Possible Uses of Crop Residue

for Energy Generation Instead

of Open Burning
SAARC Energy Centre

December 2019
Disclaimer:
Findings, interpretation and conclusions expressed in this report are based on information acquired
from SAARC Member States, documents available in printed and online versions and also on the
knowledge, assumptions and analysis made by authors. These do not necessarily reflect the views of
SAARC Energy Centre. Moreover, the Centre does not guarantee the accuracy, completeness or
usefulness of the information in this report, and as such not responsible for any errors, omission or
losses, which emerge from its use.

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Table of Contents
Foreword ................................................................................................................................................ 14
Executive Summary ................................................................................................................................. 15
1 Introduction ..................................................................................................................................... 19
1.1 Background ......................................................................................................................... 19
1.2 Objective of the Study .......................................................................................................... 23
1.3 Scope of the Study ............................................................................................................... 24
1.4 Methodology of the Study..................................................................................................... 25
1.5 Limitations of the Study ........................................................................................................ 25
2 Agriculture Residue Potential in SAARC Member States ...................................................................... 26
2.1 Overview of Agriculture Sector .............................................................................................. 26
2.1.1 Agriculture Scenario in Member States ........................................................................... 27
2.2 Potential Crops for Energy Generation in SAARC Member States .............................................. 38
2.2.1 Potential Crops for Energy Generation ........................................................................... 38
2.3 Present Utilization and Supply Chain ...................................................................................... 39
2.3.1 Present Utilization AND Disposal Practices OF Crop Residue in Member States .................. 39
2.3.2 Present Storage Methods of Crop Residue ...................................................................... 41
3 Prevalent Disposal Methods .............................................................................................................. 42
3.1 Present Disposal Methods OF Crop Residue in Member States ................................................. 42
3.1.1 Potential Areas/States for Focus of Study in Each Member State ...................................... 42
3.1.2 Estimated Area Wise Potential in Focus Areas and Harvesting Season in Member States ..... 42
3.1.3 Summary - Crop Residue Potential of SAARC Member States ............................................ 54
3.1.4 Mechanization in Harvesting and Sowing Next Crop ........................................................ 55
3.1.5 Current Disposal Methods Adopted ............................................................................... 56
3.2 Supply Chain Mechanism ...................................................................................................... 57
3.2.1 Overview of Supply Chain Mechanism in Member States ................................................. 57
3.2.2 Storage Methods and Costs ........................................................................................... 58
3.2.3 Transportation of Crop Residue and The Costs Associated ................................................ 59
3.2.4 Study of Weather Effect on The Residue Before Sale/Utilization ....................................... 60
4 Energy Potential from Residue ........................................................................................................... 61
4.1 Study of Different Technologies for Energy Generation Using Crop Residue ............................... 61
4.1.1 Combustion ................................................................................................................. 61
4.1.2 Gasification.................................................................................................................. 61
4.1.3 Pyrolysis ...................................................................................................................... 62
4.1.4 Anaerobic Digestion ..................................................................................................... 63
4.1.5 Co-firing ...................................................................................................................... 63
4.2 Selection of Suitable Technology for Energy Generation in SAARC Member States ..................... 64
4.3 Study of Gasification Process and its Advanced Technologies ................................................... 66

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 4.3.1 Gasification Process ...................................................................................................... 66
4.3.2 Preconditions for Biomass for Implementation ................................................................ 67
4.3.3 Types of Biomass Gasifiers ............................................................................................ 67
4.3.4 Selection of Gasifier Technology .................................................................................... 69
4.3.5 Advantages of Biomass Gasification Technology .............................................................. 70
4.3.6 Factors Influencing Gasification ..................................................................................... 70
4.3.7 By-Products of Gasification............................................................................................ 71
4.3.8 Cleaning Process .......................................................................................................... 72
4.4 Energy Generation Potential in SAARC Member States ............................................................ 73
4.4.1 Afghanistan ................................................................................................................. 74
4.4.2 Bangladesh .................................................................................................................. 74
4.4.3 India ........................................................................................................................... 75
4.4.4 Nepal .......................................................................................................................... 76
4.4.5 Pakistan ...................................................................................................................... 76
4.4.6 Sri Lanka ...................................................................................................................... 77
4.4.7 Summary – Power Generation Potential of SAARC Member States Using Field-Based Residues
77
4.5 Potential Energy Use ............................................................................................................ 78
4.6 Business Model for Energy Generation Using Crop Residue ...................................................... 79
4.7 Success Stories of Using Crop Residue for Energy Generation ................................................... 79
4.8 Models for Implementation of Projects .................................................................................. 89
4.9 Study of Commercial Aspects of Gasification ........................................................................... 90
5 Alternate Uses of Crop Residue .......................................................................................................... 97
5.1 Small Scale Applications of Crop Residue ................................................................................ 97
5.1.1. Briquetting .......................................................................................................................... 97
5.1.2. Small Scale Gasification Applications ...................................................................................... 99
5.2 Applications of Crop Residue in Manufacturing of Products .................................................... 102
5.2.1. Compost and Fertilizer Making ............................................................................................ 102
5.2.2. Mushroom Cultivation ........................................................................................................ 103
5.2.3. Paper and Pulp Manufacturing ............................................................................................ 103
5.3 Use of Machinery for Crop Residue Management .................................................................. 105
6 Study of Environmental Impact of Crop Residue Burning ................................................................... 107
6.1 Study of Environmental Effects of Crop Residue Burning ........................................................ 107
6.1.1 Afghanistan ............................................................................................................... 111
6.1.2 Bangladesh ................................................................................................................ 111
6.1.3 Bhutan ...................................................................................................................... 111
6.1.4 India ......................................................................................................................... 112
6.1.5 Maldives.................................................................................................................... 112
6.1.6 Nepal ........................................................................................................................ 112
6.1.7 Pakistan .................................................................................................................... 112

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 6.1.8 Sri Lanka .................................................................................................................... 113
6.2 Study of Health Effects of Crop Residue Burning in each Member State ................................... 113
6.2.1 Afghanistan ............................................................................................................... 113
6.2.2 Bangladesh ................................................................................................................ 113
6.2.3 Bhutan ...................................................................................................................... 113
6.2.4 India ......................................................................................................................... 114
6.2.5 Nepal ........................................................................................................................ 114
6.2.6 Pakistan .................................................................................................................... 114
6.2.7 Maldives.................................................................................................................... 114
6.2.8 Sri Lanka .................................................................................................................... 115
7 Barriers and Challenges ................................................................................................................... 116
7.1 Classification of Barriers and Challenges ............................................................................... 116
7.1.1 Institutional and Organizational Challenges .................................................................. 116
7.1.2 Technical Challenges................................................................................................... 118
7.1.3 Financial Challenges ................................................................................................... 118
7.1.4 Market Factors ........................................................................................................... 119
8 Conclusion and Recommendations................................................................................................... 121
8.1 Country-wise Implementation Plan ...................................................................................... 122
8.1.1 Afghanistan ............................................................................................................... 122
8.1.2 Bangladesh ................................................................................................................ 123
8.1.3 Bhutan ...................................................................................................................... 123
8.1.4 India ......................................................................................................................... 123
8.1.5 Maldives.................................................................................................................... 124
8.1.6 Nepal ........................................................................................................................ 124
8.1.7 Pakistan .................................................................................................................... 125
8.1.8 Sri Lanka .................................................................................................................... 126
8.2 Power Generation Potential Including Husk Residue .............................................................. 126
8.3 Implications of Mechanized Harvesting on the Energy Generation Potential ............................ 127
8.4 Recommendations to Overcome Barriers in Deployment ....................................................... 127
8.4.1 Institutional and Organizational ................................................................................... 128
8.4.2 Monitoring Mechanism ............................................................................................... 128
8.4.3 Financial .................................................................................................................... 129
8.4.4 Technical & Implementation Support ........................................................................... 130
8.4.5 Market Factors ........................................................................................................... 131
9 Bibliography ................................................................................................................................... 133
10 Annexures ............................................................................................................................... 135
10.1 RPR and Heating Value of Crop Residues .............................................................................. 135
10.2 Biomass Consumption for Power Generation ........................................................................ 136

4
List of Abbreviations
Acronym Meaning
ADS Agriculture Development Strategy
ALRI Acute Lower Respiratory Infections
AQI Air Quality Index
ARI Acute Respiratory Infection
BM Build and Maintain
BOM Build Own and Maintain
BOO Build Own and Operate
BOOM Build Own Operate and Maintain
BOP Balance of Plant
BOT Build Own Transfer
BPCL Bharat Petroleum Corporation Limited
BTG Boiler Turbine Generator
CAGR Compound annual growth rate
CDM Clean Development Mechanism
CER Certified Emission Reduction
CNG Compressed natural gas
COPD Chronic obstructive pulmonary disease
CPCB Central Pollution Control Board
DBO Design Build Operate
DFO District Forest Officials
Discoms Distribution Companies
DM De-Mineralization
EAI Energy Alternatives India
EPA Environmental Protection Agency
FAO Food and Agriculture Organization of the United Nations
GCV Gross Calorific Value
GDP Gross Domestic Product
GHG Greenhouse gas
GIEWS Global Information and Early Warning System
GRP Gross Residue Potential
GVA Gross Value Added
GW Giga watt
HPCL Hindustan Petroleum Corporation Limited
HPHT High Pressure High Temperature
HPS Husk Power Systems
ICE Internal Combustion Engine
ICICI Industrial Credit and Investment Corporation of India
IDBI Industrial Development Bank of India
IGP Indo-Gangetic Plain
INR Indian National Rupee
IOCL Indian Oil Corporation Limited
IREDA Indian Renewable Energy Development Agency
IRENA International Renewable Energy Agency

5
Acronym Meaning
KEVPL Kalpataru Energy Venture Private Limited
kV kilo Volt
kW kilo Watt
kWh Kilo Watt hour
MAIL Ministry of Agriculture, Irrigation and Livestock
MJ Mega Joule
MMTCO2e Million metric tons of carbon dioxide equivalent
MMTCH4e Million metric tons of methane equivalent
MNRE Ministry of New and Renewable Energy
MoA Ministry of Agriculture
MoAD Ministry of Agriculture and Livestock Development
MoAF Ministry of Agriculture and Forests
MoAFW Ministry of Agriculture and Farmers Welfare
MOEF&CC Ministry of Environment, Forest and Climate Change
MoFA Maldives, Ministry of Fisheries and Agriculture
MoNFS Ministry of National Food Security & Research
MoRD Ministry of Rural Development
MRPL Mangalore Refinery and Petrochemicals Limited
MSW Municipal Solid Waste
MT Metric Tons
MU Million Units
MW Mega watt
MWh Megawatt hour
NABARD National Bank for Agriculture and Rural Development
NASA National Aeronautics and Space Administration
NCD Non-communicable Disease
NMHC Non-methane hydrocarbon
NPMCR National Policy for Management of Crop Residues
NRSA National Remote Sensing Agency
NTPC National Thermal Power Corporation
O&M Operation and Maintenance
PFC Power Finance Corporation
PLF Plant Load Factor
PM Particulate Matter
PMKSY Pradhan Mantri Krishi Sinchayee Yojana
PPA Power Purchase Agreement
R&D Research and Development
RPR Residue Production Ratio
RVPN Rajasthan Rajya Vidyut Prasaran Nigam Limited
SAARC South Asian Association for Regional Cooperation
SDPI Sustainable Development Policy Institute
SEC SAARC Energy Center
SFC Specific Fuel Consumption
SME Small and Medium Enterprises
SMS Straw Management System

6
Acronym Meaning
SRP Surplus Residue Potential
SVOC Semi-Volatile Organic Compounds
T&D Transmission and Distribution
TERI The Energy Research Institute
TG Turbine Generator
TJ Tera Joule
TPH Tons Per Hour
UNFCCC United Nations Framework Convention on Climate Change
USA United States of America
USD United States Dollar
VESP Village Energy Security Program
VGF Viability Gap Funding
VOC Volatile Organic Compounds
WHO World Health Organization
Y-O-Y Year on Year

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List of Tables
Table 1: Gross and Surplus Residue Production Potential using all the Crops in SAARC Member States
.............................................................................................................................................................. 16
Table 2: Power Generation Potential of SAARC Member States Using Rice and Wheat Farm Residues 17
Table 3: Comparison of Cost of Generation Using Biomass Energy Conversion Technologies .............. 17
Table 4: Crop Wise Residue Burnt in SAARC Countries in 2016 (Tons) (major crops only) .................... 19
Table 5: Emission Factors of Major GHGs.............................................................................................. 19
Table 6: RE Capacity Installed inSAARC Member States (as on Dec 2018) ............................................ 21
Table 7: Potential Crops for Energy Generation in SAARC Member States ........................................... 38
Table 8: Harvesting Patterns of Crops in SAARC Region ........................................................................ 39
Table 9: Utilization Practices Adopted by SAARC Member States ......................................................... 40
Table 10: Crop Residue Potential in 2016-17 in Afghanistan................................................................. 43
Table 11: Crop Harvesting Seasons in Afghanistan................................................................................ 44
Table 12: Total Surplus Biomass Potential of Afghanistan .................................................................... 45
Table 13: Crop Residue Potential in 2017-18 in Bangladesh ................................................................. 45
Table 14: Crop Harvesting Seasons in Bangladesh ................................................................................ 46
Table 15: Total Biomass Potential in Bangladesh .................................................................................. 46
Table 16: Crop Residue Potential in 2016-17 in Bhutan ........................................................................ 47
Table 17: Crop Harvesting Seasons in Bhutan ....................................................................................... 47
Table 18: Total Biomass Potential of Bhutan......................................................................................... 48
Table 19: Crop Residue Potential in 2017-18 in India ............................................................................ 48
Table 20: Crop Harvesting Seasons in India ........................................................................................... 49
Table 21: Total Biomass Potential of India ............................................................................................ 50
Table 22: Crop Residue Potential in 2017-18 in Nepal .......................................................................... 50
Table 23: Crop Harvesting Seasons in Nepal ......................................................................................... 51
Table 24: Total Biomass Potential of Nepal ........................................................................................... 51
Table 25: Crop Residue Potential in 2017-18 in Pakistan ...................................................................... 52
Table 26: Crop Harvesting Seasons in Pakistan ..................................................................................... 52
Table 27: Total Biomass Potential of Pakistan ....................................................................................... 53
Table 28: Crop Residue Potential in 2016-17 in Sri Lanka ..................................................................... 53
Table 29: Crop Harvesting Seasons in Sri Lanka .................................................................................... 54
Table 30: Total Crop Residue Potential of Sri Lanka .............................................................................. 54
Table 31: Summary of Crop Residue Potential of SAARC Member States ............................................. 55
Table 32: Comparison of Commercial Aspects of Biomass Energy Conversion Technologies ............... 64
Table 33: Maturity Mapping of Biomass Energy Conversion Technologies ........................................... 66
Table 34: Types of Gasifiers................................................................................................................... 69

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Table 35: Factors Influencing the Efficiency of Gasifiers ....................................................................... 70
Table 36: Uses, Advantages and Disadvantages of By-Products............................................................ 72
Table 37: Crop Production and Surplus Residue Production of Identified Crops in Afghanistan ........... 74
Table 38: Summary of Power Generation Potential in Afghanistan ...................................................... 74
Table 39: Crop Production and Surplus Residue Production of Identified Crops in Bangladesh ........... 75
Table 40: Summary of Power Generation Potential in Bangladesh ....................................................... 75
Table 41: Crop Production and Surplus Residue Production of Identified Crops in India ...................... 75
Table 42: Summary of Power Generation Potential in India ................................................................. 75
Table 43: Crop Production and Surplus Residue Production of Identified Crops in Nepal .................... 76
Table 44: Summary of Power Generation Potential in Nepal ................................................................ 76
Table 45: Crop Production and Surplus Residue Production of Identified Crops in Pakistan ................ 76
Table 46: Summary of Power Generation Potential in Pakistan ............................................................ 76
Table 47: Crop Production and Surplus Residue Production of Identified Crops in Sri Lanka ............... 77
Table 48: Summary of Power Generation Potential in Sri Lanka ........................................................... 77
Table 49: Summary of Power Generation Potential in SAARC Member States ..................................... 77
Table 50: Business Models of HPS ......................................................................................................... 83
Table 51: Technical Details of KEVPL ..................................................................................................... 84
Table 52: Biomass Procurement Price for KEVPL .................................................................................. 86
Table 53: Generation Profile of the Project ........................................................................................... 87
Table 54: Small Scale Installations in India Using Alternate Biomass .................................................... 88
Table 55: Details of Primover Engineering Plant ................................................................................... 88
Table 56: Comparison of AgroGas and CNG .......................................................................................... 89
Table 57: Small Scale Installations in India ............................................................................................ 89
Table 58: Models for Implementation of Bioenergy Projects ................................................................ 89
Table 59: Rice and Wheat Production in Punjab ................................................................................... 91
Table 60: Power Generation Potential of Punjab Using Only Farm Residue.......................................... 92
Table 61: Suggested Collection Centers for Residue Collection and Storage ........................................ 92
Table 62: Assumptions for Setting up of 10 MW Biomass Gasifier Plant .............................................. 93
Table 63: Commercial Details of the Commercial Model for 10 MW Biomass-Gasifier Plant ............... 95
Table 64: Commercial Details of the Commercial Model for 10 MW Biomass-Gasifier Plant Using
Briquettes.............................................................................................................................................. 95
Table 65: Cluster-Wise Implementation Plan for Punjab State ............................................................. 96
Table 66: Project Details and Commercials of Rural Renewable Urja Solutions Pvt. Ltd ....................... 99
Table 67: Project Details of Kasai Village Gasifier ................................................................................ 100
Table 68: Commercial Details of Kasai Village Gasifier ........................................................................ 100
Table 69: Project Details of Biomass Gasifier at Starlit Power System ................................................ 101
Table 70: Performance Improvement of Arecanut Processing Using Biomass Gasifier Plants ............ 101
Table 71: Particulate Matter in India and Pakistan (November 2017) ................................................ 110

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Table 72: Regulatory Review of SAARC Member States ...................................................................... 117
Table 73: Total Power Production Potential of SAARC Member States Using Only Farm-Based Residues
............................................................................................................................................................ 121
Table 74: Implementation Plan for Afghanistan .................................................................................. 122
Table 75: Implementation Plan for Bangladesh .................................................................................. 123
Table 76: Implementation Plan for India ............................................................................................. 124
Table 77: Implementation Plan for Nepal ........................................................................................... 125
Table 78: Implementation Plan for Pakistan ....................................................................................... 125
Table 79: Implementation Plan for Sri Lanka ...................................................................................... 126
Table 80: Total Power Production Potential of SAARC Member States Using All the Residues ........... 127

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List of Figures
Figure 1: US Air Quality Index ................................................................................................................ 15
Figure 2: Barriers in Deployment of Biomass-Based Energy Projects in the SAARC Region .................. 18
Figure 3: Per Capita Energy Consumption (kWh/person/year) ............................................................. 20
Figure 4: Global RE Installed Capacity (GW) .......................................................................................... 21
Figure 5: Disposal Methods of Crop Residue in SAARC Region ............................................................. 22
Figure 6: Pros and Cons of Crop Residue Burning ................................................................................. 23
Figure 7: Approach and Methodology of thea Study............................................................................. 25
Figure 8: Agricultural GDP and Employment in SAARC Member States ................................................ 26
Figure 9: Major Challenges in SAARC's Regional Agriculture ................................................................. 27
Figure 10: Year-wise Agriculture GVA (USD bn) .................................................................................... 27
Figure 11: Year-wise Agriculture Contribution to GDP and Labor Employed in Agriculture Sector
inAfghanistan ........................................................................................................................................ 27
Figure 12: Total Crop Production (Total: 5.5 Million tonne) in Afghanistan .......................................... 28
Figure 13: Arable Land in Afghanistan ................................................................................................... 28
Figure 14: Year-wise agriculture GVA (USD bn) ..................................................................................... 28
Figure 15: Year-wise Agriculture Contribution to GDP and Labor Employed in Agriculture Sector in
Bangladesh ............................................................................................................................................ 28
Figure 16: Total Crop Production (Total: 81.4 Million tonne) in Bangladesh ......................................... 29
Figure 17: Total Arable Land in Bangladesh .......................................................................................... 29
Figure 18: Year-wise Agriculture GVA (USD bn) .................................................................................... 30
Figure 19: Year-wise Agriculture Contribution and Labor Employed in Agriculture Sector in Bhutan ... 30
Figure 20: Total Crop Production (Total: 0.38 Million tonne) in Bhutan ............................................... 30
Figure 21: Total Arable Land in Bhutan ................................................................................................. 30
Figure 22: Year-wise Agriculture GVA (USD bn) .................................................................................... 31
Figure 23: Year-wise Agriculture Contribution and Labor Employed in Agriculture Sector inIndia ....... 31
Figure 24: Total Crop Production (Total: 744.3 Million tonne) in India ................................................. 31
Figure 25: Total Arable Land in India ..................................................................................................... 31
Figure 26: Year-wise Agriculture GVA (USD bn) .................................................................................... 32
Figure 27: Year-wise Agriculture Contribution and Labor Employed in Agriculture Sector in Maldives 32
Figure 28: Total Arable Land in Maldives .............................................................................................. 32
Figure 29: Year-wise Agriculture GVA (USD bn) .................................................................................... 33
Figure 30: Year-wise Agriculture Contribution and Labor Employed in Agriculture Sector in Nepal ..... 33
Figure 31: Total Crop Production (Total: 17.1 Million tonne) in Nepal .................................................. 34
Figure 32: Total Arable Land in Nepal ................................................................................................... 34
Figure 33: Year-wise Agriculture GVA (USD bn) .................................................................................... 35
Figure 34: Year-wise Agriculture Contribution and Labor Employed in Agriculture Sector in Pakistan . 35

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Figure 35: Total Crop Production (Total: 129 Million tonne) in Pakistan ............................................... 35
Figure 36: Total Arable Land in Pakistan ............................................................................................... 35
Figure 37: Year-wise Agriculture GVA (USD bn) .................................................................................... 36
Figure 38: Year-wise Agriculture Contribution and Labor Employed in Agriculture Sector in Sri Lanka 36
Figure 39: Total Crop Production (Total: 3 Million tonne) in Sri Lanka .................................................. 36
Figure 40: Total Arable Land in Sri Lanka .............................................................................................. 36
Figure 41: Areas with Maximum Crop Residue in the SAARC states ..................................................... 42
Figure 42: Residue Production Ratio and Surplus Production Ratio of Major Crops in Saarc Region .... 43
Figure 43: Zonal Distribution of Total Residue Produced in Afghanistan .............................................. 44
Figure 44: Zonal Distribution of Total Residue Produced in Bangladesh ............................................... 46
Figure 45: Zonal Distribution of Total Residue Produced in Bhutan ...................................................... 47
Figure 46: Zonal Distribution of Total Residue Produced in India ......................................................... 49
Figure 47: Zonal Distribution of Total Residue Produced in Nepal ........................................................ 51
Figure 48: Zonal Distribution of Total Residue Produced in Pakistan .................................................... 52
Figure 49: Zonal Distribution of Total Residue Produced in Sri Lanka ................................................... 54
Figure 50: Mechanized Harvesting Machinery ...................................................................................... 56
Figure 51: Prevalent Disposal Methods of Crop Residue....................................................................... 56
Figure 52: Supply Chain of Agricultural Waste ...................................................................................... 57
Figure 53: Process of Pelletizing and Briquetting .................................................................................. 59
Figure 54: Potential Impact of Technology vis-à-vis Ease of Implementation ....................................... 65
Figure 55: Gasification Process .............................................................................................................. 67
Figure 56: Types of Gasifier Biomass ..................................................................................................... 67
Figure 57: Advantages of Biomass Gasification ..................................................................................... 70
Figure 58: Syngas Cleaning Methods ..................................................................................................... 72
Figure 59: Energy Potential in SAARC Member States .......................................................................... 78
Figure 60: Potential Use of Energy Generated ...................................................................................... 78
Figure 61: Business Model for Successful Supply Chain ........................................................................ 79
Figure 62: Carbon Intensity of Co-Firing ................................................................................................ 80
Figure 63: Biomass Usage (000 Tons) .................................................................................................... 80
Figure 64: Biomass Briquetting System ................................................................................................. 97
Figure 65: SWOT Analysis of Small-Scale Applications of Crop Residue .............................................. 102
Figure 66: Biomass Composting Process ............................................................................................. 103
Figure 67: SWOT Analysis of Using Crop Residues in Manufacturing of Useful Products .................... 105
Figure 68: SWOT Analysis of Using Farm-Based Machines and Equipment for Crop Residue
Management ....................................................................................................................................... 106
Figure 69: Particulate Matter (PM 2.5) Air Pollution in SAARC states ................................................. 107
Figure 70: CO2 Emissions (Mt) in SAARC Member States .................................................................... 107
Figure 71: Air Quality Index Categories ............................................................................................... 108

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Figure 72: NASA Satellite Image Showing Fires Caused By Crop Residue Burning .............................. 109
Figure 74: NASA Satellite Image Showing Smog (2017) ....................................................................... 110
Figure 73: Aerosol Optical Depth Caused By Same Smog .................................................................... 110
Figure 75: Barriers and Challenges ...................................................................................................... 116

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Foreword
Rice-wheat cropping system is dominant in the area constituting Pakistan, India, Bangladesh, and
Nepal; producing enormous quantity of rice and wheat straw residues. In order to prepare their fields
for next crop (within a short window of two to three weeks), the left-over residue is generally burnt by
farmers in the open air. The resultant huge amount of emissions when combines with dense winter fog,
give rise to atmospheric smog, which leads to severe health and environmental problems.

In order to counter these environmental and health impacts, the open air burning of crops needs to be
discouraged. Acceptable and cost-effective alternative uses should be identified and proposed to
farmers. One attractive alternative is to use the left-over crop residue for energy generation. A number
of studies indicate the existence of potential of electricity generation through the usage of crop residue
as a fuel in power generation plant. Similarly, synthesis gas can be produced using it, which can be
supplied to the rural community for cooking and heating purposes. Small scale electrification through
bio gasification, briquetting, paper making and many other possible uses required in-depth analysis.

In order to explore technically and commercially viable alternatives to crop residue burning, SAARC
Energy Centre (SEC) initiated a Study on the “Possible uses of crop residue for energy generation instead
of open burning”. This report is an effort to devise sustainable alternative to crop residue burning.

14
Executive Summary
Agriculture sector is the backbone of most SAARC Member States, contributing to 15-20% of their GDP
and a source of subsistence to 60-70% of the population. The year-round crop cultivation generates a
large amount of agricultural waste and resultant crop residue of around 450-500 Million Tons.
In the absence of alternate residue management practices and strict law enforcement, around 70-80%
of the crop residue is burnt in the fields by the farmers, causing GHG emissions and air pollution. This
issue is most noticeable in the Northern parts of India in states of Haryana, Punjab and Delhi and
Eastern provinces of Pakistan in Punjab and Sindh, where rice-wheat farming is common.
As a result, the air pollution has gone up to catastrophic levels in many large cities in the region. As on
November 26, 2019, six cities from India, Pakistan and Nepal featured in the top ten most polluted
cities around the world in terms of Air Quality Index (AQI).

Figure 1: US Air Quality Index

Delhi 527
Lahore 234
Tashkent 185
Karachi 180
Kolkata 161
Hanoi 158
Chengdu 158
Guangzhou 157
Mumbai 153
Kathmandu 152
0 100 200 300 400 500 600

The main causes of crop residue burning are two-fold: timely sowing of wheat within a window of
only 2-3 weeks and lack of manpower for efficient straw cutting.
Each year, air pollution from this crop residue burning in parts of India, Pakistan, Nepal and
Bangladesh poses a recurring and growing threat, leading to massive winter pollution1, and health
and safety hazards in the South Asian region. According to a study conducted by GeoHealth,
premature mortality attributed to exposure to ambient particulate matter in India alone is 1.1 Million
each year, and nearly half of these deaths occur in Indo-Gangetic Plain and northern part of the
country.
The rising problems associated with pollution from the crop residue burning have initiated exploration
of alternative uses of this residue. Traditionally, this residue is being used as cattle fodder, cooking fuel,
animal bedding and paper production, however, around 75-80% of the quantity continues to be burnt
in-situ. Other efficient ways of disposal of this crop residue include production of biogas, bio-oil and
energy generation. The economic growth has resulted in improvement in standard of living generating
increased energy demand in the SAARC Member States. Energy generation using crop residue can be a
sustainable option for effective residue utilization in the SAARC Member States. The strength of
1Caused by a combination of smoke from the burning of crop residue and heavy fog in the Northern regions of Indo-
Gangetic Plain, most noticeable in Delhi, Punjab and Haryana and Eastern region of Pakistan

15
bioenergy programs in these countries lies in their enormous potential for agriculture and their
resulting crop residue generation. Different means and methods of utilizing crop residue for energy
generation purposes have been explored in this study, to curb the hazards of burning such crop residue.
Potential
Agricultural residue, is available relatively uniformly in certain identified regions in the SAARC countries.
The table below illustrates the total crop production and their gross and surplus residue production
potentials in Member States. Among all SAARC Member States, India has the highest residue
production followed by Pakistan and Bangladesh, owing to their large geographical areas. The crop
residue potential of Maldives is negligible owing to its distributed island geography. The details of the
residue generation potential for each country can be viewed in Section 3.1.2.

Table 1: Gross and Surplus Residue Production Potential using all the Crops in SAARC Member States
Total crop Gross Residue Surplus Residue
Member State production Production (Million Production (Million
(Million Tons) Tons) Tons)
Afghanistan 5.6 9.7 2.2
Bangladesh 81.5 99.6 24.3
Bhutan 0.4 0.4 0.1
India 744.3 912 300
Nepal 17.2 22.8 6.3
Pakistan 128.7 122.8 37.3
Sri Lanka 3.2 4.7 1.3
Total 981 1,172 372

Although utilizing this entire surplus residue is an opportunity for energy generation, yet most crops
(like vegetables, oilseeds, pulses, cotton etc.) produce residue that is not suitable for energy generation.
These crops also have varying harvesting periods and are not available in large quantities for efficient
and profitable collection of residues. The residues from these crops are primarily used for cattle feed
and as manure. A major portion of the crop residue from rice, wheat and, to some extent, sugarcane
are burnt in the Member States.
It is observed that most crop residue burning in the SAARC Member States is practiced for rice stubble
in the months of October- November, for timely sowing of the wheat crop, usually within a window of
2-3 weeks. The pattern is repeated when the wheat stubble is burnt in the fields in the months of May-
June. The burning of these two crops’ residues is the major contributor for excessive GHG emissions
and air pollution along with smog in the winters.
Since the field-based residue like straws, stalk and leaves are the major elements prone to burning,
only these have been considered for estimating the energy generation in this study. It is, therefore,
imperative to consider these crop residues primarily for energy generation to effectively tackle the
issue of crop residue burning. The other residues generated from the harvesting and processing of rice
and wheat crops, like husks and shells, are already being used for energy generation and allied purposes
through established and regulated channels. The energy generation potential from these residues have,
therefore, been eliminated in this study. The following table illustrates the power generation potential2

2 Annual power generation potential = (Total Surplus residue in Tons) x (Collection Efficiency) / (365 x 24 x P)
Where P = Tons of biomass required to produce 1 MW of electricity

16
from rice and wheat crops’ field-based residues in the SAARC Member States. The details of the power
generation potential for each country can be viewed in Section 4.4.

Table 2: Power Generation Potential of SAARC Member States Using Rice and Wheat Farm Residues

Total wheat and Gross Residue Surplus Residue Total Power

Member Residue rice production Production Production Generation
State used
(Million Tons) (Million Tons) (Million Tons) Potential (MW)
Wheat
Afghanistan 4.2 6.4 1.4 58
straws
Rice and
Bangladesh Wheat 38.1 57.2 15.6 1,100
straws
Rice and
India Wheat 212.6 319 80.3 5,395
straws
Rice and
Nepal Wheat 7.7 11.6 3 140
straws
Rice and
Pakistan Wheat 36.3 54.4 13 834
straws
Rice straws
Sri Lanka 2.4 3.5 1 71

Total 301 452 114 7,598

Different biomass conversion technologies like gasification, pyrolysis, and anaerobic digestion have
been explored in this report for production of electricity, fuel by-products, biogas for cooking etc. The
choice of technology is affected by many factors like type, quantity and quality of agriculture feedstock,
desired energy form, economic viability, by-products produced and environmental standards.
The sustainable operations of a biomass power plant are largely dependent on the cost of biomass,
capital investment and operation and maintenance costs. Although the cost of generation using
biomass as fuel is more than the existing prices of electricity using fossil fuels, the economic benefit to
the farmers and environmental benefits counteract the returns of fossil-fuel based energy generation.
Table 3: Comparison of Cost of Generation Using Biomass Energy Conversion Technologies

Anaerobic
Particular Combustion Gasification Pyrolysis Co-firing
Digestion
Installation Cost 1,035,000 700,000 900,000 460,000
275 USD/unit
(Avg) USD/ MW USD/ MW USD/ MW USD/MW
0.134 – 0.14 0.12 – 0.13 0.13 – 0.14 USD/ 0.13 – 0.135
Cost of generation Not Applicable
USD/ kWh USD/ kWh kWh USD/ kWh

Existing grid prices 0.85 – 0.10 USD/kWh

This report also studies some successful business cases and best practices at the global level for
replication in the SAARC Member States.

