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Allgreen Energy to launch
10 Biomass based Renewable Energy Projects
 AIIGreen Energy India Pvt Ltd, a 100% subsidiary of AIIGreen Energy Re Ltd, Singapore will launch 10 biomass based renewable energy projects in the country in the coming 2 -3 years, out of which the first 3 will be in Karnataka, Tamil Nadu and Madhya Pradesh. AIIGreen Energy plans to break ground on the first three projects in the first quarter of 2009.
Announcing this at a press conference, the company's Chairman & CEO, Mr Kamlesh Tejwani said, "Each biomass power plant will produce 6.5 MW and the total output of all the plants in the first 2-3, years will be 65 MW. The power plants are to be set up in close proximity to the biomass resource as well as to the state grid through which the electricity generated will be sold."
Mr Tejwani added, "AIIGreen Energy's business model is to set up projects on Build, Own, Operate basis. However, in order to achieve these goals, AIIGreen believes it is critical to align 'best in class' companies across the biomass energy value chain to work alongside it, as success breeds success." "We feel proud and honoured to be able to announce that GE Energy and ITC Ltd., have become our strategic partners in realizing our vision. These partnerships are also a testimony to the potential this business has and the foresight and desire these companies have in helping to build an environmentally sustainable, socially inclusive, and economically viable business such as AIIGreen Energy's. The goal is: "A cleaner, brighter future," he said.
Earlier, during the signing up of the MOU between AIIGreen & GE Energy, Mr. Kishore Jayaraman CEO of GE Energy for India, Bangladesh and Sri Lanka region said "GE sees India as an exciting growth opportunity in the renewable energy segment. With India's increasing demand for power, exploring alternative energy resources such as biomass is critical to meeting this demand. By working with AIIGreen to bring GE's Jenbacher technology to the region, we hope to encourage others to consider developing renewable energy projects in India. We are impressed with AIIGreen's approach of developing a business model of integrating biomass supply chain operations with power generation.
For biomass procurement, AIIGreen Energy has entered into an MOU with ITC's Agri Business Division. The MoU with ITC's Agri Business Division envisages the development of power plants by AIIGreen Energy in areas where ITC has a strong foothold in supply chain activities through its e-Choupal network, plantation development and related activities.
RENEWABLE ENERGY MARKET IN INDIA
According to the Power Ministry, electricity generated from renewable sources in India currently stands at about 13,200 MW out of a total electricity generation of 147,400 MW. Of this, the electricity generation using biomass resources stands at 650 MW against a potential of 16,000 MW. "This gives a fair idea of the untapped potential in the biomass sector," noted Mr Tejwani. "The key to unlocking the market is to have a workable and integrated biomass strategy".
SUPERIOR TECHNOLOGY
AIIGreen Energy is adopting the resource efficient Biomass Integrated Gasification Combined Cycle (BIGCC) Technology. The BIGCC technology will include Biomass Gasification technology developed and patented by the Indian Institute of Science which has been licensed by Energreen Power Limited, the EPC partner of AIIGreen Energy, integrated with the world renowned gas engines from GE Jenbacher customized for wood gas application. (See exhibits 2 for details)
"Unlike a Rankine cycle power plant, where biomass is burnt in a boiler and the steam generated is used to turn a steam turbine generator for power generation, the BIGCC converts solid biomass by controlled pyrolysis into a combustible gas, which forms the fuel for a gas engine to generate electricity in the Open Cycle.," explained T R Krishnaswamy, Director -Technical at AIIGreen Energy. Under this technology, the conversion of biomass to electricity is higher compared to conventional processes.
"The use of customised engines from GE will enable exhaust heat capture for conversion to steam to drive a steam turbine generator in a bottoming cycle. BIGCC technology produces 30% more electricity than traditional combustion processes, and the chilled water by vapour absorption from the process can be used for a Cold Storage Facility," added Krishnaswamy.
While in thermal power plants the by-product is ash, Biomass Gasification produces charcoal which can be activated to make activated carbon which is used for purification purposes in industries such as water treatment and Pharmaceuticals.
Another notable feature is the quantum of water consumed in the power plant. BIGCC technology consumes only a fraction of the water consumed by conventional combustion projects. This is because the biomass gasification process itself generates water as a byproduct whereas combustion processes consume water to dissipate the unused energy.
