Green Planet Energy to Invest $240 Million in 14 Biomass-Fed Power Projects in Punjab

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Researched by Industrial Info Resources (Sugar Land, Texas)--Green Planet Energy Private Limited recently announced plans to invest $240 million to develop 14 biomass-based power generation projects in the state of Punjab under the state government's Agri Mega Project Scheme. On July 24, the company signed a memorandum of understanding with Punjab Agro Industries Corporation. The state, which accounts for nearly 20% of India's agricultural production, has an abundant supply of waste biomass that can be harnessed for power generation. The proposed projects will enable generation of 147 megawatts (MW) of power in the state and are expected to provide direct employment opportunities to 3,000 people and indirect employment opportunities to more than 7,500 people.

Green Planet Energy is a special-purpose vehicle jointly established by investment banking firm Darashaw & Company (Mumbai), Kamala Mills Limited (Mumbai) and MPPL Renewable Energy Private Limited (Bangalore, Karnataka) for the implementation of biomass-based power projects. MPPL has successfully commissioned a steam-cycle power plant of 4.5 MW in Mysore, Karnataka, based on biomass procured from low-density crop residue, such as sugarcane trash and coconut fronds. The project has generated 450 employment opportunities and generates an additional rural income of $1.1 million to farmers every year. MPPL has also been able to resolve corrosion and slag issues that typically arise from the use of low-density biomass as feedstock. The project was the first to obtain certified emission reductions, or carbon credits, under the United Nations Clean Development Mechanism.

The Punjab Energy Development Agency estimates that the state has a potential to generate 1.4 gigawatts (GW) of power through nonconventional sources of energy. Green Planet's initiative is part of the state government's plans to move from conventional energy sources and to promote the adoption of green sources of energy to generate 1,500 MW of power by 2012. The agency recently announced plans to invest $1.5 billion to achieve this target. The biomass sector has attracted investments to set up power projects of 338 MW. These include the 14 projects of 147 MW by Green Planet, a 30-MW biogas plant to be developed by EnviTec Biogas AG (Lohne, Germany) with an investment of $4.5 million, and a 200-MW power project funded by a loan of $196 million from the Japanese Bank for International Cooperation.

Other power projects based on renewable energy sources in Punjab include 21 micro-hydropower projects of 250 MW. The energy development agency has called for proposals to set up projects for 100 MW of grid-connected solar power and has received proposals for 17-MW solar power projects from Azure Power, India Bulls Power Services Limited (IBPSL) (Mumbai), Moser Baer (New Delhi) and PQES Consulting Group Incorporated (Lilburn, Georgia). In December 2007, Suzlon Energy (Pune, Maharashtra) signed a memorandum of understanding with the agency to set up wind power projects of 100 MW in the state.

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