17
• Since rice and wheat are the major contributors of the crop residue that is burnt every year in the
SAARC Member States, it is recommended to implement biomass-based energy generation projects
in the respective Member States focusing on farm-based residue.
• In countries like India and Pakistan, where the Kharif and Rabi harvesting seasons are followed, it
is recommended to install power projects with smaller capacities to operate on rice and wheat
residues alternatively throughout the year. This will also ensure lower capital costs, land
requirement and storage space for the residue.
Based on the country and region-wise production of agricultural crops the implementation strategy of
different bioenergy programs, has been tailor-made for each Member State. The same can be viewed
in Section 8.1.
Biomass-based energy generation technologies, though mature, face significant institutional and
operational barriers in deployment due to difficulties in sourcing reliable and affordable supply of
biomass. A review of the laws and policies of crop residue management in SAARC Member States has
revealed similar barriers and challenges in successful deployment of energy generation projects across
the region. The biggest challenge faced by countries is the lack of awareness in the farmers on the
adverse effects of residue burning and the information on other sustainable uses of residue usage,
which can aid in the economic development too. Another crucial challenge is the lack of stringent
enforcement of penalties on perpetrators violating the ban on crop residue burning. Each of the SAARC
Member States face similar barriers in deployment of biomass-based energy projects, albeit with
varying intensities:

Figure 2: Barriers in Deployment of Biomass-Based Energy Projects in the SAARC Region

A broad list of recommendations for implementation and deployment energy generation programs
using crop residue is also presented in this study. It is concluded that to successfully tackle the issue of
crop residue burning in the SAARC nations, it is imperative to raise the farmers’ awareness to the
drawbacks of residue burning by increasing their knowledge and awareness on bioenergy programs
through training and capacity building camps. These awareness programs will also need to be
augmented by technical support and incentivizing mechanisms by the government, for both farmers
and developers, to increase the penetration in the bioenergy market.

18
1 Introduction
1.1 Background
The SAARC Member States are agrarian countries wherein agricultural practices contribute to over 20%
of their GDP and is a source of subsistence to over 60% of the population. Due to this large dependency
on agriculture an enormous amount of agricultural residue is also produced each year. In countries such
as India, Pakistan and Bangladesh it is a common practice to grow 2-3 crops in rotation every year in
the same field. The practice is most commonly followed for rice and wheat farming in these countries.
Due to very short window of time between harvesting of one crop and the sowing of the next, the
farmers are left with a difficult decision to dispose the residues. While a small amount is used as cattle
feed, manure, cooking fuel and bedding, around 80% of it is burnt in the fields. Generally, wheat and
rice residues are burnt in the fields. The quantum of residue burnt in-situ in these countries is shown
below.

Table 4: Crop Wise Residue Burnt in SAARC Countries in 2016 (Tons) (major crops only)

Country Rice/paddy Wheat Maize Sugarcane Total

Afghanistan 65,450 920,084 151,900 866 1,138,300
Bangladesh 6,262,274 178,001 334,974 63,932 6,839,181
Bhutan 10,552 586 23,625 304 35,067
India 23,630,739 12,092,000 10,200,000 3,217,500 49,140,239
Maldives NA NA 32 NA 32
Nepal 749,600 298,329 891,583 52,605 1,992,117
Pakistan 1,521,057 3,657,239 1,334,000 735,033 7,247,329
Sri Lanka 578,277 NA 72,390 10,888 661,555
Source: FAO Statistics

Burning of these residues emits GHGs such as CO2, SO2, NO2, CH4 and N2O, which are responsible for
raising global temperatures and creating a thick haze most noticeable in the Indo-Gangetic Plain. This
pollution is the cause of poor visibility in the region and leads to accidents and health issues. Each year,
several cities in India, Pakistan and Nepal are identified as the most polluted cities globally. GHGs are
the biggest contributors to global warming and pollution which results in smog. The emission factors of
the major contributors are shown below.

Table 5: Emission Factors of Major GHGs

Emission factors of crop residues

Name of Gas
(g/kg)

Carbon Dioxide (CO2) 1,515

Methane (CH4) 2.7

Nitrous Oxide (N2O) 0.07

Source: International Science Congress Association

Given the surplus residue production of over 350 Million Tons that is burnt each year in the SAARC
countries, it is estimated that over 550 MMtCO2e and 1 MMtCH4e are released in the atmosphere.

19
This residue can be used for energy generation purposes to mitigate the enhancing greenhouse effect.
Several bioenergy programs have been initiated in the SAARC countries to meet the rising energy
demands of their growing economies. This, coupled with depleting conventional fuels and
environmental concerns has put an impetus on exploring energy sources from other renewable and
sustainable sources. The energy generated by using the agricultural residues can be used to bridge the
demand-supply gap by providing electricity to rural areas, which are still not connected to the grid.

Energy plays a key role in the growth of any economy. Developed countries have reached their present
standard of living by pursuing a path of energy-intensive industrial growth. With a rise in per capita
incomes, upper middle-income countries have also witnessed a rise in per capita energy consumption.
The per-capita energy consumption is low in the SAARC countries as compared to developed nations
around the globe. For example, even though India accounts for roughly 18% of the world’s population,
it uses only around 6% of the world’s primary energy. The per capita energy consumption for SAARC
countries in comparison to the world average is depicted below:

Figure 3: Per Capita Energy Consumption (kWh/person/year)

3,000 2,779
2,674

2,500

2,000

1,500

1,000 763
644 636
454 457
500 278
120
-

Source: Sustainable Energy for All (SE4ALL) data catalog, World Bank

Developing economies are moving fast to ensure universal access to power. Every household will be
connected to the grid and increasing standards of living enables such households to consume more
energy. Global energy demand is poised to grow by ~30% by 2040, spread across all sectors of the
economy. Industries and buildings would account for 75% of the increase in energy demand. This
growth in energy demand is driven by developing economies with increasing population and prosperity,
led by India and China.

The GDP growth in SAARC nations is pegged at 5-8% per annum till 2040. This growth is massively driven
by a spike in productivity (GDP per head), pulling people out of the low-income status. Global energy
trends will be shaped by this large, growing middle-class in the developing economies.

Industrial energy demand has been dominated by China in the past decade. However, the growth in
Chinese industrial demand for energy is expected to peak in the mid-2020s with a decline thereafter.
Industrial energy usage is expected to shift from China to the SAARC nations, other Asian and African
countries, which are expected to account for a two-third share in industrial energy demand growth.

20
Renewable energy sources (including hydropower) currently make up almost 26% of the generation
mix at a global level, increased rapidly since the year 2000. This growth has been driven mainly by
ambitious climate change policies leading to the addition of new solar and wind capacity, led by the
United States, China, European Union, India, Australia, and Japan. The sharp fall in RE development
costs in recent years has also enabled developing countries to grow their renewable capacity base. The
figure below depicts the steady growth of installed RE capacity around the globe and the current RE
capacity installed in the SAARC Member States.

Figure 4: Global RE Installed Capacity (GW)

Global RE capacity (GW)

2500

2000

1500

1000

500

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: IRENA, Renewable Capacity Statistics 2018

Table 6: RE Capacity Installed inSAARC Member States (as on Dec 2018)

Installed RE Generation
Country
Capacity (MW)
Afghanistan 355
Bangladesh 568
Bhutan 1,615
India 117,919
Maldives 11
Nepal 1,112
Pakistan 13,049
Sri Lanka 2,091
Total 136,720
Source: Energy Statistics of each country

Renewable energy capacity additions in the SAARC countries can fulfill the increase in energy demand
generated because of the increasing prosperity and population. However, biomass has still not been
sufficiently explored as an energy generation source, since the focus has been on solar, wind and hydel
energy. Crop residues can be a useful source of biomass energy generation but most crop residues are
burnt leading to various disadvantages.

21
Crop residue burning
Out of various crops cultivated in the SAARC Member States, cash crops like rice, wheat and sugarcane
are prone to crop residue burning. These crops are preferred by farmers for their higher economic
returns, as compared to other crops. Rice-wheat cropping is commonly followed in SAARC countries,
which leaves a very small window of 2-3 weeks between the harvesting of rice and preparing the farm
for sowing of wheat. Harvesting of rice and wheat generates large volume of agricultural wastes, both
on and off farm. As a result, the farmers prefer to burn the rice straw or stubble that is left behind after
the harvesting of rice as the fastest and most economical method to prepare for the next crop.
Alternatively, crop residues are used as bedding for animals, cattle feed, soil mulching, biogas
generation, compost, thatching for rural homes’ roofs, fuel for domestic and industrial use, and only a
very small scale- biomass energy production. The graph below shows the most common ways the
farmers deal with the crop residue disposal.

Figure 5: Disposal Methods of Crop Residue in SAARC Region

5-10%
2-4%
3-7%

6-10% 2-4%

80-85% 1-2%

1-2%

Burnt in fields Animal fodder Composted Sold Cooking fuel Incorporated in soil Thrown away

As shown above, majority of crop residue (80-85%) is burnt ‘in-situ primarily to clean the field for timely
sowing the next crop. The problem of in-situ burning of crop residues has intensified in recent years
due to shortage of human labor, high hourly rentals of machines to remove the crop residue from the
field and increased mechanized harvesting of crops that leave behind the crop stubbles. The burning of
crop residue has many adverse effects as listed below:

Greenhouse gas emissions: Crop residue burning is a source of Green House Gases (GHGs) and aerosols
such as methane, carbon monoxide, nitrogen oxides and other hydrocarbons. This practice also
emits huge amounts of particulates composed of a wide variety of inorganic and organic species.
Each Tons of residue burnt releases 1.5 Tons of CO2, 2.7 kg of CH4 and smaller quantities of other
GHGs into the atmosphere.
Accidents and health hazards: The smoke emitted by the burning of crop residue contributes to smog
and leads to accidents due to low visibility, particularly in India and Pakistan. The smog also contains
harmful GHGs, Particulate Matter and Black Carbon that are harmful to human health which may
lead to various lung/air borne diseases. In the last year, air pollution has caused the death of over
1.2 Million and 28,000 people in India and Pakistan respectively, and also affected million others
with acute respiratory infections (ARI).

22
Soil health: Crop residue burning leads to the loss of nutrients. If the crop residue is incorporated or
retained in the soil itself, it gets enriched, particularly with organic carbon and nitrogen. Frequent
residue burning also leads to complete loss of microbes and reduces level of nitrogen and carbon
in the top 0-15 cm soil profile, which is important for crop root development.
The pros and cons of crop residue burning have been summarized below, which clearly show the
disadvantages of crop residue burning outweigh the advantages. The crop residue must be used to
generate green energy in different forms, having the dual benefits of mitigating crop residue burning
issues and reducing the power deficit.

Figure 6: Pros and Cons of Crop Residue Burning

Biomass has been identified as one of the thrust areas of renewable energy development in the SAARC
nations for its abundance and economic value. Biomass resources are available in the form of wood,
agricultural crops and residues, municipal solid waste, animal manure and human sewage. Of these,
crop residues are available relatively uniformly in certain identified regions compared to other
renewable resources in these countries. Although traditionally this residue has been used as cooking
fuel in rural households, the rising demand for off-grid electricity and increased standard of living has
led to exploration of energy generation from this biomass in many countries. Several biomass
conversion technologies like gasification, pyrolysis, and anaerobic digestion are being explored for
production of electricity, fuel by-products, biogas for cooking etc. The choice of technology is affected
by many factors like type, quantity and quality of agriculture feedstock, desired energy form, economic
viability, by-products produced and environmental standards. Hence, it is essential to determine the
crop residue potential in individual countries to be used for energy generation, the technologies that
can provide clean energy and any barriers in the development and deployment of such solutions.

1.2 Objective of the Study

Rice-wheat cropping system is dominant in the area constituting Pakistan, India, Bangladesh, and
Nepal; resultantly, this area is producing enormous quantity of rice straw residues, which are generally
burnt in open air. This has some short-term advantages to the farmers; however, it also results in health
and environmental problems. The black carbon emissions from crop residue burning combines with
dense winter fog and give rise to atmospheric smog in South Asia. This smog has serious negative health

23
impacts, and leads to eye infections, coughing, headache, asthma, allergies etc. Smog is also particularly
bad for cardiac patients. Therefore, to counter these environmental and health impacts, the open air
burning of crops needs to be minimized.
SAARC Energy Centre conducted this study to evaluate other possible uses of the crop residues instead
of open burning. There is good potential for use of crop residues (including rice), and the focus of this
study is on the alternate uses for crop residues, mainly rice crop.
Assessment of alternate options for using crop residue instead of open burning in the fields. This
includes technology options such as synthesis gas generated through gasification process and its
uses.
Provide country-wise recommendations to policy makers, private sector, and small & medium
enterprises (SMEs) on how to utilize crop residue to economically meet energy needs, tackling
localized air pollution and for conserving environment.

1.3 Scope of the Study

Market research and benchmarking – Study of agriculture sector and major crops cultivated in SAARC
Member States. The study covers seasonal availability of these crops, area of cultivation and volumes.
Study of disposal methods - The study estimates the major state-wise potential for residue utilization,
the harvesting periods of various crops in each Member State and their current disposal method
adopted: fodder, compost, burnt, sold etc. The second stage of this study covers the supply chain
management from harvesting to utilization, storage methods to be used and weather effects on the
crop residue.
Technology assessment – Assessment and evaluation of different technologies for crop residue usage,
including, but not limited to, gasification to produce syngas, estimation of crop residue available and
their energy generating potential. Cost benefit analysis and selection of viable business models for each
Member State are ensured. The study also includes assessment of International best practices and
success stories for replication.
Study of environmental effects- The study includes the effects of localized air pollution in larger states
and its effect on the weather. The effects of smog on human health and other external causes are aslo
assessed.
Policy interventions and recommendations- Study of policies for effective management of crop residue
in each Member State, the penalties and incentives imposed, and local government support. The study
also examines the barriers and challenges in each Member State for effective dispersion of solutions.
Thus, realistic policy interventions and recommendations for each Member State are provided for
various stakeholders.

24
1.4 Methodology of the Study
The broad approach and methodology is outlined below:

Figure 7: Approach and Methodology of the Study

1.5 Limitations of the Study

The analysis and data collection are based on public sources of information such industry studies,
journals, publications and various research databases.
Analyses are based on the data/information/report shared by SEC relevant for the study.
The study undertaken is limited to secondary sources and discussion only and no primary research has
been undertaken for the assignment.
During the course of analysis and benchmarking, widely acceptable norms are used, in case the actual
information was unavailable.

25
2 Agriculture Residue Potential in SAARC
Member States
2.1 Overview of Agriculture Sector
Over 65% of the population in SAARC region lives in rural areas, largely dependent on agriculture for
their livelihood and sustenance. Although some of the economies in this region have witnessed rapid
growth in the previous decade, yet agriculture remains the predominant occupation for 40-80% of the
workforce. Sustained growth of agriculture sector is imperative for eradication of poverty, livelihood
security, reduction in hunger and promotion of sustainable and inclusive growth of the regional
economies. The table below shows a comparative study of the individual country’s contribution from
agricultural practices to the GDP and the percentage of workforce employed in such practices.
Countries like Nepal and Sri Lanka have a larger share of workforce engaged in agricultural practices as
compared to other countries, owing to their considerably small geographic areas and lower population.

Figure 8: Agricultural GDP and Employment in SAARC Member States

80%

70% Afghanistan
60%
Bangladesh
% employed

50%
Bhutan
40%
India
30%

20% Maldives

10% Nepal

0% Pakistan
0% 10% 20% 30% 40%
Agriculture contribution to GDP (%) Sri Lanka

Agriculture farming in South Asia is dominated by small fields, where average size of field is below 0.5
hectare in Bangladesh, and below 1.0 hectare in Sri Lanka and Nepal. In India, the average farm size is
1.4 hectare. Pakistan, however, endowed with land resources, fares better than others, with an average
farm size of 3.0 hectare. Holdings below one hectare, accounts for more than 60% of total farm holdings
in the SAARC region.
Due to low infrastructural developments, the agricultural activities in these countries is largely
dependent on rain-fed farming. The agricultural irrigated land (percentage of total agricultural land)
ranges from as low as 3% in Bhutan to 59% in Afghanistan. Other major common challenges faced by
farmers in the SAARC region are shown below. The next section covers agricultural practices, overall
crop production and agriculture governing bodies in each Member State.

26
Figure 9: Major Challenges in SAARC's Regional Agriculture

Natural
resource
Changing degradation
energy
Lack of scenario
mechanized
Absence of harvesting
assured equipment
Lack of field inputs:
financial seeds,
Absence of support to fertilizers,
infrastructure farmers pesticides
Climate for irrigation,
change storage and
connectivity

2.1.1 Agriculture Scenario in Member States

2.1.1.1 Afghanistan
In Afghanistan, around 82% of its total population lives in rural areas. Almost half of the rural population
are dependent on farming business, which is their only source of income. In FY 2017, the country’s
agriculture sector (including fishery and forestry) contributed about USD 4 billion to the national GDP,
representing a share of ~21%. Wheat and rice accounts to ~75% and 9% of the total crop production
(5.5 Million Tons). Despite its wheat production, the wheat imports grew significantly by 12%, to 3.7
Million Tons in FY 2018 from 3.3 Million Tons in FY 2017. The country has been relying on imported
cerals to meet its population’s dietary energy requirements.

Figure 10: Year-wise Agriculture GVA (USD Figure 11: Year-wise Agriculture Contribution to GDP &
bn) Labor Employed in Agriculture Sector in Afghanistan

5.0 25 22.8 40.0

22.1
4.7 20.6 21.1 20.5
Agriculture contribution

4.5 20 39.5
4.5
Employment
GVA

15 39.0
4.1 4.1 4.1
10 38.8 38.8 38.5
4.0 38.7 38.6 38.7

5 38.0

3.5 0 37.5
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Agriculture contribution (% of GDP)
Employment (in %)

Source: World Bank

Except in 2017, where the agriculture GVA that includes fishery and forestry increased marginally by
1.2%, the agriculture GVA has decreased to a large extend in the preceding years. There are various
reasons for such decrease, such as lack of access to affordable farming inputs, limited use of best
agriculture practices, scarcity of water, lower rainfall, accumulation of snow pack during the winter

27
which damages the crops, etc. which affects the country’s agricultural yields to fall below the world
average.

Figure 12: Total Crop Production (Total: 5.5 million

Figure 13: Arable Land in Afghanistan
Tons) in Afghanistan

1.7% 7.0%
5.6%

9.0%

76.6%

Wheat Rice Maize Barley Others

Source: GIEWS Country Brief, Afghanistan, 2019

Out of the total arable land (59% of total land), the country has been able to utilize only 5.7% of total
arable land. Under-utilization of land is one of the major reasons leading to high level of imports of
agriculture products.
Despite various challenges, the country has been taking steps to improve the agricultural exports which
grew at a CAGR of 35% during the period 2012-16. Amongst the total agriculture exports, cereals and
edible fruits and nuts grew at a CAGR of more than 150% during the same period. The agriculture sector
is governed by the Ministry of Agriculture, Irrigation and Livestock (MAIL), which is responsible for
formulation of polices, educating the farms, implementation of projects undertaken by multilateral
agencies, natural resource management, ensure food security, etc. In addition to this, MAIL plays a vital
role to encourage and support the traders and producers of agriculture crops by linking them to
international and domestic markets.

2.1.1.2 Bangladesh
Bangladesh, a country that covers an area of approx. 147,570 sqkm, is one of the agro-based developing

Figure 15: Year-wise Agriculture Contribution to

Figure 14: Year-wise agriculture GVA (USD bn)
GDP and Labor Employed Sector in Bangladesh
16 46
40 15.5
33.5 15.4
31.1
Agriculture contribution

32 28.8 15 45.0 14.8 44

26.5 44.3
Employment

23.2
24 43.4 14.0
GVA

14 42.7 42
16 13.4

13 40.6 40
8

0 12 38
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Agriculture contribution (% of GDP)
Employment (in %)

Source: World Bank

28
countries in the world. Agriculture has been the backbone of Bangladesh economy as it contributed to
13.4 % of the total GDP in FY2017 and employed more than 40% of the workforce in the agriculture
sector during the same period. Like other developing nations, majority (~80%) of the rural population
is heavily dependent on the agriculture sector for their livelihood. In the last five years, the country has
witnessed a steady growth of agriculture sector. The agriculture GVA grew at a CAGR of ~10% to USD
33.5 billion in 2017 from USD 23.2 billion in 2013. Due to migration of the workforce towards other
sectors especially textile sector, the workforce in the agriculture sector declined to 40.6% in 2017 from
45% in 2013.

Figure 16: Total Crop Production (Total: 81.4

Figure 17: Total Arable Land in Bangladesh
million Tons) in Bangladesh

39.4%
41.5%

10.1%

3.7% 5.3%

Rice Wheat & cereals Maize Jute Others

Source: Bangladesh Grain and Annual Feed Report, 2018

As on 2016, Bangladesh had an arable land of 59.6%. However, due to rapid urbanization, the country
is losing agriculture land at a rate of 1% per year, which may have significant impact on the agricultural
crops production.
During the period 2013-17, the total exports of agriculture products declined at a CAGR of 3%. In the
same period, exports of fiber which contribute to 61% of the total agriculture exports in 2017, declined
at a CAGR of 6%. One of the reasons for decline in exports has been significant level of post-harvest
losses, which are estimated to be 20-25% of total production. Lack of cold storage and efficient logistics
system in the country are leading to high level of post-harvest losses, which results in huge losses to
producers.
To overcome various challenges and ensuring long-term food security for the population in the country,
Ministry of Agriculture has been tasked with implementation of projects and programs, which broadly
covers creating awareness amongst the farmers, providing agricultural support and rehabilitation,
developing irrigation infrastructure, storage and distribution centers, promoting modern cultivation
method, etc. The government has taken initiative such as introduction of cards for fertilizers, seeds and
other agricultural inputs, mechanization of irrigation and farming, diversification and marketing of
crops and agricultural rehabilitation support to develop the agriculture sector.

2.1.1.3 Bhutan
Bhutan has undergone significant transformation in the last few years and has been engaging with the
developing nation to develop its industry sector, which achieved impressive growth rate. However,
Bhutan still relies heavily on imported food commodities such as vegetable, rice, fruits, sugar, etc.
According to the labor force survey, approx. 57.2% of the total workforce is depending on agriculture

29
for their livelihood. In 2017, the agriculture sector was the highest contributor to the national economy,
followed by construction and hydropower sectors.

Figure 19: Year-wise Agriculture Contribution and

Figure 18: Year-wise Agriculture GVA (USD bn)
Labor Employed in Agriculture Sector in Bhutan
17.5 17.4 60.0
0.5
0.44
17.0 59.0

Agriculture contribution
16.8 16.7
0.4 0.37 16.6
0.33 0.34

Employment
58.0
0.29 16.5 57.6 58.0
0.3 16.1
GVA

16.0 57.0
0.2 57.2

15.5 56.7 56.0

0.1 56.3

0.0 15.0 55.0

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Agriculture contribution (% of GDP)
Employment (in %)

Source: World Bank

In 2017, the agriculture GVA, which includes fishery and forestry, grew by 19% to USD 439 Million from
USD 369 Million in 2016. In 2016-17, the total crop production stood to 0.38 Million Tons, which
includes 0.18 Million Tons of vegetables and fruits. Due to large climatic variability across the different
zones in the country, farmers are able cultivate almost all kinds of vegetable crops. Bhutan’s major
agricultural products include maize, rice, potatoes, milk, and species such cardamom, which is a
profitable business in the country. Given the nature of landscape, which is almost 2,400 meters above
the sea level, usage of tractors and other mechanized equipment is limited.

Figure 20: Total Crop Production (Total: 0.38

Figure 21: Total Arable Land in Bhutan
million Tons) in Bhutan

22%

47%

24%

3% 3%
Rice Maize
Wheat & other cereals Oilseeds, Pulses, Spices
Vegetables & Fruits

Source: Bhutan RNR Statistics, 2017

With only 2.6% of total land as arable land, the country is striving hard to achieve food self-sufficiency.
During the period January-September 2018, the country imported rice worth USD 11 Million and sugars
worth USD 3.75 Million. Bhutan imports food commodities majorly from India followed by imports from
South Asian countries.
To support and govern the agrobusiness, the Ministry of Agriculture and Forests (MoAF) has established
different departments such as Department of Agriculture Marking and Cooperatives, Bhutan

30
Agriculture and Food Regulatory Authority, Agriculture Machinery Centre, etc. In the 12 th five-year plan,
MoAF has set targets, which primarily focuses on enhancing national food self-sufficiency and
nutritional security.

2.1.1.4 India
Agriculture is the primary source of livelihood of 44.5% of the total workforce. Gross Value Added by
agriculture, fishery and forestry grew by 11.3%, to USD 414 billion in 2017 from USD 372 billion in 2016.
India has been the largest producer, consumer and exporter of spices and related products and second
largest fruit producer in the world. Total agricultural exports from India grew at a CAGR of 16.4% during
the period 2010-18 to USD 38.21 billion in 2017-18. To boost the agriculture exports, the government
has set up 60 agri export zones across the country.

Figure 23: Year-wise Agriculture Contribution and

Figure 22: Year-wise Agriculture GVA (USD bn)
Labor Employed in Agriculture Sector inIndia
18 48
500
414.3
Agriculture contribution
372.2
400 342.4 340.2 17 46.6 46
318.4

Employment
46.1
45.6
GVA

300 45.1
16 44
44.5
200
15 42
17.1

16.8

16.2

16.2

15.6
100
14 40
0 2013 2014 2015 2016 2017
2013 2014 2015 2016 2017
Agriculture contribution (% of GDP)
Employment (in %)

Source: World Bank

Given the importance of agriculture sector, the government has undertaken serveral steps for its
sustainable development. In 2016, the government has taken various steps to improve the soil fertilty
through soil health card scehme, access to irrigation and enhanced water efficiency through the
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), to support organic farming, to support creation of
unified national agriculture market to boost the income of farmers and to mitigate risk in the agriculture
sector through Pradhan Mantri Fasal Bima Yojana (PMFBY).
In 2017-18, the total food grain production stood at 284 Million Tons, which is 9.7 Million higher than
the previous year’s production of food grain. Sugarcane crops contributed to approx. 40% of the total
crop production in 2017-18. During the same period, total production of rice increased marginally by
~3% to 112.9 Million Tons from 109.7 Million Tons in 2016-17.
Figure 24: Total Crop Production (Total: 744.3
Figure 25: Total Arable Land in India
million Tons) in India

18%
6%
47%
13%

15%

Sugarcane Rice
Wheat Coarse cereals

Source: Annual Report 2018, Department of Agriculture, Cooperation & Farmers Welfare

31
In 2016, arable land accounted to half of the country’s total available land. Over the past few years,
due to rapid urbanization, the land available for agriculture has been gradually reducing.
The Ministry of Agriculture and Farmers Welfare (MoAFW) is the apex body, which is responsible for
formulating policies and administration of rules and regulations related to agriculture sector in India.
The ministry comprises of three departments, which oversees the programs and initiatives undertaken
by the government. To eliminate the adverse effect of crop residue burning, MoAFW has formulated
“National Policy for Management of Crop Residues (NPMCR)”, which shall be adopted by various states.
The objective of NPMCR is to control burning of crop residue, diversify the use of crop residue for
various purposes, create awareness of ill-effects of crop residue burning and implement steps to curb
burning of crop residue.

2.1.1.5 Maldives
The agriculture sector plays an important role in food and nutrition security; especially for people living
in the rural areas. Maldives economy is dominated by two sectors i.e. tourism and fishing. Due to lack
of availabiltiy of land for cultivation of crops, less fertile soil, shortages of fresh water, the agriculture
development is limited in Maldives. As a result, the agriculture sector accounted for 5.5% of Maldives’
GDP in 2017 and employed only 9% of the total workforce in Maldives.

Figure 26: Year-wise Agriculture GVA (USD Figure 27: Year-wise Agriculture Contribution and
bn) Labor Employed in Agriculture Sector in Maldives

0.30 6.0 11.0

0.27 10.9
0.25
10.5
Agriculture contribution

0.25 0.23 5.8

10.3
0.20 10.0

Employment
0.20 0.18 5.6
9.8 9.5
GVA

0.15
5.4 9.2
9.1 9.0
0.10
5.2 8.5
5.4

5.3

5.6

5.6

5.6

0.05
5.0 8.0
0.00
2013 2014 2015 2016 2017
2013 2014 2015 2016 2017
Agriculture contribution (% of GDP)
Employment (in %)

Source: World Bank

Figure 28: Total Arable Land in Maldives

Except for coconut and fresh fish, more than 90% of food items including stables are imported from
neighbouring countries. Lack of storage facilities and heavy dependence on imports of food items, have

32
posed a severe food security risks in the country. Of the total available land, only 13% of the land is
available to carry out agriculture acitvity. And about half the arable land is in the form agriculture
islands, which are leased by private players for agriculture development. In many islands, field crops
such as potatoes bananas, papaya, pineapple, chillies, cabbage, pumkin are grown throughout the year.
While seasonal crops such mango, drumstick, etc. are high value crops, which contributes significantly
to the income of a farmer.
Under the “Agriculture Development Master Plan for Sustainable Food Security, Agriculture and Rural
Development”, the government aims to improve and support small-scale farming, which can be carried
out agriculture island. In Maldives, Ministry of Fisheries and Agriculture (MoFA) is responsible for the
development of agriculture sector.

2.1.1.6 Nepal
Nepal is an agricultural country having 70% of the total employment directly engaged in the farming
activities. While rice, maize, millet, barley are the major staple food crops, oilseeds, potato, sugarcane
and jute are some of the important cash crops. Due to uncertain climatic conditions, most of the famers
prefer to grow diversified crops. In addition to pulse crops and spices, Nepal grows several vegetable
and fruits crops which include apple, peach, pear, lemon, mango, banana and cucumber, etc.

Figure 30: Year-wise Agriculture Contribution and

Figure 29: Year-wise Agriculture GVA (USD bn)
Labor Employed in Agriculture Sector in Nepal

35 73
6.6 6.5
30
Agriculture contribution

6.4 71.9 72
25
6.3

Employment
20 71.3
GVA

6.2 71.1
6.2 71
6.1 15 71.0
6.1
70.4
6.0 10
70
29.4
31.5

30.3

29.1

26.2

5
5.8
0 69
2013 2014 2015 2016 2017
2013 2014 2015 2016 2017
Agriculture contribution (% of GDP)
Employment (in %)

Source: World Bank

Agriculture sector contribute to a third of the total GDP of Nepal. However, the Gross Value Added has
marginally increased to USD 6.5 billion in 2017 from USD 6.1 billion in 2013. Previously, the government
has taken initiatives to improve the agriculture production but had minimal success. Despite having
multiple sources of water, the country lacks efficient irrigation systems. In hilly terrains, transportation
of goods has been also a major issue, which has adverse effects on the exports of agriculture products.

33
 Figure 31: Total Crop Production (Total: 17.1
Figure 32: Total Arable Land in Nepal
million Tons) in Nepal

17%
32%

15%

16% 20%

Rice Sugarcane Potato Maize Others

Source: Nepal Statistical Yearbook

Nepal has only 17% of total land for the agriculture production. In the last nine years, the country’s
reliance on other countries for import agriculture products has increased by almost five times.
In 2017, Nepal’s agricultural goods import crossed USD 1.7 billion, which includes cereals, vegetable
fats and oil and vegetables worth USD 0.4 billion, USD 0.3 billion and USD 0.2 billion respectively.
Ministry of Agriculture and Livestock Development (MoAD) is a government body, which is responsible
for the development and the growth of agriculture sector in Nepal. In 2014, MoAF has developed
Agriculture Development Strategy (ADS), which aims to guide the agriculture sector of Nepal over the
next 20 years.
Long-term targets of ADS include reducing the amount of degraded land by almost 50%, achieving 0 –
5 % in trade surplus (food grains), increasing agricultural exports to over USD 2 billion, increasing the
agricultural land productivity by three folds to USD 4,787 in 20 years, etc.

2.1.1.7 Pakistan
Pakistan’s agriculture sector plays a vital role in the economy as it contributed 22% of the total GDP in
2017 and absorbed 42% of the total workforce. The country’s population is growing at a rate of 2.4%
annually and this rapid increase in population is raising demand for agriculture products. The
government has been taking steps to diversify crop production, promote high value crops, efficient use
of water, enhance agriculture credits, provide electricity at subsidized rates etc.

