mnre annual book 2002 03

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MNRE Annual report 2002-03 BIOMASS POWER PROGRAMME 5.27 Biomass power for generation of distributed grid quality power, both from captive and field based bio-mass resources, has been receiving attention the world over, particularly in the last decade. The social, economic and environmental benefits of biomass power are accepted for long term sustainability. The technologies are progressively getting upgraded, attaining maturity, and reaching commercialisation. 5.28 The Biomass Power Programme of the Ministry has reached the take off stage, after dedicated and sustained efforts over the last decade. The total potential is about 19,500 MW, including 3,500 MW of exportable surplus power from bagasse-based co- generation in sugar mills, and 16,000 MW of grid quality power from other biomass resources. The total installed capacity in the country, as of December 31, 2002, is 468 MW, and projects of capacity 530 MW are in various stages of implementation. Year- wise installation of biomass power/co- generation capacity is given in Figure 5.2. A target of 700 MW has been proposed for the 10 th Five Year Plan (2002-07), including 450 MW from bagasse/biomass co- generation and 250 MW from biomass power. Biomass Power/Co-generation Programme Objectives 5.29 The Biomass Power/Co-generation Programme is being implemented during the 10 th Plan, which commenced during 2002-03, with the following objectives: i) To promote technologies of co-generation, biomass combustion, megawatt scale gasification, and industrial co-generation for generation of power.

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Page 1: Mnre Annual Book 2002 03

MNRE Annual report 2002-03

BIOMASS POWER PROGRAMME

5.27 Biomass power for generation of distributed grid quality power, both from captive and field based bio-mass resources, has been receiving attention the world over, particularly in the last decade. The social, economic and environmental benefits of biomass power are accepted for long term sustainability. The technologies are progressively getting upgraded, attaining maturity, and reaching commercialisation.

5.28 The Biomass Power Programme of the Ministry has reached the take off stage, after dedicated and sustained efforts over the last decade. The total potential is about 19,500 MW, including 3,500 MW of exportable surplus power from bagasse-based co-generation in sugar mills, and 16,000 MW of grid quality power from other biomass resources. The total installed capacity in the country, as of December 31, 2002, is 468 MW, and projects of capacity 530 MW are in various stages of implementation. Year-wise installation of biomass power/co-generation capacity is given in Figure 5.2. A target of 700 MW has been proposed for the 10th

Five Year Plan (2002-07), including 450 MW from bagasse/biomass co-generation and 250 MW from biomass power.

Biomass Power/Co-generation Programme

Objectives

5.29 The Biomass Power/Co-generation Programme is being implemented during the 10th Plan, which commenced during 2002-03, with the following objectives:

i) To promote technologies of co-generation, biomass combustion, megawatt scale gasification, and industrial co-generation for generation of power.

ii) To develop Biomass Resource Atlas based on biomass resource assessment studies in different regions of the country.

iii) To support District-wise Resource Assessment Studies in potential States.

iv) To support R&D for development of technologies including Advanced Biomass Gasification and 100% producer gas engines, as well as applications research for enhancement of potential in identified areas of thrust.

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v) To support and thus enlarge activities through awareness creation, publicity measures, seminars/workshops/business meets etc.

5.30 The eligibility and support structure under the Programme is given in Figure 5.3. The Programme includes the following Components:

Interest Subsidy for Bagasse/Biomass Co-generation projects, including IPP mode projects;

Interest Subsidy for Biomass Power Projects, including captive power projects; Grants to MW-scale projects with 100% producer gas engines, and Advanced

Biomass Gasification projects; Promotion of Industrial Co-generation projects in core industry sector for

surplus power generation; Promotional Incentives for awareness creation, training and preparation of

Detailed Project Reports; and Grants for Biomass Resource Assessment Studies.

5.31 Pattern of Financial Assistance/Incentives for setting up of Biomass Power/Co-generation Projects is given in Table 5.9.

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Biomass Resource Assessment

5.32 The Ministry had undertaken taluka level biomass resource assessment studies during the 9th Plan, with a view to assess surplus biomass availability for power generation in 500 talukas in the country. The Programme was implemented through a National Focal Point, Five Apex Institutions, and a number of consultants to carry out field level surveys. 495 studies were taken up in 23 States; 299 studies have been completed, and the remaining studies are likely to be completed during 2003. District-level biomass resource assessment studies in six potential States will be initiated during the year.

