FICCI-MNRE Workshop on Opportunities for Methane Recovery ... · FICCI-MNRE Workshop on Opportunities for ... Mr Dhussa in his presentation highlighted the various policies and programmes

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

_______________________________________________________________________________________


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.

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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:

_______________________________________________________________________________________


10

Anaerobic Treatment in Dairy Industry

Following are the characteristics of dairy effluent waste:

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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:

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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.

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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.

_______________________________________________________________________________________


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.

_______________________________________________________________________________________


18

_______________________________________________________________________________________


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.

_______________________________________________________________________________________


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)


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


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.

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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.

_______________________________________________________________________________________


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.

_______________________________________________________________________________________


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.

_______________________________________________________________________________________


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

_______________________________________________________________________________________


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