1.

0 PROJECT BACKGROUND

UNDP, utilizing services of Development Alternatives (reputed NGO based in Delhi)

evaluated the potential for Bio Energy and Organic Fertiliser in Namakkal District, which
has around 600 poultry farms and around 20 million birds … apart from approximately
400,000 bovine animals and over 200,000 hectares of gross cropped land.

Grameena Abhivrudi Mandali (GAM) a Section 25 Company (refer website: www.gam-

rd.co.in) carried out a study between October to December 2008 … with more specific
motive of establishing Modular Biogas Plants + CHP (Combined Heat & Power unit) +
Organic Fertilier unit.

Envitec Biogas India Pvt. Ltd (Indian JVC of EnviTec Biogas AG) refer website:
www.envitec.co.in, provided technical support and engineering solutions for Biogas
Power Plant + Organic Fertiliser unit.

2.0 PROJECT OVERVIEW

2.1 PROJECT MISSION

To undertake integrated Agriculture + Bio-Energy Projects through optimal ustilisation of

locally available resources.

2.2 PROJECT OBJECTIVES

Would include the following

Energy Component :

Supply of Electricity from Biogas Engine + Thermal Energy through recovery of

Biogas engine waste heat.

Agricultural Component :

Supply of Organic Fertilier (from digester effluent), facilitate establishment of feed

lots for bovine animals (through ensilaging of forage crops/agricultural residues), and
facilitate farmers undertaking cultivation of organic vegetables (through supplying
organic fertilizer and establishing cold chain infrastructure).

2.3 PROJECT COMPONENT

For 6 units of 1 MW Biogas Power Plants (in 3 Blocks) would include the following

135,000 MT/year purchases of manure and agricultural residue/forage crops …

resulting in higher income > 600 small farmers

45 million KWh Green Power exported to the grid

 36,000 tons/year of Solid Organic Fertilizer + 72,000 KL/year of Liquid Fertilizer
(containing dissolved ammonium and potassium) … providing coverage to 7200
hectares.

3 Nos. (cumulative capacity 360 TR) Cold Storages … as appropriate for vegetables
farming.

2.4 PROJECT FINANCIALS OVERVIEW

Total Investment : Euro 10 million

Energy Revenues : Euro 3 million/year

CER’s Generation : 60,000/year

2.5 PROJECT FINANCING OVERVIEW

Equity/Advance CDM funds

MNRE/Government of India subsidy (initially financed through bridge loan from Bank)

Debt (10 years from Plant Commissioning)

2.6 TECHNOLOGIES SELECTION

2.6.1 The Project proposes to use a wide range of locally generated Biomass (agri / industrial
residues and animal waste) along with cultivation of energy crops.

Such residues have characteristics which make them unsuitable for firing in Boiler. At
the same time they have high Cellulosic content and as such a good feedstock for
Biogas Plants.

As such, biomethanation is a selected technology option.

2.6.2 For Biogas plants, technology from EnviTec Biogas AG will be used. EnviTec Biogas AG
has established itself as one of Europe’s leading biogas plant companies based on
agricultural produce/waste. The plants will involve significant technological innovation as
they will be the first Bio-gas plants, with unit size of 1063 KWe and having design PLF >
90 %, based on a combination of Industrial/Urban/Agricultural waste that is available in
India.

2.7 KEY FAVOURABLE FACTORS OF THE PROJECT

Replacement of fossil fuels & their migration of GHG emissions & Environmental
Pollution.
Market is created for presently unused / wasted commercially viable agri- products
By-product from the biogas plants can be used as Liquid fertilizer
 Promotion of public-private partnership
Creation of rural jobs

3.0 PROJECT LOCATION

3.1 The Project Phase I visualizes 3 clusters (each comprising 2 units of 1 MWe) located as
follows

2 clusters in Mohanur Block (located at Mohanur and Nanjay Idayar Village)

1 cluster in Kabilarmalai Block (located at Kabilarmalai)

Additional 3 potential project sites have been identified for Phase II implementation.

Namakkal District map with selected project sites is given below.

4.0 SUSTAINABLE BIOMASS RESOURCE AVAILABILITY FOR BIOGAS PLANT

Namakkal District has significant agricultural activity with

176,544 hectares net cropped area and 205,689 gross cropped area.

396,064 bovine animals

19,455,327 poultry birds

Consequently, there is significant agricultural/animal waste generated viz.