34
 Figure 34: Year-wise Agriculture Contribution and
Figure 33: Year-wise Agriculture GVA (USD bn)
Labor Employed in Agriculture Sector in Pakistan
25.0 42.6
69.8

Agriculture contribution
75 64.4 64.7 24.0
58.0 42.2 42.2 42.3 42.0
55.1

Employment
60
23.0 42.0
45 41.4
GVA

22.0
30 41.0 40.8
21.0

23.8

23.7

23.8

23.2

22.9
15

0 20.0 40.2
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Agriculture contribution (% of GDP)

Employment (in %)

Source: World Bank

In 2017, agriculture Gross Value Added grew by 7.9%, to USD 70 billion from USD 64.7 billion. During
the same fiscal year, the crops sector performed well and witnessed a growth of 0.91 % against decline
in growth rate by 5.2% in 2016. Sugarcane is a high value crop of Pakistan and is the raw material for
sugar related industries, which is the backbone of the country’s economy. Sugarcane contributes to
approx. 63% of the total crop production in Pakistan.

Figure 35: Total Crop Production (Total: 129

Figure 36: Total Arable Land in Pakistan
million Tons) in Pakistan

5%
4%
8%

20%
63%

Sugarcane Wheat Rice Maize Others

Source: Pakistan Economic Survey 2017-18

Agriculture land accounts to 40.2% of the total available land in Pakistan. During the period 2010-16,
the total arable land increased marginally by ~2% from 38.1%.
Pakistan, like India, has two cropping seasons, Kharif and Rabi. The Kharif being the first sowing season
starts from April-June and is harvested in during the period October-December. Rabi, which is the
second sowing season starts in October-December and is harvested in April-June. Due to lack of
efficient irrigation system, the agriculture sector in the country is heavily dependent upon the timely
availability of water. In 2017-18, the availability of water in kharif and rabi season decreased by 2% and
18.5% respectively.
Ministry of National Food Security & Research (MoNFS), which is also known as Ministry of Agriculture
is responsible for formulating, developing and executing policies related to agriculture sector. One of

35
the focus areas for the Ministry has been production and promotion of compost from city-waste, crop
residue and animal manure for production of fruits and vegetables.

2.1.1.8 Sri Lanka

Sri Lanka is blessed with fertile tropical land with a large potential to cultivate and process variety of
crops. But, issues pertaining to productivity and profitabilty have hampered the growth of the sector.
The agriculture sector contributed to 7.7% of the total GDP and employs close to a fifth of the total
workforce. As rice is the stable food in the country, rice production accounts to 73% of the total crop
production in Sri Lanka.

Figure 38: Year-wise Agriculture Contribution and

Figure 37: Year-wise Agriculture GVA (USD bn)
Labor Employed in Agriculture Sector in Sri Lanka
8.4 31
8 6.9

Agriculture contribution
6.4 6.6 8.2 30
6.1 29.7
5.7
6 8.0 29

Employment
28.5
7.8 28
GVA

4 28.0
7.6 27.0 27
2 7.4 26.1 26

7.7

8.0

8.2

7.5

7.7
7.2 25
0 7.0 24
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Agriculture contribution (% of GDP)
Employment (in %)

Source: World Bank

In 2018, the import of food and beverages accounted for 7.2% of the total imports. In the same period,
Sri Lanka imported 1.3 Million Tons of wheat majorly from Canada and USA. In addition to this, imports
of red lentils stood to USD 79 Million in 2018.

Figure 39: Total Crop Production (Total: 3

Figure 40: Total Arable Land in Sri Lanka
million Tons) in Sri Lanka

6% 4%
7%

9%

73%

Rice Manioc Vegetables Maize Others

Source: Economic and Social Statistics of Sri Lanka, 2018

Agriculture land accounts to 20% of the total available land in the country. Unlike other countries,
where the availability of arable land is in the decreasing trend, arable land in Sri Lanka has increased by
~4%, from 16% in 2007 to 20.7% in 2017. Almost two third of the arable land is in the dry zone, where

36
bulk irrigation infrastructure is located. Majority of the farmers cultivate both rice and other food crops
such as pulses, fruits, vegetables, cereals, etc.
The agriculture sector in Sri Lanka imposes various challenges such as low-level mechanization, high
post-harvest losses, high transaction cost, lack of soil fertility management and limited agro-based
industries, etc. To overcome these challenges, the government has identified e-solutions such as e-
market place for agriculture, e-pest surveillance system, smart water management, real-time data
system to monitor food crop production, early warning system, etc.
Ministry of Agriculture (MoA) is responsible for formulation and implementation of national policy. At
the same time, provide necessary guidance for sustainable development of agriculture sector in Sri
Lanka. MoA has recently drafted the “Overarching Agriculture Policy, 2019”, which aims to enhance
agriculture and Agri business through sustainable technologies and constructive partnership.

37
2.2 Potential Crops for Energy Generation in SAARC Member States
2.2.1 Potential Crops for Energy Generation
The potential crops for energy generation have been selected using a combination of factors like:
1. Area under cultivation

2. Annual production of crop

3. Estimated residue potential and surplus residue

4. Energy content of residue

As a thumb rule, the crops with the highest production in each Member State have been selected for
energy generation. It is observed that cereals have the highest residue producing potential amongst all
crops like pulses, oilseeds, cotton and jute. Cereal stalks and straws are also the prime residue that are
subjected to crop residue burning. The potential crops in each country have been enlisted below:

Table 7: Potential Crops for Energy Generation in SAARC Member States

Afghanistan Wheat, barley, rice, maize, potato, sugarcane, sugarbeet and cotton

Bangladesh Rice (boro, aman and aus), wheat, jute, sugarcane and maize

Bhutan Rice, maize, wheat and barley

India Rice, wheat, maize, cotton, jute and mesta and sugarcane

Nepal Rice, wheat and barley

Pakistan Rice, wheat, maize, cotton and sugarcane

Sri Lanka Rice and maize

Most of the residues from these crops are not available throughout the year but are accessible only at
the time of harvest. This makes collection convenient, but on the other hand, creates storage related
problems, if the residues have to be conserved for use during lean period. In India, normally two crops
seasons, i.e., kharif and rabi are taken into consideration. Therefore, availability of crop residues is
expected to be spread evenly over the year. As a result, crop residues of one kind or the other are
available throughout the year.

It is imperative to consider the harvesting seasons of these crops to estimate the annual crop residue
that will be available for energy generation. The table below provides a brief of the harvesting seasons
in each of the Member States.

38
Table 8: Harvesting Patterns of Crops in SAARC Region

Rabi (October- Throughout

Country Kharif-1 (March-June) Kharif-2 (July-October)
March) the year
100% of the winter
wheat and barley are 100% of the spring wheat
Rice is harvested in
Afghanistan harvested in this period and maize are harvested None
this period
Rice is sown towards in this period
the end of this period
50% of the rice and
About 9% of the rice
About 41% of the rice, almost 100% of the
and 100% of the jute,
and almost 100% of the wheat, pulses, millet,
sugarcane and Rice,
maize are grown in this and potato are
groundnut are sown in coconut,
Bangladesh period grown in this period.
this period. vegetables
Aus rice and jute are Rice, jute, sugarcane
100% of wheat, millet etc.
harvested during this and groundnut are
and pulses are
period harvested during this
harvested in this period
period
Rice and maize are
Wheat and barley
sown in this period 50% rice and 100% maize
are sown during the
Bhutan Wheat and barley are are harvested during this None
beginning of this
harvested during this period
period
period
About 7% of the Rice 9% of Rice, and
About 84% of the rice,
and 100% of the Jute, almost 100% of
100% of the maize are
sugarcane and wheat, pulses and Some
sown in this period
groundnut are sown in millets are sown in amounts of
India 10% of wheat and pulses
this period. this period rice, pulses
along with jute and some
90% of wheat, cotton Rice, sugarcane and and oilseeds
maize are harvested in
and pulses are maize are harvested
this period
harvested in this period during this period
Wheat is harvested
during this period Rice is sown during this Rice is harvested
Nepal None
Maize is sown during period during this period
this period
Rice, sugarcane, Some
Rice, sugarcane, cotton, maize and millet are sown cotton, maize and amounts of
Pakistan
during this period millet are harvested rice, pulses
during this period and oilseeds
Rice and maize are
Sri Lanka Rice and maize are harvested during this period sown during this Rice
period

2.3 Present Utilization and Supply Chain

2.3.1 Present Utilization AND Disposal Practices OF Crop Residue in Member
States
Agricultural residues can be classified as those portions of the crop that cannot be consumed as food.
These include leaves, husks, stalk, straw, stubbles and pods of seeds. Farmers usually rely on
conventional ways for disposal of these residues by using them as animal food, fertilizers, in harvesting
of other crops by ploughing them into the ground or burning them completely. However, lately, newer
methods of utilization and disposal of these crop residues are being adopted. These include converting

39
them into biofuels and composting. Such methods seem to be promising, but these have not been fully
developed at large scale yet.

2.3.1.1 Utilization Practices

The waste generated from the agricultural sector can be favorably utilized in different agro-based
applications and industrial processing. Different countries have different methods of utilization of the
agricultural residues generated. Depending on their end use, the residues are processed while some
are used in their raw form. The possible options include its use as animal food, composting, production
of bioenergy and deployment in other extended agricultural activities such as mushroom cultivation.
Many countries such as India China, Nepal, Indonesia, Japan, Thailand, Malaysia, Nigeria and Philippines
use their crop residues to generate bio energy.
Table 9: Utilization Practices Adopted by SAARC Member States

Country Use of residue

Animal feed
On farm applications
Afghanistan
Construction material
Cooking
Animal feed and bedding
Tillage for organic fertilizer
Bangladesh
Mulching
Cooking fuel
Fuel wood
Bhutan
Animal feed
Animal feed
Biomass-based energy generation plants (in some regions)
Paper and Pulp Board Production
India
Mushroom cultivation
Straw mulching
Preparation of bio enriched compost/vermin compost and its utilization as farm manure
Animal feed
Maldives Cooking fuel
Compost
Animal feed
Nepal Cooking fuel
Compost
Animal feed
Pakistan
Biomass-based energy generation plants (in some regions)
Paddy straw is used in the paper industry
Biomass-based energy generation plants (in some regions)
Making compost and fertilizers
Sri Lanka
Cereal straw is used for building thatched roofs and used as packing material.
Mulching
Organic fertilizers

40
2.3.1.2 Disposal Methods
Burning is the most common disposal technique adopted by the farmers for disposal of residue. As
previously stated, majority of the population belonging to the agricultural sector in the SAARC region
lie in the low-income bracket. Usually, the farmers have a 20-day window to manage the crop residues
before the sowing of the next crop. Traditional, as well as mechanized harvesting leaves residue in the
fields in the form of stalks, stubble and straws that farmers burn to clear the field for sowing the next
crop. Most farmers prefer burning of crop residue over alternate usage, as it is a quicker and cheaper
option, and kill weeds and pests in the process.
Major reasons for burning the residue as disposal are stated below:
• Residues, having low nutrient content, and are not suitable for cattle fodder
• High rent of rotavator for mulching; for example, in India, it is INR 1,000 per hour (~USD
14/hour)
• Lack of manpower and high labor cost for efficient straw cutting since the introduction of
mechanized farming
• Lack of storage space for residue, if collected
• Lack of adequate incentives for sale of such residue
• Burning is the cheapest disposal method

2.3.2 Present Storage Methods of Crop Residue

Although most farmers prefer the burning of residue as compared to other alternate usages, there is
still a marginal number of farmers who store this residue for future use. In most cases, the residue is
used as fodder for cattle or for making manure and fertilizers. The residue stored for self-use generally
finds storage space inside the farmers houses, sheds or by the side of fields. In some cases, the residue
is also bundled in bales and stored on top of trees or houses to keep them out of reach of cattle. Such
storage is done at a domestic level and does not use any extravagant methods, like temperature and
moisture control, making them prone to weather-caused degradation and excess drying or
decomposition.
When the residue is sold to power plant developers, it is aggregated at the collection terminals, which
have the facility to store large amount of residue for longer durations under atmospheric controlled
conditions. This residue lasts longer and will be stored at the collection terminals till transferred to the
power plant for energy generation.

41
3 Prevalent Disposal Methods
3.1 Present Disposal Methods OF Crop Residue in Member States
3.1.1 Potential Areas/States for Focus of Study in Each Member State
Most crop production in the SAARC countries is concentrated in irrigable land, rainfed areas and majorly
across the Indo-Gangetic plains in India. For the purpose of this study, it is assumed that the regions with
the highest production of major crops are the ones responsible for the highest quantity of crop residue
generation. These areas are listed below for each of the SAARC countries.

Figure 41: Areas with Maximum Crop Residue in the SAARC states
Afghanistan Bangladesh Bhutan India Nepal Pakistan Sri Lanka
• Balkh • Rangpur • Wangdue • Uttar • Dhanusha • Punjab • Mahaweli
• Baglan • Khulna • Punakha Pradesh • Sarlahi • Sindh • Ampara
• Helmand • Rajshahi • Lhuntse • Punjab • Rautahat • Khyber • Polonna-
• Herat • Dhaka • Trashigang • Haryana • Bara Pakhtun- ruwa
• Kunduz • Sylhet • Mongar • Maharahtra • Parsa khwa • Batticaloa
• Nangarhar • Madhya • Nuwakot
• Faryab Pradesh • Jhapa
• Bihar • Morang

3.1.2 Estimated Area Wise Potential in Focus Areas and Harvesting Season in
Member States
While estimating residue potential in Member States, the important factors to be considered are type of
residue (straw, husk, stalk, cobs, leaves, etc.) and their respective Residue Production Ratio (RPR). The RPR
of each crop varies based on the crop group they belong to - cereal, oilseed, pulses, horticulture,
sugarcane, etc. The RPR is the measure of the amount of residue left behind after the harvesting of a
particular crop and can be defined as the ratio of mass of unused crop residue that is left after harvesting
a particular crop to the mass of crop produced. The RPR is very high in case of cereals where the grains
constitute a very small portion of the crop stalk. The RPR is low in case of crops like sugarcane, where the
cane itself is the entire usable portion and the leaves constitute a very small portion of the crop.
However, for bioenergy generation the Surplus Residue Potential (SRP) is considered, which is the residue
left after any competing uses (such as cattle feed, animal bedding, heating and cooking fuel, organic
fertilizer). The Residue Production Ratio and Surplus Production Ratio of major crops grown in the SAARC
region is indicated in Figure 42. These ratios have been used for deriving the Surplus Residue Potential
across the Member States.
Methodology for deriving gross residue potential and surplus residue potential:
The Gross Residue Potential (GRP) is the total amount of residue produced after the harvesting of a crop,
while Surplus Residue Potential (SRP) is the residue left after any competing uses. This surplus residue can
then be used towards energy generation projects. The GRP is derived as a product of the yield of the crop
with its respective RPR. The SRP of a crop is derived by multiplying the GRP with the Surplus Production
Ratio of the respective crop as illustrated in Figure 42.

42
GRP = Yield of crop x Residue Production Ratio of the crop
SRP = GRP x Surplus Production Ratio of the crop

Figure 42: Residue Production Ratio and Surplus Production Ratio of Major Crops in Saarc Region

Rice 1.5
0.4
Wheat 1.5
0.3
Maize 2.0
0.5
Bajra 2.0
0.4
Barley 1.3
0.2
Jowar 1.7
0.3
Millet 1.2
0.2
Pulses 2.0
0.8
Sugarcane 0.4
0.2
Cotton 3.8
2.4
Jute 2.0
0.2

RPR SPR

Source: ScienceDirect, Bioenergy potential from crop residue biomass in India

3.1.2.1 Afghanistan
Most of the crop production in Afghanistan is concentrated in the Northern region having access to
irrigable lands and adequate rainfall. Wheat is the staple crop of Afghanistan and accounts for ~80% of the
total cereal production, followed by rice, maize and barley. Apart from cereals, various pulses, vegetables
and sugarcane are cultivated for domestic consumption. However, they account for only 7% of the total
food production of Afghanistan and the country relies heavily on imports and aids for sustenance.
Table 10: Crop Residue Potential in 2016-17 in Afghanistan

Annual Production Gross Residue generated Surplus Residue

Crop
(000 Tons) (000 Tons) Potential (000 Tons)

Wheat 4,280 7,704 1,695

Rice 505 859 240

Maize 315 725 180

Barley 95 124 16

Others (Potato, Sugarbeet,

392 274 104
Sugarcane, Cotton)

Total 5,587 9,685 2,235

Energy Production (wheat

4,280 6,420 1,412
straws only)

43
Source: GIEWS Country Brief, Afghanistan, 2019

Pulses and vegetables contribute to only 7% of the total food production and are cultivated in
decentralized areas under favorable weather conditions only and as such their harvest is not reliable. For
the purpose of this study we have only considered residue production from wheat to address the issue of
in-situ crop residue burning. Furthermore, only the residue that is burnt in the farms- like straws and stalks
have been considered for deriving the surplus residue potential.
The gross residue generated from wheat straws/stalks is 6.4 Million Tons, of which 1.4 Million Tons is the
Surplus Potential derived from straws and stalks that can be used towards energy generation.
Zonal distribution of total residue produced:
In Afghanistan, the leading provinces for residue production from cereal crops are Takhar, Baghlan, Faryab,
Balkh, Kunduz, Herat and few areas of Helmand, Nangarhar and Ghazni. Most of these provinces lie on the
Northern border of the country and allow for easy aggregation of surplus residues for energy generation.

Figure 43: Zonal Distribution of Total Residue Produced in Afghanistan

Table 11: Crop Harvesting Seasons in Afghanistan

Crop Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Wheat & Barley
(Winter)
Spring Wheat

Rice

Maize

Following tables captures the total biomass potential in different months along the year.

44
 Table 12: Total Surplus Biomass Potential of Afghanistan

Crop Month of availability Total available (000 Tons)

Winter Wheat July 1,130

Spring Wheat October 282

1,412
Total

The Total crop potential available for energy generation in Afghanistan is 1.4 Million Tons

3.1.2.2 Bangladesh
Rice is the staple food of Bangladesh and is produced on ~75% of the cultivated area. There are three
varieties of rice - Boro, Aus and Aman, grown all over the country, except in the hilly south-east region.
Apart from rice, other cereals grown are wheat and maize, which make up 10% of the total food crops
cultivated. Bangladesh is also the second largest producer of jute and sugarcane is an important cash crop
that is cultivated in all parts of the country. For the purpose of this study, the crop residue from rice and
wheat only have been considered for their abundant and concentrated availability, highest RPR and high
heat contents. Furthermore, only the residue that is burnt in the farms- like straws and stalks have been
considered for deriving the surplus residue potential.
Table 13: Crop Residue Potential in 2017-18 in Bangladesh

Annual Production Gross Residue generated Surplus Residue Potential

Crop
(000 Tons) (000 Tons) (000 Tons)
Rice
- Boro Rice 18,014 30,624 8,575
- Aus Rice 2,134 3,628 1,016
- Aman Rice 13,656 23,215 6,500
Wheat 4,337 7,807 1,717
Maize 3,026 6,960 1,740
Jute 8,247 16,494 1,649
Sugarcane 4,442 1,333 520
Potato 10,216 4,086 1,553
Others (Pulses, Oilseeds,
17,403 5,445 1,054
Vegetables, fruits)
Total 81,475 99,591 24,324
Energy Production (rice
38,141 57,212 15,629
and wheat straws only)
Source: Bangladesh Grain and Annual Feed Report, 2018

The gross residue generated from wheat and rice is 57.2 Million Tons, of which 15.6 Million Tons is the
Surplus Potential derived from straws and stalks that can be used towards energy generation.
Zonal distribution of residue produced:
Rice is the dominant crop grown in Bangladesh and covers about 75% of the cropped area. The aman
variety comprises of two types- transplanted aman, grown everywhere in Bangladesh and broadcast aman,
grown in south and north-east divisions. Boro rice is grown in Sylhet division, while aus is a very scattered
45
crop mostly cultivated in Khustia, Jessore, Comilla and Chittagong divisions. Wheat is cultivated as a winter
crop in the drier Northern divisions. Jute is cultivated in the low-lying areas of Brahmaputra-Jamuna and
Padma floodplains. Most of the sugarcane is cultivated in the Sylhet, Comilla, Chittagong and Dhaka
divisions.

Figure 44: Zonal Distribution of Total Residue Produced in Bangladesh

Table 14: Crop Harvesting Seasons in Bangladesh

Crop Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Rice- Aman
Rice- Boro
Rice- Aus
Wheat
Maize
Jute
Sugarcane

Following tables captures the total biomass potential in different months along the year.
Table 15: Total Biomass Potential in Bangladesh

Month of Total available

Crop
availability (000 Tons)
Boro Rice July 7,566
Aus Rice September 896
Aman Rice January 5,735
Wheat July 1,431
Total 15,629

The Total crop potential available for energy generation in Bangladesh is 15.6 Million Tons

3.1.2.3 Bhutan
The major cereal crops grown in Bhutan are maize and rice (94%) along with small quantities of wheat,
barley, buckwheat, etc. Bhutan also cultivates large quantities of vegetables and fruits in rotation with rice
46
in the wetland agricultural areas. The spices are cultivated at higher altitudes and as such are difficult to
aggregate for residue. Rice and wheat are cultivated in the central region, while maize is cultivated in the
eastern dzongkhags only. For the purpose of this study, the crop residue from only cereals has been
considered for their quantity and concentrated availability, highest RPR and high heat contents.
Furthermore, only the residue that is burnt in the farms- like straws and stalks have been considered for
deriving the surplus residue potential.
Table 16: Crop Residue Potential in 2016-17 in Bhutan

Gross Residue Surplus Residue

Annual Production
Crop generated Potential
(000 Tons)
(000 Tons) (000 Tons)
Rice 86 146 41
Maize 94 216 54
Wheat & other cereals 11 20 4
Oilseeds, Pulses, Spices 13 7 2
Vegetables & Fruits 182 36 4
Total 386 426 105
Energy Production (Cereal
191 334 87
straws only)
Source: Bhutan RNR Statistics, 2017

The gross residue generated from cereal crops is 0.3 Million Tons, of which 0.087 Million Tons is the Surplus
Potential derived from straws and stalks that can be used towards energy generation.
Zonal distribution of residue produced:
In Bhutan, rice is cultivated in the mid altitude regions with assured irrigation in Wangdue, Punakha,
Trashigang and Mongar dzongkhags. Maize and other cereals are cultivated in the eastern dzongkhags.

Figure 45: Zonal Distribution of Total Residue Produced in Bhutan

Table 17: Crop Harvesting Seasons in Bhutan

Crop Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Rice
Maize
Wheat & other cereals

47
Following tables captures the total biomass potential in different months along the year.
Table 18: Total Biomass Potential of Bhutan

Crop Month of Total available

availability (000 Tons)
Rice July and December 36
Maize September 47
Wheat & other cereals June 4
Total 87

The Total crop potential available for energy generation in Bhutan is 0.087 Million Tons
Due to the mountainous terrain and distributed geographic cultivation of crops in the country the energy
generation potential is calculated to be negligible. The energy generation potential from crop residue in
Bhutan has been excluded from this study.

3.1.2.4 India
Rice is the predominant Kharif crop in India, while wheat is the Rabi crop, contributing to 40% and 35%,
respectively, to the total food-grain production. Their production is largely concentrated in the Northern
and Eastern states. India is also the second largest producer of sugarcane in the world and it contributes
to ~45% of the total crop production in the country. Apart from food-grains, cotton is also produced in the
Western and Southern states, while jute is grown largely in the Eastern States. Pulses and oilseeds are
cultivated in the Western parts of the country and contribute to 20% of the total food production. The vast
and uneven distribution of crops in the country makes it difficult to aggregate the crop residue in a timely
and methodic manner. For the purpose of this study, we have considered zonal allocation of the crops
based on their quantity harvested. Furthermore, only the residue that is most prone to burning in the
fields- like straws and stalks of rice and wheat has been considered for deriving the surplus residue
potential.
Table 19: Crop Residue Potential in 2017-18 in India

Annual Production Gross Residue generated Surplus Residue potential

Crop
(000 Tons) (000 Tons) (000 Tons)
Rice 112,910 191,947 53,745
Wheat 99,700 179,460 39,481
Maize 26,000 59,800 14,950
Coarse cereals 46,990 84,582 18,608
Cotton 34,325 130,435 80,870
Jute & Mesta 10,500 21,000 2,100
Sugarcane 353,220 141,288 55,102
Pulses 25,230 50,460 19,175
Oilseeds 35,441 53,162 15,948
Total 744,316 912,134 299,980

48
 Annual Production Gross Residue generated Surplus Residue potential
Crop
(000 Tons) (000 Tons) (000 Tons)
Energy Production (rice
212,610 318,915 80,323
and wheat straws only)
Source: Annual Report 2018, Department of Agriculture, Cooperation & Farmers Welfare

The burning of crop residue is largely followed for two crops in India - Rice and Wheat. Taking into
consideration only the farm residues of these two crops, the gross residue potential is 319 Million Tons, of
which 80.3 Million Tons is the Surplus Potential derived from straws and stalks that can be used towards
energy generation.
Zonal distribution of residue produced:
In India, rice is majorly cultivated in Uttar Pradesh, Punjab, West Bengal and wheat is cultivated in Uttar
Pradesh, Punjab, Haryana and Madhya Pradesh. Uttar Pradesh is also one of the highest producers of
sugarcane followed by Maharashtra, Karnataka and Tamil Nadu. Cotton is mainly cultivated in Gujarat and
Maharashtra, while Jute is concentrated in the eastern and north-eastern states of West Bengal, Bihar and
Assam.

Figure 46: Zonal Distribution of Total Residue Produced in India

Table 20: Crop Harvesting Seasons in India

Crop Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Rice
Wheat
Maize
Cotton
Jute
Sugarcane

Following tables captures the total biomass potential in different months along the year.

49
 Table 21: Total Biomass Potential of India

Month of Total available

Crop
availability (000 Tons)
Rice January 47,422
Wheat June 32,901
Total 80,323

The Total crop potential available for energy generation from rice and wheat crops in India is 80.3 Million
Tons

3.1.2.5 Nepal
The agricultural crops grown in Nepal are divided into two broad categories - food crops and cash crops.
The important food crops grown in Nepal are rice, maize, wheat, millets and other coarse cereals, of which
rice contributes to more than 50% of the total production. Around 80% of rice is grown in the Terai regions,
which receive ample rainfall and are conducive for rice cultivation. Potato is also grown in large numbers
in the hilly regions and as such their cultivation is scattered. The cash crops-sugarcane, jute, tobacco, tea
and spices are also cultivated in the Terai regions and are used for exports. The pulses and oilseeds are
produced for domestic consumption and their residue aggregation is difficult, given the topography of
Nepal.
For the purpose of this study we have considered the residue generation from rice and wheat only, which
are available in the Eastern and Central districts of Nepal, which allow for easy collection. Furthermore,
only the residue that is most prone to burning in the fields- like straws and stalks of rice and wheat have
been considered for deriving the surplus residue potential.
Table 22: Crop Residue Potential in 2017-18 in Nepal

Annual Production Gross Residue generated Surplus Residue potential

Crop
(000 Tons) (000 Tons) (000 Tons)
Rice 5,482 9,319 2,609
Wheat 1,880 3,384 744
Maize 2,550 5,865 1,466
Coarse cereals 370 666 147
Sugarcane 3,500 1,400 546
Potato 2,806 1,122 427
Pulses 390 780 296
Oilseeds 220 330 99
Total 17,198 22,867 6,335
Energy Production (rice
7,732 11,598 3,045
and wheat straws only)
Source: Nepal Statistical Yearbook

The gross residue generated from wheat and rice is 11.6 Million Tons, of which 3 Million Tons is the Surplus
Potential derived from straws and stalks that can be used towards energy generation
Zonal distribution of residue produced:
Rice, wheat and maize are grown in the Terai and hilly regions of the country. They are mostly concentrated
in the Eastern and Central regions of Dhanusha, Sarlahi, Jhapa and Morang.

50
 Figure 47: Zonal Distribution of Total Residue Produced in Nepal

Table 23: Crop Harvesting Seasons in Nepal

Crop Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Rice
Maize
Wheat

Following tables captures the total biomass potential in different months along the year.
Table 24: Total Biomass Potential of Nepal

Crop Month of availability Total available (000 Tons)

Rice July and December 2,302
Wheat June 743
Total 3,045

The Total crop potential available for energy generation in Nepal is 3 Million Tons

3.1.2.6 Pakistan
The major crops cultivated in Pakistan are wheat, rice, maize, cotton and sugarcane. Wheat contributes to
~60% of the total cereal production and is grown in the eastern province of Punjab. Punjab is also the
highest cultivator of sugarcane and cotton. Pakistan also produces oilseeds and pulses in high quantities;
however, their residue is difficult to aggregate due to their vast spread across all the provinces and lower
residue generation potentials. Most of the residue generated from pulses and oilseeds are utilized for
cattle feed.
For the purpose of this study, the crop production and residue generation from only the rice and wheat
have been considered for their reliability in cultivation, harvesting and high concentration in
predetermined locations. Furthermore, only the residue that is most prone to burning in the fields- like
straws and stalks of rice and wheat have been considered for deriving the surplus residue potential

51
Table 25: Crop Residue Potential in 2017-18 in Pakistan

Annual Production Gross Residue generated Surplus Residue potential

Crop
(000 Tons) (000 Tons) (000 Tons)
Wheat 25,490 45,882 10,294
Rice 10,320 17,544 4,912
Maize 5,700 13,110 3,278
Coarse cereals 504 907 200
Cotton 1,935 7,353 4,559
Sugarcane 81,102 32,441 12,652
Pulses 125 250 95
Oilseeds 3,555 5,333 1,600
Total 128,731 122,820 37,389
Energy Production (rice
36,314 54,471 12,912
and wheat straws only)
Source: Pakistan Economic Survey 2017-18

The burning of crop residue is largely followed for two crops in Pakistan - Rice and Wheat. Taking into
consideration only the farm residues of these two crops, the gross residue potential is 54.4 Million Tons,
of which ~13 Million Tons is the Surplus Potential derived from straws and stalks that can be used towards
energy generation
Zonal distribution of residue produced:
In Pakistan, rice, wheat and cotton are cultivated in the irrigable lands in the eastern provinces of Punjab
and Sindh. Sugarcane is cultivated to some extent in the Khyber Pakhtunkhwa along with Punjab and Sindh,
while maize is concentrated in Sindh and Khyber Pakhtunkhwa provinces.

Figure 48: Zonal Distribution of Total Residue Produced in Pakistan

Table 26: Crop Harvesting Seasons in Pakistan

Crop Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Wheat
Rice
Maize
Cotton
Sugarcane

52
Following tables captures the total biomass potential in different months along the year.
Table 27: Total Biomass Potential of Pakistan

Month of Total available

Crop
availability (000 Tons)
Wheat June 8,578
Rice January 4,334
Total 12,912

The Total crop potential available for energy generation in Pakistan is ~13 Million Tons

3.1.2.7 Sri Lanka

The agricultural products in Sri Lanka is broadly divided in two categories: food crops (62%) and plantation
crops (38%). Of the food crops, rice contributes the bulk of the products followed by maize, which are
largely cultivated in the Eastern provinces of the country due to its humid climate and ample rainfall. Sri
Lanka is also one of the top global producers of Manioc, a tuber, which is grown in large quantities all over
the country. However, the crop does not produce enough residue and is used as cattle feed and manure
purposes. The potential for energy generation from manioc is still in the research phase and is excluded
from our study.
For the purpose of this study, the crop production and residue generation from only rice has been
considered for their reliability in cultivation, harvesting and high concentration in predetermined locations.
Furthermore, only the residue that is most prone to burning in the fields- like straws and stalks of rice and
wheat have been considered for deriving the surplus residue potential
Table 28: Crop Residue Potential in 2016-17 in Sri Lanka

Annual Production Gross Residue Surplus Residue

Crop
(000 Tons) generated (000 Tons) potential (000 Tons)
Rice 2,383 4,051 1,134
Maize 196 451 113
Manioc 306 122 47
Potatoes 73 29 11
Spices 58 12 1
Vegetables 237 47 5
Total 3,253 4,713 1,311
Energy Production
2,383 3,575 1,001
(rice straw only)
Source: Economic and Social Statistics of Sri Lanka, 2018

The gross residue generated from rice is 3.5 Million Tons, of which 1 Million Tons is the Surplus Potential
derived from straws and stalks that can be used towards energy generation.

53
Zonal distribution of residue produced:
Rice is the major crop of Sri Lanka and 50% of it is cultivated in the Eastern Province in the districts of
Mahaweli, Ampara and Polonnaruwa, followed by Kurunegala, Gampaha and Kandy in the West. Maize is
cultivated in the North in Anuradhapura, Ampara in the East and Monaragala in the South.

Figure 49: Zonal Distribution of Total Residue Produced in Sri Lanka

Table 29: Crop Harvesting Seasons in Sri Lanka

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Rice (Maha)
Maize
Rice (Yala)

Following tables captures the total biomass potential in different months along the year.
Table 30: Total Crop Residue Potential of Sri Lanka

Crop Month of Total available

availability (000 Tons)
Rice (Maha) April 620
Rice (Yala) October 381
Total 1,001

The Total crop potential available for energy generation in Sri Lanka is 1 Million Tons

3.1.3 Summary - Crop Residue Potential of SAARC Member States

The following table provides the crop residue potential of all the SAARC Member States that can be used
for energy generation through efficient harvesting, aggregation, collection and setup of energy generation
equipment for heat or power generation. The highest potential for energy generation can be realized in
three Member States- India, Bangladesh and Pakistan.

