs.
o Details of business to be advised to CPPD for review of the relations
o
Loan against CERs
The eligibility for these types of loans includes:
• SB3/ SBTL 3 customers
• Non customers selectively
• Registered CDM project
• Commenced functioning
• ERPA
The other terms include:
• Purpose : Genuine commercial purpose in line with the regular business activity
• Quantum of finance: Minimum Rs 1 Crore
• Quantum of loan: 60% of the CERs up to year 2012
• Buyer: Reputed
• Pricing: as per CRA
• Repayment: 5 years
• Processing charges: 1%
• Documentation: Simple
• Security: Hypothecation of CER receivables, extension of charge on Plant & Machinery,
Personal Guarantee of the promoters/ directors etc.
• Routing of sales proceeds
Documents required:
• PDD : to know the quantum of CERs for arriving at the loan eligibility
• CDM registration certificate
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
22
• Verification report : to verify the number of CERs
• ERPA between seller and buyer
Few other loans which are yet to be launched but under consideration by the State Bank of India are:
• CER delivery guarantee
• Intermediary services
• Bundling of SMEs
• Escrowing of CERs
Mr Vaka Reddy also said that Gaushalas interested in taking up programmatic CDM could approach the
Bank for consultancy services and also carbon financing and the bank would be happy to help them out.
SESSION VI: RENEWABLE ENERGY FROM OTHER SOURCES
Mr Hemant Revankar, Bipin Engineers Pvt Ltd
Utilisation of Solar Energy in the Dairy Sector
Mr Revankar made a presentation on Solar Water Heating Systems. A Solar Water Heating System is a heat
exchanger that captures the heat of the sun and transfers it to water. The different types of solar water
heating systems are:
• Thermosyphon System
o Generally installed for one fixed time usage Domestic application
o These systems have fixed volume but varying temperatures
• Forced Flow System
• Generally installed for differed usage Industrial application
• These systems have varying volumes but fixed temperatures
Thermosyphon System Forced Flow System
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
23
Solar water heating systems can be used in hostels, hotels, hospitals, bungalows, health clubs, poultries,
apartments and industry. In the dairy sector these systems can be successfully applied in chilling plants,
pasteurization and, washing of storage tanks, cans and bins. Mr Revankar presented a case study of the
installation of solar water heating system at Shivamrut dairy where the system was being used to provide
boiler feed water. There were 550 collectors and a capacity of 50000 LPD at 80˚C.
The information required for sizing and designing the system includes:
• Volume of hot water required.
• Current mode of generating hot water (fuel – LDO/Coal/Wood required per day).
• Shadow free area available for installation of the system.
• Utility pattern of hot water.
• Required output temperature of hot water.
Each collector requires an area of 3 m2 for installation and the output generated per collector is: 125 LPD@
600 C, 85 LPD @ 80
0 C and 100 LPD @ 70
0 C. Mr Revankar concluded his presentation with an overview of
the new solar heating systems available for use such as ETC, heat pipe, photovoltaic for lighting purposes
and the wind hybrid system.
Mr Pradeep Mankar, Clique Developments Private Limited
Presentation on Solar Energy for Pasteurisation
Mr Mankar in his presentation elaborated on the new product “Arun” which uses solar energy for
pasteurization. He explained the mechanism and the design of the product in detail. The organisations
involved in the effort besides Clique developments Private Ltd were IIT Bombay and MNRE. He also
mentioned that the system can be used in different industry sectors including dairies and also that such a
product has been developed for the first time in the world. He also added that the maintenance costs are
minimal. The MNRE provides subsidy on installation and the company has gained through depreciation and
income tax benefits which are accorded to renewable energy projects in India.
Dr Sharad Kale, Bhabha Atomic Research Centre
Presentation on Bio-gas Application for Kitchen Waste in Dairy and Gaushalas
Dr Sharad Kale made a presentation on biogas application for kitchen waste in dairy and gaushala. He
explained about the technology “Nisargruna” which is a solar powered biogas plant that converts ordinary
kitchen waste into fuel. He stressed on the importance of decentralised waste processing and said that this
technology was a successful example of the same. The plant installed has been taking care of the kitchen
waste in the BARC Canteens which amounts to about 600 kg daily. The plant works on the same principle as
gobar gas plants, where the bacterial breakdown of waste produces energy, but with modifications which
improve its output. The gas produced is used in the canteen and the byproduct is used as garden manure.