978,608 MT/year of agricultural residues … out of which 650,788 MT is currently

surplus

115,650 MT/year of cow dung.

350,195 MT/year of poultry waste.

There is also significant potential to support farmers in adopting alternate cropping

(essentially forage crops such as Napier grass/CO3, Sugar beet/Maize) … in over
100,000 hectares of land which is currently under cultivation for millets with yields
between 1 to 1.2 MT/hectare. Supporting the farmers to increase yield of forage crops
will ensure

Higher earnings for farmers

Superior feedstock for bovine animals
Surplus forage crops as required for needs of Biogas Plant.

There is also the potential to increase horticultural crops, which will be facilitated through
the organic fertilizer unit and VAM based cold storage (utilizing waste heat of Biogas
engine) which are envisaged project components. Cultivation of horticultural crops will
ensure

Higher earnings to farmers

Generation of horticultural waste which can be used as feed stock for Biogas Plant.

Broadly speaking the sustainable agricultural residues/forage crops and animal waste
availability is more than adequate for the projected feedstock requirements of proposed
Biogas Plants in the blocks.

5.0 2x1063 kWe BIOGAS POWER PLANT

The Biogas Plant comprises following ‘6’ main operating units
Operating unit 1: Biomass Reception/Storage & Substrate/feed Preparation

Operating unit 2: Fermentation and recirculation duct

Operating unit 3: Condensation Circuit

 Operating unit 4: Residue storage tank

Operating unit 5: Gas utilization and lubrication oil station

Operating unit 6: Mechanical BOP/Electrical BOP/Civil

Process flow diagrams attached.

The gas engine would be of reputed International make eg. JMS 320 GS of GE
Jenbacher with electric output of 1063 KWe.

6.0 ORGANIC FERTILISER UNIT

Approximately 48,600 KL/ year of digester effluent is produced which is superior quality
organic fertilizer.
Advantages of using digester effluent as fertilizer are

a) General Positive impacts on environment:

Decrease of odor of manure

Less CH4 emissions
Reduce ground water contamination

b) Close nutrient cycle with using biogas plant effluent as fertilizer:

Nutrients in feedstock of biogas plants can be reused after anaerobic

digestion.
Only few losses of nutrients during storage, transport and biogas process

c) Improvements on manure quality with anaerobic digestion:

Degradation of cells, organic acids and long chain organic matter

Increase of availability of nutrients (especially nitrogen)
Increase of humus on the fields (compared to combustion)

To enable assured quality of solid/liquid fertilizer … as well as reuse of water (and

thereby minimize/avoid use of ground water) the organic fertilizer unit comprises solid
separation and liquid treatment units viz.

Screw press (or fabric filter)

Flocculation system
Centrifuge + Press sand filter (or pressure sand filter + micro filter)
UF + RO Unit

Schematic for Organic fertilizer system is attached.

2.0 PROJECT OVERVIEW
2.1 Project Mission

To undertake integrated Agriculture + Bio-Energy Projects through optimal ustilisation of

locally available resources.

2.2 Project Objectives

Would include the following

Energy Component :

Supply of Electricity from Biogas Engine + Thermal Energy through recovery of

Biogas engine waste heat.

Agricultural Component :

Supply of Organic Fertilier (from digester effluent), facilitate establishment of feed

lots for bovine animals (through ensilaging of forage crops/agricultural residues),
facilitate farmers undertaking cultivation of organic vegetables (through supplying
organic fertilizer and establishing cold chain infrastructure).

2.3 Project Component

For 6 units of 1 MW Biogas Power Plants (in 3 Blocks) would include the following

120,000 MT/year purchases of poultry litter and agricultural residue/forage crops …

resulting in higher income > 600 small farmers

45 million KWh Green Power exported to the grid

36,000 tons/year of Solid Organic Fertiliser + 72,000 KL/year of Liquid Fertiliser

(containing dissolved ammonium and potassium) … providing coverage to 7200
hectares.

3 Nos. (cumulative capacity 360 TR) Cold Storages … as appropriate for vegetables
farming.

2.4 Project Financials Overview

Total Investment : Euro 10 million

Energy Revenues : Euro 3 million/year

CER’s Generation : 60,000/year

2.5 Project Financing Overview

Equity/Advance CDM funds

MNRE/Government of India subsidy, currently Rs. 30 million/MW with ceiling of Rs.

