A 240 tons per day (TPD) biomass pellet manufacturing facility in Rewari, Haryana, has been inaugurated by Union Minister for New and Renewable Energy Pralhad Joshi.

The facility will help expand the supply of biomass-based clean fuels for thermal power generation and reduce their dependence on coal.

The plant will manufacture biomass pellets from agricultural residues, including paddy straw, mustard straw, and cotton stalks, for co-firing in coal-fired power plants.

According to the Ministry of New and Renewable Energy (MNRE), biomass pellets produced at the facility will help reduce air pollution and carbon emissions, and enable rural employment by establishing a steady market for crop residues.

The project is also expected to support an additional income stream for farmers by strengthening organized procurement channels for stubble and crop waste.

Joshi highlighted that the government had recently notified a uniform national policy mandating the co-firing of biomass pellets or torrefied municipal solid waste (MSW) charcoal in all coal-fired thermal power plants.

Under the regulation, thermal power stations across the country must co-fire 5% biomass pellets or MSW-based charcoal by weight, and coal-based plants in the Delhi-NCR region must implement a 7% co-firing mandate.

For NCR power plants, the policy requires that at least 50% of the biomass used be sourced from locally collected paddy stubble, which is expected to help reduce seasonal stubble-burning incidents.

Haryana has a biomass potential of over 1,350 MW and operates 26 waste-to-energy projects with a combined capacity of nearly 49 MW.

Recently, MNRE announced a ₹1 billion (~$11.3 million) call for proposals for pilot projects to develop technologies for producing green hydrogen from biomass and waste materials.

In June this year, MNRE revised the guidelines for the National Biomass Program for the financial years 2022 to 2027 (Phase-I). Several processes relating to paperwork and approvals have been simplified. This will enable the industry, especially MSMEs, to enhance production.

Last year, MNRE revised the Central Financial Assistance rates for biomass pellet manufacturing units under the National Bioenergy Program.