The technology is being tried out at various institutes including IIT, Symbiosis etc.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
24
ISSUES AND RECOMMENDATIONS
The main thrust of the workshop was on making the participants aware of the potential and benefits of
methane recovery and utilization. The aim was also to understand the reasons for the low success rate of
biogas plants in India. The dairy sector is emerging as a potential industry for the implementation of biogas
projects and also for utilization of renewable energy from other sources such as solar energy. The
discussions at the workshop helped identify issues that need to be addressed to make methane recovery
and utilization a success in India especially in the dairy (livestock and milk processing) sector.
Issues:
• The sector lacks skilled manpower to maintain and operate bio-gas plants.
• Gaushalas are also affected by the lack of finance and adequate know-how.
• The cost of operating effluent treatment plants is high due to reasons such as expensive fuels such as
furnace oils. The companies therefore try to save costs resulting in non-functional or partly operational
effluent treatment plants which fail to check pollution from dairies. Technologies such as biogas etc
should therefore be promoted so that diaries can meet the costs and also comply with the
environmental norms.
Recommendations
The discussions at the workshop brought out the following recommendations to popularize biogas plants:
• Clustering of smaller gaushalas for setting up biogas plants for biogas supply and electricity generation.
• Subcommittees may be set up including representatives from dairies, gaushalas, financial institutions
and government etc. to devise policy options to promote biogas projects.
• Standardised models may be developed for gaushalas to follow in developing projects based on
respective capacities. They asked for hand holding in terms of financing and consultancy.
• The government and institutions like FICCI can collaborate with foreign companies working on biogas
technologies and help to spread know-how on new and relevant technologies applicable to the Indian
markets.
• Some companies may be certified from whom gaushalas can take technologies.
• Extension work is required at farm levels from research and development organizations.
• Mechanisms need to be identified to help build technical capacity, monitoring and control.
• Dairies and old age cattle farms are also encouraged to prepare silage and manufacture organic
fertilisers.
• Solar water heaters have attractive pay back periods of 2-3 years, so they may be promoted as a good
option for the dairy industry, which requires hot water throughout the year.
• There needs to be a proper mechanism for knowledge dissemination along with dissemination of
information on benefits of adopting anaerobic digestion for methane generation.
• Lessons need to be learnt from past experiences and benchmarks need to be created for technologies.
• Need to set-up demonstration projects in each state which may be replicated.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
25
• Indian treatment plants need to be benchmarked with international plants to widen acceptability.
• Bottling of CNG is not recommended as a viable option, instead bio gas should be used for cooling and
steam generation within the plant and excess can be supplied to the electricity grid.
• Anaerobic ETPs need to be promoted.
