Bio CNG PDF
Bio CNG PDF
Bio CNG PDF
PROJECT
CNG PROJECTS
PROJECT DETAILS
STATUTORY REQUIREMENTS
AND GOVT SUPPORT
TECHNOLOGY
FINANCIAL ANALYSIS
CITIZEN CARE BIO CNG PROJECTS
PROJECT DETAILS
2020
1. India is among the fastest growing economy in the world and its energy consumption is slated to
increase rapidly. According to the Ministry of Petroleum and Natural Gas (MoP&NG) estimates,
India has a total reserve of 763 Million Metric Ton (MMT) of crude oil and 1,488 Billion Cubic
Meter (BCM) of natural gas. The country currently imports nearly 77% of its crude oil
requirements and about 50% of natural gas requirement, leading the Government of India to set a
target of reducing this import by at least 10% by 2022. Further, it has set a target of increasing the
contribution of gas in India’s energy mix from existing 6.5% (global average is 23.5%) to 15% by
2022.
2. Countries such as Germany, Italy, UK, France and Switzerland are promoting bio-gas usage
promoted by supporting legal frameworks, education schemes and the availability of technology.
Biogas produced in European countries is mostly fed into local natural gas grids and used for
power generation. Grid injection is most common in European states followed by vehicles fueled
with biogas (either pure or in blend with natural gas) and biogas is also used for heating
purposes either directly or blended to natural gas.
3. The number of biogas plants in Germany has doubled to nearly 9,000 plants from 4,136 plants
in 2010. The total biogas production capacity of the plants is 8.98 Billion Cubic Meter (BCM)
equivalent to 6.6 Million Metric Ton (MMT). They are primarily operated by farmer co-operatives
and utilize crops like maize or turnips as feedstock in their plants.
4. Vide Gazette Notification no. 395 dated 16th June 2015, Ministry of Road Transport and Highways,
Government of India had permitted usage of bio-compressed natural gas (bio-CNG) for motor
vehicles as an alternate composition of the compressed natural gas (CNG).
5. Government of India has released the National Policy on Biofuels 2018 vide gazette notification no.
33004/99 dated 8.6.2018. The policy emphasizes on promotion of advanced Biofuels including
CBG.
6. The Galvanizing Organic Bio-Agro Resources Dhan (GOBAR-DHAN) scheme was launched by
Government of India to convert cattle dung and solid waste in farms to Bio-CNG (CBG) and
compost. GOBAR-DHAN scheme proposes to cover 700 projects across the country in 2018-19.
Page 1
1. Waste / Bio-mass sources like agricultural residue, poultry waste, cattle dung, sugarcane press
mud, municipal solid waste and sewage treatment plant waste, etc. produce bio-gas through the
process of anaerobic decomposition. The main objective of the project is to set up a compressed
biogas plant to sale the Bio CNG to the local vehicles at around Rs. 55 per kG. The plant also
produces organic manure in large quantity which can be sold at about Rs. 1.5 per kg in open
market.
A standard biogas plant of capacity 6000 Cubic Meter per day can be used. We also know that 1
CU M raw biogas gives 400 Gram compressed biogas.
2. The biogas is purified to remove hydrogen sulfide (H2S), carbon dioxide (CO2), water vapor and
compressed as Compressed Biogas (CBG), which has methane (CH4) content of more than 90.
CBG has calorific value and other properties similar to CNG and hence can be utilized as green
renewable automotive fuel. Thus, it can replace CNG in automotive, industrial and commercial
areas, given the abundance biomass availability within the country.
3. The biogas produced contains approximately 55% to 60% methane, 40% to 45% carbon dioxide
and trace amounts of hydrogen sulphide. Biogas is purified to remove carbon dioxide and hydrogen
sulphide gases to prepare CBG. The CBG is to be compressed at 250 Bar and supplied through
Cascades to the Retail Outlets. The CBG can be transported through either cylinder cascades or
pipelines to retail outlets.
Page 2
The total Biogas and bio manure produced per day as per the capacity are following:
4. SALE THROUGH GOVT. OIL MARKETING COMPANIES: To be retailed through OMCS / fixed
for three years from 1.10.2018 / the price will be reviewed at the end of 3 years: Producer shall
deliver CBG (within 25 Km, an indicative maximum distance), at Public sector Oil Marketing
Companies’ existing or new Retail Outlet / Stand-alone Selling Point, through Cascades. The
equipment for dispensing CBG at Public sector Oil Marketing Companies’ existing or new
Retail Outlet / Stand-alone Selling Point shall be installed and maintained by Public sector
Oil Marketing Companies’, however, the CBG nozzles shall be manned and operated by RO
Dealer. Electricity expenses towards dispensing of CBG through sale point shall be
reimbursed to the Party who is actually bearing the costs. The outlet flange of the Cascade /
Inlet Flange of Compressor at the Retail Outlet shall be the Point of Sale for CBG. The
cascade to remain connected to the compressor at retail outlet till the dispensation is
operationally feasible.