54
 Table 31: Summary of Crop Residue Potential of SAARC Member States

Gross Residue Production Surplus Residue Production

Member State
(Million Tons) (Million Tons)
Afghanistan 6.4 1.4
Bangladesh 57.2 15.6
India 319 80.3
Nepal 11.6 3
Pakistan 54.4 13
Sri Lanka 3.5 1
Total 452 114

Note: The above computations are based on information available for respective countries, as represented
in Section 3.1.2. The energy generation potential for Bhutan and Maldives have been excluded from this
study due to their low crop residue production.

3.1.4 Mechanization in Harvesting and Sowing Next Crop

Crop residue management has been an issue for the farmers, and with changing times it is necessary for
them to adopt smart ways to dispose of the residue. Agricultural mechanization is an important input to
agriculture for performing timely farm operations, reducing the cost of operation and maximizing the
utilization efficiency of costly inputs. Farmers have started applying new technologies that are
environment friendly, thereby enabling them to produce crops more efficiently by using less power.
Due to heavy investments required for buying equipment, the farmers prefer to burn the crop residue. To
disengage the farmers from this practice of burning the residue and encourage the usage of mechanized
harvesting techniques, countries such as India, is providing subsidies in the range of 30-50% for different
equipment. A list of key equipment processing crops in an efficient manner have been outlined below:

55
Figure 50: Mechanized Harvesting Machinery

3.1.5 Current Disposal Methods Adopted

Farmers have been relying on various techniques for disposing off crop residue, which include using them
as animal fodder, ploughing them back into the ground or burning them completely. Recently, newer
methods of disposal are also being adopted for the utilization and disposal of these residues, like
converting them into biofuels. However, this method is still in pilot stages of development and
implementation. The most prevalent disposal technique is field burning of the residues. The common
disposal methods of crop residue are shown below:

Figure 51: Prevalent Disposal Methods of Crop Residue

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3.2 Supply Chain Mechanism
3.2.1 Overview of Supply Chain Mechanism in Member States
The supply chain of biomass is crucial to realize the full potential of bioenergy production. A biomass supply
chain can include several stages with different agents such as farmers, aggregators, transporters, bio-
refineries owners, end-user/client. The performance is highly dependent on the planning, bio-refineries
owners and operational activities. The efficient operation of all components of supply chain comprises of:

Figure 52: Supply Chain of Agricultural Waste

Source: Pre-
Agriculture waste Treatment Transportation
from different
areas

Harvesting Storage Power and heat

and collection generation, and
biofuels

Harvesting and collection: The first step in biomass supply chain is harvesting and collection of feedstocks
in an agriculture field. For agricultural biomass, harvesting is done by the farmers depending on the
seasonal variation in crop season. Collection of residues is often done in easily accessible areas by the
aggregators that are employed by the power plant developers at a village or regional level. However,
the harvesting process must be done within a very limited timeframe and is greatly dependent on the
crop that is to be sowed next and weather conditions.
The collection of crop residue from rural areas is the single largest bottleneck in the power generation
supply chain. The issue is multi-faceted: a) farmers have a very small window for harvesting the crop
and removing all the residue from the soil, b) farmers do not have money to employ skilled labor for
removing the residue, c) farmers complain of very low compensation in return of their residue by
project developers, d) delay in payments made by aggregators and e) lack of transportation means to
reach the collection center, or in some cases the power plant facility.
In case of successful collection of residues from the farms, a common method of collecting is in the
form of bales, where the straw left behind after the harvesting of grains is collected in rows and tied
together to make bales. The size and shape of these bales is predetermined to suit the storage and
transport required. However, if the moisture content of the biomass is high, it will require on-field
drying before baling, which is again a time-consuming process.
Another less popular method and expensive to collect agricultural residue is by converting them to
pellets or briquettes. These pellets/briquettes are easier to store and transport, especially over large
distances and at lower costs. However, special machines and equipment are required for converting
the residue in pellets/briquettes which are not affordable to farmers. Generally, this equipment for
such conversion is provided by an aggregator of residue or power plant owner to reduce his
transportation costs.

57
Pre-treatment: Once the biomass is harvested and collected, pre-treatment is done to ensure high quality
of residue, which includes drying and/or densification to pellets, etc. Such processes ensure desired
requirements of biomass including higher energy content and lower moisture content, which also
facilitates ease of transportation and storage of the residue. Some residue can be directly combusted
or gasified to generate heat or electricity, while others are pre-treated to facilitate the energy
conversion process and increase the energy density as well as comply with potential specifications on
volume, moisture content and standards.
Storage: In most cases, biomass must be stored between different stages of the supply chain for shorter
or longer periods before being used for heat or power generation. The harvesting seasons for
agricultural crops are often short and scattered across the year. To ensure a stable supply of biomass
and always meet the demand, storage solutions are of great importance. The biomass stored at the
collection terminals has the facility to keep the fuel and feedstock dry, protecting it from both rain and
groundwater. The storage area is determined depending on the weather and type of biomass. It can
be stored in a covered farm shed, silos for seeds and husks, or temperature-controlled collection
terminals.
In most cases the residue is stored at various collection centers, which are closer to the farms and are
only transported to the plant facility when its scheduled. The storage facility at the plant site generally
has enough space to contain 7-15 days of residue for immediate utilization.
Transportation and handling: Biomass feedstock are mostly aggregated from large areas spanning
hundreds of acres and villages, which are not always in close proximity to a power plant or upgrading
facility. There are several steps in the supply chains, between which transportation is likely to be
required, both of untreated feedstock and upgraded fuel. Any untreated biomass is difficult and bulky
to transport adding to the cost of transportation.
There are many different options for transporting biomass and biofuel, and the most appropriate
mode of transportation depends on the type, stage in the supply chain, distance of transportation as
well as geographic and infrastructure conditions. Road transport is the most convenient solution since
all farms can be reached in that way.

3.2.2 Storage Methods and Costs

Efficient storage for biomass is important to account for seasonality of production and ensure regular
supply to the biomass utilization plant. The storage method type will depend on the properties of the
residue, like type, weight, size, moisture content, and bulk density. The residue is pretreated and handled
to reduce storage space and transportation cost. Most straw-based residues are compacted into large
round bales. Husk-based residues are converted to pellets or briquettes and cobs are tied together and
stored in bags.
This pretreatment of residue has certain advantages and disadvantages, like denser fuel pellets offer cost
saving in transportation and storage, but the drawback is that the process results in feedstock loss.
Similarly, corn cobs and stoves stored in bags require less storage space, but the inherent moisture content
of the cobs decomposes the residue faster. The longer the biomass is stored, loss due to anaerobic
biodegradation will increase.
Most plant developers establish regional processing centers to aggregate, process, store and transport the
biomass when needed to realize significant cost reductions. This pretreated biomass can then be
transported to the plant site for energy generation as and when required.

58
If the residue storage is done on the farmer’s premises (like open field, trees, rooftop storage etc.) it can
be assumed that the storage cost is negligible for the farmer.
In cases where the residue from a region are aggregated at a collection terminal for intermediary
storage a warehouse/ facility will need to be taken on lease. Considering the seasonal variation of crops,
the facility must be rented for the entire year. The rental of such a facility is paid by the power plant
operator in most cases.

3.2.3 Transportation of Crop Residue and The Costs Associated

The transportation of residue from the farms to the collection terminals or power plant is the most
important cost factor in the biomass supply chain. The transport cost is a function of type of residue, form
of the residue- pellets, briquettes, bales, bundles or loose, type of transport means (vehicle) and distance
to be travelled. Transportation can occur in different stages, depending on the business model of the
operator, from farms to collection terminals and from there onwards to plant site. Transportation by
tractor trailer and trucks is most common, while rail is used by some large-scale operators. The collection
and transport of the residue is a time-consuming activity owing to the vast spread of fields, inaccessible
areas, lack of transportation means and poor conditions of roads. Based on primary discussions with key
stakeholders a transportation cost of USD 7-10/Tons is charged by farmers who supply their residue to the
plant site
Drying and densification of the residue with equipment that can be located close to the villages can reduce
this transportation cost significantly. Crop residue densification, such as palletization or briquetting, is
suggested for efficient transportation of biomass over longer distances for their compact size and
subsequent reduction of transportation costs.

Figure 53: Process of Pelletizing and Briquetting

• Process of molding or compressing a residues into the shape of a pellet.

Pelleti
A broad range of various materials are pelletized includes wood pellets that are
zation
frequently used as fuel and pellets from crop residue for animal feed.

• Briquette is a compressed block of combustible biomass material that can be

used to fire in combusters for generating heat or energy. It is a process similar
Brique
to that of making pellets, but on a larger scale. Moisture content of briquettes
tte
can be as low as 4%, which yields higher energy output and emissions when
combusted

Advantages of briquetting to pelletizing

Investments costs: The cost is lesser for a briquetting plant, for press as well as for all other installations
such as electrical installation, cooling, size of buildings, etc.
Operational costs: Power consumption is lesser, especially for the raw material does not need to be
reduced to the same extend. The costs of spare parts are lower and operations are relatively simple
Simple technology: A press used for briquetting, can be handled by any skilled laborer and without much
training.
Moisture content: A press can operate with a high range of moisture in crop residue, ranging between 6-
18%.
Decentralized production: Briquettes can also be made on site, in the presence of raw material, thus
saving considerably logistical costs

59
Logistical costs: Briquettes have a higher bulk density, but in contrast with pellets are better for shipping
on a truck, as the density is adequate to reach the maximum capacity on a truckload.
Developing countries: Briquettes formed by a mechanical press can be created from various types of
wastes, which includes agricultural wastes while replacing firewood and charcoal.

3.2.4 Study of Weather Effect on The Residue Before Sale/Utilization

As mentioned in the previous section, there is a time of only 2-3 weeks between the harvest and sowing
of the next crop. The crop residue, if not burnt, is collected and stored in the form of bales till they are
collected by the aggregators or by power plant owners. There is a delay of 1-2 months by the time this
residue is transported to their end usage, during which time they may be affected by moisture if not stored
properly in dry locations. An increase in the moisture content of the residue reduces the heat content of
the fuel and does not ignite straightaway in the gasifiers. The wet residue also produces excessive smoke
and ash when fired in the gasifier reactors, thus bringing down the efficiency of the process.

60
4 Energy Potential from Residue
The previous sections have established that ~450 Million Tons of annual crop residue is available in the
SAARC nations, of which ~114 Million Tons of surplus residue can be used for energy generation purposes.
The most popular and proven technologies have been explored in this section to determine the suitable
technology for energy generation. The choice of technology is affected by many factors like type, quantity
and quality of agriculture feedstock, desired energy form, economic viability, by-products produced and
environmental standards. This section covers the different technologies used for biomass conversion to
determine the most economically viable method to be implemented in the SAARC region.

4.1 Study of Different Technologies for Energy Generation Using Crop

Residue
4.1.1 Combustion
Technology:
Combustion is the most common biomass conversion technology used at household as well as industrial
levels over the past few decades. The technology is well suited for all types of biomass like municipal waste,
agricultural waste, animal waste etc. with moisture content of up to 60% depending on the type of
combustion system used. The chemical energy of the biomass is converted to heat energy through a series
of chemical reactions when the biomass is burnt. This heat can be used directly for generating electricity
or for heating purposes directly. Combustion is well suited for capacities beyond 5 MW. Combustion
comprises over 85% of installed capacity for biomass-based power production in India (excluding biomass
cogeneration)3. Over the last few decades, modern biomass combustion technologies have emerged like
fully automated pellet boilers, co-firing, and efficient combined heat and power production for a large
variety of biomass resources.
Cost: The equipment and engineering cost of the system lies between of USD 1,000,000 –1,070,000/ MW.
Tariff: USD 0.134 – 0.14/kWh
Pros and cons: The technology is well suited for capacities beyond 5 MW for realizing maximum efficiency.
The process uses incineration of the waste which also results in large emissions of flue gases. Additional
capex may have to be incurred for the treatment of these gases to meet the country’s emissions standards.

4.1.2 Gasification
Technology:
Biomass gasification is a thermo-chemical conversion of solid biomass into a combustible gas mixture,
called as producer gas, through a partial combustion route with less Oxygen than needed for complete
combustion. This producer gas is a mixture of combustible gases consisting of Carbon Monoxide, Hydrogen
and Methane. The producer gas can be used for electrical power generation, either through dual-fuel ICE
or through 100% gas-fired spark ignition engines. The producer gas can also be used for heating purpose
to replace conventional forms of energy in many applications like small boilers, furnaces, hot air
generators, dryers, etc.

3 Source: Energy Alternatives India (EAI)

61
Gasification method is suitable for a large range of biomass feedstock like crops, other plants, agricultural
and forest waste, sawdust etc. Gasification systems are well-suited for small-scale applications with an
operational range of as low as 20 kW that can be scaled up to 2 MW. Biomass gasifiers of the ranges 10-
25 MW are also been implemented in developed countries. This versatility of gasification to operate with
different feedstock and operation range make it suitable for implementation in different regions
depending on the availability of biomass. Gasification based systems can be coupled with a gas turbine for
heat recovery and a steam turbine (combined cycle), thus offering improved efficiency. The technology is
in pilot implementation phase in various parts of the world.
Cost: The equipment and engineering cost of the system in the range of USD 630,000 – 850,000/ MW.
Tariff: USD 0.12 – 0.13/kWh
Pros and cons: The technology makes use of thermal decomposition of the waste to produce heat, fuel oil
and gases, all of which can be used as end-products for economic value. The producer gas is cleaner than
the flue gases resulting from other processes and can be used as fuel directly without any further
treatment. The technology also can work on a wide range of waste types (mainly solid biomass like wood
chips and pellets and agricultural residues)4 and sizes, requiring less pre-treatment. Some governments
also offer subsidies, grants and incentives for the use of biomass gasification plants, thereby reducing
capital costs. The technology is widely used in the rural areas in smaller capacities to utilize agricultural
wastes, however installations in larger operational ranges are few.

4.1.3 Pyrolysis
Technology:
Biomass pyrolysis is a thermal decomposition of biomass occurring at very high temperatures in the
absence of Oxygen. The products of biomass pyrolysis include biochar, bio-oil and gases including
Methane, Hydrogen, Carbon Monoxide, and Carbon Dioxide. Depending on the thermal environment and
the final temperature, pyrolysis will yield mainly biochar at low temperatures, less than 450 °C, when the
heating rate is quite slow, and mainly gases at high temperatures, greater than 800 °C, with rapid heating
rates. At an intermediate temperature and under relatively high heating rates, the main product is bio-oil.
Pyrolysis processes can be categorized as slow or fast. Slow pyrolysis takes several hours to complete and
results in biochar as the main product. On the other hand, fast pyrolysis yields 60% bio-oil 20% biochar
and 20% syngas and takes seconds for complete pyrolysis. Fast pyrolysis is currently the most widely used
pyrolysis system. In either case, the gas or oil can be used as a fuel for firing the boiler for steam production
and subsequent power production. The bio-oil has about twice the energy density of wood pellets, which
could make it particularly attractive for long distance transport. So far, however, the technology is in
demonstration phase for this application. Challenging technical issues include the quality of the pyrolysis
oil (such as relatively high Oxygen content) and its long-term stability, as well as the economics of its
production and use. Pyrolysis oil could be used in heat and/or power generation units or upgraded to
transport fuel. Research is underway to explore the possibility of mixing pyrolysis oil with conventional
crude oil for use in oil refineries.
Pyrolysis is a low-cost technology as compared to combustion, capable of processing a wide variety of
feedstock like agricultural waste, wood, municipal solid waste. Typically, pyrolysis plants work well beyond
2 MW scale; thus, it can be said that pyrolysis takes off where gasification ends. Pyrolysis method is not
well established anywhere in the world and is still in the R&D phase.

4 Source: Energy Alternatives India (EAI)

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Cost: The equipment and engineering cost of the system is the range of USD 850,000/MW- USD
1000,000/MW Tariff: 0.13 –0.14 USD/kWh
Pros and cons: Like gasification, the technology makes use of thermo-chemical combustion to produce
syngas, bio-oil and char, all of which have high economic value. The technology works on a wide range of
wastes in higher capacities. However, the initial capex of the equipment is quite high and is still in the R&D
stages of implementation.

4.1.4 Anaerobic Digestion

Technology:
Anaerobic digestion is the process of producing methane rich biogas in the absence of Oxygen using
bacteria-induced fermentation of organic matter for use in cooking or heating applications. This process is
best suited for wet biomass sources like manure, kitchen and animal waste, waste water, agricultural
waste, municipal waste, etc. The biogas produced is a mixture of 40-75% Methane gas, Carbon Dioxide
along with traces of Hydrogen Sulphide and Ammonia.
The process produces a sludge along with the biogas which is non-toxic and odorless in nature. The sludge
is also very rich in nitrogen and can be used further as fertilizer in the fields. Thus, the use of biogas plants
provides a triple-fold benefit in rural areas: 1) production of low-cost clean gas for cooking 2) sludge that
can be used as fertilizer in fields and 3) Deterrence from burning conventional firewood for heating
purposes leading to health benefits
Anaerobic digestion is a commercially proven technology and is widely used in India, Pakistan and
Bangladesh for treating wet organic waste and waste water. The technology is commonly used in small
size, rural and off-grid applications for cooking purposes. Small household biogas plants are simple, low-
cost, easy to install and maintain systems that have been in use for decades and are a common sight in
rural India.
Furthermore, the concept of turning waste to gas is also being used commercially for production of Bio-
CNG in developed countries. The systems use agriculture waste, with some quantities of animal manure
and waste from food-processing units for production of Bio-CNG which is then filed in pressurized cylinders
and used in automobiles. Few international companies are setting up similar Bio-CNG plants in India that
will operate on paddy straw and other farm wastes and produce CNG that is economically competitive to
fossil-fuel based CNG for use in automobiles (details presented in Section 4.7)
Cost: 250 –300 USD/unit for single household units
Tariff: Not Applicable (in case of household biogas plants)
Pros and cons: Anaerobic digestion by way of using a biogas plant is being used in the SAARC countries for
many decades at a household level. The technology is being commercially used in developed countries in
large scales for production of biogas using different types of wastes. The governments of most countries
provide grants and subsidies to individuals installing a biogas plant at home.

4.1.5 Co-firing
Technology:
Co-firing is a low-cost option for efficiently converting biomass to electricity by adding biomass as a partial
fuel in high-efficiency coal fired boilers. Biomass can provide as much as 15% of the total fuel input with

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modifications to the feed intake system, storage system and burners. In return, the biomass combustion
efficiency increases to ~35-37% when cofired with coal.
The economics of cofiring is largely dependent on the location and proximity, power plant type and
availability of low-cost biomass fuels. Fuel supply is the most important cost factor when evaluating this
technology for commercial operations. The cost of the biomass depends on many factors like availability,
climate, closeness to collection centers, and presence of industries that can handle the chosen biomass.
Cofiring biomass with coal offers several health and environmental benefits, as the resulting emissions is
low in Sulphur Dioxide as well as Carbon Dioxide. Additionally, if an agro-industrial or forestry processing
plant wishes to make more efficient use of the residues generated by co-producing electricity but has a
highly seasonal component to its operating schedule, co-firing with a fossil fuel may allow the economic
generation of electricity all year round.
Cost: The equipment and retrofitting cost of the system is the range of 420,000 – 500,000 USD/MW
Tariff: 0.13 – 0.135 USD/kWh
Pros and cons: The technology can be directly applied to existing coal-fired power plants by making
modifications to the feed intake system, resulting in lower installation costs. However, only 15-20% of the
entire feedstock will be replaced by agricultural residue and will only marginally reduce the tariffs. This
technology should only be used when a coal-fired plant is in close proximity to the fields to reduce
transportation costs and ensure fuel availability.

4.2 Selection of Suitable Technology for Energy Generation in SAARC

Member States
The selection of a suitable technology for energy conversion depends on the physical nature and chemical
composition of the feedstock, the final energy output required (heat, power and fuel) and cost of the
technology. The table below compares the commercial aspects of each technology covered in Section 4.1.
Table 32: Comparison of Commercial Aspects of Biomass Energy Conversion Technologies

Anaerobic
Particular Combustion Gasification Pyrolysis Co-firing
Digestion

1,000,000 – 630,000 – 850,000 – 420,000 –

250 –300 USD
Installation Cost 1,070,000 850,000 1,000,000 USD 500,000 USD
/unit
USD / MW USD/MW /MW /MW

0.134 –0.14 USD 0.12 –0.13 USD 0.13 – 0.14 USD 0.13 – 0.135
Tariff range Not Applicable
/kWh /kWh /kWh USD /kWh

The implementation costs will vary to some extent depending on the country, technological development,
availability of government schemes and scale of installation. The tariff will also depend on the cost of the
agricultural residue procured from the farmers.
The technologies can be compared on their cost and ease of implementation for selecting the most
preferred option for each country as shown in Figure 54.

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 Figure 54: Potential Impact of Technology vis-à-vis Ease of Implementation

Anaerobic digestion is the most basic process for producing combustible gas and is used in small-scale,
rural and off-grid applications at household levels. Biogas plants of higher capacities are being
implemented in developed countries for commercial use, with some large-scale commercial plants
operational in India. The process, however, works best with biomass or MSW with higher moisture
content.
Combustion is the most common technique of producing heat and power from biomass, however they are
typically installed in larger capacities of >5 MW. Cofiring of biomass in coal-based power plants is a more
cost-effective method for power generation and requires only retrofitting costs.
Gasification is the most preferred biomass conversion process to directly produce syngas which can be
used for heating or power applications. An updraft gasifier can be installed at higher capacities of 2 MW-
20 MW but produce large amounts of chemicals and tar as a part of the syngas. A downdraft gasifier on
the other hand is cheaper and produces lower tar content and is more suitable for use in internal
combustion engines.
Pyrolysis technique produces char and bio-oil which can be used for further energy production. The bio-
oil has potential as fuel but is contaminated with acids and must be treated before use, thus increasing
the stages of the process. The technology is still in nascent stages of development and comes with a higher
implementation cost.
In conclusion, biomass gasification technology best suits the need for energy generation owing to its ability
to work with a large range of residue type and size and wide operational range that can be scaled up from
smaller capacities at a village level installation to larger capacities at a regional or zonal level.

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Table 33: Maturity Mapping of Biomass Energy Conversion Technologies

Member State Anaerobic Digestion Combustion Co-firing Gasification Pyrolysis

Afghanistan √ √ X X X
Bangladesh √ √ X √ X
Bhutan √ √ X X X
India √ √ √ √ √
Nepal √ √ X √ X
Pakistan √ √ X √ √
Sri Lanka √ √ X X X

While technologies like anaerobic digestion and combustion of agricultural waste are well established
across all the Member States, technologies like gasification is implemented only in larger Member States
like India, Pakistan and Bangladesh. A mandate to co-fire biomass along with coal has been passed in India
only, and suitable modifications to feedstock is under process. Pyrolysis on the other hand is in the nascent
stages of development and has been installed on pilot basis on very small scale in India and Pakistan. It is
recommended to install gasifiers in all the countries for its many advantages like proven and well-
established technology, adaptability to a wide range of residues, low cost, easy implementation and
scalability from few hundred kW to MW capacities5.

4.3 Study of Gasification Process and its Advanced Technologies

4.3.1 Gasification Process
Gasification is a partial oxidation process, in which a carbon source such as biomass is broken down into
Carbon Monoxide (CO) and Hydrogen (H2), plus Carbon Dioxide (CO2) and hydrocarbon molecules such as
Methane (CH4). The end products of gasification are ash and slag, char, bio-oil and producer gas, or syngas.
The syngas has a potential heat content (calorific value) equivalent to 25% that of natural gas if ambient
air is used or 40% if Oxygen-enriched air is used. The syngas can be used as a fuel in place of diesel in IC
engines or a 100% gas-fired spark ignition engine coupled with generator to produce electricity. The syngas
can also be used for heating purposes in many applications like small boilers, dryers, furnaces etc.
The complete gasification system consists of a gasification unit called gasifier, purification unit and energy
converter, burners or internal combustion engine. In the downdraft type of gasifier, the fuel is loaded into
the reactor from the top. As the fuel moves down, it is subjected to drying and pyrolysis. Air is injected
into the reactor in the oxidation zone, and through the partial combustion of pyrolysis products and solid
biomass, the temperature rises to 1100°C. This helps in breaking down heavier hydrocarbons and tars. As
these products move downwards, they enter the reduction zone where producer/syngas gas is formed by
the action of Carbon Dioxide and water vapor on red-hot charcoal. The hot and dirty syngas is passed
through a system of coolers, cleaners, and filters before it is sent to engines for generation of electricity.
The syngas production process using a downdraft gasifier is depicted below.

5 Source: Energy Alternatives India (EAI)

66
Figure 55: Gasification Process

4.3.2 Preconditions for Biomass for Implementation

Biomass gasifiers need dry and uniform-sized fuel for smooth operations and higher efficiency. Most
gasifiers operate on woody biomass like pellets and briquettes or loose pulverized biomass.

Figure 56: Types of Gasifier Biomass

Woody biomass Loose biomass

• Pieces smaller than 5-10 cm in any • Biomass to be pulverized before feed
dimension depending on the gasifier • Moisture content: upto 15-20%
design • Ash content: below 5%
• Bulk density of pellets/ briquettes: less • Bulk density of loose biomass: less than 150 kg/m3
than 250-300 kg/m3

4.3.3 Types of Biomass Gasifiers

Gasifiers are classified based on their density factor, which is the ratio of the solid matter a gasifier can
burn to the total volume available. The gasifiers can thus be classified into dense phase gasifiers and lean
phase gasifiers. In dense phase reactors, the feedstock fills up most of the space in the reactor and have a
typical density factor of 0.08 – 0.3, while lean phase reactors have a typical density factor of 0.05 – 0.2.
The types of dense phase gasifiers used commercially are: Updraft, Downdraft and Crossdraft.

1 • In an updraft gasifier, biomass is loaded at the top of the gasifier and air is blown in at the
bottom; thus, the flow of elements is counter-current, wherein the fuel flows downwards
and the air flows upwards.
• It has properly defined zones for drying, partial combustion, pyrolysis and reduction. The gas
formed in the reduction zone leaves the gasifier reactor along with the products of pyrolysis
from the pyrolysis zone and steam from the drying zone.
• This type of gasifier produces gas that is contaminated by tar and is therefore too dirty to be
used in an internal combustion engine. However, the syngas is rich in hydrocarbons and has
a higher calorific value making it more suitable for heating applications, like furnaces.
• If the syngas is to be used for generating electricity it needs to be cleaned thoroughly using
complicated and advanced technologies, thus increasing the capital cost

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 2 In a downdraft gasifier, air is drawn downwards through the biomass. Thus, the flow of elements
is co-current, wherein the fuel and air both flows downwards.
In downdraft gasifiers, the pyrolysis zone is over the combustion zone and the reduction zone is
under the combustion zone.
The gasifier is so designed that the tar produced in the pyrolysis zone travels through the
combustion zone where it is broken down and burnt. As a result, the mixture of gases exiting
the gasifier are relatively cleaner.
The strategic location of the combustion zone acts as a critical element for producing syngas with
low tar content and can be used directly in gas engines for producing electricity

3 The crossdraft gasifier is similar to that of the updraft one, except that the air enters from the
side of the reactor, instead of the top.
and the thermochemical reaction will occur progressively as the fuel descends down the reactor.
The startup time for this gasifier is relatively shorter and very high temperature can be attained
using this type of gasifier.
The crossdraft gasifier is not used commercially as the other gasifiers provide more flexibility in
type of fuel, size of fuel and ash content of the fuel

In lean phase gasifiers there is no distinction between the reaction zones and all the reactions- drying,
combustion, pyrolysis and reduction- take place in a single large reactor chamber. The types of lean phase
gasifiers are: Fluidized bed and Entrained flow.

1 In fluidized bed gasifiers, the biomass is brought into an inert bed of fluidized material (e.g.
sand, char, etc.). The fuel is fed into the fluidized system either above-bed or directly into
the bed, depending upon the size and density of the fuel and how it is affected by the bed
velocities.
The fuel particles mix quickly with the bed material, resulting in rapid pyrolysis and release of
large amount of gases. Further gasification and tar conversion reactions occur in the gas
phase.
The reactors are equipped with internal cyclone to minimize char blowout and the ash particles
are carried to the top of the reactor and must be removed if the gas is to be used in IC
engines
The major advantage of these reactors is their ability to control temperatures and ability to
work with fluffy and fine-grained feedstock
The major disadvantage of these reactors is their high tar content in the gas, incomplete carbon
burnout and poor response to load changes

2 In entrained-flow gasifiers, fuel and air are introduced from the top of the reactor, and fuel is
carried by the air in the reactor. The operating temperatures are very high in the range of
1200–1600 °C, due to the short residence time of feedstock (0.5-4 seconds)
Entrained-flow gasifiers can be used for any type of fuel so long as it has low moisture and ash
content and is finely reduced.
The advantage of entrained-flow gasifiers is that the gas contains very little tar.
The disadvantage of this reactor is its very high temperatures which causes material handling
and ash melting issues.

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The key to a successful design of gasifier is to understand the properties, calorific content and thermal
behavior of the fuel fed to the gasifier. The biomass gasification technology is an attractive option for rural
development due to the proximity of agricultural biomass to these areas. Although the technology is
expensive, gasification of agricultural residue to produce clean syngas has the highest energy conversion
efficiency between 28%- 36%. Community participation, government subsidies and grants can be used to
reduce the expensive installation and building cost. The commonly used reactors for energy generation
are the updraft and downdraft gasifiers, with the former tolerant to large fuel sizes and wide variety of
biomass residue, but the latter producing cleaner syngas that be used for direct electricity generation.

4.3.4 Selection of Gasifier Technology

Table 34: Types of Gasifiers

Gasifier type Advantages Disadvantages

Simple design
High amount of tar produced
High fuel to gas conversion efficiency
Accepts fuels with higher moisture
Updraft Extensive and expensive gas cleaning
content
techniques required if used for power
Accepts fuels of different and non-
application
uniform sizes
Low tar content Limited scale-up
Strict fuel requirements- size, type and
Cleaner gas produced
uniformity
Downdraft Gas can be used directly for power
High amount of ash and dust produced
generation
At lower loads, fewer particles are At lower temperatures, more tar is
produced in the gas produced
Applicable for small scale applications High amount of tar produced
Strict fuel requirements- size, type and
Cross draft Due to high temperatures, gas cleaning
uniformity
requirements are low
High amount of ash and dust produced
Gas stream contaminated with fine dust
Single reactor and compact construction
particles
Fluidized bed Works with different feed stock sizes Low biomass hold up in the fuel bed
Fuel flexibility between 0.1-1 cm size
No clinker formation
biomass only
Very high temperature causes material
Applicable for large systems
Entrained- handling and ash melting issues
flow Very high capital cost
Short residence time of biomass
Strict fuel requirements
The downdraft type gasifier is the preferred by developers as it produces cleaner gas and lower tar, thus
reducing O&M costs for regular cleaning of filters.

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4.3.5 Advantages of Biomass Gasification Technology

Figure 57: Advantages of Biomass Gasification

4.3.6 Factors Influencing Gasification

Table 35: Factors Influencing the Efficiency of Gasifiers

Energy content of fuel

Fuel with higher energy content provide better combustion and produce higher heating values. The
energy content of selected biomass is higher when it is freshly obtained as compared to ones stored for
weeks or months.
The crops with highest heating values (MJ/kg) are sugarcane bagasse, cotton and jute and cereals.
Sugarcane bagasse: 20 MJ/kg
Jute: 19.7 MJ/kg
Barley: 18.1 MJ/kg
Maize cobs: 17.4 MJ/kg
Cotton: 17.4 MJ/kg
Wheat: 17.1 MJ/kg
Rice: 15.5 MJ/kg

Fuel Moisture Content

Moisture content of the fuel is its inherent moisture plus surface moisture. A moisture content in the
range of 10-15% by weight is desirable for self-sustaining combustion process. Igniting a fuel with higher
moisture content is difficult and produces low quality gas and high ash.
If a fuel with higher moisture content is used, a supplemental fuel must be added for successful
combustion, which would defeat the objective of producing energy by biomass combustion.

Particle size and distribution

The particle size of the fuel affects the pressure drop across the reactor and the power that must be
supplied to draw the air and gas through the gasifier. Irregular sized particles lead to large pressure
drops in the gasifier, resulting in low temperature and high tar production.

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 Gasifiers work best with uniform sized small particles/ pellets in the range of 8x4x4 cm to 10x5x5 cm.

