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Densified biomass, also called biomass pellets, is an emerging form of biomass fuel that can be made from agricultural biomass, wood wastes, commercial grasses and residues from farms, yards or forests. These biomass pellet manufacturing businesses are in huge demand after the 'National Mission on use of biomass in coal-based thermal power plants' launched on 12th July 2021, has mandated all thermal power plants (TPP) in the country to use 5% of biomass pellets for co-firing with coal. Co-firing is an option for converting agricultural waste to electricity by adding agricultural biomass as a partial replacement fuel in coal-based boilers. According to some reports, using agricultural biomass to produce fuels will account for more than 40% of all renewable fuels being used soon.
The Ministry of Power has made co-processing mandatory throughout the country to address the issue of air pollution in India, particularly in the North Indian regions of Delhi NCR. The government has also taken the following steps in aiding the setup of the biomass pellet manufacturing business.
• A customised Government e-marketplace (GeM) portal for biomass pellet procurement.
• The biomass sector has been notified as a Priority sector lending item by the RBI. The SBI has launched a dedicated scheme to provide long-term loans to pellet manufacturers. This will enable easier and faster availability of bank loans for Biomass pellet manufacturing business setup. Watch the complete video to learn more about biomass pellet manufacturing business.
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