5.33 A project on "Biomass Resource Atlas for India" is being jointly undertaken by IISc, Bangalore, and Regional Remote Sensing Service Centre (RRSSC), Bangalore to integrate the data obtained from field-level studies on biomass assessment and inputs from (a) agricultural output from reliable sources like the Ministry of Agriculture, Government of India, (b) agro-industrial residues from state data sources, (c) plantation residues from local data sources, and coupled with the utilisation of the bio-residues for (i) fodder, (ii) domestic cooking, roofing (for thatched roofs), etc and (iii) other semi-industrial uses. The actual location of the bio-residue or at least biomass production area is sought to be made available on a map to help in planning and development of biomass power projects in various States.

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RRSSC provides GIS based maps for the identification of cropped areas across the country. Additional work related to crop identification is being done using the data on NDVI (Normalised Difference Vegetation Index). Some of these are at the level of new knowledge and hence what is guaranteed from the maps would be the cropped area with a probability index attached to the specific crop identified.

Research & Development

5.34 The R&D component of the Programme aims at the development of biomass conversion technologies, technology application packages; strategic developmental demonstration pilot projects; improvement in efficiency; reduction in cost; and, eventual commercialisation and development of biomass power/cogeneration on an industrial scale. An R&D project on "Strategic Development of Bio-energy" (SDB) is being implemented, which entails development of technology packages for a variety of biomass materials for power generation, as well as industrial applications. The important development relates to producer gas based reciprocating engines. Experimental work on an industrial natural gas engine of 360 kWe produced 195 kWe with a gas calorific value of 4.5 MJ/kg. The specific fuel consumption of the engine was 1.1kg/kWh. Peak output of 214 kWe, with a gas calorific value of 5 MJ/kg, is likely to be achieved in the field systems with an enhanced design of the reactor, slightly different from the one used in the laboratory. The modelling of the reciprocating engine for predicting the pressure-crank angle diagram using fluid dynamic inputs from three dimensional flow computational tools has been taken to a logical conclusion in predicting the performance of the engine with varying compression ratio or ignition timing.

5.35 A multi-institutional co-ordinated project on "Advanced Biomass Gasification" (ABG) is being implemented, which aims at the development of a high pressure gasifier coupled with gas turbine engines for generation of power. The progress during the year relate to the procurement of a micro-turbine derived from an Auxiliary Propulsion Unit (APU) of an aircraft with aviation kerosene as the fuel, and the establishment of all the elements of the high pressure gasifier. They have been individually run and they are to be coupled. The full automation system is being put together to enable the operation of the gasifier and the power generation system run by the gas turbine.

Progress and New Initiatives

5.36 43 bagasse based co-generation projects with aggregate capacity of 304 MW capacity have so far been commissioned; 31 projects with aggregate capacity of 312 MW are under implementation; 34 commercial grid connected biomass based power projects with aggregate capacity of 164 MW capacity have so far been commissioned, and 36 projects of 218 MW capacity are

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under implementation. The status of projects commissioned and under implementation is given in Table5.10. The State-wise list of commissioned biomass power/co-generation projects is given in Table 5.11.

5.37 Capacity addition of 86 MW in three States has been achieved, up to December 2002, against the annual target of 100 MW. Another 25 MW of capacity addition is expected to be achieved during the year. High pressure & temperature configurations of 67 kg/cm2 and 495oC have been demonstrated in several bagasse co-generation and biomass power projects in the country. Extra high pressure configuration at 87 kg/cm2 and temperature of 515oC was established during the year in bagasse co-generation projects in Andhra Pradesh and Tamil Nadu; a number of projects are being planned with similar pressure and temperature configurations.

A 40 MW Bagasse Co-generation Power Plant with 87 bar boiler in Tamil Nadu

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5.38 The Ministry has taken a number of steps to create widespread awareness and promote the acceptance of biomass power/cogeneration. A number of workshops, business meets and training programmes on biomass/bagasse cogeneration, and industrial co-generation projects were organised during the year. Interaction meetings were held with State Governments, financial institutions, State Nodal Agencies, State Electricity Boards, manufacturers, developers, investors and consultants to stimulate their interest and generate support for the biomass power generation programmes.

