Stubble Burning: New Policy to Attract Private Investment in Biomass Power Projects Soon

(Hindustan Times) The new policy is also to encourage the farmers to cut, bale and store paddy straw produced in their fields and facilitate them to sell it for use in various projects -- The Haryana government will soon implement a policy aimed at curbing incidents of crop residue burning and ensure proper management of paddy straw.

The new and renewable energy department has prepared a draft policy Haryana Ex-Situ Management of Paddy Straw Policy – 2022 which was deliberated on Monday at a meeting held by chief secretary Sanjeev Kaushal.

The chief secretary said that the decisions and suggestions taken in the meeting would be incorporated in this policy and final approval will be given by chief minister Manohar Lal Khattar.

He said that the new policy aimed to create a conducive environment to attract private investment in paddy straw-based biomass power projects, industries, compress biogas plants, waste to energy plants, brick-kilns, packaging materials and bio fuels etc.

Apart from this, it is also to encourage the farmers to cut, bale and store paddy straw produced in their fields and facilitate them to sell it for use in various projects.

Various financial incentives have also been provided in the draft of this policy to promote the use of paddy straw as major feed material in power projects, CBG plants, ethanol and other biofuels. He said that district wise mapping strategy for stubble demand has also been included in the policy. READ MORE

Excerpt from Royal Norwegian Embassy: The new Norwegian Climate Investment Fund, managed by Norfund, is investing about 500 crore INR in equity in SAEL, an Indian solar and agri waste-to-energy company. The investment will contribute to avoiding more than 2.8 million tons of CO2 emissions and improving air quality by reducing stubble burning.

Each year farmers in Northern India are forced to burn agri stubble in their fields to remove paddy residue, resulting in severe air pollution in the region.

SAEL has developed a business model where crop residues are used as fuel in waste-to-energy projects. SAEL is an emerging renewable company in India with presence across solar and agri waste to energy projects. SAEL is India’s largest agri waste to energy producers. SAEL currently has more than 20 projects both operating and under construction in solar and agri waste to energy space

The new Norwegian Climate Investment Fund, managed by Norfund, announced at an event in New Delhi on 15 January that it is now investing equity in SAEL. The goal is to support the company’s ambition to grow its portfolio to 3GW over the next five years by adding 100MW of new biomass and 400MW of new solar capacity annually in addition to its existing portfolio of 600 MW.

Reducing air pollution and climate emissions while providing income to farmers

Fine particle matter (PM 2.5) levels rise with the yearly burning of crop stubble contributes to some of the world’s worst air quality[1]. High levels of PM 2.5 have been linked to health effects such as asthma and decreased lung function, and the burning of crop stubble also contributes to reduced soil quality, requiring increased use of chemicals which causes other health issues.

“By collecting the crop stubble to be used as fuel in our waste-to-energy plants, we contribute to combat one of our nation’s greatest health issues, while at the same time creating local employment and extra income to farmers and local entrepreneurs. This partnership with Norfund will fast track implementation of these projects, making us one of the leaders in this space”, says Jasbir Awla, Chairman and Managing Director of SAEL Limited.

The investment is estimated to contribute to the avoidance of more than 2.8 million tons of CO2 annually, based on the current Indian energy mix[2].

“We are thrilled to be able to contribute with the necessary financing for SAEL to reach its ambitions and contribute to reduce climate emissions and local pollution, while contributing to meet India’s energy needs”, says Mark Davis, EVP Renewable Energy in Norfund.

“This investment not only increases the access to clean energy and improves incomes for farmers but can also reduce stubble burning related air pollution. I am happy that Norway can contribute to this through our new climate investment fund,” says Norwegian Ambassador Hans Jacob Frydenlund.