CASE STUDY
cheap and efficient natural pest control; intercropping (e.g wheat and cotton); and some agroforestry (including planting bamboo and drumstick tree, both of which are drought and salt-resistant). Farmers are also supplied with seedlings. Emphasis is placed on developing a relationship of trust with farmers, listening to their concerns and trying to meet their needs in the most appropriate way. Poornakumbha has a contract with Anand Agricultural University to train its advisers, who in turn advise and train farmers. Experts from the University also provide direct over-the-phone advice to farmers, and receive three or four calls a day.
Benefits
100 panchayats representing about 8,500 farmers have signed long-term agreements to supply Abellon with crop residues, and one sawmill supplies sawdust. The two pellet plants currently in operation have a combined output capacity of 240 tonnes/day. A third plant using crop residue is due to open in 2011, with a capacity of 200 tonnes/day, and a fourth is at the planning stage. Pellets are sold to 14 industrial customers. By the end of February 2011, a total of over 88,000 tonnes of pellets had been produced, including 65,000 tonnes in 2010.
Environmental and social benefits Pellets replace lignite and coal which are high carbon fuels. A Clean Development Mechanism (CDM) assessment of greenhouse gas emissions found a net saving of 1.70 tonnes CO2e per tonne of pellets used. Thus the 65,000 tonnes of pellets sold in 2010 cut greenhouse gas emissions by 110,000 tonnes/year of CO2e. There are other environmental and health benefits associated with pellet use.
The baseline for calculating savings is the emission of greenhouse gases from burning lignite, which is estimated as 1.78 tonnes of CO2e per tonne of pellets. This net saving takes into account the greenhouse gas emissions from electricity used in the pelleting plant (4% of baseline) and from transport of the residues to the plant (0.2%). The raw residues are regarded as ‘zero carbon’, because they would have been burned or left to decompose if not used for pellets. Pellets are much easier to handle than lignite. They are stored cleanly and kept dry in bags, and fed straight into the furnace with no crushing required. This saves time, reduces dust and cuts electricity use. Pellets have a more uniform calorific value and they burn more cleanly, producing less smoke and dust. This results in less nuisance to neighbours and fewer breathing problems for workers. It also helps factories to meet their obligations to control air pollution. The crop residues used to make pellets are mostly woody and were often previously |186| ENVIRONMENT INDUSTRY MAGAZINE
burned in the field, so pelleting reduces air pollution in agricultural areas as well.
Economic and employment benefits Selling crop waste helps clear the fields and provides farmers with a small increase in income (around 2%). However, the more significant benefit from working with Abellon is the agricultural advice provided by Poornakumbha. With the increasing salinity and changing weather patterns in Gujarat, farmers cannot rely on their traditional knowledge for what to plant and when, so expert advice is particularly valued. Abellon has created jobs for 215 people, and Poornakumbha has 20 employees and about 200 part time extension workers.
Potential for growth and replication The future potential for biomass pellet production in Gujarat is substantial: the raw material is widely available and cheap, and industrial demand for pellets is strong and growing. At present Abellon does not have sufficient capacity to meet the demand, but this will change when the two additional pellet plants come on stream. Abellon’s target is to treble sales in India over the next five years. The company is also keen to expand into international markets, both by exporting pellets and setting up operations overseas. It is currently in discussion with companies in Ghana, Italy, Canada and the USA. Abellon is in the process of applying for carbon finance via the Clean Development Mechanism, as an additional income stream for both the company itself and its customers.
Future plans – Within the next five years, Abellon plans to open two additional pellet plants in Gujarat and treble its production in India.
– It also plans to expand into international markets through sales and setting up production in other countries.
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