Piloting Biomass Gasification Project for Rural Electrification in Nepal

Mr. Nawa Raj Dhakal

Assistant Director, AEPC &

Program Manager, Biomass Energy Sub-component, NRREP

International Workshop on Sharing Business Models and Scaling up Mini Grids in Asia and the Pacific

6 -7 February 2013, Kathmandu, Nepal

Presentation Outline

• Bioenergy routes and biomass gasification

• Biomass gasification, feedstocks, producer gas & applications

• Opportunities for biomass power production in Nepal

• Estimated potential of biomass energy in Nepal

• Government policy & program

• Biomass gasifiers piloted under AEPC

A Case study of Biomass Gasifier Community Electrification Pilot Project in Madhubangoth VDC, Sarlahi

• Emerging involvement of private sector

• Way forward

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A Variety of Bioenergy Routes & Biomass Gasification

Source: E4tech, 2008.

1Parts of each feedstock, e.g., crop residues could be used in other routes; 2Each route also gives co-products; 3Biomass upgrading includes any of the densification processes; 4AD= Anaerobic Digestion

What is Biomass Gasification?

• Gasification is essentially the conversion of biomass to a combustible gas called “Producer Gas” or “Syn Gas”

• This gas can then be burnt

directly for thermal application or fed in Engine Gensets to produce electricity

Particulars Rice Husk as biomass Woody Biomass

CO 15-20% 15-20%

H2 10-15% 15-20%

CH4 Upto 4% Upto 3%

N2 45-55% 45-50%

CO2 8-12% 8-12%

Gas C.V. in kcal/Nm3 Above 1050 Above 1100

Gas generated in Nm3/Kg of biomass

2 2.5

Producer Gas Properties

Biomass Gasification: Feedstocks

Wide range of biomass can be used as fuel for gasifier including forest and agro-residues such as:

• Wood Pieces, Chips and Woody Waste

• Rice Husk

• Coconut Shells

• Mustard and Cotton Stalk

• Bamboo Pieces

• Tea and Coffee Waste

• Corncob

• Sugarcane baggasse

Biomass Gasification: Applications

Power Generation Thermal Applications

• Village Electrification

• Irrigation Pumping

• Captive Power (Industries)

• Grid-fed Power from Energy Plantations on Wastelands

• Simultaneous Charcoal and Power Production

• Hot Air Generators

• Dryers

• Boilers

• Thermic Fluid Heaters

• Ovens

• Furnaces & Kilns

Biomass Gasifier For Electrification

A typical configuration of a gasifier system coupled with internal combustion engines

• Biomass is the primary source of energy supplying 87.1% of the country’s total energy consumption

• Agriculture activity is major economic activity & a lot of biomass is produced in the from of agro-residue.

• Forest-residue is also abundant; large quantity available from community forests

• 30% of rural populace have access to electricity compared to 90% in urban areas

• Power shortage in grid supplied areas

Opportunities for Biomass Based Power Production in Nepal-1

• Weeds like water hyacinth (Eichhornia spp.), ipomoea (Ipomoea spp.) & dhaincha (Sesbania spp.) are in plentiful amount mainly in Terai due to the sub tropical climate

• Remote Terai with no national grid has a very few alternatives for power generation; energy from sustainable biomass resources can be promising

• Biomass gasifier is a viable alternative for electricity generation in the remote rural areas where biomass supply based on agricultural and forestry residue as well as waste biomass vegetation is in abundance

Opportunities for Biomass Based Power Production in Nepal-2

Estimated Potential of Biomass Energy in Nepal from Various Biomass Sources

S.N Source of Biomass Potential Capacity (in MW)

Remarks

1 Sustainable fuel wood 800 7.0 million t/year and 1.0 kg/kW

2 Agro residue 700 12 million t/year from five main crop type and 2 Kg/kW

3 Collectible dung 23 4.6 million t/year (28 kg/m3 & 1.25 kW/m3)

4 Forest and other agro residue

To be assessed

5 Biofuel To be assessed

Source: Gasifier-prefeasibility report, Winrock International, 2010

Biomass Energy Potential Map of Nepal

Source: Gasifier feasibility study report, VERDICT, 2011

Biomass Gasification in Government Policy-1 • Rural Energy Policy (2006): Awareness creation,

development & dissemination of technology for biomass gasification based on feedstock availability

• Three Year Plan (2010-13): Biomass gasifiers will be promoted & expanded in Terai for cooking and electricity production

• Renewable (Rural) Energy Subsidy Arrangement (2009):

No direct subsidy but support in studies, R& D, trainings and pilot projects in the field of other RETs, e.g., biomass briquette, institutional gasifiers, biofuels etc.

