Policy to sell biomass pellets to coal fuelled power projects to roll out soon

New Delhi, 3 Jan (KNN) A policy that has made it mandatory for coal fuelled power projects to use biomass pellets as 5% of their fuel mix and help farmers earn around INR 15,000 crore annually may find a mention in finance minister budget speech, two government officials aware of the development said as reported by mint.

The plan, tentatively named SAMARTH, is part of the government’s strategy to support India’s energy transition and check pollution fr0m crop stubble burning by converting them into pellets and facilitating their sale.

The pellets are mixed with coal to generate electricity. With India’s power plants consuming around 700 million tonnes (mt) of coal every year, a 5% blend will result in around 35mt less of coal being burnt, helping reduce carbon emission. The plan is to encourage farmers to convert crop stubble into pellets rather that burn it. Stubble burning is rampant in Punjab, Haryana, Uttar Pradesh, Delhi, Rajasthan and Madhya Pradesh.

Coal fuelled power projects totalling 202.22 gigawatts (GW) remain the mainstay of India’s power generation and account for more than half of India’s power generation capacity. India has the world’s fourth largest reserves and is the second largest coal producer.

“It has been mandated that all thermal power plants use 5% blend of biomass pellets made, primarily, of agro residue along with coal with effect fr0m one year of the date of issue of this guideline. The obligation shall increase to 7% (expect for those having ball and tube mill the use of biomass remain 5%) with effect fr0m two years after the date of issue of this order and thereafter,” according to the 8 October’s Revised Policy for Biomass Utilization for Power Generation through Co-firing in coal based power plants.