5.39 Promotion of industrial co-generation in core industry sectors such as textiles, paper, food processing, petro-chemicals etc. was initiated during the year. Industrial co-generation has a potential of about 10,000 MW surplus power generation in the industry. These projects could effectively meet the industry's requirements of power and steam, and surplus could be sold to SEBs.

5.40 Advanced Biomass Gasification (ABG) has been identified as a thrust area for the 10th Plan. Development and application of advanced technologies such as, Biomass Integrated Gasification-cum-Gas Turbine Combined Cycle (IGCC); Integrated Pyrolisis Combined Cycle (IPCC); and MW scale reciprocating engines with very high diesel replacement (exceeding 90%), are proposed to be supported. These technologies offer a number of advantages, which include higher efficiency of conversion, and ease of operation, enable cleaner combustion, and are environment friendly. Limited numbers of demonstration projects are proposed to be supported during the Plan period. It is also proposed to support captive biomass power projects through combustion and gasification routes.

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External Assistance

5.41 The Project Brief on UNDP / GEF / MNES Project on "Removal of Barriers to Bio-mass Power Generation in India" was approved during the year. The objective of this two part project is to remove barriers to the increased use of bio-mass energy sources for generating electricity for own consumption and / or export to the grid, and accelerate adoption of environmentally sustainable bio-mass power and cogeneration technologies in India. It will promote combustion, gasification and cogeneration technologies for electricity generation using different types of captive and distributed bio-mass resources. The project will focus on bio-mass power projects to be undertaken in three specific scenarios, viz. co-operative sugar mills, agro-processors / bio-mass producers and distributed bio-mass. Apart from the Technical Assistance component for removing the remaining technical, regulatory and institutional barriers, the project will provide investment support to model investment projects in the focused sectors in candidate States for risk mitigation. The project is expected to become operational in April / May 2003.

Policies, Fiscal Incentives and Institutional Arrangements

5.42 The promotion of biomass-based power generation in the country is being encouraged through policies introduced at the Central and State levels. A package of fiscal incentives such as concessional custom duties; exemptions from excise duty and sales tax; tax holiday and accelerated depreciation; and, soft loans are available for commercial projects. The Ministry continued its efforts during the year to persuade the State Governments/State Electricity Boards/State Electricity Regulatory Commissions to announce remunerative polices for purchase/wheeling/banking or power generated from biomass power/co-generation projects. Kerala, Gujarat, and Chattisgarh States have announced policies for purchase/wheeling/banking of power from biomass power projects during the year. A Tariff Order for bagasse based co-generation projects was announced by Maharashtra Energy Regulatory Commission. A summary of policies introduced by the various State Governments and Central incentives is given in Table 5.12 & 5.13. The Ministry continued its endeavour to bring about a sustainable policy framework through appropriate provisions in the Electricity Bill 2001, and continuous facilitation and awareness campaigns within all major stakeholders.

5.43 The programmes are being implemented with the active involvement of the State Nodal Agencies, State Governments, State Electricity Boards, Industry Associations and Federations, NGOs, financial institutions, manufacturers, developers, entrepreneurs, R&D Institutions, consultants and experts. The State agencies are responsible for development

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of proposals from their respective States; monitoring of the progress of implementation; and, for providing post-installation feedback to MNES.

COUNTRY'S FIRST 87 ATA/515oC BAGASSE CO-GENERATION PROJECT AT M/S KAKATIYA CEMENT, SUGAR & INDUSTRIES LTD. IN ANDHRA PRADESH

An important milestone reached during the year was the commissioning of the 17 MW co-generation power project set up by M/s Kakatiya Cement Sugar & Industries Ltd., at Peruvancha village, Kallur Mandal, Khammam District, Andhra Pradesh. The project is the first of its kind for a sugar mill. A high pressure boiler of 87 ata./515 deg C has been installed, which ensures high energy efficiency & better utilisation of bagasse resulting in more steam and hence more electricity.

The project envisages generation of power to meet captive sugar plant requirements, cement plant requirements and export of about 10.85 MW of surplus power during season and 14.70 MW during off-season, to the State grid. The project uses bagasse generated from the crushing operations of the sugar mill during season, and stored bagasse, cane trash & coal during off-season.