80 million for each project (initially financed through bridge loan from Bank).

Debt (10 years from Plant Commissioning)

2.6 Technologies Selection

2.6.1 The Project proposes to use a wide range of locally generated Biomass (agri / industrial
residues and animal waste) along with cultivation of energy crops.

Such residues have characteristics which make them unsuitable for firing in Boiler. At
the same time they have high Cellulosic content and as such a good feedstock for
Biogas Plants.

As such, biomethanation is a selected technology option.

2.6.2 For Biogas plants, technology from EnviTec Biogas AG will be used. EnviTec Biogas AG
has established itself as one of Europe’s leading biogas plant companies based on
agricultural produce/waste. The plants will involve significant technological innovation as
they will be the first Bio-gas plants, with unit size of 1063 KWe and having design PLF >
90 %, based on a combination of Industrial/Urban/Agricultural waste that is available in
India.

2.7 Key Favourable Factors of the Project

Replacement of fossil fuels & their migration of GHG emissions & Environmental
Pollution.
Market is created for presently unused / wasted commercially viable agri- products
By-product from the biogas plants can be used as Liquid fertilizer
Promotion of public-private partnership
Creation of rural jobs

2.8 Key Contributions to Sustainable Development

Creation of around 300 job opportunities in the biomass supply chain, organic
manure plants & cold storages;

Supply of power to TNEB and support to the electricity grid supply ensuring a stable
power supply to the local areas.

Contribution to organic farming through distributing to local farms the organic

fertilizer that is generated as a residue from the Bio gas plant.
 Contributing to better earning for local farmers through providing alternate Crop
options, viz (a) Forage crops with high yield (b) Horticultural produce, which is
facilitated by the availability of local cold storage

2.9 Climate Change Impact Assessment

(a) Displacement of electricity from the grid by generating electricity from biogas with gas
engines. The generated electricity will be sold to Tamil Nadu State Electricity Board
grid.

(b) Cold storage operation with exhaust heat from biogas plants via vapor absorption
machines and therefore substituting electricity from the electricity grid that would
have been used to generate cold via vapour compression systems in the baseline
case;

(c) The biomass waste used by the project activity would have been left to decay
anaerobically in a solid waste disposal site without methane recovery in the baseline
case. Hence, methane emissions are avoided.

2.10 Environment and Social Impact Assessment:

The environmental and social impacts of the project will be carried out by Grameena
Abhivrudhi Mandali (GAM) a Section 25, not for profit, organization as per report
structure given below;.

2.10.1 Environmental Assessment Procedure

(a) Collection of relevant data from various sources such as site visits by a surveyor to
the proposed project area, interviews with various stakeholders identified by the
project and collection of primary and secondary data from government records on
agro-forestry, agriculture and agriculture related industries.

(b) A desktop review and compilation of this data.

(c) Environmental aspects (project activities that had potential to impact the
environment) of the project will be identified. e.g. Emissions of flue gas from stack,
fossil fuel emissions from transportation of biomass, generation of effluent from the
water treatment plants etc.

(d) The environmental aspects will be prioritized based on their potential to have adverse
impacts on the project environment and its stakeholders.

(e) Environmental management plans will be formulated, to control / manage / mitigate

these impacts to the best extent possible. The primary aim of the environmental
management plan will be to ensure that regulatory standards were met (also
reflected in the Power Plant design) and that there exists appropriate monitoring
procedures for collection of the relevant data.
 2.10.2 Management of Potential Environmental Impacts

(a) The power plant and auxiliaries shall be ensured to meet the emission norms of the
National Ambient Air Quality Standards (NAAQS).

(b) No radioactive emissions are expected from the proposed cogeneration plant.

(c) A green belt, of minimum 5 m width, shall be provided around the periphery of the
power plant.

(d) Digested sludge from Biomethanation Plants will be collected in Tanks and utilized as
Bio-fertilizers. No environmental hazards are anticipated from this.

2.10.3 Identification of Socio-economic aspects

Current socio-economic profile of the project area

a. Main income generating activities

b. Main income generating assets

c. Average Income of a Farmer from an acre of

land per annum
d. Average level of education

e. Main types of local transport

f. Locally available natural resources

Based on the current socio – economic profile a detailed assessment will be conducted to
identify the various potential socio-economic aspects related to the project. These aspects are
as listed below:
Production of quality and reliable power.
Power generation through a renewable energy technology.
Activities related to the biomass supply chain i.e. transportation, supply and preparation of
biomass.
Employment requirements at the project site

2.10.4 Socio-economic benefits that will be evaluated

Increase in productivity of agricultural land and underutilized lands.

