Oreda survey for non-functional biogas plants

Orissa's green agency, Orissa Renewable Energy Development Agency (OREDA), along with the German consultant and financing firm KfW is carrying out a survey on the non-functional biogas plants in the state, set up before 2004.

Primary estimates suggest about 1.9 lakh biogas plants were set up in Orissa before 2004, of which 30 per cent are identified as non-functional mostly because of non-usage.

The construction cost for setting up each biogas plant is around Rs 10,000 comprising a central subsidy of Rs 3500 and remaining Rs 6500 raised from the beneficiaries, in this case mostly the farmers. OREDA and KfW signed a MoU on September 9 for adopting a clean development mechanism (CDM), one of the prime stays in carbon trading across the globe.

"One of our prime aims is to make the biogas plants that are being set up in the state eligible for CDM benefits," said OREDA chief Ajit Bharthuar.

The non-functional bio-gas plants with mechanical problems will be repaired and made CDM compatible. OREDA as a nodal agency will do the job of finding carbon benefits for the non-functional plants.

The project design document (PDD) for each non-functional bio-gas plant will be worked out by KfW and made reusable for cattle rearing, cooking, illumination and manure enrichment.

This would handsomely contribute towards fertiliser usage as nutrients have become a vital part. It is on the basis of nutrient usage that the Centre has recently adopted its new fertiliser policy. KfW is also working out the PDDs for new bio-gas plants coming up in the state. OREDA sources said, there are plans for setting up 8,000 such plants by 2008.

About 4,000 bio-gas plants have already been set up between 2006 and 2007. KfW will pay upfront for the new bio-gas plants are estimated to earn a revenue of Rs 4,000 per annum per plant. The estimated cost for each new bio-gas plant PDD is about Rs 15 lakhs.

According to the MoU, KfW will bear the cost. The PDDs are worked out on the basis of project verification and registration.