The project was completed in a record period of 18 months and has already supplied about 84.90 million units to the State grid. It has achieved a PLF of around 90% in the very first year. The cost of the co-generation project was Rs.50.17 crore. IREDA has extended a term loan of Rs.36.60 Crore under ADB line of credit and MNES provided an interest subsidy of Rs.4.09 Crore. The technology used was indigenous, except for the turbo-generator, which was imported. The project has generated direct employment opportunities to about 100 persons and has also contributed to economic development of the area.

BIO-MASS BASED POWER PROJECT AT M/S NAGARJUNA GREEN POWER LTD. IN ANDHRA PRADESH

The 8 MW Biomass based Power Project with export of 7.20 MW of surplus power after meeting 0.80 MW for in-house auxiliary consumption has been set up at Patancheru in Medak District of Andhra Pradesh. The project utilises a variety of agricultural wastes and industrial wastes for generation of power, such as sugar cane trash, coffee shells, toor dal stalks, corn cobs, ground nut shells, poultry manure, jowar husk, waste crops, juliflora, eucalyptus, cotton stalks, saw dust, wood husk, rice husk and bagasse.

The project was commissioned in February 2002 and in a record period of 11 months and has already supplied 38.43 million units to the State grid. A PLF of 90% has been achieved in the first full year of commercial operation. The technology used is totally indigenous with the Boiler supplied by M/s Walchandnagar Industries Limited.

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The company has tied up with M/s AP Forest Development Corporation Limited for developing fast growing clonal euclayptus plantations in about 500 acres of barren land for fuel supply to the plant. The Plant has generated direct employment to over 110 persons, and has also contributed to the economic development of the region.

Biomass Gasifier Programme

5.44 Biomass gasifiers convert solid biomass (woody and non-woody) materials such as wood, agricultural residues and agro-industrial wastes etc. into producer gas through thermo-chemical gasification process. The producer gas could be either burnt directly for thermal applications, or used for replacing diesel oil in dual-fuel engines for mechanical and electrical applications. Biomass gasifier systems from 3 kW up to 500 kW unit capacity which use wood, non-woody and powdery biomass, have been developed indigenously. Conversion of dual-fuel engines to 100% producer gas engines has also been achieved under R&D Projects. A total of 1806 biomass gasifier systems aggregating to 53.16 MW have been commissioned in 22 States and UTs of the country.

5.45 The programme has been restructured and modified to promote and encourage development of viable application packages; deployment of gasifier systems for different end-use applications and higher capacity utilisation; and to bring about greater market orientation and commercialisation. Additional features that have been included in the programme include demonstration of indigenous 100% producer gas engines coupled with gasifiers for power generation, and retrofitting of existing diesel based power plants in the North Eastern Region with biomass gasifiers for power generation.

Objectives:

5.46 The objectives of the Programme in the 10th Plan, which commenced in 2002-03, are given below:

To demonstrate an integral approach of biomass production, gasification and utilisation.

To promote R&D on biomass production, briquetting, gasification and producer gas engines.

To develop and promote commercialisation of technologies for various end-uses in rural and urban sectors.

To intensify electrification of remote villages. To take up demonstration projects for 100% indigenous producer gas engines

coupled with gasifiers for power generation. To expand manufacturing capacity, decentralised service facilities and

introduce testing and certification. To support and thus enlarge activities through awareness creation, publicity

measures, seminars/ workshops / business meets/training programmes etc.

R&D on Biomass Production

5.47 Five R&D projects on biomass production were taken up. Two projects titled "Studies on selection, adaptability and biomass production of shrub species suitable for sodic soil sites" and "Identification of Markers for Selection of fast growing fuel wood species in relation to improved Biomass Production" undertaken by National

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Botanical Research Institute (NBRI), Lucknow and Viswa Bharati, Shanti Niketan, respectively have been completed. Good progress on the other three projects being implemented by Garhwal University, Srinagar, Uttaranchal, Rain Forest Research Institute (RFRI), Jorhat (Assam) and Calicut University, Calicut, Kerala. was made during the year.