Volatile matter content of fuel

The reaction in the pyrolysis zone give up volatile matter forming a vapor consisting of water, tar, oils
and gases. Fuel with high volatile matter content produce more tar, causing problems to the IC engine.
Crop residue generally have a volatile matter content of 63-80%, as compared to wood: 72-78%, coal:
40%

Ash content of fuel

Some amount of ash is left behind after the combustion stage, which also contain some unburnt fuel.
Ash content and composition have an impact on the smooth running of a gasifier. Melting and
agglomeration of ashes causes slagging or clinker formation. This slagging results in excessive tar
formation and/or complete blocking of the reactor.
Slagging does not occur with fuel having ash content below 5%. While woods chips have the lowest ash
content of 0.1%, rice husks contain ~16-23%. Ash contents of some other crop residues is shown below:
Cotton: 17.2%
Barley straw: 10.3%
Wheat stalks: 7.4%
Peanut husks: 0.9%asd

4.3.7 By-Products of Gasification

The gasification of biomass is a thermal treatment, which results in a high proportion of gaseous products
and small quantities of bio-char (solid product) and ash, along with bio-oil.
Ash is the inorganic, non-combustible components that are left after complete combustion has taken
place. Ash is not always waste; it can be used for different purposes like, soil conditioner, fertilizer or as
input in concrete industry. Biomass ash compared to coal ash contains more environmentally friendly
materials. Ash is an intrinsic property of the fuel, which is governed by the percentages of chlorine
potassium, nitrogen and Sulphur compounds of the biomass.
Bio-oil is the liquid produced from the condensation of vapor of a pyrolysis reaction. It is a liquid emulsion
of oxygenated organic compounds, polymers, and water. It has potential to be used as a fuel oil substitute.
The bio-oils have heating values of 40%–50% of that of hydrocarbon fuels. Liquefied biomass can be easily
pumped, stored, fed to useful processes, and more compatible to chemical modification, processing, or
extraction.
Bio char is a fine-grained, carbon-rich, porous product remaining, after plant biomass has been subjected
to thermo-chemical conversion process (pyrolysis) at low temperature (350–600°C), in an environment
with little or no oxygen. Bio char is not a pure carbon, but rather mix of Carbon (C), Hydrogen (H), Oxygen
(O), Nitrogen (N), Sulphur (S) and ash in different proportions. The crucial quality of bio char that makes it
attractive as a soil amendment is its highly porous structure, potentially responsible for improved water
retention and increased soil surface area.

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Table 36: Uses, Advantages and Disadvantages of By-Products

By-products Uses Advantages Disadvantages

Raw material for
It is highly economical. Air pollution
fertilizer
Ash Component in the Presence of heavy metals
manufacture of Environment friendly in ash hampers pH value
building material of soil
Utilization in small-scale power
Fuel oil substitute generation systems as well as use Poor volatility
in large power stations
Bio-oil
Agri-chemicals High-energy density High viscosity
Source of organic Ease of storage and transport of
Corrosiveness
compounds bio-oil
Soil loss by erosion can be
Fuel for cooking and It balances acidic soil towards a
an issue when top
heating neutral pH
dressing bio char to soils
Bio char Additive for soil Moisture and nutrient retention High rates of bio char can
amendment improvements be harmful to earthworms
It has the affinity for absorbing Some bio chars can act as
Composting agent
contaminants in the soil contaminants of soil

4.3.8 Cleaning Process

The gases formed during gasification of biomass are contaminated by tar and dust. The degree of
contamination will depend on the type of residue used, size of feedstock, and gasification process
employed. The gas must be cleaned for further use in heat or energy applications, while the tar should be
removed to prevent erosion, corrosion of the reactor and to minimize environmental hazards. The
common methods employed for cleaning of gas and tar are depicted below:

Figure 58: Syngas Cleaning Methods

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4.3.8.1 Dust Cleaning
1. Cyclone Separator: These separation devices use the principle of inertia to remove particulate matter
from the syngas. Cyclone separators, or cyclones, are pre-cleaners and are used to remove larger
pieces of particulate matter. They are not proven efficient in removing smaller particulate matters and
only 60-70% of dust can be cleaned from the gas stream using a cyclone.
Smaller feedstock particles generally cause high dust concentration in the syngas as compared to larger
fuel blocks. The type of fuel also influences the dust contamination, where hardwoods fuel produces
less dust than softwoods, like maize cobs.
2. Cloth filters: Cloth filters have proven to be an effective equipment for gas cleaning. However, they
are sensitive to gas temperature and do not work well under 70°C, where the water in the gas
condenses on the filters and obstructs the gas flow causing a pressure drop in the reactor. Cloth filters
work well at high temperatures, but are subject to rapid build-up of dust, thus requiring frequent
cleaning. These filers work best if they are used in conjunction with a pre-filtering step, like a woven
glass-wool filter bag.
3. Electrostatic filters: These filters work on the principle of magnetically charging dust particles and
separating them from the gas. It is the most efficient method of cleaning gas and meeting
environmental compliance norms in many countries. The only barrier in their implementation is the
high installation cost, making them economically viable in high capacity power plants only.

4.3.8.2 Tar Cleaning

1. Catalytic cracking: Catalysts like dolomite are used for tar conversion at higher temperatures typically
800-900°C. The catalyst breaks down the tar deposition and prevent them from condensing on the
reactor surface. The implementation of catalytic cracking is still in the pilot stage with limited success
stories.
2. Thermal cracking: Thermal cracking of the tar is achieved at high temperatures at 800-1000°C.
However, biomass derived tar is more refractory in nature and are harder to crack using thermal
cracking alone. The surface of the reactor must be heated to a very high temperature and requires a
significant energy supply, thus reducing the overall efficiency of the reactor. Thermal cracking is more
effective when the fuel residence time inside the reactor is increased, while simultaneously reducing
the contact surface area.
3. Water scrubbing: Water can cool and clean the contaminated syngas in a single operation and are
available in two types: the scrubber and the heat exchanger. Water scrubbing is a widely used and
more successful technique for physical removal of tar, but also results in loss of sensible heat and
reduces efficiency of the reactor. The advantage of the water scrubber over other techniques is its
small size. But it also has a few disadvantages like: increased power consumption in using a water
pump, regular replacement of clean water and waste water disposal of the contaminated water.

4.4 Energy Generation Potential in SAARC Member States

The energy potential of each Member State is estimated based on their Gross crop residue potential and
the subsequent Surplus crop residue potential, which is the residue left after any competing use (such as
cattle fee, animal bedding, compost, heating and cooking fuel etc.). As the issue of crop residue burning is
primarily focused around field-based residues like straws, stalks and leaves, only these have been
considered to derive the Gross and Surplus residue potentials for rice and wheat. This surplus potential
can be used for bioenergy generation using biomass gasification technology as discussed in the previous

73
section. Based on this annual surplus residue potential, the annual power generation potential for different
crops has been calculated as below:
Annual power generation potential = (Total Surplus crop residue) x (Collection Efficiency) / (365 x 24 x
P)
Where P= Tons of biomass required to produce 1 MW of electricity
The fuel consumption of different crops to produce power have been illustrated in Annexure 10.2.
The collection efficiency is the major factor affecting the power production potential for each Member
State. In countries like India, Pakistan and Bangladesh the collection efficiency is considered at 75% of total
surplus on a conservative scale. The collection efficiency in Sri Lanka has also been considered at 75% of
total surplus because the rice production is adequate, assured and available in easily accessible areas.
However, in smaller countries with difficult geographic terrain and uncertainties in production the barriers
in collection of this residue increases. Hence, the collection efficiency in Afghanistan and Nepal is
considered at 50% of total surplus. The region-wise power generation potential of each Member State has
been illustrated below. The Crop production, gross residue production and surplus residue production of
the respective country has been taken from Section 3.1.2.

4.4.1 Afghanistan
The annual production of wheat, the gross farm-residue and the surplus farm-residue is illustrated
below.
Table 37: Crop Production and Surplus Residue Production of Identified Crops in Afghanistan
Biomass Power
Total Crop
Residue Gross Residue Surplus Residue Consumption Generation
Crop Production RPR
type Generation Generation Ratio (P) Potential
(000 Tons)
(000 Tons) (000 Tons) (MW)
Wheat 4,280 Straw 1.5 6,420 1,412 1.4 58
Total 4,280 6,420 1,412 58

Assumptions for calculation of power generation potential:

Collection efficiency (C) = 50%
Biomass consumption (P) = As detailed for different crops in Annexure 10.2
Power generation capacity (MW) = (Surplus residue generation in Tons x C) / (24 x 365 x P)
Table 38: Summary of Power Generation Potential in Afghanistan

Total wheat production 4.2 Million Tons

Gross residue generation from straws and stalks 6.4 Million Tons
Surplus residue generation from straws and stalks 1.4 Million Tons
Power generation potential using only field-based residue 58 MW

4.4.2 Bangladesh
The annual production of wheat and rice, their gross farm-residue and surplus farm-residue is illustrated
below.

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Table 39: Crop Production and Surplus Residue Production of Identified Crops in Bangladesh
Biomass Power
Total Crop
Residue Gross Residue Surplus Residue Consumption Generation
Crop Production RPR
type Generation Generation Ratio (P) Potential
(000 Tons)
(000 Tons) (000 Tons) (MW)
Wheat 4,337 Straw 1.5 6,506 1,431 1.4 88
Rice 33,804 Straw 1.5 50,706 14,198 1.2 1,013
Total 38,141 57,212 15,629 1,100

Assumptions for calculation of power generation potential:

Collection efficiency (C) = 75%
Biomass consumption (P) = As detailed for different crops in Annexure 10.2
Power generation capacity (MW) = (Surplus residue generation in Tons x C) / (24 x 365 x P)
Table 40: Summary of Power Generation Potential in Bangladesh

Total wheat and rice production 38.1 Million Tons

Gross residue generation from rice and wheat straws and stalks 57.2 Million Tons
Surplus residue generation from rice and wheat straws and stalks 15.6 Million Tons
Power generation potential using only these field-based residue 1,100 MW

4.4.3 India
The annual production of wheat and rice, their gross farm-residue and surplus farm-residue is illustrated
below
Table 41: Crop Production and Surplus Residue Production of Identified Crops in India
Surplus Biomass Power
Total Crop
Residue Gross Residue Residue Consumption Generation
Crop Production RPR
type Generation Generation Ratio (P) Potential
(000 Tons)
(000 Tons) (000 Tons) (MW)
Wheat 99,700 Straw 1.5 149,550 32,901 1.4 2,012
Rice 112,910 Straw 1.5 169,365 47,422 1.2 3,383
Total 212,610 318,915 80,323 5,395

Assumptions for calculation of power generation potential:

Collection efficiency (C) = 75%
Biomass consumption (P) = As detailed for different crops in Annexure 10.2
Power generation capacity (MW) = (Surplus residue generation in Tons x C) / (24 x 365 x P)
Table 42: Summary of Power Generation Potential in India

Total wheat and rice production 212.6 Million Tons

Gross residue generation from rice and wheat straws and stalks 319 Million Tons
Surplus residue generation from rice and wheat straws and stalks 80.3 Million Tons
Power generation potential using only these field-based residue 5395 MW

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4.4.4 Nepal
The annual production of wheat and rice, their gross farm-residue and surplus farm-residue is illustrated
below.
Table 43: Crop Production and Surplus Residue Production of Identified Crops in Nepal
Biomass Power
Total Crop
Residue Gross Residue Surplus Residue Consumption Generation
Crop Production RPR
type Generation Generation Ratio (P) Potential
(000 Tons)
(000 Tons) (000 Tons) (MW)
Wheat 2,250 Straw 1.5 3,375 743 1.4 30
Rice 5,482 Straw 1.5 8,223 2,302 1.2 110
Total 7,732 11,598 3,045 140

Assumptions for calculation of power generation potential:

Collection efficiency (C) = 50%
Biomass consumption (P) = As detailed for different crops in Annexure 10.2
Power generation capacity (MW) = (Surplus residue generation in Tons x C) / (24 x 365 x P)
Table 44: Summary of Power Generation Potential in Nepal
Total wheat and rice production 7.7 Million Tons
Gross residue generation from rice and wheat straws and stalks 11.6 Million Tons
Surplus residue generation from rice and wheat straws and stalks 3 Million Tons
Power generation potential using only these field-based residue 140 MW

4.4.5 Pakistan
The annual production of wheat and rice, their gross farm-residue and surplus farm-residue is illustrated
below.
Table 45: Crop Production and Surplus Residue Production of Identified Crops in Pakistan
Biomass Power
Total Crop
Residue Gross Residue Surplus Residue Consumption Generation
Crop Production RPR
type Generation Generation ratio (P) Potential
(000 Tons)
(000 Tons) (000 Tons) (MW)
Wheat 25,994 Straw 1.5 38,991 8,578 1.4 525
Rice 10,320 Straw 1.5 15,480 4,334 1.2 309
Total 36,314 54,471 12,912 834

Assumptions for calculation of power generation potential:

Collection efficiency (C) = 75%
Biomass consumption (P) = As detailed for different crops in Annexure 10.2
Power generation capacity (MW) = (Surplus residue generation in Tons x C) / (24 x 365 x P)
Table 46: Summary of Power Generation Potential in Pakistan

Total wheat and rice production 36.3 Million Tons

Gross residue generation from rice and wheat straws and stalks 54.4 Million Tons

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 Surplus residue generation from rice and wheat straws and stalks 13 Million Tons
Power generation potential using only these field-based residue 834 MW

4.4.6 Sri Lanka

The annual production of rice, the gross farm-residue and the surplus farm-residue is illustrated below.
Table 47: Crop Production and Surplus Residue Production of Identified Crops in Sri Lanka
Biomass Power
Total Crop
Residue Gross Residue Surplus Residue Consumption Generation
Crop Production RPR
type Generation Generation Ratio (P) Potential
(000 Tons)
(000 Tons) (000 Tons) (MW)
Rice 2,383 Straw 1.5 3,575 1,001 1.2 71
Total 2,383 3,575 1,001 71

Assumptions for calculation of power generation potential:

Collection efficiency (C) = 75%
Biomass consumption (P) = As detailed for different crops in Annexure 10.2
Power generation capacity (MW) = (Surplus residue generation in Tons x C) / (24 x 365 x P)
Table 48: Summary of Power Generation Potential in Sri Lanka
Total wheat production 2.4 Million Tons
Gross residue generation from straws and stalks 3.5 Million Tons
Surplus residue generation from straws and stalks 1 Million Tons
Power generation potential using only field-based residue 71 MW

4.4.7 Summary – Power Generation Potential of SAARC Member States Using

Field-Based Residues
The following table summarizes the power generation potential from rice and wheat crops’ field-based
residues in the SAARC Member States.
Table 49: Summary of Power Generation Potential in SAARC Member States

Total wheat and Gross Residue Surplus Residue Total Power

Member State Residue used rice production Production Production Generation
(Million Tons) (Million Tons) (Million Tons) Potential (MW)
Afghanistan Wheat straws 4.2 6.4 1.4 58
Rice and
Bangladesh 38.1 57.2 15.6 1,100
Wheat straws
Rice and
India 212.6 319 80.3 5,395
Wheat straws
Rice and
Nepal 7.7 11.6 3 140
Wheat straws
Rice and
Pakistan 36.3 54.4 13 834
Wheat straws

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 Total wheat and Gross Residue Surplus Residue Total Power
Member State Residue used rice production Production Production Generation
(Million Tons) (Million Tons) (Million Tons) Potential (MW)
Sri Lanka Rice straws 2.4 3.5 1 71
Total 301 452 114 7,598

The annual energy potential for each Member State have been illustrated below.

Figure 59: Energy Potential in SAARC Member States

The highest energy potential is seen in countries with larger areas and subsequently larger production of
crops and residue. India has the highest potential for power generation (5,395 MW), followed by
Bangladesh (1,100 MW) and Pakistan (834 MW).
Power generation potential in Maldives and Bhutan have been excluded from this study due to the limited
number of crops grown in the country, by virtue of which their residue potential is negligible, and by
extension the energy generation potential. The power generation potential is also affected by their tough
geographical landscape and difficulties in collection and aggregation of any probable residue.

4.5 Potential Energy Use

Figure 60: Potential Use of Energy Generated

Decentralized To provide off-grid decentralized electricity to rural households
electricity Electricity to power small shops and commercial applications like printing, xerox etc.
distribution Waste heat recovery system to increase efficiency and for captive electricity generation

As a source of cooking fuel in households

Heating
As a source for domestic heating in colder regions
applications
Rural enterprises such as brick making, rice par-boiling, pottery and charcoal making

Sale of bio-char to agro-based industries to produce soil nutrients

Sale of by-
Sale of bio-oil to oil companies to substitute fuels
products
Sale of ash to cement manufacturers and brick making companies

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4.6 Business Model for Energy Generation Using Crop Residue
The most common business model comprises of five key bodies: farmers, aggregators, power plant
developer, distribution companies and the respective government (regional, state/province, central). The
farmers harvest their crop and store the residue at their sheds, houses or on farms till the aggregators
collect them. The aggregators collect the typically unorganized residue from the farmers at the pre-
negotiated base price. In case the farmer is supplying the residue till the collection terminal the
transportation cost is paid additionally. The aggregators then take the residue to the collection terminals
where the residue is processed into their desired form for the gasifier: pellets, briquettes or bales. The
residue is then stored under controlled temperature and moisture conditions until delivered to the plant.
The power plant developers choose to store the annual supply of residue in these collection terminals to
use throughout the year and save storage space at the plant site. The collection terminals must have
enough space and provisions to store a yearlong supply of residue in the required condition. Once
delivered to the plant the residue is fired in the gasifiers to create energy in the form of electricity, heat or
bio-fuels. The power is then sold to the Distribution Companies (Discoms) for sale through the grid or sold
off-grid to rural households. The bio-fuels are sold to oil or transport companies.
The government plays an important role in all the stages, right from sowing to sale of end products. To the
farmers, the government provides subsidy to purchase farm equipment, machinery, seeds, fertilizers etc.
The aggregators and collection centers may sometimes be government-owned, or the private aggregators
approach government for funds to purchase the large fleet required for residue transportation. Different
Ministries of respective countries provide support to the power plant developers by way of subsidies in
capital cost, introducing favorable policies for exploration of biomass power and setup of power plants,
grants and funds. Lastly, the government regulatory bodies determine the power purchase cost for
Discoms to purchase the power from developers.

Figure 61: Business Model for Successful Supply Chain

4.7 Success Stories of Using Crop Residue for Energy Generation

This section covers few relevant examples from across the world where crop residue has been used for
generating electricity, both grid-connected and decentralized, production of bio-fuels and other allied

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purposes. The section covers the different ways in which crop residue can be utilized to suit the need of
the region based on their availability, technology used and desired end-product. The critical factors that
led to the success of each project have also been mentioned for replication in SAARC Member States.
Example 1: Co-firing with biomass at the Edenderry Power Station, Ireland
Background:
The Edenderry Power Station, commissioned in 2000, is a 120 MW peat-fired power plant located in
Edenderry, Ireland. In order to reduce the high carbon emissions, the company considered the use of
cofiring of biomass along with the peat in the year 2002. Trials were conducted with different biomass
materials, like forest derived, agricultural residue and energy crops grown specifically for non-food
purposes, to determine their chemical suitability and ability to flow through the existing peat handling and
feed systems. The successful trials showed that the plant could fire a mixture of peat and selective biomass
and significantly reduce carbon emissions depending on the quantum of biomass used in co-firing. The
power station started co-firing of peat and biomass in 2008.
Project details:
The power plant initially launched with a co-firing of 18% biomass in 2008 and progressively increased to
it to 30% in 2015 as per the Government of Ireland directive. The quantum of biomass will be further
increased to 50% by 2020.
Biomass materials used:
Sawdust, wood chips, willow chips, birch chips, Elephant grass, palm kernels. The biomass chosen had an
ash content <5% and was pretreated to form particle size <40 mm.

Figure 62: Carbon Intensity of Co-Firing Figure 63: Biomass Usage (000 Tons)

1.4 500
1.2 400
1
0.8 300
0.6 200
0.4
100
0.2
0 0
2005 2010 2015 2020 2008 2010 2012 2014 2016 2018 2020

Source: Case Study, Co-firing with biomass at Edenderry power station

Impact of the project:

The project provides an excellent example of the use of biomass along with conventional fuel in
combustion-based power plants in order to significantly reduce carbon emissions by replacing significant
quantities of fossil fuels with net carbon neutral renewable fuel. Other positive impacts from the project
are enumerated below:
1. Meeting the mandate of the Government of Ireland of 30% co-firing of State-owned peat power
generating stations by 2015

2. Reduction in carbon emissions from 1.2 Million Tons of CO2/MWh in 2005 to 0.2 Million Tons of
CO2/MWh in 2020

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3. Use of locally grown willow and birch wood chips along with palm kernels for renewable energy
generation for decentralized electricity generation and distribution

Success Factors: Encouraging Public-Private Partnerships for selection and modification of existing power plant
for co-firing biomass, and significant reduction in CO2 emissions

Example 2: Agriculture residue-based biomass power plant in Shandong Shanxian, China

Background:
In December 2006, China developed its first commercial biomass power plant using combustion
technology in Shanxian County, Shandong Province. The plant has an installed capacity of 30 MW, which
was originally designed for woody fuels only, but was later optimized to run on a variety of different
biomass fuels. After 12 years of operation it is still the best performing mixed-fuel based biomass power
plant in China. The power generated from the plant is supplied to the national grid of China for
transmission and distribution.
Project details:
The plant employs an advanced HPHT (High Pressure High Temperature) combustion technology for
production of electricity. The key attraction of the plant is its ability to process more than 20 different
types of fuels. Fuel types include corn cobs, rice husk, wood chips, bark, agricultural residue like straw. The
plant consumes around 250,000 Tons of biomass per annum which is supplied locally from a pool of 50,000
farmers, each owning less than 1 acre of land. The farmers deliver the fuel to 8 logistics stations set up by
the power plant, all within 30 km radius of the plant. From there on the fuel is transported using trucks to
the fuel storage area of the plant. However, the fuels need to be shredded before delivery to the plant.
The power plant has an on-site fuel storage capacity of 5-7 days.
Biomass materials used:
Corn cobs, rice husk, wood chips, eucalyptus bark, peanut shells, agricultural hard straws.
Impact of the project:
1. The plant is the first commercial mixed-fuel biomass power plant in China with an ability to process
more than 20 different types of fuels.
2. The power plant generates around 200,000 MWh of electricity which is supplied to the national grid
for transmission and distribution.
3. The project also provides renumeration to the farmers with small holdings for the agricultural residue
they provide, thus aiding economic development of locals.

Success Factors: Social and economic development of farmers by using locally sourced fuel,
establishment of a successful supply chain and the ability to process different types of fuels to adapt
to harvesting seasons and availability of crops all year round

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Example 3: Production of biofuel from agricultural waste in Crescentino, Italy
Background:
Italy commissioned the world’s largest cellulosic biofuels facility in October 2013 in Crescentino, Italy. The
plant is the first in the world to be designed to produce ethanol from agricultural residues and energy
crops at commercial scale using enzymatic conversion.
Project details:
The facility developer, Beta Renewables, formed a strategic partnership with Novozymes which provides
the enzymes needed for the ethanol production. The plant uses wheat straw, rice straw and arundo donax
(a high-yielding energy crop grown locally) to produce 75 Million liters of cellulosic ethanol per year. The
polymer that is extracted during the ethanol production process, Lignin, is used at their captive power
plant, which generates enough power to meet the facility’s energy requirement and any excess energy is
sold to the local grid.
Biomass materials used:
Locally sourced wheat straw, rice straw and arundo donax
Impact of the project:
1. The plant is the first and largest commercial facility in the world to produce cellulosic ethanol using
agricultural residues only.
2. The facility produces 75 Million liters of ethanol every year which is exported to other countries,
primarily Brazil
3. The plant also uses the by-product of the process to successfully generate electricity and power the
plant operations, thus effectively becoming a zero-waste plant.

Success Factors: Social and economic development of farmers by using locally sourced fuel, use of only
agricultural waste for biofuel production and use of by-product for captive power generation.

Domestic success story: Praj Industries in India is in the process of setting up four commercial scale
smart bio-refineries to produce and supply second-generation ethanol to Indian companies such as
IOCL, BPCL, HPCL and MRPL. The detailed design and engineering work has been completed and
equipment offers have been received for two bio-refineries. The plants are scheduled to be operational
by FY 2021.

The plants will utilize 500,000 Tons of paddy straw annually and produce 110 Million liters of ethanol
annually that will be supplied to oil marketing companies

Example 4: Production of decentralized power using rice husk in Bihar, India

Background:
Husk Power Systems (HPS) has installed more than 70 mini-power plants in Bihar since 2007. These mini-
power plants were setup specifically for villages off the grid or those connected to the grid but with
negligible or unreliable power supply. These projects were setup using financial subsidy from Ministry of

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New and Renewable Energy (MNRE) to generate power using the available renewable biomass in and
around Bihar.
Project details:
HPS has installed over 70 mini-power plants in rural India that use biomass gasifiers to power ~30,000
households across 250 villages. Each power plant has a capacity of 25 kW and serves about 400
households.
Investment:
Each 25-kW biomass gasifier unit incurs a capital cost of approximately USD 25,000. The power plants are
installed and operated under different business models as per the need and technical and financial
capability of the village/cluster members. The details of different business models used by the company
are illustrated in Table 50.
Business model:
HPS has adopted a demand driven approach and quantifies each household’s potential demand in watt-
hours. The company charges Rs 100 from each household as installation charge, which aids in the project’s
capital cost and ensures compliance by the users. As most households don’t pay tariff the monthly charges
are calculated on actuals, based on the appliances to power- generally CFL bulbs, mobile chargers, small
TV sets and commercial uses like xerox machines, printers etc.
The company has set up clusters in the range of 20-25 km, with each cluster having about 5-7 plants based
on the demand. Each cluster has a cluster level manager who ensures the collection and distribution of
rice husk from the farmers to the plants. The husk is collected at village level and transported to the plants
using trucks.
The company works on four different business models for rural electrification as illustrated in Table 50.
Table 50: Business Models of HPS

BOOM HPS has 100% ownership of the plant

(Build, Own, Operate HPS builds, installs, operates and maintains the gasifier plants
and Maintain)
BOM HPS builds, installs, owns and provides regular maintenance of the plant for 6 years
(contract period)
(Build, Own and
A local entrepreneur manages the daily operation of the plant- fuel collection, generation
Maintain) and sale of energy
The local entrepreneur will also invest Rs 2 lakh and pay a monthly maintenance charge of
Rs 15,000
At the end of the contract period the ownership of the plant will be transferred to the local
entrepreneur
BM HPS builds, installs and provides maintenance services for the contract period
The plant is fully owned and operated by the local entrepreneur investing the complete
(Build and Maintain)
capital cost
Any financial assistance obtained by the plant gets transferred to the entrepreneur
HPS charges Rs 15,000 to cover plant AMC, but any non-regular maintenance is charged on
actuals
BTM HPS provides all technology and equipment along with knowledge and training of team
HPS also provides regular maintenance under AMC
(Build, Train and
HPS also facilitates monetization of the bio-char and any Government financial aid
Maintain)

83
Biomass materials used:
Locally sourced rice husks in Bihar
Impact of the project:
1. Each plant with a capacity of 25 kW serves about 400 households and replaces 42,000 liters of kerosene
and 18,000 liters of diesel per year

2. Overall the 70 mini-power plants have provided employment and training to more than 300 locals in
rural India for operating and maintaining the plants

3. The company also sells the bio-char, which is a by-product of the gasification process, and generates
additional revenue for the project

4. The farmers are adequately compensated for the sale of their agricultural waste which has a two-fold
impact: provides income source to farmers and deters them from burning the crop residue in the fields

Success Factors: Provision to choose from different business models to suit the needs of the village,
set up of clusters for hassle free collection of residue, pre-installation energy audits of each household
to determine appliances used and their demand, Social and economic development of farmers by
using locally sourced fuel, efficient use of the by-product for additional revenue generation

Example 5: Biomass Power Project at Kalpataru Energy Venture Pvt Ltd in Rajasthan, India using mustard
crop residue
Background:
Kalpataru Energy Venture Private Limited (KEVPL) has implemented an 8 MW biomass-based power
generation plant utilizing crop residue in the state of Rajasthan to generate electricity. The power plant,
commissioned in July 2003, utilizes crop residue generated from the mustard crop considering that the
state has abundant availability of the crop and the residue generated after harvest does not have much
utility. The energy generated is exported to the state grid for distribution to end-users.
Project Details:
Table 51: Technical Details of KEVPL

Parameter Value
Plant Capacity 8 MW
Boiler Capacity 40 TPH
Boiler Steam Pressure 45 kg/cm2
Boiler Steam Temperature 425°C
Boiler make Thermax
TG make Shin Nippon
Source: CDM, Project Design Document, KEVPL

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Investment:
The Company has incurred a capital cost of approximately USD 5 Million for the installation of the 8 MW
plant, at USD 625,000/ MW in Bayana, Rajasthan.
Selection of site:
The plant has been set up in Bayana Tehsil in Bharatpur district in Rajasthan, India. The area was chosen
based on biomass assessment studies carried out by The Energy Research Institute (TERI), ORG-Marg and
the Ministry of New and Renewable Energy (MNRE), Government of India. The studies indicate that the
mustard crop residue is abundantly available in the identified area, and it is not suitable for use as cattle
fodder or domestic fuel. Around 90% of the residue is burnt in the field each year after harvest season,
causing massive air pollution.
Biomass availability:
The biomass assessment studies were carried out by the different institutes in four districts in Rajasthan
namely- Bharatpur, Dausa, Karauli and Alwar, covering a total of 37 villages. The studies also included
primary interactions with farmers to assess the average area of land holdings, crops grown and their
annual yield, harvesting methods and disposal of the crop residue, transportation facilities and the
availability of residue stock for the sustainable operations of the plant. It was estimated that the residue
produced will be able to power a generation capacity of 8 MW.
The main source of the biomass will be around 25 km of the plant location and a buffer area from 25-50
km will be used for additional sourcing of biomass in case of shortage.
Collection strategy:
The biomass residue will be supplied directly by the farmers to the plant location without the involvement
of any middlemen. This will ensure maximum economic benefits to the farmers and timely payments. The
farmers will be directly involved in the effective collection, storage and transportation of the residue to
the plant location. KEVPL would be required to build strong partnerships with the farmers to ensure regular
supply of residue, which can be achieved by entering into a long-term supply agreement.
Plant design:
The total area required for the project was 36 acres, which houses the Boiler-Turbine-Generator (BTG)
unit, the fuel storage area, fuel handling system, water handling system, and ash handling system, amongst
the other Balance of Plant (BOP) units. The plant has installed a single boiler of 40 tph capacity operating
with steam inlet pressure of 45 kg/cm2 and 425°C temperature. The fuel burning system is a travelling grate
stoker with gravity feed system. A travelling grate type boiler has been selected for its flexibility to fire any
type of fuel with varying size and high moisture content. An overhead bunker stores the feedstock required
for one hour of operation which is attached to the travelling grate for fuel inlet.
The water handling system comprises of cooling tower, make-up water, de-mineralization (DM) plant,
feed-water makeup and miscellaneous requirements. The total water required for the project is 1,500
m3/day.
The BOP consists of the fire-fighting system, compressed air system, ash handling system, electrical
system, generator panels and other electrical systems, 33 kV substation and switchyard.
The power is generated at 11 kV, which is stepped up to 33 kV for synchronization and transmission. The
power is exported to the Bayana grid sub-station, located at 10 km from the project site.
Biomass price:

85
The biomass is transported to the project site by the farmers without using any middlemen or aggregators.
The price of the biomass is calculated from farm to gate and is directly paid to the farmers. The quantity
and cost of the residue for the years 2014-2016 has been shown below.
Table 52: Biomass Procurement Price for KEVPL

Quantity of biomass Total cost of biomass at Cost of biomass at factory

Year of procurement
procured (Tons) factory gate (USD) gate (USD/ Tons)

2014 88,994 3,269,011 37

2015 108,889 3,564,780 33
2016 79,884 2,105,945 26
Weighted average price of biomass 32
Source: Biomass Fuel Supply Study, Rajasthan Renewable Energy Corporation Limited, 2017

On average it can be estimated that the company spends ~USD 32/Tons for procurement of biomass from
the farmers.
Mode of implementation:
The project was implemented under the umbrella of the Clean Development Mechanism (CDM) program.
Under the program mechanism, KEVPL was registered as a CDM project activity under the UNFCCC to avail
the carbon credits against the reduction in CO 2 by the project. The project considered a crediting period of
7 years, over which the project generated 333.21 Million Units of power which was exported to the grid
for sale. This resulted in CO2 emission reduction of 314,179 Tons in 7 years. KEVPL was issued the
equivalent Certified Emission Reduction units (CERs) which were traded in emissions trading schemes for
monetary benefits.
Barriers in implementation:
a) Financial barriers:
The project faced significant financial barriers on account of a) high upfront cost, b) technological
issues on using mustard crop for energy generation, c) no prior experience of promoter in
implementation power generation using mustard crop residue and d) apprehension over cash flow
The project was registered as a CDM project activity with a renewable crediting period to ensure cash
flows and acquire funding from Financial Institutions. The project has also signed a long-term Power
Purchase Agreement (PPA) for 20 years with Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN)
for sale of net energy generated. The project thus secured two assured revenue streams. The project
also secured favorable loan repayment terms on account of these assured revenue streams.
b) Technological barriers:
The project envisaged using mustard crop residue as a fuel for power generation which contains higher
percentage of alkali salt in the ash generated, which leads to clinker formation in the furnace. The
project addressed these issues by a) maintaining low furnace temperature, b) controlling the carryover
of combustibles from the furnace to avoid secondary combustion, c) frequent removal of ash from the
furnace and d) use of modern boiler technology to maintain high pressure
c) Operational barriers:
The biggest operational risk envisaged by the project was the supply of fuel over the lifetime of the
project. This was ensured by capacity building and knowledge sharing with the farmers to deter them
from burning of the residue in the fields. The farmers were assured monetary returns for the residue

86
 by signing of long-term supply agreements. KEVPL has also employed local labor from the nearby
villages for O&M of the plant, thus building trust in the farmers and ensuring sustenance of the project.
Sale of Power:
The project has signed a long-term PPA for 20 years with Rajasthan Rajya Vidyut Prasaran Nigam Limited
(RVPN) for sale of net energy generated.
Table 53: Generation Profile of the Project

Particular Unit 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Plant Capacity kW 8,000 8,000 8,000 8,000 8,000 8,000 8,000

PLF % 85% 85% 90% 90% 95% 95% 95%

Maximum operating
Hours 8,760 8,760 8,760 8,760 8,760 8,760 8,760
period (365 days)
Effective operating
Hours 7,920 7,920 7,920 7,920 7,920 7,920 7,920
period (330 days)
Gross power
Million units 53.86 53.86 57.02 57.02 60.19 60.19 60.19
generated
Auxiliary
% 12% 12% 12% 12% 12% 12% 12%
consumption
Auxiliary
Million units 6.46 6.46 6.84 6.84 7.22 7.22 7.22
consumption
T&D losses % 2% 2% 2% 2% 2% 2% 2%
T&D losses Million units 1.08 1.08 1.14 1.14 1.20 1.20 1.20
Grid losses
(equivalent to T&D Million units 1.08 1.08 1.14 1.14 1.20 1.20 1.20
losses)

Net exported power Million units 45.24 45.24 47.90 47.90 50.56 50.56 50.56

Source: CDM, Project Design Document, KEVPL

Impact of the project:

Environmental benefits: The project saw a reduction in crop residue burning in the proposed area with a
reduction in GHG emissions. The project saw an annual average emission reduction of 44,882 CO 2e (Tons
of CO2 equivalent). The project also obtained Certified Emission Reduction units (CERs) under the CDM
program for an additional revenue stream.
Socio-economic benefits: The project created employment for skilled and unskilled labor in the nearby
villages. The local people also learnt how to operate modern technology through efficient capacity building
programs. The project also provided high economic returns to the farmers for their supply of mustard crop
residue. The project also created business opportunity for local stakeholders like bankers, suppliers,
manufacturers and contractors.

