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Biomass pellet shortage hinders DVC’s co-firing plans

Kolkatta: Scarcity and high prices of biomass pellets have repeatedly disrupted the Damodar Valley Corporation’s (DVC) efforts to comply with the Centre’s ambitious biomass co-firing policy, forcing the power producer to fall short of mandated targets. Senior officials said the organisation is now making renewed efforts to overcome these challenges, reports The Statesman.

The biomass co-firing policy, introduced in the 2021–22 financial year, requires thermal power plants to mix biomass pellets equal to 5 per cent of their total fossil fuel consumption in boilers. DVC engineers said co-firing involves replacing a portion of coal with alternative fuels such as biomass, which helps cut emissions and pollution while using existing infrastructure.

Biomass pellets, made from compressed agricultural waste, sawdust and food residue, are considered carbon-neutral and are now compulsory to meet environmental obligations linked to power generation.

DVC needs about 2.33 lakh metric tonnes of agro-residue biomass pellets every year. However, officials said the utility has not yet been able to meet the Centre’s mandate because of supply chain constraints. Despite issuing both short-term and long-term procurement tenders, limited availability of pellets has remained a major hurdle.

In July last year, DVC floated tenders to procure 51,100 metric tonnes of pellets each for its thermal power plants at Mejia, Andal, Raghunathpur and Koderma, along with 29,200 metric tonnes for its Bokaro unit.

Officials said the Durgapur Steel Thermal Power Station has achieved a record level of co-firing, indicating that some biomass pellets are being used. However, the response from pellet manufacturers has largely remained weak.

As part of efforts to meet its clean energy commitments, DVC is also focusing on alternative power sources such as pumped storage projects, solar power and hydel projects in West Bengal and Jharkhand. Some of these initiatives have faced delays due to changes in state government policies, said DVC chairman S. Suresh Kumar.

On the issue of biomass pellet procurement, Kumar said the corporation is now encouraging local entrepreneurs to increase pellet production. He added that the aim is to reduce dependence on supplies from Panipat, which are significantly more expensive.

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