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
26
LIST OF PARTICIPANTS
1. Dr R M Kharb, Chairman, Animal Welfare Board of India (Min. of Environment & Forests)
2. Dr Z S Rana, Nodal Officer, AWBI
3. Dr Deepti Rai, Sr. Project Coordinator, Ayurvet Ltd.
4. Mr Wayse R. D., Dairy Engineering, Baramati Distt.
5. Mr Khamgal Walmik, Asst. Manager, Baramati Distt.
6. Mr Jitendar Bhujabal, Asst. Manager (Dairy), Baramati Taluka Sahakri Dudh Utpadak Sangh Ltd.
7. Prof Sharad Kale, Bhabha Atomic Research Centre
8. Mr Hemant Revankar, Managing Director, Bipin Engineers Pvt. Ltd.
9. Prof Anil Dikshit, Centre for Environmental Science & Engineering, Indian Institute of Technology
10. Mr Vinayak Jadhav, Clarke Energy
11. Mr Pradeep Mankar, National Manager- Sales, Clique- Green Energy Solutions
12. Dr Anup Kalra, CEO-Animal Feed Business, Dabur Ayurvet Ltd.
13. Mr Shingare D K, Project Manager, Dudh Pandhari (Solapur Dist. Co. Op. Milk Products Union Ltd. Solapur
14. Mr Nayan Khambati, Consultants, Econ Pollution Control Consultants
15. Mr Harshad Gandhi, Business Consultant, Excel Industries Ltd
16. Mr Vipin Doshi, Vice President Special Projects, Excel Industries Ltd.
17. Ms Rita Roy Choudhury, Joint Director and Head - Environment and Climate Change, Federation of Indian
Chambers of Commerce and Industry (FICCI)
18. Ms Astha Batra, Assistant Director - Environment and Climate Change, Federation of Indian Chambers of
Commerce and Industry (FICCI)
19. Er Subodh Kumar, Chairman, Global Singal Group (India & USA)
20. Mr Mahesh Patankar, IIEC (International Institute on Energy Converstaion)
21. Mr Chandan Gadgil, CEO, Innovative Environmental Technologies Pvt. Ltd.
22. Mr Anil Kumar, International Institute for Energy Conservation
23. Mr B Kumar, Consultant, Intrnatinal Institute For Energy Conservation (IIEC)
24. Mr B M Kumar, Joint Director (Enginnering), Karnataka Co-operative Milk Producers Federation Ltd.
25. Mr Govinde Gowda, Manager (Engg.), Karnataka Milk Federation
26. Mr Vivek D , General Manager, Karnataka Milk Federation
27. Mr R Hariharan, DO (B.T.), Khadi & V.I. Commission
28. Mr S A H Jafri, ADO (B.T.), Khadi & V.I. Commission
29. Mr S N Shukla, Director (B.T.), Khadi & V.I. Commission
30. Mr K Ramesh, Assistant Director( Bio-tech), Khadi & Village Industries Commission
31. Shri Nilkantrao Kode, Vice Chairman, Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit
32. Mr A T Bahekar, M. R./ Senior Manager Q.C., Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit
Mahanand Dairy
33. Dr Ravindra Naik, Senior Manager (FO&AH), Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit
Mahanand Dairy
34. Mr Balasahib Patil, Manager, Maharashtra Rajya Sahakari Dudh Mahasangh Maryadit Mahanand Dairy
_______________________________________________________________________________________
_______________________________________________________________________________________ Federation of Indian Chambers of Commerce and Industry
27
35. Mr K Krishan, Chairman, Malavalli Power
36. Mr Anil Dhussa, Director, Ministry of New and Renewable Energy
37. Mr M P Singh, Joint Director (Projects), PEDA
38. Mr Manish Kharwade, Manager- Process, Praj Industries Ltd.
39. Mr Sachin Rajurkar, Sr.Engineer, Praj Industries Ltd.
40. Dr Vivek Bheemrao Shirsagar, Chief Executve Officer, Pune Distt.
41. Mr Vijay, ETP Operator, Pune Distt.
42. Dr V H Ksheersagar, Managing Director, Pune Zila Sahakari Dudh Utpadak Sangh Maryadit
43. Mr D S Rathore, Deputy Manager, Sabarmati Ashram Gaushala
44. Mr J B Sojitra, Manager WS, Sabarmati Ashram Gaushala
45. Mr M H Jadhav, Elect. Supervisior, Shivamrut Dudh Utpadak Sahakari Sangh Ltd. Akluj.
46. Mr Salim Vajir Shaikh, Incharge Barshi Plant, Solapur Zila Sahakari Dudh Utapadak Va Prakariya Sangh
47. Mr Dattatray K Shingare, Manager Vashi Plant, Solapur Zila Sahakari Dudh Utapadak Va Prakariya Sangh
48. Mr V Reddy, Chief Manager, State Bank of India
49. Mr Alok Gupta, President, Surabhi Sanjeevani Shodh Sansthan
50. Mr B VasanrhaKumar, Deputy Registrar/ Managing Director, The Pondicherry Co-operative Milk Producers
Union Ltd.
51. Mr B Vasantha Kumar, Managing Director, The Pondicherry Coop Milk Producers Union Ltd.
52. Mr Devender Singh, Hisar
53. Mr Shamsher, Hisar
54. Mr Rajender, Hisar