Govt mulls financial grants for biomass power plants

KARACHI: Government, in partnership with a United Nations body, is mulling financial grants for the private sector to develop biomass-fired power plants in off-the-grid locations in the country, people familiar with the matter said on Tuesday.

They said the grant would be maximal $40,000 for a biomass-based plant of 25 kilowatt (KW) of captive power project.

“A grant of up to $40,000 will be issued under the banner of global environment facility-funded project, titled promoting sustainable energy production and use from biomass,” an official at the United Nations Industrial Development Organization (Unido), which is the co-partner in the monetary assistance project, told The News. The official could not disclose the aggregate size of the grants. Alternative Energy Development Board (AEDB) and Unido are seeking request for proposals from the private to award the financial grant for developing up to 25KW biomass gasification-based power plant for captive power or for rural electrification.

The official said the grant would only cover the equipment cost. “This would not cover services and training costs as Unido wants someone to claim ownership of the project, which would ensure sustainability.”

Agricultural residue is the primary fuel for biomass gasification-based power plants, and controlled oxidation of the residue would generate electricity on one hand and reduce carbon dioxide emissions on the other.

The aim of the project is to achieve reduction in greenhouse gas emissions and the development and promotion of a market environment to stimulate investments in renewable energy and energy efficiency projects particularly in industries across the country.

“The purpose of the project is to promote the biomass gasification technology primarily for small and medium enterprises and rural electrification, capacity building of the concerned institutions and policy recommendation,” the official added.

The official said the project would also set grounds for the local fabrication of components required for biomass gasification along with promotion of the technology.

Bio-energy has the potential to contribute significant shares to national energy supplies, and can play an important role in promoting energy security, creating jobs, and helping the government improve electrification.

The AEDB said the World Bank and government are implementing a renewable energy resource mapping activity nationwide. The project is funded by the World Bank’s energy sector management assistance program and focuses on the assessment of wind, solar and biomass resources, including ground-based data collection, geographic information system analysis, and geospatial planning.

Biomass mapping component of the project will cover four provinces. The main focus, however, will be on Punjab and Sindh. The component will assess the quality and quantity of available biomass and agricultural waste and study the most appropriate and competitive technologies to utilise available biomass for energy production.