Employment generation through sustainable biomass supply chain

Grama Panchayats role and involvement.

SHGs role and involvement.

 Employment generation through organic fertilizer unit and cold storage.

Employment generation in Biogas Power Plant.

Employment generation through growth of micro-enterprises, facilitated by availability of

assured quality/reliable electric power
Dissemination of information, to local community, on the advantages of renewable
energy based technologies and their applications in creating local value-addition.

In general, an improvement in the quality of life of the local people, living within the
project boundaries.

2.11 Implementation Schedule

2.11.1 Project Development Schedule

The details of various clearances and permits required for the project are listed below.

Clearance from the Local Panchayat and Local Municipal body.

NOC from TNEB for Power Evacuation.

Lease of Panchayati land

Certificate of Incorporation of Project SPV

Consent for Establishment and clearance from TN State Pollution Control Board.

Subsidy approval from Ministry of New & Renewable Energy, Government of India and
TN Renewable Energy Development Agency.

Approval under the Indian Factories Act, 1948 from Chief Inspector of Factories.

2.11.2 Project Construction Schedule.

A total of 12 months after financial closure is envisaged for the construction of each cluster
comprising two modular biogas plants (2X1063 KWe). An indicative Project
Implementation Schedule is given below.

Totally 3 clusters are envisaged in Phase I of Project implementation.

The project also has very favourable assessment from view point of Climate Change
impact, Environment and Social impact.
 ANNEXURE -1

Project Implementation Schedule – EnviTec Biogas (I) Pvt. Ltd.

PERIOD IN MONTHS
Sl
Activity 1 2 3 4 5 6 7 8 9 10 11 12
No
Statutory Approvals/
1
Fin closure
Plant Location-Land
2
Finalisation
Preliminary
3
Engineering
Detail Engg--Plant
4
Layout Details
Civil Works-
5
Biomethenation plant
Electrical Works-
6
Substation
Biomethenation Plant
7
Erection
Biogas Engines-
8
Alternators-Erec
Biogas Plant
9
Commissioning
Biogas Eng--Alt
10
Commissioning
11 O&M Staff Training
3.0 PROJECT LOCATION
 Contents
A.0 Executive Summary

B.0 Geographical Overview

 Introduction
 Location and Physiography
 Kolli Hills
 Location of Namakkal District in Tamil Nadu Map
 Namakkal District Map

C.0 District Profile

C.1 Basic Infrastructure

(i) Roads & Railways

(ii) Electricity Supply
(iii) Education & Vocational Training Institutes

C.2 Demographic Data

(i) Features of Population
(ii) Rural & Urban Population
(ii) Work Force

D.0 Overview of the Agricultural/Farming Sector Overview

D.1 Natural Resources

 Climate
 Temperature
 Relative Humidity
 Wind
 Sunshine Hours
 Rainfall

D.2 Agriculture
 Land Use Pattern
 Soil Classification
 Cropping Pattern
 Irrigation
 Ground Water Potential
 Size of Land Holdings
 Area Under Principal Crops Cultivated
 Growth Trends in Agriculture/Farming Sector
D.3 Animal Husbandry

 Livestock Population
 Milk Societies
 Poultry Farms

E.0 Trend in use of Fertilizer (Organic & Inorganic)

E.1 Potential Availability of Organic Manure

E.2 Potential Availability of Crop Residues
E.3 Fertilizer Consumption
E.4 Pesticide Consumption

F.0 Initiatives in Organic Farming

F.1 Government Initiatives

F.2 Initiatives by NGO‟s
F.3 Promotion of Organic farming by MS Swaminathan Research Foundation
F.4 Organic Farming by Individual farmers
F.5 Demand for Organically Grown Food
F.6 Organic Feedstock for Livestock/Poultry

G.0 Poultry Litter use as Organic Fertilizer

G.1 Types of Poultry Litter

G.2 Nutrient Content
G.3 Issues related to Storage & Handling
G.4 Processing of Poultry Litter
G.5 Composting Poultry Litter
G.6 Effect of application of poultry manure

H.0 Summary
A.5.1 Government Initiatives.