Success Factors: Using locally sourced and abundantly available mustard crop residue, significant
reduction in CO2 emissions, generation of CERs, employment of local labor and elimination of
middlemen for supply of residue to plant premises.

The following table captures details of some of the small-scale biomass gasification plants operational in
India that use alternate crops (apart from rice and wheat stalks) for power generation.

87
Table 54: Small Scale Installations in India Using Alternate Biomass

Sr.
Capacity Name of plant Location Biomass used Equipment supplier
No.
Soya stalks and waste Thermax Limited and
Ruchi Soya Washim,
1 1 MW from soya processing Royal Dahlman,
Industries Maharashtra
plant Netherlands
Cummins
Cogeneration Karisalpatti,
2 1 MW Coconut shells Cummins India Ltd
India Private Tamil Nadu
Limited
Ankur Scientific Vadodara, Cotton, tur and Castor Ankur Scientific Energy
3 1.2 MW
Power Plant Gujarat stalks, and corncobs Technologies
Wood chips from fast
Vana Vidyut Sivagangai, Ankur Scientific
4 2 MW growing trees such as
Private Limited Tamil Nadu Technologies Pvt Ltd
bamboo
Source: Company websites & MNRE

Example 6: Production of Bio-CNG using agricultural waste in Pune, India

Background:
Primove Engineering Pvt Ltd has implemented India’s first Bio CNG plant in Pune in the year 2016 which
utilizes agricultural waste for energy generation. The Bio CNG is used to power automobiles with the same
efficiency as CNG derived using fossil fuels and is marketed and sold under the name AgroGas.
Project Details:
Table 55: Details of Primover Engineering Plant
Parameter Value
Plant Capacity 5 Tons/day
Energy Potential GCV of ~52,000 kJ/kg
Capital requirement ~2.3 Million USD (16 Crore)
Primary sugars: Spent wash, press mud, wasted food grains
Semi cellulosic biomass: Rice straw, wheat straw, soya trash,
Biomass used napier grass
Cellulosic biomass: Cotton straw, sugarcane bagasse,
bamboo shoots
Utilization of gas • 70 buses (70 kg/fill) or
• 500 cars (10 kg/fill) or
• 800 autorickshaws (6 kg/fill)
Source: Akshay Urja, MNRE, December 2016 Edition

Production process:
The biomass is fed into a single-stage reactor which is converted to biogas using a Primove patented
process. This biogas is a mixture of methane (CH4), Carbon dioxide (CO2) and Hydrogen Sulphide (H2S). The
biogas is then purified to remove all impurities to get biomethane and other gases that meet the
government standards. The purified biomethane is then pressurized and filled into high-pressure cylinders.
The cylinders are then used to fill gas in automobiles at the dispensing stations.

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A comparison of AgroGas and other commercially available CNG is shown below:
Table 56: Comparison of AgroGas and CNG
Parameter AgroGas CNG
CH4 Minimum 90% 90%
CO2 Maximum 4% Maximum 3.5%
H2S 16 ppm 16 ppm
Moisture 5 ppm 5 ppm
Filling pressure 220 bar 220 bar

Impact of the project:

1. The gas has similar properties as fossil-fuel CNG and displaces the use of CNG effectively
2. The cost of Bio-CNG is less than CNG and will be preferred by consumers
3. The plant also utilizes waste from other food processing industries

Success Factors: Use of only agricultural waste and food processing waste for Bio-CNG production, gas
with similar properties as fossil-fuel based CNG is derived and can be directly replaced in automobiles,
economically competitive price as compared to CNG

Similar to the above example different international players intend to install Bio-CNG or biogas plants in
India using their own technologies. The details of such installations are provided below:
Table 57: Small Scale Installations in India
Sr. Status
Name of developer Location Biomass used Products produced
No.
Bio-CNG: 33,000 kg Under
Verbio Vereinigte annually construction
1 Sangrur, Punjab Paddy straw
Bioenergie AG Manure: 45,000 tons
annually
Gurdaspur, Biogas- 24,000 m3/day Planning stage
2 HoSt Bioenergy Paddy straw
Punjab
Source: Newsletters and Company websites

4.8 Models for Implementation of Projects

The typical models under which power projects are implemented are shown below. SAARC Member States
are seeing increasing participation from the private sector in the implementation of bioenergy programs.
The countries are also offering a wide range of incentives for foreign investors keen on setting up of
projects in the South Asian regions.
Table 58: Models for Implementation of Bioenergy Projects

The power plant is constructed by a private party without major capital investment
by the government. The project is implemented under the BOO (Build Own and
Operate) model wherein the power plant is built and operated by the private
Private developer for the entire lifecycle of the plant.
The cost of funding in case of private ownership is highest.
The operations cost is the lowest in a privately-owned setup

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 In a government owned/ public project the power plant is owned and operated by
the government authority (state/ provincial or central). The power plant is installed
on government owned land or purchased land. The plant is also financed using
Public
government funds, grants and subsidies. The cost of funding for publicly owned
plants is the lowest and easily available. However, the O&M costs are seen to be
higher.

In a PPP based model, the projects are built on BOT (Build Own and Transfer) or
DBO (Design Build Operate) basis. In a typical BOT project, the asset ownership lies
with the authority and the private party has the long-term right to use the asset
and will be responsible for operations and some investment. At the end of the
predetermined period the project will be transferred to the authority. The private
party obtains its revenue through a fee charged to the government/authority,
Public Private rather than tariffs to the consumers.
Partnership
In a DBO project, the government body owns and finances the construction of the
power plant. The private sector will design, build and operate the plant to meet
certain agreed outputs. The private party will take no financing responsibility and
will be paid a sum for the design-build of the project.
The projects built under this model acquire financing at lower interest rates and
the O&M costs are optimized for higher cost recovery.

4.9 Study of Commercial Aspects of Gasification

Introduction:
The commercial aspects of setting up biomass gasifier power plants in the Indian State of Punjab has been
considered for illustration purpose. Punjab is one of the highest producers of rice, wheat and sugarcane in
the country. The State is heavily dependent on rice-wheat cropping system and produces a huge quantity
of crop residue. The rice stubble is burnt in the fields in the months of October-November within a period
of 2-3 weeks for an economical and quick alternative to prepare the fields for the sowing of wheat. The
rice straw is also considered a poor cattle feed due to its high silica content. The farmers also complain of
very high labor cost to manually remove the straw and stubble from fields. Additionally, due to lack of
buyers or very low economic returns for the rice residue the farmers prefer to burn the residue in the
farms. The adverse effects of rice residue burning is visible in the Northern parts of India and Pakistan
when the smoke from the crop residue burning combines with the fog to produce smog. This smog is
known to cause severe breathing issues, health hazards and visibility issues leading to accidents. The
pattern is repeated in the months of April-May when the wheat stubble is burnt in fields. If the residues
from rice and wheat are managed sustainably for energy production the issue of crop residue burning
would be tackled to a great extent along production of off-grid electricity for supply to rural areas.
Methodology:
The rice and wheat production for the year 2018-19 in all the districts of Punjab has been considered for
the study. The gross residue generation and surplus residue generation have been computed for all the
districts to formulate an implementation plan.

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 Table 59: Rice and Wheat Production in Punjab

Sr. District Rice Production Wheat Production

No. (000 Tons) (000 Tons)
1 Amritsar 801 920
2 Barnala 846 609
3 Bathinda 1,137 1,345
4 Faridkot 712 619
5 F.G. Sahib 517 454
6 Fazilka 560 977
7 Ferozepur 1,238 1,011
8 Gurdaspur 944 876
9 Hoshiarpur 417 620
10 Jalandhar 1,073 861
11 Kapurthala 765 523
12 Ludhiana 1,721 1,291
13 Mansa 767 890
14 Moga 1,219 908
15 Mohali 152 248
16 Shri
Mukatsar 1,087 1,108
Sahib
17 Pathankot 136 165
18 Patiala 1,373 1,223
19 Ropar 212 327
20 Sangrur 2,019 1,599
21 S.B.S
354 385
Nagar
22 Tarntarn 1,086 871
Total 19,136 17,830
Source: Agricultural Department of Punjab, 2019

The total annual crop production of Punjab for rice and wheat is 36,966 Thousand Tons, which is 18% of
India’s production. The total gross residue and surplus residue potential from both, rice and wheat have
been computed below.
The power generation potential from these crops have been computed as follows:
Annual power generation potential = (Total Surplus crop residue) x (Collection Efficiency) / (365 x 24 x
P)
Where P= Tons of biomass required to produce 1 MW of electricity
The collection efficiency has been considered at 75% of the surplus potential on a conservative scale. The
collection efficiency is determined by the distance of the collection centers from the nearby fields and the
price compensation provided to the farmers. Shorter the distance and higher the compensation, higher
will be the collection efficiency.

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Table 60: Power Generation Potential of Punjab Using Only Farm Residue

Crop Production Residue RPR Gross Surplus Biomass Power

(000 Tons) type Residue Residue Consumption Generation
(000 Tons) (000 Tons) ratio (P) Potential (MW)
Wheat 17,830 straw 1.5 26,745 5,884 1.4 360
Rice 19,136 straw 1.5 28,704 8,037 1.2 573
Total 36,966 55,449 13,921 933

The total power generation potential for Punjab is calculated to be 933 MW, of which 573 MW can be
generated from rice straw residues and 360 MW from wheat straw residues. However, given the
complementary nature of these two crops’ harvesting periods it is recommended to install power plants
of total 573 MW only which would primarily operate on rice-based residues in the months of November-
April and on wheat-based residues in the months of May- October. This will ensure that the residues from
both the crops are fully utilized and not stored for longer durations which will degrade the residue and
affect the energy generation potential. By installing lower capacities of biomass-gasifier plants the capital
cost of installation will reduce significantly.
Technology selection:
Biomass gasification technology has been chosen for power generation owing to its ability to work with a
large range of residue type and size and wide operational range that can be scaled up from smaller
capacities at a village level installation to larger capacities at a regional or zonal level.
Collection Centers:
The collection and storage of adequate crop residue is the most critical element of the biomass plants
success. Based on the geographic distribution of the rice production it is recommended to set up multiple
collection points in different districts. The collection centers have a capacity to store between 5,000 Tons-
10,000 Tons of rice husk and straw residue. It is imperative to have these collection centers within 20 km
of nearby farms to minimize cost of transportation.
Table 61: Suggested Collection Centers for Residue Collection and Storage
Region Districts Residue that can be stored Residue that can be stored
(75% collection efficiency) (100% collection efficiency)

North Amritsar, Gurdaspur, 723,000 Tons 964,000 Tons

Hoshiarpur and Pathankot
East Fatehgarh Sahib, Mohali, 844,000 Tons 1,125,000 Tons
Patiala, Ropar and S.B.S. Nagar
West Faridkot, Fazilka, Forezepur and 1,447,000 Tons 1,929,000 Tons
Shri Muktasar Sahib
South Bathinda, Mansa and Sangrur 1,266,000 Tons 1,688,000 Tons
Central Barnala, Jalandar, Kapurthala, 1,748,000 Tons 2,331,000 Tons
Ludhiana and Moga
Total 6,028,000 Tons 8,037,000 Tons

Cost of residue:
The cost of residue will depend on the source of purchase and the transportation costs. The straw-based
residue can be procured from farmers directly using local aggregators and rice husks from rice mills. The
cost of procuring from farmers and mills is in the range of USD 43/Tons- USD 57/Tons. The Central
Electricity Regulatory Commission has determined a base price of USD 54/Tons for rice and wheat-based
crop residues. The same base price has been considered for development of model.

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Size of plant:
The economic viability of biomass gasifier below 10 MW is not sustainable. Beyond this capacity, the
logistics of handling the residue becomes increasingly difficult. It is recommended to implement biomass-
gasifier plants of 10 MW each in different locations in the State to take advantage of lower transport cost
and local labor for plant operations.
Sale of power:
The power generated from the power plants can be sold to the consumers by connecting to the grid. With
100% household electrification achieved in Punjab even the rural houses have an electricity connection,
which will add substantially to the energy demand of the State. Decentralized biomass gasifier plants can
provide the solution for meeting the rising energy demands from these rural households.
Commercial model for 10 MW biomass gasifier power plant:
The commercial aspects of setting up of a 10 MW biomass gasifier power plant has been considered for
illustration. The plant operations are majorly dependent on the availability of adequate biomass supply,
transportation costs and capital cost of installation. The equity payback period for installation of such
biomass gasifier plant has been calculated under various scenarios. The payback period is based on the
following assumptions:
Table 62: Assumptions for Setting up of 10 MW Biomass Gasifier Plant

Particular Unit Value Rationale

Power plant
Capacity MW 10 Single power plant
Auxiliary consumption % 10 As per CERC RE Tariff Regulations
PLF % 85% As per CERC RE Tariff Regulations
Useful life Years 20 As per CERC RE Tariff Regulations
Project cost
Capital cost 846,970 Before subsidy for biomass gasifier plants
USD/MW
632,685 After subsidy for biomass gasifier plants
Financial assumptions
Debt % 70
Equity % 30
Return on Equity (for entire As per CERC RE Tariff Regulations
% 17.60
useful life)
Interest rate (WC Loan) % 11.4 As per CERC RE Tariff Regulations
Interest rate (LT Loan) % 10.4 As per CERC RE Tariff Regulations
Income tax % 30 As per CERC RE Tariff Regulations
Discount rate % 10 As per CERC RE Tariff Regulations
Depreciation rate 5.28 For first 13 years
%
3.05 From 14th year onwards
Fuel related assumptions
Biomass base price (inclusive of USD/Tons 33 For rice and wheat straw-based residue
transport) USD/Tons 43 For rice and wheat briquettes
Long-term biomass price
% 1.5
escalation

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 Particular Unit Value Rationale
kg/kWh 1.3 For rice and wheat straw-based residue
Specific fuel consumption
kg/kWh 1.1 For rice and wheat briquettes
Operation and maintenance
Annual O&M expenses USD/MW 70,000 As per industry standards
Long-term O&M escalation % 3
Revenue assumptions
The tariff has been fixed to compete with other
Levellized tariff USD/kWh 0.0825 sources of renewable energy sources so that the
plant remains commercially viable
Escalated at the same rate of biomass
Long-term tariff escalation % 1.50 procurement price to maintain commercial
viability
Source: CERC, RE Tariff Regulations for FY 2019-20

Capital cost:
The capital cost of USD 846,970/MW has been assumed as per guidelines of the Central Electricity
Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources)
for FY 2019-20 (CERC Regulations) for biomass gasifier plants. A capital subsidy of USD 214,285/MW is
provided by the Ministry of New and Renewable Energy (MNRE) which further reduces the capital cost of
installation to USD 632,685/MW. In the base case, the project cost has been considered without
application of subsidy
Financial assumptions:
A Debt: Equity ratio of 70:30 has been considered as per industry standards. Cost of funds has been
anticipated at 10.4% and a discount factor of 10% has been considered.
Fuel related assumptions:
The fuel cost of USD 33/Tons with an escalation of 1.5% has been considered for rice straw that can be
locally sourced from farmers located within 20 km of the power plant. The fuel cost is inclusive of the base
price, transportation to plant site and loading and unloading charges.
Operation and maintenance:
The O&M cost has been considered at USD 70,000/MW with an escalation of 3% over the useful life of the
project.
The typical commercial details of the 10 MW biomass-gasifier plant using rice straw as feedstock have
been illustrated below to evaluate the viability of a single power plant. If found financially viable the same
can be replicated in other districts of Punjab using a similar model of implementation.

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Table 63: Commercial Details of the Commercial Model for 10 MW Biomass-Gasifier Plant

Particular Unit Without Capital Subsidy With Capital Subsidy

Capital Cost USD Million 8.47 6.33
Debt USD Million 5.93 4.43
Equity USD Million 2.54 1.90
First year: Fixed cost (A) USD/kWh 0.035 0.029
First year: Variable Cost (B) USD/kWh 0.048 0.048
First year: Total tariff (A+B) USD/kWh 0.08 0.08
First year: Revenue USD Million 5.53 5.53
Levellized tariff for 20 years USD/kWh 0.0825 0.0825
Debt repayment period Years 14 14
Breakeven period Years 7 4

The equity breakeven period for a single biomass-gasifier project without capital subsidy from government
is ~7 years. This period can be reduced by 3 years with a 25% capital subsidy. The most critical element in
the determination of tariff is the biomass procurement cost. This cost can be greatly reduced by signing
annual fuel procurement contracts with the farmers or farmers’ associations. By doing so the farmers will
be assured of a fixed cost for their residue each year and will proactively reduce the burning of residue in-
situ. The tariff is also largely affected by the O&M costs of the power plant. The O&M cost includes the
annual maintenance charges as well as labor cost. By way of capacity building and knowledge transfer
skilled local labor can be employed for each power plant. By employing local labor, the outsourcing costs
can be eliminated, and O&M costs can be reduced greatly.
Effect of using briquettes instead of rice straw:
The rice/wheat straws can be converted into high density briquettes using a briquetting machine (details
available in Section 5.1.1) which can then be used as feedstock to the gasifier. The use of such briquettes
will have an increase in the biomass procurement price as described in the assumptions set in Table 62,
with a proportional decrease in the specific fuel consumption (as the briquettes have higher bulk density).
Alternatively, a developer may wish to procure straws from the farmers or aggregators and install
briquetting/ pelletizing machines inside the facility and produce briquettes/pellets. However, this would
result in additional capital investment and manpower requirement. For the purpose of the model we have
assumed that the briquettes are procured directly from the aggregator at a higher price.
Table 64: Commercial Details of the Commercial Model for 10 MW Biomass-Gasifier Plant Using Briquettes

Particular Unit Without Capital Subsidy With Capital Subsidy

Capital Cost USD Million 8.47 6.33
Debt USD Million 5.93 4.43
Equity USD Million 2.54 1.90
First year: Fixed cost (A) USD/kWh 0.035 0.029
First year: Variable Cost (B) USD/kWh 0.052 0.052
First year: Total tariff (A+B) USD/kWh 0.08 0.08
First year: Revenue USD Million 5.53 5.53
Levelized tariff for 20 years USD/kWh 0.0825 0.0825
Debt repayment period Years 14 14
Breakeven period Years 11 6

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When compared to the commercials of energy generation using rice and wheat straws as feedstock, is it
seen that the breakeven period increases by 4 years (without capital subsidy) and by 2 years (with capital
subsidy). This is seen because the price of biomass procurement is increased, but the tariff has remained
constant to compete with other sources of renewable energy sources so that the plant remains
commercially viable.
Given the success of a single biomass-gasifier power plant the model can be replicated in the other districts
to explore the full potential of the crop residue generated. The following cluster-wise implementation plan
is recommenced for Punjab to cover all the districts.
Table 65: Cluster-Wise Implementation Plan for Punjab State
Particular North East West South Central
Number of 10 MW biomass-gasifier power plants 7 8 14 12 17
Total cluster-wise installation capacity 70 80 140 120 170
Surplus Residue to be stored (75% collection 723,000 844,000 1,447,000 1,266,000 1,748,000
efficiency) Tons Tons Tons Tons Tons
Capital Investment (Million USD) 58 68 117 102 141

With a cluster-wise decentralized implementation of biomass gasifier plants the logistics can be handled
efficiently. It is recommended to sign fuel procurement contracts with the farmers to ensure availability
of residue and sustainability of the projects.

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5 Alternate Uses of Crop Residue
The previous sections cover the large-scale applications of crop residues for energy generation using
suitable technologies in the SAARC region. However, in conditions where large scale deployment of energy
generation solutions is not viable, alternate usage of this surplus crop residue must be identified. This
section covers the different small-scale applications of crop residues which can be deployed in inaccessible
areas or areas with lower potential of residue generation. The section also covers the possible effect of
advanced mechanized farming techniques on the quality and quantity of crop residue in the SAARC region.

5.1 Small Scale Applications of Crop Residue

5.1.1. Briquetting
Introduction: Briquetting is the process of compacting agricultural residues and other wastes to products
of higher densities. The process converts crop residues like straws and husks with lower bulk density (80-
100 kg/m3) to higher bulk density briquettes (900-1300 kg/m3). Depending on the type of residue used, its
moisture content, method and procedure used to prepare these briquettes, they can be used as a fuel for
cleaner burning. The briquette machines can be operated by local entrepreneurs or farmer associations to
produce products that will replace firewood in rural households or be sold in the market, the production
and sales of which will aid in farmers’ incomes.
Process of implementation:

Figure 64: Biomass Briquetting System

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The steps of briquette making and popular methods/technologies used are elaborated below:
Collection: The surplus crop residue that is not utilized towards energy generation purposes can be
collected at village/district levels to be converted into briquettes. Briquetting machines can be installed by
local entrepreneurs, small businessmen or farmer associations based on the scale of operations and
quantum of residue available.
Pre-treatment: Different types of residue can be used for briquetting which have diverse properties- size,
moisture content, heating value, chemical composition etc. Hence some pretreatment is essential to
ensure suitable briquette production. The pretreatment processes involve drying of biomass to remove
excess moisture, reduction in size using grinding and cutting methods, pre-heating the biomass (not more
than 300°C) to loosen fibers and soften the biomass for easier pressing. Generally, the size of the biomass
is reduced to 6-8 mm, with a moisture content less than 10% with a powder component of 10-20%
depending on the type of residue.
Briquetting: Different types of presses may be used depending on the scale of operations, type of residue
and capital expenditure required. Generally, for small scale operations a manual press is employed, which
consists of simple designs such as hand-powered screw extruder, lever arm briquette press, car jack
briquette press. A screw press is used when the biomass is extruded continuously by a screw through a
taper die. A hydraulic press is used for large scale operations and work effectively on tougher residue too.
In most cases a binding agent is also added to the residue to aid fastening of particles.
Packaging and storing: The briquettes formed in the process are cooled using a conveyor belt before
storage. Once cooled they are stored length-wise in a cool and dry place until transported.
Distribution: Briquettes find use in rural households as a substitute for firewood, along with commercial
and hospitality applications such as grilling, water and space heating. They can also be used in industrial
boilers for production of heat and steam for electricity generation. Other small-scale applications that use
briquettes are crop and spice drying, ceramic production, textiles, tea and coffee processing units.
These briquettes with higher densities provide a higher heat content with less smoke when burnt. They
also burn slower than firewood and last longer. They are also easier to transport and distribute through
different channels.

Success story: Biomass Briquettes using forest and farm wastes

Rural Renewable Urja Solutions Pvt. Ltd has implemented a biomass briquetting plant in Kotdwara,
Uttarakhand, India for the utilization of forest residues, agricultural wastes and industrial wastes. The plant
uses 60% forest residues like pine needles, 30% sawdust and 10% agricultural residues from nearby fields.
The project was set up by private company which employs women self-help groups in the collection and
delivery of these residues to the plant facility. The pine needle and agricultural residue collectors are paid
a fixed cost of INR 1000/Tons (USD 14.3/Tons), and the manufactured briquettes are sold to institutions
and industries like brick kilns, industrial boilers, restaurants, schools, ashrams, cafeteria, and school
hostels, who primarily use it as an alternative to coal or LPG for their requirement.

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Table 66: Project Details and Commercials of Rural Renewable Urja Solutions Pvt. Ltd.

Parameter Description
Plant Capacity 10000 Tons per annum
Composition of raw material 60% pine needles, 30% sawdust and 10% agricultural wastes
Capital cost INR 1.3 crores (USD 190,000)
Briquette density >650 kg/m3
Calorific value of briquettes ~3900 kCal/kg
Benefits 1.3 kg of briquettes can replace 1 kg of coal
3 kg of briquettes can replace 1 kg of LPG use
Customers Industrial boilers, Brick kilns, hotels and canteens, schools that run mid-day meal
programs
Cost of briquettes 1 Tons of briquette for LPG replacement is sold at INR 6,000 (USD 86)
1 Tons of briquette for coal replacement is sold at INR 3,950 (USD 56)
GHG emissions prevented 15,000 TCO2e
Carbon credits Carbon credits generated by sale of briquettes are sold to MY CLIMATE company
Source: Access to Clean Energy, Winrock International India

Benefits:
The project generates 542 against replacement of coal and 382 against replacement of LPG per ton of
briquettes. MY CLIMATE, a Switzerland based agency has entered into agreement with RRUSPL to buy the
carbon credits generated by the project. MY CLIMATE in turn sells these carbon credits to the air travelers
who want to reduce their carbon footprint. With this arrangement the project contributes renewable
energy generation and empowerment of rural population and reduces the carbon footprint of global users.
The usage of pine needles for briquette making purpose has also reduced the forest fires by 50% in
Lansdowne area.

5.1.2. Small Scale Gasification Applications

Introduction: Small scale gasifier plants of typical capacity 100 kW- 2 MW are gaining popularity in rural
areas of South Asia. These systems are usually installed to utilize smaller quantum of biomass more
effectively, near the production source and demand centers in order to shorten transport distances and
reduce costs. The syn-gas produced from the gasification process is supplied as fuel to internal combustion
engines and power generators to produce electrical output. Additionally, the heat from the syngas is also
captured to provide thermal output (steam for process plants). These systems find applications in small
businesses like grain mills, cold storages, welding workshops, irrigation pumps, spice drying, ceramic
making etc. The implementation of some of these systems, technology utilized, and commercial operations
have been captured using success studies below.
Case 1: Kasai Village Gasifier, Madhya Pradesh, India
The Ministry of New and Renewable Energy (MNRE), Govt. of India has identified un-electrified village
fringe areas in three states of Madhya Pradesh, West Bengal and Uttarakhand to implement energy
generation programs. A Village Energy Security Program (VESP) was launched by MNRE to identify such
villages. Under the program the village Kasai in Betul district, Madhya Pradesh was identified to install a
biomass gasifier power project. The project was funded by VESP and implemented and monitored by the
District Forest Officials (DFO). A biomass gasifier plant of 2x10 kW capacity, equipped with a diesel set for

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black start purpose was installed to benefit ~50 households in the village. The day to day operations are
handled by the village panchayat.
Table 67: Project Details of Kasai Village Gasifier

Parameter Value
Plant Capacity 2x10 kW
Black start Diesel Generating Set
Plant make M/s Aruna Electrical Works
Biomass used Locally sourced firewood from nearby forests
Plant components Gasifier reactor, with screw-based ash extraction system, cyclone,
cooling and scrubbing systems, sand bed and fabric filter
Source: Centre for Sustainable Technologies, Indian Institute of Science

The plant operates only in the evening hours to meet the electrical demands of households. During a 5-
hour operating period the system generates ~40 units per day and ~1200 units per month. some amount
of diesel is used during the initial stabilization period before operating on gas. The biomass is purchased
from the farmers at INR 0.5/kg (USD 0.007/kg) and power is provided to each household on a fixed fee
basis per month. Apart from meeting the basic energy demand of each household, the system also
operates street lights, a flourmill, a water pump and milk-chilling unit.
Table 68: Commercial Details of Kasai Village Gasifier

Parameter Cost (USD)

Cost of biomass/kg 0.007
Monthly contribution per family 1.71
Total contribution per month 94
Cost of labor 43
Cost of diesel 7.14
Total operational cost 65
Cost of electricity generated (USD/kWh) 0.05
Payback period 4-5 years
Source: Centre for Sustainable Technologies, Indian Institute of Science

Case 2: Biomass usage for thermal application at Starlit Power System, Haryana
Starlit Power System is a manufacturer of Refined Lead, Lead Alloys and Red Lead in Haryana, India. The
Company uses diesel in the production processes in melting and lead furnaces. The facility has two reactors
for melting, a refining furnace and kiln with a total thermal requirement of 400,000 kCal/hr. The Company
decided to utilize green energy for operating the facility to reduce their fuel costs and GHG emissions.
A downdraft biomass gasifier plant was used to provide the thermal output for operating the furnace. The
technology was selected to operate on firewood sourced from local farmers. It was found that the gasifier
was able to generate a thermal output of 450,000 kCal/hr and could replace at least 60% of the diesel
consumption in the DG set in dual fuel mode and shutdown of the Rotary reduction furnace (normal
operating case of the plant). The project realized an annual savings of ~ USD 88,000 on replacing diesel
with wood using a biomass gasifier.

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 Table 69: Project Details of Biomass Gasifier at Starlit Power System

Parameter Value
Supplier M/s Chanderpur Works
Wood consumption 180 kg/hr
Daily wood requirement 3,520 kg
Price of wood USD 0.07
Thermal output 450,000 kCal/hr
Source: Biomass Portal, MNRE

Case 3: Arecanut processing units using biomass gasifiers in Assam

The North-Eastern states in India contribute to over 20% of the total national production of Arecanut.
These nuts are processed by boiling and drying them and then exported in major processing units located
in Rupahi and Howly in Assam. The nuts are first boiled in large open pans for 30-50 mins, after which they
are dried in brick-cement frames using bamboo mats. Firewood is lit under vertical partitions for around
12 hours and the nuts are dried on the bamboo mats above at a temperature of 70-75°C. The nuts are
further sun-dried for 2-3 days to remove any residual moisture. On an average 100-150 kg of firewood was
used to produce 100 kg of Arecanut, of which 60% was utilized in the boiling stage and the rest for drying.
The average wood burnt was 115 kg/hr, with an SFC (Specific Fuel Consumption) of 0.70 kg of wood per 1
kg of boiled Arecanut.
To reduce the fuel consumption and smoke emitted, The Energy and Resources Institute (TERI) has
developed biomass gasifier systems for boiling and drying of these Arecanuts in Assam. The gasifiers work
on a lower wood consumption (20 kg/hr) for boiling the nuts in the existing boiling pans and use the hot
syngas for drying of the nuts. The gasifiers also operate by using the waste Arecanut husks as fuel, thereby
reducing fuel costs. The performance and efficiency of the processes have improved by 40-60% as shown
below:
Table 70: Performance Improvement of Arecanut Processing Using Biomass Gasifier Plants

Item Traditional oven Gasifier system

Number of nuts processed (kg/batch) 140 140
Boiling time required (hours) 2.5 1.0
Fire curing time required (hours) 4.0 3.0
Total fuel consumption (kg/batch) 125 45
Source: Biomass Gasifier Systems for Thermal Applications in Rural Areas, TERI

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Figure 65: SWOT Analysis of Small-Scale Applications of Crop Residue
• Provide additional income to farmers for • Not economical for individual farmer to
sale of residues setup
• Can be implemented on small scale in • Training of locals and capacity building
decentralized clusters is necessary for operating these
• Mini-grids can be used to provide systems
electricity to inaccessible areas
• Economic implementation
• Low gestation period

S W
O T
• Subsidies, grants or fiscal incentives
(eg. tax exemptions) provided by • Seasonality and variability in supply of
governments for setup of small-scale raw material and their prices could lead
facilities. to production disruption
• Lower interest rates provided for setup • Under-development of related
of small-scale renewable energy-based infrastructure like road connectivity
projects

5.2 Applications of Crop Residue in Manufacturing of Products

Various ex-situ management techniques of crop residues like production of fertilizers, compost, mushroom
cultivation and usage in paper manufacturing are in practice in the South Asian countries.