R&D on Biomass Gasifiers

5.48 The Gasifier Action Research Projects (GARPs), supported at Indian Institute of Technology (IIT), Delhi; IIT, Mumbai; Indian Institute of Science (IISc), Bangalore; Madurai Kamaraj University (MKU), Madurai; and, at Sardar Patel Renewable Energy Research Institute (SPRERI), Vallabh Vidyanagar, were completed during the year.

5.49 R&D activities at IIT, Delhi focused on thermo-chemical characterisation of about 450 samples of different biomass from different areas in terms of moisture content, fixed carbon, volatile matter, ash content, ash fusion temperature, calorific values and devolatisation characteristics and density, etc. These have been documented in the form of a book, which was published during the year. The model village electrification project based on 100 kW biomass gasifier system using local biomass being implemented by IIT, Delhi and an NGO at village Fatehpur Taga in Faridabad District of Haryana, is likely to be commissioned during the year. This would provide electricity connections to about 140 households and would be managed for day-to-day operation, maintenance and revenue management by the local Village Energy Society.

5.50 GARP, IIT, Mumbai, laid emphasis on formulation and updating of the Test Procedures, Standards and Methodology Protocols for biomass gasifiers up to 500 kW unit size. Application specific two-stage and single-stage premixed producer gas burners developed awaits commercialisation. A non-throat type downdraft rice husk gasification unit with rotating grate type and an up-draft biomass flexible throat-less designs have already been commercialised. 100% Spark Ignition Producer Gas Engine has been developed. A State-of-art Report on Biomass Gasification (SAROBG) with updated information on the technology and Indian achievements was prepared.

5.51 At MKU, Madurai, efforts were concentrated on developing and testing a 120 kW thermal gasifier for use in high temperature applications particularly ceramic industries, with novel features of tapered hopper and air nozzles that promotes efficient firing. A gasifier based continuous zigzag Ceramic Kiln (CZZ) has been designed, and is being tested for commercial use. Fast-firing kilns have been developed, along with rubber combustion gasification of old used tyres. Development of cardamom drier to dry 50 kg. per run was developed, designed, fabricated and tested as per the field conditions, with encouraging results. Development and fabrication of 100 kW (equivalent) thermal gasifier using long sticks, avoiding cutting expenses and fuel loss while cutting, has also been undertaken.

5.52 SPRERI, Vallabh Vidyanagar designed and tested a 125,000 kcal/hr thermal open core gasifier using groundnut shells and their briquettes. Powdered groundnut shells were successfully briquetted in a modified punch and die unit. Gasification efficiency levels of 60-70% were achieved. A one million kcal/hr thermal gasifier using groundnut shells was installed in a ceramic industry in Morbi to test and demonstrate the feasibility of replacement of LDO/kerosene oil with producer gas for firing the kilns with encouraging results. SPRERI's gasifier-based community cookstove was demonstrated to 16 owners of roadside food stalls and representatives of seven NGOs engaged in relief and rehabilitation work in

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earthquake-affected Bhuj District of Gujarat. Nominees of the seven NGOs were trained in the operation and maintenance of the cookstoves. Ten such community cookstoves were supplied to the NGOs for cooking food in different relief camps.

5.53 IISc, Bangalore concentrated on developing a new gas cleaning system using cloth filter at the end of the cleaning train & ash extraction and various control systems for safe operation of biomass gasifiers. A 500 kWe biomass gasifier system was developed and commissioned at M/s. Senapati Whitely, Ramanagaram. Modifications of natural gas based engines to 100% producer gas engines in unit sizes up to 250 kWe was achieved. These engines will now be taken up for demonstration and field trials.

Applied R&D Projects

5.54 Innovative R&D projects covering applied, associated and other strategic industry-wise sectoral studies on scientific, technical, engineering, management, financing and evaluation aspects, were supported at various research institutions and universities. Progress made in these projects is given below:

At Anna University, Chennai, a Biomass Gasifier based direct fired vapour absorption cold storage system for rural areas has been designed; and 60-75% diesel replacement has been achieved.