Organic farming in the district is in infant stage. The government department of Agriculture has
initiated the activities related to organic farming under the National Programme for Organic
Farming. The Department of Agriculture is also rendering the following services indirectly
towards the promotion of organic farming through the following institutes.
 Sugarcane Parasite Breeding Station, Mohanur
 Coconut Parasite Breeding Station, Velur
 Bio Control Lab - Namakkal

The Govt. of Tamil Nadu has outlined the following schemes to promote organic farming at an
outlay of Rs. 28.2 Million.
 Scheme on Bio-fertilizer distribution under 50% subsidy
 Scheme on composting of farm waste through Pleurotus (Rs. 1.2 Million)
 Vermi composting of Agriculture wastes (Rs. 1.6 Million)
 Green Manure Scheme (Rs. 19.4 Million)

A.5.2 Initiatives by NGOs

There are 19 registered NGOs in the Namakkal District. About 10 NGOs are involved in organic
farming through training and workshops on solid waste management for efficient recycling of
organic wastes & vermi composting.

A.5.3 Promotion of organic farming by MS Swaminathan Research Foundation

The foundation has taken up initiatives on promotion of organic cultivation of fruits and
vegetables, minor millets and spices in Kolli Hills region.

A.5.4 Organic farming by Individual farmers.

There are few farmers and organizations are practicing organic farming at 10 hectares of
irrigated land. Their products are sold in local market. But they have not gone for any
certification.

A.5.5 Demand for organically grown Food.

Several buyers have shown interest in purchase of organically grown products. Pine apple
farmers have earned Rs. 1.5 Million including an export of worth Rs. 0.01 Million. Spices and
other food products are in great demand. The retail networks like Reliance Fresh, Food World,
Wallmart, Amudham, etc of the neighboring districts are purchasing organic produces from
Namakkal.

A.5.6 Organic feedstock for livestock / Poultry

The first step in organic livestock production is the organic fodder production. At present though
the demand for organic fodder and feed for livestock is negligible, the demand for the same is
expected to increase many times in the near future as the demand for organic milk and meat
are slowly increasing for export purposes.

Poultry population is increasing year by year and the industry is growing at the rate of 10% and
with this growth, requirement for millets especially maize for poultry feed is increasing. Organic
 Table 16. Productivity of crops over years (kg / ha)

No. Crop 1997 1998 1999 2000 2001-05* 2005-06 2006-07 2007-08
1 Rice 3751 4134 4888 4812 3848 3656 4773
2 Total Millets 1339 1148 1933 1571 1002 988 1231
3 Total Pulses 645 500 676 684 611 691 931
4 Total Oilseeds 1348 1417 1695 1541 1250 1472 1887
5 Cotton 285 383 441 318 - 422 2.64
6 Sugarcane 86.6 144.5 138.0 161.8 143.1 138.9 166.1

* Average of five years from 2001 to 2005

Upto 2005, the trend in the production was negative. There was a declining trend in production
mainly due to reduction in the area cultivated in crops like Rice, Millets, Pulses and Oilseeds.
But the production of Cotton almost doubled (200 %) when compared to 1995. The Sugarcane
production increased from 0.08 lakh tonnes from 1997 to 3.2 lakh tonnes in 2006-07 achieving
fourfold increase in production.

Regarding productivity of crops also, there is an increase in the productivity from 2005 onwards
which could be due to the cultivation of high yielding varieties of crops and hybrids.

With the optimism generated by new technologies, the district set for itself the goal of achieving
an annual growth rate of 4.5 % in agriculture in the Ninth Plan period. With appropriate policies,
programmes and strategies, the district registered an annual growth of 6.21 %. However, the
performance of agricultural sector showed a negative growth of 5.8 % during 1999-2000 due to
vagaries of monsoon and as a result, the agriculture and allied activities could register an
annual growth of only 2.72 % during the Ninth Plan period. Widespread adoption of seed-
fertiliser - water technology has helped in generating additional output, income and employment.

The total milk production in this district is 2.68 lakh tonnes per annum. Meat production is also
fairly high. Annually 398 crore eggs are produced which is around 60 % of the states egg
production. The livestock sector in this district is growing at 4 % growth rate while poultry is
growing at around 10 %.

With the present growth rate and taking into consideration the growing demand for poultry feed
ingredients especially Maize, the growth in agriculture sector is predicted to be around 6 % and
the prospect for agriculture seems to be good.