The Hindu Business Line : Maharashtra sugar mills plan bio-CNG from cane biomass

In an effort to add more revenue to their balance sheet, three cooperative sugar factories from Maharashtra have decided to produce Bio-CNG from sugarcane biomass.

The projects would be set up with German finance and technological know-how.

The bio-CNG would be produced at Rs 22-24 per kg and can be used as a transportation fuel like the regular CNG.

Press mud and spent wash, by-products of sugarcane processing, would be used for producing biogas. The biogas would be further treated to produce bio-CNG.

In the first phase, Warna sugar factory at Kolhapur, Jaywantrao Patil sugar factory at Nanded and Kisan Veer sugar factory at Satara would absorb the technology. About Rs 40 crore would be required for commissioning the conversion systems at the three sugar factories.

The German Investment and Development Company (DEG) has earmarked €15 million for lending to the factories as debt for converting press mud and spent wash into bio-CNG.

German firms Enersearch and Biogas Nord would be providing the technical know-how and machinery for the projects.

Ms Shubhada Jahagirdar, Director, Enersearch, told Business Line that German companies and financial institutions were keen on providing the know-how and support for the sugar companies.

Till date, CNG has been a fuel of the cities, especially for vehicles.

Now, with CNG being extracted from agriculture waste, it would be available for the larger rural population.

Ms Jahagirdar said that the bio-CNG technology was still at a pilot stage in Maharashtra and it could receive monetary support from the Sugar Technology Fund of the Union Government.

Cheaper option

At Rs 24 a kg, bio-CNG could turn out to be a cheaper option than diesel. German financial institutions would extend project finance only to those sugar mills that had a healthy balance sheet.

Dr Virendra K. Vijay of IIT-Delhi, who had undertaken research on biogas, said that with crude oil close to $100 a barrel, bio-CNG could be an alternative fuel. Its production cost could come down to Rs 15 per kg, if produced on a largescale.

More Stories on : Non-conventional Energy | Sugar | Maharashtra

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