Biomass is an organic material of recent origin that can be used as a source of energy. It generally includes crops and other plants, as well as agricultural, forest, sawdust, and agro-industrial waste.

The electricity that produced as a result of utilizing surplus biomass sources into energy considered biomass power. Biomass combusted in a boiler produces steam. This steam drives a turbine generator that produces electricity. This electricity will be fed into the high voltage transmission grid to be transported to end-users.

Generating power through the use of biomass represents the cost-effective and cleanest way to provide renewable electricity in biomass potential regions with high levels of biomass resources and its processing activity. Furthermore, use of this resource helps become more energy independent, and the use of a locally derived fuel provides employment and direct economic benefit to local communities.

The estimated power potential from surplus agro residues in the country is about 17,000 MW. In addition, about 5000 MW of power can be produced, if the sugar mills in the country switch over to modern techniques of cogeneration.

Generating power through the use of biomass represents the cost-effective and cleanest way to provide renewable electricity in biomass potential regions with high levels of biomass resources and processing activity. Furthermore, the use of this resource helps become more energy independent, and the use of a locally derived fuel provides employment and direct economic benefit to local communities Indian BioEnergy.

Biomass power generating units produce a significant economic benefit to the area surrounding the plant. A 10 MW biomass power project can create approximately employment for 100 workers during the 18-month construction phase, 25 full-time workers employed in the operation of the facility, and 35 persons in the collection, processing, and transportation of biomass material.

The principal source of biomass is rice husk, woody biomass such as Julie flora, casuarina, other agro residues such as stalks/cobs/shells, sugarcane trash, cotton stalks, mustard stalks, groundnut shells, etc.

If there are no issues in fuel collection, investors, and funds, then it is possible to develop a project in a fast track mode in 18 months period.

The capital cost of installation of bagasse based co-generation projects is in the range of Rs. 4.5 to Rs. 5.0 Crore/MW depending upon technical, financial and operating parameters. Costs of generation are expected to vary from Rs. 3.25 to 3.75/kwh, depending upon the plant load factor, and interest on term loans. The PLF of bagasse cogen projects is about 45% – 55%. In the case of biomass power plants, the capital cost of installation are Rs.4.5 to 5.0 Crore/MW, depending upon boiler pressure and capacity, costs of generation around Rs. 3.50 to Rs. 4.00/kwh. The PLF of biomass power projects is about 70% – 75% Indian BioEnergy.

EPC approach is suitable when the project owner/developer/investor is not having core expertise in biomass project development. But, in general, the EPC contract is 10 to 20 % more expensive than separate procurement and management. The exact approach selected depends on several aspects of the project and it difficult to generalize.

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