Energy Systems Department at IIT, Mumbai has developed a cashew shell gasifier integrated to cashew processing unit with simultaneous extraction of cashew shell liquid using the heat available from the engine exhaust. Oil obtained is of commercial quality with high pH value and low moisture content reducing an additional step of further distillation carried out conventionally. IIT, Mumbai has also conducted experimental investigations to compare various practised methods for standardisation of tar and particulate measurement from a gasifier system. Modified sampling unit and revised procedure for making such measurements has now been suggested. In another project at IIT, Mumbai, detailed characterisation of particulate matter in biomass based producer gas from different types of gasifiers, is being experimented for formulation of guidelines and recommendations for design of particulate control devices for gas borne particulates.

In the project on Development of Technology for the Production of Gypsum Plaster utilising eco-friendly 100 kg/hr biomass gasifier, CBRI Roorkee has re-designed systems for providing adequate agitation in the charge and power operated screw feeder for continuous feeding of gypsum powder in the shell. Integrated experimentation of the system is planned during this year.

In another project entitled "Development of Environment-friendly alternate fuel based system for lime burning utilising biomass gasifiers" CBRI, Roorkee has designed a pilot plant of 90 kg/hr. capacity for continuous production of quick lime of consistent quality with biomass gasifier based firing system. Design specifications and drawings of steel shell lime shaft kiln of 2 T per day capacity have been finalised. The temperature required for calcination of

100 KVA Gas Engine developed under an R&D project to eliminate use of diesel completely

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limestone are of the order of 1000 oC. The kiln is under fabrication and will be connected with biomass gasifier already installed in the premises of the Institute.

M/s. Ankur Scientific Energy Technologies Pvt. Ltd., Vadodara are conducting initial trials for converting a slow-speed, reconditioned marine genset to 100% producer gas operation.

Tata Energy Research Institute (TERI), New Delhi has designed, fabricated and commissioned a biomass gasifier-based crematorium at Ambarnath Municipal Crematorium, in Thane district of Maharashtra, being run by an NGO. It was observed that a gasifier based system takes 60-80 minutes, and consumes 100-150 kg wood, as against 400-600 kg in traditional way, and about 250-300 kg in improved open fire systems using metal grate. The fuel cost saved per cremation is Rs.350 and the system will pay back its cost in 430 cremations.

Progress and New Initiatives:

5.55 1.870 MW capacity was commissioned under ten projects in the States of Chhattisgarh, Kerala, Tamil Nadu, Uttar Pradesh and West Bengal during 2002-03. The State-wise details are given in Table-5.14.

2,50,000 k.cal/hr. (100 kW) Thermal Mode Gasifier System installed at M/s. TVS Srichakra Ltd., Madurai

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5.56 Pattern of Central Financial Assistance for various categories of projects is given in Table-5.15 (I-IV). Other promotional features include support for preparation of DPRs, awareness creation, applied R&D, service centres, and other professional /technical services.

5.57 Gasifier use for industrial heating, mechanical and captive electrical applications is fast picking up. During the year, special emphasis was given for electrification of remote un-electrified villages. Another special feature of the Programme during the current year is retrofitting of biomass gasifier systems to existing diesel power stations in the North-Eastern States. In order to encourage the use of indigenous 100% producer gas technology in the country, demonstration of 100% producer gas engines has been taken up.

Raipur shows the way

IIT Mumbai designed and developed an industrial package for a Steel Re-rolling Mill in Raipur, Chhattisgarh State, producing 50 T/day of re-rolled steel. The mill was consuming 2800 litres of furnace oil on an average shift of 10 hrs per day. The target was to replace 50% of furnace oil by producer gas. An updraft gasifier of 12,50,000 kcal/hr. capacity was designed using 500 kg per hr of wood or 700 Kg of rice husk as

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the input biomass and along with specially designed and developed producer gas burners of fully premixed type.

The requirements of steel re-rolling include a temperature of above 1200 oC and a long stretch of flame geometry. The gasifier- retrofitted mill works on dual-fuel mode with 50% of the thermal energy supplied by producer gas. The retrofitted re-rolling furnace has successfully logged over 1000 hours of proving trials. 50% furnace oil substitution by producer gas implies annual conservation of 400 tonnes of furnace oil, saving 25% in the energy cost of steel re-rolling. At present costs, the payback period for the package works out to less than one year.

It is important to underline the environmental benefits of replication of this package. It would yield an annual reduction of 1000 Tonnes of CO2 and 30 Tonnes of SO2 per steel mill. This project can be replicated in an estimated 150 units in the Chhatisgarh steel belt alone.

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