Subsidy policy is under revision & direct subsidy proposed for Biomass gasifiers, both for thermal application & electricity generation

Biomass Gasification in Government Policy-2

• AEPC promotes biomass based modern technologies

The Biomass Energy Sub-Component of National Rural and Renewable Energy Programme (NRREP) is designed to include all major solid biomass energy technologies as solutions to rural energy problems

The component aims to provide appropriate information to raise awareness and capacity development of local level partners working in this sector for dissemination of the solid biomass technology

Biomass Energy Sub-Component of NRREP, 2012-17

• Output 2.3: Scaled-up implementation network for ICS is in place and tested and certified stoves with defined quality criteria are operational

• Output 2.4: New technologies such as enterprise scale gasifiers and bio-briquetting are ready and field tested

Piloting of biomass gasifier electrification systems for community electrification & captive electricity generation for SMEs

Dissemination of thermal gasifier units for SMEs

Capacity development of manufacturers on gasifier technology

Information dissemination & promotion

Dissemination strategy for gasifier technology under subsidy

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Biomass Gasifier based technologies piloted under AEPC

• Piloted 4 units of biomass gasifier for thermal application (agro-processing, tea and herbs drying) at Ilam, Panchthar & Kathmandu during AEPC/ESAP

Biomass Gasifier based technologies piloted under AEPC

Gasifier piloted for community electrification under AEPC/REDP at Madhuban Bazar, Madhubangoth VDC, SARLAHI

Madhubangoth VDC, Sarlahi, Janakpur Zone

Sarlahi

Project Location

Madhubagoth (B): 20 km South-West from Malangwa Municipality (A)

• Prefeasibility study conducted on Feb 2010 by Winrock

International

• REDP/RERL started field work for piloting of gasifier in Jul

2010

• Implemented through Community Management approach

(7F/7M COs)

• Agreement with Ankur Scientific Energy Technologies Pvt.

Ltd, Baroda on Aug 2010 & equipment supplied on Nov

2010

• Date of installation of E/M equipments and testing and

commissioning-14/07/2011

Project Introduction

Location: Madhuban Bazar, Madhubangoth VDC, SARLAHI

• Installed capacity - 11 kW

• No. of beneficiary (HHs) - 122 (Dalit 11.5%, OBC 88.5%)

• System running under 100% producer gas mode

• Hourly Consumption of biomass : 14-15 Kg

• Total project cost: NRs 37,26,850 (NRs. 338, 805 per kw)

• Resource mobilization

• UNDP grant through AEPC/REDP (75%)

• DDC investment (9%)

• VDC investment (9%) + VDC has also provided 2 Kattha land

for power house construction

• Community investment (7%) {NRs 2,000/ HH)

Salient Features

Project Cost Breakdown

E/M Equipment

1770425

Operator Training 205832

Custom Clearance

46450

Powerhouse (Civil), 646000

T&D 956000

49%

26%

18%

Payback period of the plant without

considering the grant = 9 years

6%

Management Strategy

• RERL (REDP) community mobilization model

• Functional Group formation (29 members)

• Biomass collection sub committee (3 members)

• Plant monitoring committee (3 members-Coordinator is VDC secretary)

• Operator ( 2 person trained from Baroda)

• Manager

• Tariff collection

• Nursery

• Productive enduse

Challenges

• Proper biomass supply chain management

• Disruption in continuous availability of Fuel

material

• Community drive towards local conflicts

• Efficient operation and maintenance of the plant

• Support from gas engine suppliers

Additional Biomass Gasifier Units under piloting stage from AEPC

Project conducted under AEPC/RERL Location: Belwajabdi VDC, SARLAHI

• System capacity - 11 kW

• No. of beneficiary (HHs) - 165

• System type: 100% producer gas model

• Status: System in installation process

Project conducted under AEPC Location: Simari, Kanakpur VDC, RAUTAHAT

• System capacity - 20 kW (Revised from 16 kW)

• No. of beneficiary (HHs) - 220

• System type: 100% producer gas model

• Status: Bid selection for system supply

Emerging Involvement of Private Sector

• Pioneer Wires Limited, Biratnagar : 350kW gasifier for

electrification in industry during power cut

• Hulas Steel Industries Limited: Two units of gasifier (550

kW each) of total capacity of 1100kW to generate thermal

energy

• Hulas Wire Industries Limited, Biratnagar (500kW)

• Bhudeo Khadya Udhyog, Lalbandi, (400 kW), full plant

operation during load shedding

• Mahalaxmi Silicate, Biratnagar (500kWth)

• Arihant Wires, Biratnagar (500kWth)

• AIT based gasifier has been developed and tested in

RECAST, NAST and KU.

Way forward

• Feasibility studies at different development regions

of the country

• Demonstration schemes at different contexts –both

electrical and thermal applications

• Proper policy and dissemination strategy

• Capacity development of private sector

• Technology adoption R & D support

• Possible partnership- Financial institutions, Local

government authorities, PAF, CFUGs etc.

Thank You!

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For Further communication: Alternative Energy Promotion Centre (AEPC)

National Rural and Renewable Energy Programme (NRREP) Khumaltar, Lalitpur

P.O. Box 14364, Kathmandu, Nepal Tel. No.: 5539390, 5548468

E-mail: nawa.dhakal@aepc.gov.np www.aepc.gov.np