HOLISTIC BIOMASS-ENERGY SUPPLY CHAIN
"Besides its superior technology, AIIGreen Energy will also adopt a holistic approach in handling the entire biomass chain, starting from biomass production to sourcing. This will range from professional harvesting facilities for the farmers, through to, post harvesting services such as drying, and shell-breaking as in copra production in return for the rights over the biomass generated," explains Dinesh J. Kagathi, COO, AIIGreen Energy.
A symbiotic relationship is cultivated with primary producers, which is a win-win strategy for all the stake holders. A part of the electricity generated will be supplied to the local area from where the biomass is sourced, thus improving the lives and economies of the local communities where AIIGreen Energy's plants will be built.
As previously mentioned, for biomass procurement, AIIGreen Energy has entered into an MOU with ITC's Agri Business Division. ITC's e-Choupal has played a transformational role in empowering millions of farmers in rural India. This innovative digital and physical infrastructure, pioneered by ITC, has created an effective two-way channel to and from dispersed rural communities, thereby enhancing productivity, improving connectivity and raising farm-based income.
AIIGreen Energy also believes that ITC's expertise in social and farm forestry, nurtured through intensive R&D programmes, will help in developing robust biomass plantations for power generation.
Earlier, while signing the MOU with AIIGreen, S Sivakumar, Divisional Chief Executive, ITC - Agri Business Division said, "This partnership will leverage ITC's close association with rural communities and holds the promise of enhancing farm productivity through better availability of power, generated through clean renewable biomass energy resources."
"Being a socially conscious corporate, AIIGreen Energy proposes to set aside a percentage of profits to develop the local community and local economy in which we will operate" added Mr. Anil Lala, Director-Corporate Development, AIIGreen Energy. This will be set up through a separate Foundation, which will also seek local and international donors to assist it with these CSR projects.
ENVIRONMENTAL IMPACTS
Apart from the above commercial benefits, the technology offers several environmental benefits too. Firstly, the technology is carbon neutral since only the carbon absorbed during photosynthesis is released back to atmosphere. Secondly, due to the efficient thermo-chemical conversion in the biomass gasification process, there are no paniculate emissions into the atmosphere.
INVESTMENTS & RETURNS
AIIGreen Energy will be investing about Rs. 500 Cr to build these 10 facilities over the next 2 -3 years. Although the levelised cost of electricity generated by these facilities will be about Rs. 3.50/kWh; AIIGreen expects to sell its electricity as a Merchant Power Plant utilizing the 'open access' provision of Indian Electiricity Act and realize revenues upwards of Rs. 4.50/kWh.
GREEN CREDENTIALS
The company's Renewable Energy Projects have a number of internal synergies among the various components each reinforcing the other in resource consumption and energy usage.
The Biomass Integrated Gasification Combined Cycle (BIGCC) Power Plant uses the low cost, patented and proven process, perfected by Indian Institute of Science, Bangalore, that has been used in over 50 plants in India and abroad. All the causes of inefficient burning are adequately addressed by the gasification process. Properly sized biomass is dried to less than 10% moisture using waste heat and subjected to thermo-chemical cracking in a controlled atmosphere, and all the volatiles are trapped in the reactor. The long chain compounds in the biomass are completely broken down to Producer gas. This gas is then cleaned using cyclones, chilled water scrubbers and fabric filters and then subjected to combustion in highly efficient gas engine generators from GE Jenbacher customised to use wood gas in the Open Cycle. Besides producing a very clean combustible gas, it also generates 5% by weight of charcoal, which can be further processed into activated carbon, an important industrial chemical with extensive use in water treatment, edible oil refining and Pharmaceuticals.
The exhaust contains absolutely no soot and particles and is clean enough to be directly used without further processing in a waste heat boiler to generate steam for the Bottoming Cycle steam turbine to generate additional 10% energy at zero fuel cost. The conversion efficiency of the BIGCC from biomass to electricity is 35%, compared to 25% for the alternative Biomass Combustion Power Plants.
The heat in the engine jacket is used to generate chilled water, used for both gas scrubbing and for running a Cold Storage. Even the exhaust from the Waste Heat Boiler is used to dry incoming wet biomass.
With lower specific fuel consumption of 25% than the alternatives, complete utilisation of exhaust heat to generate power and chilling capacity, lower water consumption than in Rankine cycle plants, much cleaner exhaust gas with no particulat.es and much tower NOx and CO than the other processes, the overall environmental footprint of the BIGCC plant in resource and energy use is much smaller.
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