5.2.1. Compost and Fertilizer Making

Introduction: The crop residues left behind after the harvest such as straws, stubbles, stoves and husks
can be used as natural fertilizers in the fields to boost the biological and chemical properties of the soil.
However, the residue needs composting before being used as fertilizer. The composting method can be of
two types- pit composting and aboveground composting, depending on the availability of water, moisture
content of soil and temperature of the region. The compost generated is sold to distributors at market
prevailing rates.

Case Study: Rice straws are used in the preparation of fertilizers in Tamil Nadu due to its high Carbon (40%)
and Potassium (3%) content as compared to other crop residues. The process of compost and fertilizer
making is implemented on small scale by farmers in the state by aggregating their residues in a common
space generating limited number of fertilizer bags over the year. The compost is then sold to local
businesses at market prevailing prices and revenue generated is shared amongst the farmers.
Process implementation:

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Figure 66: Biomass Composting Process

Source: TNAU Agritech Portal

Benefits of using crop residue for composting and fertilizing:

1. The crop residues contain the nutrients and beneficial microorganisms that are available in the
farm
2. There is improved biological, chemical and physical properties of the soil due to addition of
residue-based fertilizer
3. Replacement of chemical fertilizers for cultivation of organic products and maintaining soil fertility
and organic matter content
4. Source of income for farmers providing the crop residues and employment for farmers that work
in the composting facility

5.2.2. Mushroom Cultivation

Crop residue of few major crops, like rice and wheat, are used in mushroom production in tropical areas.
The residues, despite their high moisture content, contain 2-3 times as much protein as common
vegetables and amino acids necessary for mushroom cultivation. Wheat and rice straws are used as
substrates for cultivation of button mushrooms and straw mushrooms. The straws are mixed with horse
manure and hay which are maintained under controlled temperature and moisture conditions for growth
of mushrooms. For maximum substrate conversion efficiency, the rice and wheat straws are mixed in equal
proportions.

5.2.3. Paper and Pulp Manufacturing

Introduction: Residues that are rich in fibers, like that of rice, wheat, sugarcane and cotton, are
predominantly being used for manufacturing of pulp, that can be further utilized to create useful items
such as paper, cups, plates, straws etc. Depending on the morphological, anatomical and chemical
structure different crops are used for generation of different paper products.
Process implementation and technologies used:
1. Preparation of the residue:
Cotton stalks: The stalk bark is removed manually and then cut into small pieces and washed before
pulping
Rice and wheat straws: The straws are first cut into smaller sizes of 6-8 cm and passed through a
cyclone separator to draw out loose pieces and dust.
Bagasse: bagasse that comes from sugar mills is in a clean state and requires minimal cleaning for pulp
production.

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2. Pulp preparation: The simplest form of pulping is the mechanical process wherein the lignin in the
fibers is broken down by wet grinding the residue. This method retains ~95% of the original wood and
is the cheapest method of implementation.
A thermomechanical process uses heat and steam to soften the residue before grinding. A chemical
pulping process is used for removal of lignin, which results in the highest purity and tolerance to
tearing.
3. Washing and Bleaching: The pulp is washed to remove any unwanted materials and dirt. In most cases
the pulp is then bleached to brighten the color of the paper. Bleaching with chlorine and hypochlorite
takes place at normal pressure and at temperatures varying from 20 to 40 ºC.
4. Fiber preparation before papermaking: The bleached pulp is then treated before sending to the paper
machines. The pulp fibers are squeezed using beaters or refiners to increase the number of fiber bonds
and strengthen the paper strength.
5. Papermaking: Different types of additives are added to the pulp to improve opacity, smoothness, in
penetration etc. depending on the end use. The pulp is then ten sent to the paper machine which
consists of three stages: sheet formation, pressing and drying. A suitable paper coating is applied if
desired to modify the paper’s properties.

Success story:
Kriya Labs is a Delhi based company have developed a processing technology that utilizes rice straw from
the neighboring states to produce pulp, which can then be used to make biodegradable products. It is
found that rice straw being high in silica is not suitable for animal fodder, when compared to wheat straw.
Hence, most farmers prefer to burn the rice stubble in the fields due to lack of alternate usage. The
Company has designed a specialized process of utilizing the rice straws for pulp and paper production and
incentivize farmers to not burn straw and generate revenue.
The process is used to segregate the silica and lignin of the rice straw from the usable cellulose (pulp) using
natural biodegradable chemicals. The pulp is then dried and molded to form different products such as
paper, plates, cups and straws. The facility has a capacity of processing 1-2 Tons of straw per day. The
machines can produce 500 kg of pulp from 1 Tons of straw which is then sold for INR 40-45 per kg to
manufacturers. The farmers are paid INR 2/kg of straw.
The process is now integrated with small scale machines in the area for multiple decentralized cluster
production. The cost of each machine is USD 42,000-50,000 that can process up to 2 Tons of straw per day.

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Figure 67: SWOT Analysis of Using Crop Residues in Manufacturing of Useful Products
• Provide additional income to farmers for • Not economical for individual farmer to
sale of residues setup (usually done at Pachayat or Local
• Can be implemented on small scale in Body level)
decentralized clusters • Training of locals and capacity building
• Economic implementation by is necessary for operating these
associations systems
• Environmental-compliant products will
attract low regulations
• Good quality of finished products at
lower prices S W
O T
• Subsidies and grants provided by
• Seasonality and variability in supply of
governments for setup of small-scale
raw material and their prices could lead
facilities
to production disruption
• Lower interest rates provided for setup
• Technological advances in alternate
of small-scale renewable energy based
designs and products
projects
• Growing demand for organic products
• Potential for export

5.3 Use of Machinery for Crop Residue Management

Introduction: Different machinery used for tackling the issue of crop residue burning and utilizing the straw
and stubble in-situ have been developed and deployed in the SAARC Member States. These machines
include the Super SMS, Happy Seeder, Paddy Straw Chopper and Balers and Reapers for effectively utilizing
crop residues. Some of these machinery aid in utilizing the residue in-situ, while some assist in efficient
handling and transportation of the residue for end use.
Technologies/ machinery:
1. Super Straw Management System (Super SMS): The Super SMS is a retro-fitted device that can be
attached to the rear of a combine harvester that cuts the remaining straw in the fields into smaller
pieces and scatters it around the rear of the tractor. The process allows direct sowing of wheat seeds
after the rice is harvested. The machine has proven to be a good deterrent to farmers for burning of
residue, however the cost of the machine is a major barrier in mass deployment and usage. The cost
of a single Super SMS is USD 1,700- 2,000 which is in addition to the purchase of a Combine Harvester
that costs around USD 21,000-30,000. The Super SMS machines are not yet available for rental and is
being used by very small percentage of farmers with large land holdings only.
2. Happy Seeder: The Happy Seeder is a tractor mounted machine that cuts and lifts the rice straws, sows
the wheat seeds and distributes the rice straw on top of the soil evenly. Thus, the machine takes care
of harvesting, cleaning and sowing of next crop in the same cycle without tilling the field. Each year
Happy Seeders are being distributed by the governments in bigger SAARC nations (India and Pakistan)
in areas most prone to residue burning and have seen some success. The machines are being supplied
to farmer associations as well as individual farmers at subsidized rates to ensure wide spread usage.
However, the number of Happy Seeders in the market are proving to be insufficient to cover all the
areas. Most farmers with small land holdings are unable to afford the daily rentals of these machines
and continue to burn the residue in-situ.

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 With increasing impetus of utilizing crop residues in-situ by governments of SAARC nations, the
popularity and usage of the Super SMS and Happy Seeder are increasing each year. In case of mass
deployment there would be a considerable reduction in the surplus crop residue for alternative
purposes. With a reduction in the residue availability the operational viability of biomass gasifier plants
would decrease, while on the other the farmers may increase the cost of their residues, further
reducing the commercial viability of such plants.
3. Paddy Straw Chopper: The machine is used for chopping of all types of straws like wheat, rice,
sunflower, maize etc. In a single operation the machine chops the left behind straw and spreads in on
the field. A rotovator must be used after the application of a chopper to incorporate this straw into
the soil, where it can act as a natural compost. Although the cost of the machine is low (USD 1,400-
3,000) it is not used by most farmers who prefer to utilize manual labor for the purpose of just
chopping.
4. Baler: The baler is used to compress the raked residues of wheat, rice, sugarcane etc. into compact
bales that are easier to store and transport. The use of this machine is generally done by residue
aggregators and are purchased to service different clusters before transporting to the storage facility
or power plant premises. The baler can make bales of different sizes and shapes to suit the end need
and provides an attractive business for farmers/ farmer associations to sell to the power plants.
However, the equipment is not economical for purchase of individual farmers (USD 3,500-4,500).
Modes of implementation: Due to the high cost of the machinery only farmers with larger land holdings
can purchase them on an individual usage basis. In most cases these machines are purchased by farmer
associations at subsidized rates from the government and then rented out to the farmers in that area
during peak harvest seasons. However, due to the scarcity of equipment the daily rental prices are still
high for farmers with small land holdings.

Figure 68: SWOT Analysis of Using Farm-Based Machines and Equipment for Crop Residue Management

• Efficient usage of residues in-situ • Not economical for individual purchase

• In-situ usage of residue improve soil by farmers
quality and restore nutrients • Some equipment can only be retro-fitted
• Aid in storage and handling of residues on existing machinery
• Reduce air pollution • Some equipment only takes care of
• Reduce the harvesting time of crops single/few stages of crop harvest and
sowing
• Non-availability of spare parts
S W
• Increase in production of these O T
equipment
• Increase in subsidies by governments of • With increase in usage of these
some countries techniques the residue production will
• Rising awareness of the alternate uses reduce, hampering the commercial
of crop residue for earning additional viability of energy generation plants
income • With new technology the older
machines may become obsolete or
prove costlier to operate

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6 Study of Environmental Impact of Crop
Residue Burning
6.1 Study of Environmental Effects of Crop Residue Burning
Burning of agriculture residue releases many pollutants, which largely harm the climate, including the greenhouse
gases (GHGs), nitrous oxide (N2O), carbon dioxide (CO2), and methane (CH4), particulate matter (PM2.5) and fine
particles known as black carbon. Their effects on the climate are variable and complex. The transboundary transport
of air pollution in the South Asian region has become an issue of increasing importance over the past several decades.
There are two major ways in which biomass burning contributes to climate change:
1. The first is a long-term global warming effect linked primarily to CO 2 emissions and release of GHGs from
deforestation and other forms of land conversion during which biomass is burnt and not fully replaced; and

2. The other is a short-term warming effect, which is attributed to the emission of black carbon from the burning
of biomass near snow and ice-covered regions.

Particulate matter, PM2.5, affect the respiratory and cardiovascular systems of living beings along with its other
environmental effects. The black carbon aerosols have a large impact on the heating, regional circulation and rainfall
patterns over the emission regions. The following figures show the PM2.5 and CO2 emissions in the SAARC region.
The particulate matter is measured in micrograms per cubic meter (µg/m 3). Hence, the PM emissions of India and
Pakistan are seen to be lower than Bangladesh and Nepal due to their large country sizes.

Figure 69: Particulate Matter (PM 2.5) Air Pollution in SAARC states

Sri Lanka 26
Maldives 27
Bhutan 56
Afghanistan 63
Pakistan 76
India 76
Nepal 78
Bangladesh 101

Figure 70: CO2 Emissions (Mt) in SAARC Member States

0% 0%
1%

1%
1%
5%
83%
9%

India Pakistan Bangladesh Sri Lanka Nepal Afghanistan Maldives Bhutan

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The United States Environmental Protection Agency (EPA) has developed the Air Quality Index, or AQI,
(formerly known as the Pollutant Standards Index) for reporting the levels of ozone and other common air
pollutants. The index makes it easier for the public to understand the health significance of air pollution
levels. Air quality is measured by a nationwide monitoring system that records concentrations of ozone
and several other air pollutants at more than a thousand locations across the country.
The AQI scale is divided into distinct categories, each corresponding to a different level of health concern.
To make it easier for the public to quickly understand the air quality in their communities, EPA has assigned
a specific color to each AQI category as shown in the figure below. This color scheme can help to quickly
determine whether air pollutants are reaching unhealthy levels in the area. For example, orange means
that conditions are “unhealthy for sensitive groups,” the color red means that conditions are “unhealthy”
for everyone, and so on.

Figure 71: Air Quality Index Categories

AQI level AQI levels of health Meaning
concern

0 to 50 Good Air quality is considered satisfactory, and air pollution poses little or
no risk.

51 to 100 Moderate Air quality is acceptable; however, for some pollutants there may be
a moderate health concern for a very small number of people who
are unusually sensitive to air pollution.

101 to 150 Unhealthy for sensitive Members of sensitive groups may experience health effects. The
groups general public is not likely to be affected.

151 to 200 Unhealthy Everyone may begin to experience health effects; members of
sensitive groups may experience more serious health effects.

201 to 300 Very unhealthy Health alert: everyone may experience more serious health effects.

301 to 500 Hazardous Health warnings of emergency conditions. The entire population is
more likely to be affected.
Source: United States Environmental Protection Agency

Case study 1- the link between crop burning and respiratory illnesses by IFPRI
Introduction: The International Food Policy and Research Institute in 2019 aimed to find the correlation
between crop residue burning and its effects on human health, along with its estimated health and
economic costs. As a part of the study the Institute analyzed the health data from more than 250,000
people belonging to different age groups in India. NASA satellite data was then used to monitor the fire
activity in the country to estimate the health impact of living in areas with intense crop burning. It was
found that air pollution arising from crop residue burning in Northern India, mainly Punjab, Haryana and
Delhi, is causing severe health hazards to the residents. The findings of the study are enumerated below:
Smog from the crop residue burning:
Rice straw burning is mostly followed in the months of October to December, which is also the onset of
winter in the Indian subcontinent. The smoke from the residue burning mixes with the dense fog in
Northern India to produce smog, which creates a thick blanket of haze in the neighboring states. The NASA
satellite image showing the fires and smog is shown alongside. The smoke can be seen in Punjab, Haryana,
Delhi and some parts of Pakistan and Nepal. The study found that the levels of airborne particulate matter
in Delhi spiked to 20 times the safe threshold proposed by the World Health Organization (WHO). Smoke

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from burning of crop residue in northwest India has been estimated to contribute up to 78 per cent of the
enhancement in small particulate matter in Delhi on certain days.

Figure 72: NASA Satellite Image Showing Fires Caused by Crop Residue Burning

Source: NASA Satellite Image (IFPRI Report)

Health effects of crop residue burning:

The study found that the frequency of hospital visits for Acute Respiratory Infections (ARI) symptoms
concurred the number of fires observed by the satellite image, i.e. as crop residue burning increased, the
respiratory heath of residents worsened. It was found that in districts where crop residue burning was
intense, residents, especially children under 5, were three times more likely to visit the hospital for
symptoms of ARI. Similar results were found in the neighboring states of the burning sites.
Economic effects:
The study found that crop residue burning is the leading risk factor of ARI in India, and economic losses
associated with its health effects are estimated at $35 billion per year. When combined with firecracker
burning during the same months (October/November), the economic losses are nearly $152 billion over
five years or 1.7 per cent of India’s GDP.
Case study 2- Socio Economic impacts of smog in India and Pakistan
Introduction: The Sustainable Development Policy Institute (SDPI) has conducted a study to analyze the
effects of smog in India and Pakistan using satellite images for the years 2017 and 2018. In Pakistan most
of the rice cultivation takes places in Punjab and same goes for Indian Punjab due to similar climatic and
geographic conditions. In both countries the rice straw is burnt after the harvesting season in October and
November, which affects the air quality in the region. Seasonal meteorological conditions cause the smoke
arising from crop residue burning to cover the whole Indo-Gangetic Plain and the residual smoke stays in
the air for as long as three weeks. The figures below show the large amounts of smog (smoke mixed with
fog in the winter season) engulfing India, Pakistan and some areas of Nepal. Figure 75 shows how the smog
affects absorption and reflection of light by atmosphere. The darker color of the aerosols depicts larger
concentrations of particulate matter in the air.

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Figure 73: Aerosol Optical Depth Caused by Same Smog Figure 74: NASA Satellite Image Showing Smog (2017)

Source: NASA (2017)

Particulate Matter emissions: The table below shows the air quality in few areas in India and Pakistan a
day after the satellite images were taken (8 November, 2017). The numbers show that the particulate
matter is exceeding safe limits by more than 10 times. The safer limits of the permissible range of PM 2.5
and PM 10 is 0-60 µg/m3 and 0-100 µg/m3 respectively. Similar conditions were observed in October
2018 in both countries. With an increase in paddy production in both countries the quantum of residue
burnt each year is also estimated to increase.
Table 71: Particulate Matter in India and Pakistan (November 2017)

Area PM 2.5 PM 10
Pusa 521 537
Lodhi road 581 601
Mathura road 626 555
Ayanagar 531 589
Delhi University 609 669
Noida 575 600
Airport 541 585
Pitampura 570 624
Gurugram 536 583
Lahore 1,077 NA

Socio economic impacts of smog:

Smog is known to cause acute respiratory illnesses, cardiac issues, high blood pressure and eye irritations,
with children being most vulnerable to its effects. Smog also causes asthma and tightening of throat, with
some studies also suggesting cancer in women in the age group of 30-40 years. As per the study, almost
1000 new patients were treated for respiratory issues in nine public hospitals everyday due to smog in
Lahore alone. Apart from the study, WHO estimates that as many as 60,000 people died in Pakistan in the
year 2015 due to fine particulate matter. According to Lancet Commission air pollution causes 300,000
pre-mature deaths annually in Pakistan and 2.5 Million deaths in India.
The biggest effect of smog is on the visibility on roads and highways next to the farms. On 5 November,
2017 a total of 10 people were killed and 25 injured due to visibility issues caused by smog in Lahore. On

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9 November 8 more people were killed in Punjab in another road accident caused by low visibility. At the
same time, the Air Quality Index in Delhi crossed values of 450, forcing the capital to declare a “public
health emergency”. The smog that had collected over days on the national highways caused a blanket of
smoke that resulted in serial accidents. A total of 24 vehicles were piled up on the highway causing damage
to vehicles and injuring several passengers.
Conclusion:
The above case studies focus on the effects of air pollution caused by crop residue burning in India and
Pakistan. However, due to similar geographic conditions, harvesting patterns and seasonal meteorological
conditions across the Indo-Gangetic Plain, similar effects can be assumed, with slight variation in
seriousness, in all the other SAARC Member States following similar cropping patterns. The environmental
effects of air pollution caused by crop residue burning in SAARC Member States is depicted in the sections
below:

6.1.1 Afghanistan
Biomass combustion has several negative effects on the climate of Afghanistan.
Most often in the cold winter months, for several weeks in a row, the city gets blanketed by a toxic haze
of particulate matter, small and often invisible particles of dust and soot.
Under normal circumstances, warm air close to the ground gradually rises, carrying pollutants with it and
dispersing them. However, when cold air remains close to the ground, due to thermal inversion the
pollution accumulates at the ground level.

6.1.2 Bangladesh
Severe environmental pollution caused due to biomass burning is one of the main causes of climatic
changes, which is threatening human health and the economic growth of Bangladesh.

Due to the impact of air pollution, visibility reduces because of formation of smog, especially during the
winter months.
There is a rapid increase in the temperature and extreme climatic variations.

6.1.3 Bhutan
Bhutan is known as one of the countries with the cleanest air, but recent reports suggest that the country’s
air may not be as clean as it is thought to be. Due to increase in air pollution due to crop residue burning
there have been several environmental issues in Bhutan.
An increase in black carbon concentration has been observed in recent times. Black carbon is fine particles
in smoke emitted by burning of crop residues. It is not only black carbon emitted from within Bhutan,
but also the sooty black material emitted from neighboring countries, which enters the country’s
atmosphere.
Black carbon absorbs the sunlight and reduces agricultural productivity. Its presence in the air also affects
visibility, harms ecosystems and exacerbates global warming. It is one of the most significant
contributors to climate change.

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6.1.4 India
The main adverse effects of crop residue burning in India include the emission of greenhouse gases (GHGs)
that contribute to the global warming, increased levels of particulate matter (PM) and smog that cause
health hazards, loss of biodiversity of agricultural lands, and the deterioration of soil fertility.
Crop residue burning significantly increases the quantity of air pollutants such as CO2, CO, NH3, NOx, SOx,
Non-methane hydrocarbon (NMHC), volatile organic compounds (VOCs), and semi-volatile organic
compounds (SVOCs). This basically accounts for the loss of organic carbon, nitrogen, and other
nutrients, which would otherwise have retained in soil.
The PM emitted from burning of crop residues in Delhi is 17 times that from all other sources such as
vehicle emissions, garbage burning and industries. Crop burning increases the PM in the atmosphere
and contributes significantly to climate change. The air pollution in Delhi has reached “Hazardous”
(500+) levels in the months from October-December due to smog from stubble burning. Each year this
smog causes fatal accidents in States of Punjab, Haryana, Uttar Pradesh and Delhi.

6.1.5 Maldives
In general, the air quality of Maldives is good. However, trans-boundary air pollution has become rampant.
Most of the pollutants are primarily composed of black carbon and soot that come from the burning of
biomass and fossil fuels. There is a strong heating effect of these pollutants.
This affects not only the air temperature, but also destroys Millions of tons of coral reefs annually and
causes human health concerns. If global warming continues at its current pace, it is expected that most
of Maldives will be underwater before 2050.

6.1.6 Nepal
The lack of a stringent pollution regulation and management systems and large population growth have
left a deep imprint on the environment in Nepal. Air quality in both urban and rural areas is deteriorating
in the country greatly due to biomass burning, with Kathmandu in particular being at very high levels of
risk. The bowl like topography of the Kathmandu valley restricts air movement, thereby accumulating high
levels of dangerous pollutants. Black carbon is the main cause of air pollution in Nepal.
Black carbon and particulate matter fall on snow and darkens the surface, in the process reducing
reflectivity and causing the surface to absorb more heat. Most of the black carbon falling on the
Himalayas and the South of the Tibetan plateau comes from the plains of India, while that of the
Eastern and Northern sections of the plateau comes mainly from China.
It is also responsible for a large part, around 30% of glacial retreat in the region. It absorbs lots of solar
energy. It settles on glaciers and snow, and its dark color causes the snow and ice to absorb more of
the sun’s radiation. It also warms up the air, changing rainfall patterns.

6.1.7 Pakistan
In Pakistan, the melting of glaciers can be attributed mainly to the rising temperatures. One of the main
causes for this temperature rise is crop residue burning, which is undertaken on a large scale.
The wind-blown pollutants settle onto glaciers, darkening them and reducing their ability to reflect away
sunlight, which leads to a faster rate of melting
There is a change in rainfall patterns

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Another phenomenon is winter fog, which is caused by air pollutants like black carbon

6.1.8 Sri Lanka

In Sri Lanka mainly due to residue burning, there has been a projected rise of the mean annual temperature
by about 3.7°C on an average from 1990 to 2010.
There are extreme climatic variations
Rise in the sea level due to greenhouse gases is leading to rampant floods and cyclones
Coral reefs are getting severely damaged
There is an alarming rate of biodiversity loss and degradation of the ecosystem

6.2 Study of Health Effects of Crop Residue Burning in each Member

State
Air pollution exposure is the second most important risk factor for ill health among South Asian countries.
Crop residue combustion is one of the major causes of air pollution especially in the SAARC countries. Large
amounts of black carbon and particulate matter are emitted into the atmosphere, which leads to very
serious health disorders. Countries like Bangladesh, India, and Pakistan, which have larger populations,
have more people exposed to toxic emissions, and therefore, many people are being affected by chronic
diseases.

6.2.1 Afghanistan
Air quality in Afghanistan has been deteriorating rapidly over the years. One of the major causes happens
to be pollution due to crop residue burning. The Government is still in the process of adopting proper air
quality management standards. The most common health effects experienced by the citizens are:
Difficulties in breathing
Skin problems
Irritations to their eyes, nose, and throat

6.2.2 Bangladesh
In Bangladesh, air pollution due to agriculture residue burning is posing a severe risk to public
health. The presence of fine particles in the air is linked to sickness and hospitalization as they
cause a wide range of health effects, including
Respiratory symptoms (coughing, wheezing, reduced lung function)
Chronic obstructive pulmonary disease, lung cancer, heart attacks, arteriosclerosis, strokes, high
blood pressure, and asthma
PM10 and PM2.5 are also linked to premature death from cardiovascular and respiratory diseases
and lung cancer

6.2.3 Bhutan
Air pollution due to crop residue burning is becoming a serious concern in Bhutan. Fine particles which are
emitted from residue burning penetrates deep into the respiratory tract subsequently increase mortality

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from respiratory infections, lung cancer and cardiovascular disease. Short-term symptoms resulting from
exposure to air pollution include:
Itchy eyes, nose and throat,
Wheezing, coughing,
Shortness of breath, chest pain, headaches, nausea,
Upper respiratory infections (bronchitis and pneumonia).
It also exacerbates asthma and emphysema.
Long-term effects include lung cancer, cardiovascular disease, chronic respiratory illness, and developing
allergies.

6.2.4 India
In India, exposure to air pollution, both household and ambient, is associated with a broad range of acute
and chronic health effects from minor physiologic disturbances, to death from respiratory and
cardiovascular diseases. Short-term exposure to ambient particulate and gaseous pollutants has been
linked to:
Higher rates of hospital admissions for cardiovascular and respiratory illnesses
Exacerbation of pre-existing respiratory illnesses
Death through ischemic heart disease or stroke
Longer-term exposure to PM2.5 has been associated with ALRI in children, developmental disorders,
cardiovascular mortality, decreased lung function, COPD, diabetes, and lung cancers

6.2.5 Nepal
Nepal, especially Kathmandu, in the current situation, is observing rapid urbanization and various
infrastructure development projects. As a result, these sorts of human activities have been responsible for
increasing air pollution in an enormous rate inside Kathmandu Valley.
Chronic exposure of deteriorated air increases the chance of Non-communicable Disease (NCD) like lung
disease, heart disease, and cancers.
Short-term exposures also invite respiratory diseases and allergy

6.2.6 Pakistan
In Pakistan, the most important factor that affects human health is air pollution due to residue burning.
Some of the adverse health effects include:
Acute Respiratory Infection (ARI) and other lung diseases are related directly to pollution in the air
Other respiratory diseases such as asthma and bronchitis
Skin allergies
Eye irritation

6.2.7 Maldives
The major health problems include respiratory infections and breathing issues

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6.2.8 Sri Lanka
Air pollution due to agriculture residue burning is a major public health concern in a developing country
like Sri Lanka. Major health problems include:
Respiratory diseases like asthma, bronchitis etc.
Skin allergies
Throat infections

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7 Barriers and Challenges
7.1 Classification of Barriers and Challenges
In general, the deployment of biomass generated energy programs in the SAARC countries has been slow.
Although there is an established high volume of crop residue available in these countries, the adoption
and implementation of biomass derived energy projects face several issues. This section enlists the specific
barriers and challenges in the development and deployment of agricultural waste-based energy
generation projects and the replication of identified successful models in the SAARC countries.
The key challenges have been divided into four broad categories:
1. Institutional and Organizational
2. Technical and Implementation
3. Financial
4. Market factors

Figure 75: Barriers and Challenges

7.1.1 Institutional and Organizational Challenges

Institutional support and policies:
A review of each country’s laws and policies regarding crop residue management is shown below to assess
their institutional arrangements for application of suitable agricultural biomass management techniques.

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 Table 72: Regulatory Review of SAARC Member States

National schemes &

Agricultural
Country policies for crop
Regulatory Body
residue management
Afghanistan √ x
Bangladesh √ x
Bhutan √ x
India √ √
Maldives √ x
Nepal √ x
Pakistan √ x
Sri Lanka √ x

While all the SAARC countries have an apex body for formulation and administration of rules, regulations
and laws pertaining to agriculture and its practices in the country, only India has formulated a National
Policy for Management of Crop Residue (NPMCR) in the year 2014. The main objectives of the policy are
to:
1. Promote the technologies for optimum utilization and in-situ management of crop residue and
diversify uses of crop residue in industrial applications like power generation, bio-fuel production,
packaging material etc.

2. Develop and promote appropriate crop machinery in farming practices. Provide discounts and
incentives for purchase of mechanized sowing machinery such as the happy seeder, turbo seeder,
shredder and baling machines.

3. Use satellite-based remote sensing technologies to monitor crop residue management with the
National Remote Sensing Agency (NRSA) and Central Pollution Control Board (CPCB).

4. Provide financial support through multidisciplinary approach and fund mobilization in various
ministries for innovative ideas and project proposals to accomplish above.

In 2017, the Government of India has also mandated its largest thermal utility, NTPC, to blend 10% crop
residue with coal in a bid to reduce agricultural residue burning. Under the program, NTPC will buy crop
residue from farmers and use it to make biomass pellets to co-fire with coal at all its plants across India.
The Government of India also has set an ambitious target of renewable energy capacity addition to 175
GW by the year 2022, of which 10 GW is to be contributed by biomass power. Since its announcement in
December 2016, the capacity addition under biomass derived power has increased from 7.8 GW to 9.2 GW
in July 2019. The Government has provided the required thrust and support in the form of increased
budget to The Ministry of New and Renewable Energy (MNRE) (nodal agency for matters relating to new
and renewable energy) and cuts on import duties for biogas plant components.
While India is in the forefront of such policy and regulatory interventions the other SAARC countries lack
any such institutional support for crop residue management by their apex bodies.
Furthermore, there is a lack of stringent monitoring mechanisms in all the SAARC countries, including India,
to monitor the implementation of any intervention undertaken by State governments/ provinces for crop

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residue burning. A monitoring cell at State and National level is absent for examining the implementation
of measures to curb the practice.

7.1.2 Technical Challenges

Lack of technology: The technologies for agricultural waste-based power generation have not been fully
standardized, packaged, documented and validated for commercial usage in the SAARC countries. There
are only a handful of projects implemented in India and Pakistan on small scale, while the other countries
lack the technical capacity to implement them.
Scale up of technology: The biomass power generation technology, although mature and successfully
implemented on smaller scale, faces significant barriers in deployment on a large scale, owing massively
to the difficulty in sourcing a reliable and affordable supply of year-round biomass.
Technical know-how and awareness: The information on viable technological configurations and projects
is limited and as such the knowledge dissemination remains unsuccessful to reach stakeholders, like
farmers, co-operations, investors and project developers. In most villages, the farmers are unaware of any
technological usage of their agricultural waste and the residue remains unutilized.
Pre-treatment and storage of fuel: In most cases the residue needs to be pretreated before use in gasifiers
or ethanol plants to achieve the desired efficiency as per the plant’s design parameters. These
pretreatment procedures include baling, shredding, preparing smaller particles, pelletizing or briquetting.
The smaller and compact residue sizes also make it possible to reduce the transportation costs. Since most
of the residue is procured from rural areas, there is a lack of such equipment to prepare the desired
product. Additionally, the large residue sizes require extra storage space at the power plant’s premises,
thus, making them undesirable for purchase.
Lack of suitable mechanized harvesting techniques: Many farmers in the sub-continent have adopted
mechanized harvesting equipment in the past five years. The combine harvester, which is the most
commonly used harvesting technology, leaves behind unevenly spread crop residue and standing short
stubble in the fields. Since farmers focus more on quickly harvesting the current crop and not budgeting
the time required for sowing the next crop, they resort to stubble burning for a quick solution.
Technologies like the Super SMS takes care of this problem of incomplete residue cutting, but it comes at
an additional cost of USD 1,700-2000 per piece. Farmers do not perceive this as a cost-effective solution
and prefer the burning of stubble instead.
Ash and char utilization: Gasification of crop residue to produce electricity produces some by-products
like tar, ash and char. The tar does not value add to any processes or people and must be cleaned off to
maintain smooth operations of the equipment. The ash and char on the other hand find applications in
brick & cement making industries and as a source of fuel and soil enhancer respectively. However, lack of
suitable buyers for both prove as a deterrent for developers and operators. The ash and char are usually
dumped in nearby wastelands which add to the environmental hazards.

7.1.3 Financial Challenges

Limited access to funds: Biomass-based energy projects are generally implemented on smaller scales in
the SAARC nations by local investors. The farmers, co-operatives and developers face a major hurdle in
securing the necessary funds due to lack of credit scores and their inability to repay them due to
fluctuations in their agricultural income. Additionally, there is a lack of established lenders for projects in
smaller villages in the SAARC nations. Furthermore, private sector participation is minimal for agricultural
lending and developers are forced to rely on limited government funds and grants.

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High installation cost: The installation of a mini-power generation at a village level is about USD 21,000-
30,000, of which, some may be provided through government subsidies. The remaining cost of installation
must be borne by the farmers, or in some cases farmer’s associations and co-operatives. Farmer’s in SAARC
nations typically have small land holdings and find it difficult to secure the required capital investment.
The developers face difficulties in raising debt from banks due to perceived high risks by Financial
Institutions because of the limited number of visibly successful demonstrations.
Incentives and subsidies: To deter stubble burning, it is imperative to provide farmers enough financial
support and incentives for implementing in-situ and ex-situ residue management techniques. The in-situ
management techniques include use of combine harvesters, Super SMS and Happy Seeders. The
Government of India offers 50%-80% subsidy on purchase of mechanized harvesting machines. The funds
are mobilized through different ministries like MOEF&CC, MoRD and banks like NABARD to support State
Governments through various on-going schemes. The states can also provide financial assistance to
farmers under the Rashtriya Krishi Vikas Yojana to fund such mechanized harvesters. However, despite the
many incentives and subsidies provided by the government to access equipment, the farmers still must
pay USD 7,000-15,000 per machine as capital investment. Most farmers do not have access to such finance.
Government grants: To implement ex-situ treatment plan like setup of decentralized power generation
plant, palletization and briquetting plant or biogas plants require high capital investment. Some
governments provide financial assistance via Viability Gap Funding, in which the government invests up to
25% of the capital cost through various state grants. Such grants are disbursed on priority, feasibility and
availability and may not be accessible to all developers.

7.1.4 Market Factors

Fuel supply risk: There is a very high fuel supply risk associated with availability of agricultural residue all
year round to ensure the technical and financial viability of projects. The physical availability of crop
residue is a major risk as it is dependent on various factors like rainfall, agricultural practices, harvesting
effectiveness, irrigation, and productivity.
Secondly, this fuel must be contracted by the suppliers to ensure continuity and assurance of residue. The
inability of developers to lock-up enough biomass from various sources serves as a hindrance to project
implementation and sustainability. The fuel-supply agreements and supply chain are major operational
issues faced by most developers.
Transportation cost: Farmers regard transportation cost and reliability as the main barriers to supply crop
residue to the power plants. In many cases the responsibility of supplying the fuel to the power plants lies
with the farmers or aggregators. The key logistical issue associated with residue mobilization is the
unavailable, unreliable, costly and ageing transportation fleet. Bad conditions of rural roads add to the
logistical issues. In most cases the price realized by sale of residue does not cover the transportation cost
of fuel supply and is therefore not preferred by small farmers.
Supply chain and lack of aggregators: Farmers also consider the lack of aggregating facilities/ terminals
and well-established supply chain as a common barrier in supply of residue for processing. In the absence
of aggregating bodies located at the periphery of villages or few kms, the farmers are forced to supply the
residue to the plants themselves. Farmers generally do not have the necessary transportation means
required to mobilize Tons of residue individually.
Low market price for residue: Farmers complain of low-price realization of their residue during low-
demand and good-harvest seasons. Farmers are of the opinion that the Government should fix a fair
residue price based on the season and type, along with terminals setup at village or taluka level collection
of residues.
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Unreliability of middleman and delay in payments: Another key issue is the involvement of middleman
or aggregator in the residue procurement process from farmers. The middlemen are also suspected of
forming cartels in many villages and offer lower prices for the residue, often after delay of many months.
In such cases, the farmers are willing to supply residue directly to energy producers without the
involvement of these middlemen, but lack the suitable transportation means to do so.
Lack of seasonal labor: Farmers also face challenges in obtaining cheap labor during peak harvesting
seasons. During such time the window for efficient harvesting is very less (2-3) and the hourly hire rates of
local labor is very high due to increase in demand. The lack of such labor drives them to burn the residue
instead of paying high prices for labor or rentals towards mechanized harvesting equipment

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8 Conclusion and Recommendations
It is estimated that over 110 million Tons of surplus agricultural residue is burnt every year in the SAARC
nations, of which, 75-80% is contributed by India alone. Farmers prefer residue burning on account of a
very short window of 2-3 weeks between subsequent cropping seasons and requires no cost. This leaves
them with inadequate time to prepare the next crop or use time-consuming methods for removal of the
farm residue. Burning of crop residue leads to release of soot and smoke causing heath issues, low visibility
and accidents, emission of greenhouse gases (GHGs), loss of plant and soil nutrients. Globally, agriculture,
forestry and land use sector contribute to 24% of the GHG emissions, of which 17-18% comes from South
Asian countries. Crop residue burning is a major contributor of this agricultural GHG emissions. In an effort
to meet the target of the Paris Agreement, 2015 which the SAARC Member States are a part of, alternate
uses of crop residue must be identified. The crop residue can be utilized to generate bioenergy in various
forms to substantially reduce GHG emissions, displace fossil fuels and provide a source of renewable
energy in the rural parts of these countries which still lack access to electricity.
Crop residue finds application in production of decentralized electricity through use of different
gasification technologies: bio-fuels that can be used for transportation, and heating and cooking
applications on domestic, commercial and industrial scale. The end use of the crop residue is determined
based on the type of residue, availability, volume, energy content and use of its by-products.
It is observed that most crop residue burning in the SAARC Member States is practiced for rice and wheat
stubbles. After the harvesting of these crops, the residue left behind in the fields, like straws, stalks and
leaves are burnt each year to quickly prepare the field for sowing of the next crop. The burning of these
two crops’ residues are the major contributors for excessive particulate matter emissions and air pollution
along with smog in the winter. Hence only these field-based residues have been considered for estimating
the energy generation potential in the SAARC Member States.
The Gross residue, Surplus residue and power generation potential using only rice and wheat straws and
stalks for each Member State is shown below. It is recommended that in smaller countries with lower
power generation potential, the biomass plants be set up in a central location; whereas in larger countries
a regional level implementation of energy projects is recommended for easy aggregation of residue.
Table 73: Total Power Production Potential of SAARC Member States Using Only Farm-Based Residues
Total wheat and Gross Residue Surplus Residue Total Power
Member
Residue used rice production Production Production Generation Potential
State
(Million Tons) (Million Tons) (Million Tons) (MW)
Afghanistan Wheat straws 4.2 6.4 1.4 58
Rice and
Bangladesh 38.1 57.2 15.6 1,100
Wheat straws
Rice and
India 212.6 319 80.3 5,395
Wheat straws
Rice and
Nepal 7.7 11.6 3 140
Wheat straws
Rice and
Pakistan 36.3 54.4 13 834
Wheat straws
Sri Lanka Rice straws 2.4 3.5 1 71
Total 301 452 114 7,598

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8.1 Country-wise Implementation Plan
The above table gives a country-wide potential for power generation using agricultural residues. However,
in most countries with rice-wheat pattern of cultivation the power plant size can be optimized to operate
on rice stalks and straws after the end of the Kharif season and on wheat stalks and straws at the end of
the Rabi season. This will help in reducing the power plant capacities by 30-40% (depending on residue
production potentials), with a resultant reduction in capital costs, land requirement for plant installation
and fuel storage areas. Thus, the current implementation plan focuses on residue derived from rice-wheat
production only, for they are most prone to crop residue burning each year.
Different models for implementation for each country can be developed based on the plant capacity and
end-use of electricity generated. For smaller plant sizes, the BOM (Build, Own and Maintain) or the BM
(Build and Maintain) model can be adopted, wherein a local entrepreneur in the region can invest the
required capital and the plant ownership can be transferred to them after the end of predetermined
period. This model may not be suitable for plants of higher capacities, where the capital cost cannot be
arranged by local players. In such cases it is recommended to go for a BOOM (Build, Own, Operate and
Maintain) model where the capital cost is invested completely by a private player or the government(s).
Assumptions made for preparation of commercial model and implementation plan:
The capital cost of project implementation may vary between 10-15% for different SAARC Member States,
as well as the interest rates on loans. The revenue is also largely affected by the cost of biomass in the
Member States, which also show a variation of 10-30% in different countries and regions. The commercial
model has been constructed keeping similar assumptions in mind.

8.1.1 Afghanistan
Wheat production in the country account for over 80% of the total crops cultivated annually. Taking into
consideration the high heating values (17-18 MJ/kg) of their residue, it is suggested to install wheat
residue-based gasifier plants in areas with high production and easy aggregation. ~70% of wheat is
cultivated in concentrated locations in the North and North-Western regions of Balkh, Kunduz, Takhar,
Faryab, Herat. The region-wise implementation plan is provided below. The power generation potential
has been derived for a residue collection efficiency of 50%.
Table 74: Implementation Plan for Afghanistan
Particular Details
Total Surplus Residue Potential for energy 1.4 Million MT
generation
Residue Collection Efficiency 50%
Total Power Generation Potential 58 MW
Region wise implementation
Location North East West South
Province name Balkh and Kunduz Ghazni Province Herat Province Helmand Province
Provinces
Plant capacity 32 MW 12 MW 7 MW 7 MW

Annual requirement Wheat straw: 388 Wheat straw: 141 Wheat straw: 85 Wheat straw: 92
Thousand Tons Thousand Tons Thousand Tons Thousand Tons
Capital investment 27 Million USD 141 Million USD 6 Million USD 6 Million USD

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8.1.2 Bangladesh
Of the total crop production of Bangladesh, rice and wheat contribute ~47% (38 Million MT) and are
most prone to in-situ burning after their harvest. Their collective surplus residue if utilized towards
energy generation can produce 1100 MW of power. However, given the complementary nature of their
production and harvesting, it is recommended to implement smaller size biomass gasifier plants that will
run alternatively on rice and wheat residues. This will also ensure reduced capital costs, land
requirement and storage space for the residue. Accordingly, the plant capacities have been optimized
and will operate on a residue collection efficiency of 75%. With an increase in the collection efficiency
additional plants may be installed in the future to meet the rise in supply.
Table 75: Implementation Plan for Bangladesh
Particular Details
Total Surplus Residue Potential for 15.6 Million MT
energy generation
Residue Collection Efficiency 75%
Total Power Generation Potential 1100 MW
Region wise implementation
Location North East West South
Division name Rangpur, Sylhet and Dhaka and Rajshahi and Barishal
Mymemshing Chittagong Khulna
Plant capacity 359 MW 269 MW 317 MW 68 MW
Annual Rice straw: 3,774 Rice straw: 2824 Rice straw: 3,334 Rice straw: 717
requirement Thousand Tons Thousand Tons Thousand Tons Thousand Tons

Wheat straw: 416 Wheat straw: 179 Wheat straw: 473 Wheat straw: 5
Thousand Tons Thousand Tons Thousand Tons Thousand Tons
Capital 304 Million USD 228 Million USD 269 Million USD 58 Million USD
investment

8.1.3 Bhutan
The country produces rice and maize in lower altitudes along with seasonal vegetables. As such the energy
potential of the country is very low due to non-availability of surplus crop residue. The country has been
excluded from any energy generation analysis.

8.1.4 India
In India, rice and wheat contribute ~30% of the total food crop production. It is recommended to divide
the total energy potential of the country in North, East, West and South zones based on the type of crop
cultivated and potential for surplus residue.

Considering only the field-based residues from rice and wheat that are responsible for crop residue burning
(like stalks and straws) the following implementation plan has been recommended. Their collective surplus
residue if utilized towards energy generation can produce 5,395 MW of power. However, given the
complementary nature of their production and harvesting, it is recommended to implement smaller size
biomass gasifier plants that will run alternatively on rice and wheat residues. This will also ensure reduced
capital costs, land requirement and storage space for the residue. Accordingly, the plant capacities have
been optimized and will operate on a residue collection efficiency of 75%. With an increase in the collection
efficiency additional plants may be installed in the future to meet the rise in supply.

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Table 76: Implementation Plan for India
Particular Details
Total Surplus Residue Potential 80.3 Million MT
for energy generation
Residue Collection Efficiency 75%
Total Power Generation Potential 5,395 MW
Region wise implementation
Location North East West South
State name Uttar Pradesh, West Bengal and Bihar Maharashtra and Tamil Nadu and
Haryana and Punjab Madhya Pradesh Karnataka
Plant capacity 1,207 MW 1,252 MW 664 MW 711 MW
Annual Rice straw: 9959 Rice straw: 13160 Rice straw: 4979 Rice straw: 7469
requirement Thousand Tons Thousand Tons Thousand Tons Thousand Tons

Wheat straw: 14805 Wheat straw: 1727 Wheat straw: 8143 Wheat straw: 113
Thousand Tons Thousand Tons Thousand Tons Thousand Tons
Capital 1,023 Million USD 1,060 Million USD 562 Million USD 602 Million USD
investment

8.1.5 Maldives
The country produces only coconut on its islands and 90% of the food crops are imported for sustenance.
Due to this the energy generation potential of the country is very low due to non-availability of surplus
crop residue. The country has been excluded from any energy generation analysis.

8.1.6 Nepal
The total energy potential in Nepal is considered using cereal crops- rice and wheat. The implementation
plan has been recommended keeping in the mind the areas with highest production and easy aggregation.
The production from the Mid-Western and Far-Western divisions have been clubbed into one area.
The collective surplus residue of rice and wheat straws and stalks if utilized towards energy generation can
produce 140 MW of power. However, given the complementary nature of their production and harvesting,
it is recommended to implement smaller size biomass gasifier plants that will run alternatively on rice and
wheat residues. This will also ensure reduced capital costs, land requirement and storage space for the
residue. Accordingly, the plant capacities have been optimized and will operate on a residue collection
efficiency of 50% given the difficulties in aggregation due to the hilly terrain of the country. With an
increase in the collection efficiency additional plants may be installed in the future to meet the rise in
supply.

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Table 77: Implementation Plan for Nepal
Particular Details
Total Surplus Residue Potential for 3 Million MT
energy generation
Residue Collection Efficiency 50%
Total Power Generation Potential 140 MW
Region wise implementation
Location Eastern Region Central Region Western Region Far Western Region
Division name Jhapa and Morang Dhanusha and Sarlahi Nawalparasa Kailali and
Kanchanpur
Plant capacity 29 MW 29 MW 24 MW 27 MW
Annual Rice straw: 309 Rice straw: 310 Rice straw: 249 Rice straw: 283
requirement Thousand Tons Thousand Tons Thousand Tons Thousand Tons

Wheat straw: 53 Wheat straw: 125 Wheat straw: 66 Wheat straw: 127
Thousand Tons Thousand Tons Thousand Tons Thousand Tons
Capital 25 Million USD 25 Million USD 20 Million USD 23 Million USD
investment

8.1.7 Pakistan
In Pakistan, rice and wheat contribute ~30% of the total food crop production. Considering only the field-
based residues from rice and wheat that are responsible for crop residue burning (like stalks and straws)
the following implementation plan has been recommended. Their collective surplus residue if utilized
towards energy generation can produce 834 MW of power. However, given the complementary nature of
their production and harvesting, it is recommended to implement smaller size biomass gasifier plants that
will run alternatively on rice and wheat residues. This will also ensure reduced capital costs, land
requirement and storage space for the residue. Accordingly, the plant capacities have been optimized and
will operate on a residue collection efficiency of 75%. With an increase in the collection efficiency
additional plants may be installed in the future to meet the rise in supply.
Table 78: Implementation Plan for Pakistan
Particular Details
Total Surplus Residue Potential for 13 Million MT
energy generation
Residue Collection Efficiency 75%
Total Power Generation Potential 834 MW
Region wise implementation
Location North East West South
Province Khyber Pakhtunkhwa Punjab Province Baluchistan Province Sindh Province
name Province
Plant capacity 131 MW 155 MW 131 MW 155 MW
Annual Wheat straw: 1608 Rice straw: 1625 Wheat straw: 1608 Rice straw: 1625
requirement Thousand Tons Thousand Tons Thousand Tons Thousand Tons

Wheat straw: 1608 Wheat straw: 1608

Thousand Tons Thousand Tons
Capital 111 Million USD 131 Million USD 111 Million USD 131 Million USD
investment

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8.1.8 Sri Lanka
Rice production in the country account for over 90% of the total crops cultivated annually. Taking into
consideration the high heating values (15-16 MJ/kg) of their residue, it is suggested to install rice residue-
based gasifier plants in areas with high production and easy aggregation. The energy generation potential
has been calculated for a residue collection efficiency of 75% on a conservative scale. With an increase in
the collection efficiency additional plants may be installed in the future to meet the rise in supply.
Table 79: Implementation Plan for Sri Lanka

Particular Details
Total Surplus Residue Potential for 1 Million MT
energy generation
Residue Collection Efficiency 75%
Total Power Generation Potential 71 MW
Region wise implementation
Location North East West South
District name Anuradhapura and Mahaweli and Kurunegala and Hambantota
Mannar Ampara Gampaha
Plant capacity 11 MW 38 MW 17 MW 6 MW
Annual Rice straw: 113 Rice straw: 398 Rice straw: 180 Rice straw: 60
requirement Thousand Tons Thousand Tons Thousand Tons Thousand Tons
Capital 9 Million USD 32 Million USD 15 Million USD 5 Million USD
investment

8.2 Power Generation Potential Including Husk Residue

Section 8.1 of this report considers the energy generation potential of the SAARC Member States using
only farm-based residues of wheat and rice harvesting that are most prone to burning, i.e. straws and
stalks. However, there are also other residues generated from the harvesting and processing of rice and
wheat crops, such as husks and shells. These residues are available in rice and wheat mills and are already
being used for energy generation and allied purposes through established and regulated channels in these
countries. If this husk is also considered for energy generation purposes the power generating potential of
the Member States increases substantially. It is pertinent to note that different supply chains need to be
established for procurement of farm-based residues and milling process derived residues. The
transportation, price and storage methods for both these types of residues will be distinct from one
another. The table below illustrates the Gross residue, Surplus residue and power generation potential
using all the residues of wheat and rice for each Member State.

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Table 80: Total Power Production Potential of SAARC Member States Using All the Residues
Total wheat and Gross Residue Surplus Residue Total Power
Member
Residue used rice production Production Production Generation Potential
State
(Million Tons) (Million Tons) (Million Tons) (MW)
Wheat straws
Afghanistan 4.2 7.7 1.7 69
& husks
Rice and
Bangladesh Wheat straws 38.1 65.3 17.8 1,253
& husks
Rice and
India Wheat straws 212.6 371.4 93.2 6,249
& husks
Rice and
Nepal Wheat straws 7.7 13.3 3.5 160
& husks
Rice and
Pakistan Wheat straws 36.3 64.3 15.2 980
& husks
Rice straws &
Sri Lanka 2.4 4.0 1.1 81
husks
Total 301 526 133 8,792

8.3 Implications of Mechanized Harvesting on the Energy Generation

Potential
The different equipment and machinery used to increase the efficiency in harvesting and sowing have been
discussed in Section 3.1.4. Machinery such as the happy seeder are being promoted for use by the
governments of major countries to effectively manage the residues in the farms and curb crop residue
burning. Currently the cost of the happy seeder is USD 2,500- 2,800. In India, the Ministry of Agriculture &
Farmers' Welfare provides an 80% subsidy to farmer groups and 50% subsidy to individual farmers for
purchase of the happy seeder. However, the cost of the happy seeder after subsidy is still high for farmers
with small land holdings and only about 2-3% of farmers employ the machine to manage their farm
residues. Given a possibility that the happy seeders become financially viable for farmers in the next few
years the residue generation potential will reduce substantially. With wide-spread use of the happy seeder
and subsequent reduction in residue generation, the energy generation programs may not remain
economically viable. The current power generation potential derived for the SAARC Member States is
made based on the utilization of happy seeder in these countries as on date.

8.4 Recommendations to Overcome Barriers in Deployment

As covered in previous sections, the key challenges for deployment of energy generation applications are
divided into four broad categories:
1. Institutional and Organizational
2. Financial
3. Technical and Implementation
4. Market factors

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A country-wise analysis of these issues reveals that they are common for most SAARC countries and
solutions can be applicable to most Member States. This section provides recommendations and steps to
overcome the identified challenges and barriers:

8.4.1 Institutional and Organizational

8.4.1.1 Laws and Policies to Curb Crop Residue Burning
Government and institutional support are most critical elements in deployment of bioenergy programs in
SAARC countries. Depending on the country legislature, the Central government must formulate suitable
laws, policies or orders for prevention of crop residue burning. Accordingly, the Central governments
should identify or establish a regulatory body to formulate policies and ensure the implementation of such
orders and policies, prevent and ban the practice of crop residue burning. This regulatory body may also
set up a regional/ district/ state/ province level regulatory cell for close monitoring of the orders.
The government should also incentivize the establishment of projects aiming at utilization of crop residue
by entitling them fiscal benefits and grants. This should include subsidies supporting R&D, low interest
loans to projects, grants to rural households for setup of biogas plants. The government should also
provide tax incentives to bioenergy projects, including reduced custom taxes for imported equipment and
income tax holiday benefits.
Lastly, the Central government should pass a law forbidding the direct burning of crop residue in fields.
This measure will force the increased utilization of crop residues as input for energy generation, fertilizer,
etc. The Governments may also consider incentivizing the farmers directly for non-burning of residue.
These incentives can be paid to the farmers via a local monitoring agency in the next harvesting season
and shall be subject to confirmation by the monitoring agency.

8.4.1.2 Regulatory Support

There is a lack of regulatory support by Electricity Boards in promoting biomass power generation. It is
suggested that the power utilities may be directed to procure a certain percentage of their power needs
from biomass plants. Also, power generators could be mandated to procure a minimum percentage of fuel
supply from crop residue with high energy content (in form of pellets/briquettes) to co-fire the boilers to
generate electricity. This would have a two-fold benefit: (i) low power generating cost by replacing 5-10%
of daily coal consumption and (ii) encourage farmers to aggregate their farm wastes for monetary returns.
In India, one of the barriers for independent power producers to set up bio-mass power plants is the
capacity limitation of 10 MW each for availing funds from Power Finance Corporation (PFC) and Indian
Renewable Energy Development Agency (IREDA). It is recommended to remove this capacity limit for
bioenergy plants to encourage more players in the market.

8.4.2 Monitoring Mechanism

8.4.2.1 Monitoring Cell
It is recommended to establish a regional level monitoring cell in each country to identify various
interventions, formulate a work plan and monitor its implementation at village levels.
At the national level, the apex monitoring and regulatory cell should monitor the residue burning at regular
intervals after each harvesting season in target areas to ensure effective implementation of laws and
measures to curb residue burning.

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8.4.2.2 Satellite-based Monitoring
It is recommended to used satellite-based remote sensing technologies to monitor and report crop residue
burning practices. This will ensure prompt response from the regional regulatory cell and levy of penalties.

8.4.3 Financial
8.4.3.1 Government Financial Support for Equipment and Plant
The funds required for successful crop residue management should be effectively mobilized through
different regional/ state/ provincial governments. Such funds can be provided to farmers or project
developers through the various on-going schemes/ programs introduced to curb crop residue burning.
The government must provide central subsidies for purchase of harvesting equipment and machineries
(combine harvesters, super SMS, happy seeders, rotovators) to the farmers to facilitate in-situ
management of crop residue and retaining the straw for mulching.
Some governments provide financial support to plant developers via Viability Gap Funding. Other SAARC
countries may also consider providing such funding for viable projects.
A clear application process should be designed for availing such supports, followed by a transparent
process of transfer and monitoring of funds/support.

8.4.3.2 Access to Funds

Mainstream Financial Institutions are reluctant to provide loans to bioenergy projects due to their
perceived high investment risks and non-guarantee of repayments. In India, most projects are being
financed by a handful of financial institutions, namely, Indian Renewable Energy Development Agency
(IREDA), Industrial Development Bank of India (IDBI) and Industrial Credit and Investment Corporation of
India (ICICI). It is recommended to increase the private sector participation in funding of viable and socially
benefitting bioenergy projects. Other such sources of funds have been discussed below:
Loans/ Grants from multilateral agencies:

One of the most notable funding vehicles for gaining access to grants/ concessional loans for critical issues
is through Multilateral Agencies. It is generally considered as a more non-political form of aid encouraging
international cooperation. SAARC Member States could reach out to such agencies requesting support for
implementation of energy generation programmes through funding of various initiatives covering pilot
projects and setting up of necessary infrastructure.
1. Asian Development Bank (ADB) has set investments towards programmes for financing clean
energy projects to help developing member countries provide reliable, adequate, and affordable
energy for economic growth. Under ADB’s 2009 Energy Policy, the agency aims to introduce
advanced technologies to increase energy efficiency by focusing on renewable energy and to
improve access to energy for poor and remote regions.
2. The UK Department for International Development (DfID)- National Investment and Infrastructure
Fund (NIIF) is fully attributed to climate change mitigation. The fund focuses on projects that help
in low carbon development and greenhouse gases emissions. The fund primarily invests in sectors
like Renewable Energy, Clean Transportation, Water Treatment, and Waste Management.
3. The World Bank provides low-interest loans, zero to low-interest credits and grants to developing
countries to support investments in areas of energy efficiency and implementation of energy
generation programmes. World Bank also takes support from governments, other multilateral

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 institutions, commercial banks, export credit agencies, and private sector investors for financing
of such projects.
4. Asian Infrastructure Investment Bank is a multilateral development bank which focuses on
sustainable infrastructure and other productive sectors in Asia. The bank, in collaboration with
private investors, secure funding for renewable energy project development and reduce the
carbon intensity of energy supply in the Asian region.

These agencies have set processes for evaluation of proposed projects which includes reviewing technical
and financial feasibility of the project along with its adherence to the agency’s overall strategy. After
proper due-diligence, negotiations and approvals, the project gets a financial closure which is then
monitored continuously by the agency for effective execution.

8.4.3.3 SAARC Development Fund

SAARC Member States should mutually agree upon joint investment into development of bioenergy
projects and form an association to share technology and provide support in implementation along with
faster adoption of bioenergy programs across the nations. The association developed could further drive
the following key areas which would benefit all the participating nations:
Harness benefits of centralized manufacturing (boilers, reactors, etc.) which could drive down overall costs
of the components by benefiting from economies of scales achieved during production.
Leveraging on easy availability of capital with support of investors willing to finance projects/initiatives
across nations.
Formation of a common pool for funding R&D efforts
Exchange of technical capabilities along with access to manpower for implementation and training
resources across other nations which might not have similar capabilities.
The SAARC Energy Centre may also act as the Nodal Agency for the development of bioenergy programs,
their implementation and funds disbursement in the interested Member States.

8.4.4 Technical & Implementation Support

8.4.4.1 Infrastructure Assessment
The governments of each Member State should assist in the implementation of bioenergy projects by
ensuring enough information is available for study. A detailed resource assessment, for different crops and
regions, along with their quantum of production and timeline of availability should be conducted by the
Nodal Agriculture Agency of respective Member State. This information will help developers and
researchers in estimating the scale and type of bioenergy program most suitable for each region and crop
based on availability.
Furthermore, the electricity demand estimation of a certain region should be used to locate the end-users
for the energy generated. Additionally, this data can be mapped with the grid infrastructure availability
reports to analyze the ability to supply power from a given site.

8.4.4.2 Awareness Campaigns

At the outset, most farmers are not aware of the crop residue management techniques and their benefits:
social, economic and environmental. They are even less educated about the technological interventions
available to ensure efficient residue management. As a first step, the government or regulatory body
should organize training campaigns for farmers to create awareness about the effects of crop residue

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burning, methods of residue conservation for better use and technologies available through ongoing
programs and schemes.
These awareness campaigns will also provide a good platform for exchange of best practices among
farmers and industry experts to promote residue usage.
The local regulatory cell may also implement self-certification by farmers to not resort to residue burning
as an added security measure while availing loans from Financial Institutions.

8.4.4.3 Skill Development Programmes

Along with awareness campaigns, skill development programmes should be organized to train people
across targeted regions with necessary expertise to operate machinery for harvesting/sowing, set-up and
operate bio-mass power plants and ensure proper storage and transportation methods. This would allow
companies (both public and private sector) to venture into setup of such plants and provide opportunities
for employment.

8.4.4.4 Equipment and Machinery

Most farmers in the SAARC nations use traditional methods of farming due to lack of access to modern
sowing and harvesting equipment and machinery. The government should promote modern technologies
that enable faster and more efficient harvesting by promoting capital subsidies on purchase of
machinery/equipment.
The government should also prioritize the key technologies to be eligible for subsidy based on primary
surveys and needs of farmers.

8.4.5 Market Factors

8.4.5.1 Aggregating Terminals
The biggest hurdle faced by farmers in supplying the crop residue is the lack of transportation facilities. It
is recommended to set up regional level collection centers that are easily accessible by farmers using
bullock carts, small tempos or in some cases, tractors. This will ensure maximum participation by farmers
as they now do not have to travel large distances up to the plant location for sale of their product. These
terminals shall also act as storage facilities to provide steady source of raw materials to the power plants.
To ensure financial viability of the project and reduce transportation losses it is recommended to establish
collection centers after each 20 km in the identified districts/ provinces/ states with highest residue
generation. By establishing smaller collection centers in easily accessible locations the cost of procuring
large land parcels for residue storage at the plant location is greatly reduced. Collection centers with a
minimum storage capacity of 5,000- 10,000 tons of residue can be constructed

8.4.5.2 Price Realization

It is recommended that the regulatory body aids in discovering a fixed price for different types of residue
depending on the harvesting season and region. The prices can then be displayed on the national portal
for farmers and developers to reduce instances of cheating by the aggregators or developers.
The Central Electricity Regulatory Commission (CERC) in India discovers the fuel procurement costs from
different types of residues for each State in India. This information is available publicly in the Tariff
Regulations. The government can play a vital role here in mandating the procurers to compensate the
farmers as per the declared rates. Aggregators, middlemen and power project developers must ensure
that the compensation to the farmers is made as per these regulated rates only.
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It is also observed that Distribution Companies do not schedule power from biomass-based plants due to
their high variable costs of power generation. In such cases the developer is then forced to sell the power
generated in Power Exchanges at very low tariffs. To address this issue on the demand side the government
may also devise a fixed price mechanism for purchase of the power generated by the plant developers.
The factors determining the price per unit can be type of residue used, type of technology, capacity and
region of installation. This will provide as an incentive to developers if guaranteed offtake at a
predetermined price is ensured.

8.4.5.3 Reward Schemes

A reward scheme can be designed for the villages that do not burn crop residue and become a role model
for other villages. The village panchayats/ heads will submit a proposal to the local regulatory body and
funds will be granted, if proven. These funds can then be used by the village to implement local programs
like pellet making, briquetting, composting, biogas plant installation etc. The proposed use of the funds
can also be a determinant in the grant approval.

8.4.5.4 Support Service-based Shared Infrastructure

Farmers face financial difficulty to purchase the mechanized farming equipment. The machinery and
equipment are expensive for individual purchase and does not promote effective utilization. It is proposed
that governments can introduce a support mechanism for local entrepreneurs or farmer co-operatives
interested in owning such equipment and providing services to farmers at reasonable rates. The
government can provide capita subsidy for purchase of such equipment and provide additional incentives
to such entrepreneurs based on their performance.
It is also recommended that accelerated depreciation be provided on farm machinery and equipment to
make the purchases more attractive to local entrepreneurs under the shared service-infrastructure model.

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10 Annexures
10.1 RPR and Heating Value of Crop Residues
Crop group Crop Residue RPR Heating value, MJ/kg
Straw 1.5 15.54
Rice
Husk 0.2 15.54
Stalk 1.5 17.15
Wheat
Pod 0.3 17.39
Cob 0.3 17.39
Maize
Stalk 2 16.67
Cob 0.33 17.39
Cereals Bajra Husk 0.3 17.48
Stalk 2 18.16
Barley Straw 1.3 18.16
Small millet Straw 1.2 18.16
Ragi Straw 1.3 18.16
Cob 0.5 17.39
Jowar Husk 0.2 17.48
Stalk 1.7 18.16
Mustard & Rapeseed Stalk 1.8 17
Sesame Stalk 1.2 14.35
Linseed Stalk 1.47 14.35
Niger Stalk 1 14.35
Oilseeds Safflower Stalk 3 13.9
Soybean Stalk 1.7 16.99
Shell 0.3 15.56
Groundnut
Stalk 2 14.4
Sunflower Stalk 3 17.53
Tur (arhar) Stalk 2.5 18.58
Lentil Stalk 1.8 14.65
Pulses
Gaur Stalk 2 16.02
Gram Stalk 1.1 16.02
Bagasse 0.33 20
Sugarcane Sugarcane
Top and leaves 0.05 20
Banana Peel 3 17.4
Frond 4 10
Coconut
Horticulture Husk 0.53 19.4
Frond 3 18.1
Arecanut
Husk 0.8 17.9
Stalk 3.8 17.4
Cotton Husk 1.1 16.7
Others
Boll shell 1.1 18.3
Jute Stalk 2 19.7

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10.2 Biomass Consumption for Power Generation

Tons of residue required

Sr. No. Crop
for production of 1 MW
1 Rice 1.2
2 Wheat 1.4
3 Sugarcane 1.2
4 Maize 1.4
5 Barley 1.3
6 Jute 1.2

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