Page 3
SALE PRICES:
Additionally, an element of Rs. 2 per kg of CBG towards cost of setting up of infrastructure e.g.
booster compressor, dispensing unit, etc. at retail outlet and Rs. 0.50 per kg of CBG towards
electricity charges for operation of booster compressor, dispensing unit, etc. at retail outlet,
shall be provided to OMC or APPLICANT, as per whosoever sets up infrastructure at retail
outlet.
5. OWN SALES: Once operational, the Project can also generate revenues through the own sales of
CBG, and fertilizer. The CBG can be profitably sold to the local VEHICLES at a comparative quality
and a price of Rs. 55/- per Kg, a price less expensive to the current CNG. The dry Bio-fertilizer is to be
sold at Rs. 1.5/kg.
6. ANNUAL INPUT REQUIREMENT: The main raw material required for plant is cow dung or poultry
droppings or Biomass or Press Mud. This will be procured from dairy and farms in nearby areas.
Water is required for process. A tube-well will be installed for meeting water requirements.
The supply of cow dung is available at Rs. 300 per ton delivered at site and ready to use (for
financial modelling, same rate of Rs. 300 per ton has been taken). Poultry Litter will be available at
Rs. 450 per ton. If Biomass waste and Press Mud are available, they can also be used. Biomass
waste will be available at Rs.1250 per ton. We can always mix these wastes as per the availability.
Page 4
Below we are giving approximate quantities of the requirements. Combination of any of these can also
work in proportionate quantity.
7. PLANT AND MACHINERY: The entire plant and machinery is easily available from many different
suppliers from India and abroad. The know-how is also available from very reliable sources from
abroad. The plant for 350 days per year, using sophisticated and proven CSTR (Continually stirred
tank reactor) technology. Anaerobic digestion is a renewable energy generation process in which
microorganisms break down biodegradable material in the absence of oxygen. Anaerobic digestion
technology was developed long back and commercialized in Europe and is technically considered
a low-risk, high-output technology.
8. LAND AND BUILDING: The buildings for the project will consist of cylinder filling room,
administrative office, security room, etc. The provision for tube well, foundations for equipment’s,
internal roads etc. have also to be made.
To ensure continuous supply of the waste, location of the plant has to be in rural background away
from city limits. The land is needed for the planned biogas capacity, storage of cow dung & poultry
droppings or other waste and organic manure produced.
Page 5
9. OPERATIONS: The unit will give employment to at least 15 persons. The maximum capacity
utilization taken is 90%. For marketing the product, we have to take care of requirements of the
different bulk consumers in the AREA.
Page 6
IMPLEMENTATION SCHEDULE
PHASE ACTIVITIES TIME REQUIRED FUNDS REQUIRED
IN MONTHS FOR IN % OF THE
THE ACTIVITY PROJECT COST
1. COMPANY FORMATION
• Company name approval
• Company incorporation
• Issue of Certificate
• Commencement of Business certificate
TOTAL TIME AND COST FOR THE 1 0.25%
PHASE
2. PROJECT DEVELOPMENT
• Site selection 1 5.0 %
• Detailed Project Report 1 1.0 %
• PESO license application 1 0.5 %
• Documentation for Loans 1 2.0 %
TOTAL TIME AND COST FOR THE 3 8.5 %
PHASE
3. DESIGN AND ENGINEERING
• Detailed design and engineering
TOTAL TIME AND COST FOR THE 1 3.0 %
PHASE
4. CONSTRUCTION AND COMMISSIONING
• Order for the Plant and Machinery 1 10.0 %
• Start of civil work 1 10.0 %
• Completion of the civil work of the 3 20.0 %
digester
• Completion of the entire mechanical 1
work of the digester and biogas holder
• Fabrication and commissioning of 3 20.0 %
purification unit
• Commissioning of the compressor 1 15.0 %
system
• Completion of the slurry system 1 5.0 %
• Commissioning of the complete 3 8.25 %
system
TOTAL TIME AND COST FOR THE 10 88.25 %
PHASE
Page 7
CITIZEN CARE BIO CNG PROJECTS
STATUTORY
REQUIREMENTS AND
GOVT. SUPPORT
2020
STATUTORY REQUIREMENTS
ü ‘Consent to establish’ (NOC) under the provisions of the Water (Prevention & Control of Pollution) Act, 1974
and Air (Prevention & Control of Pollution) Act, 1981.
ü ‘Consent to operate’ u/s 25/26 of the Water (Prevention & Control of Pollution) Act, 1974 and/or u/s 21 of
the Air (Prevention & Control of Pollution) Act, 1981.
ü Authorization under Rule 5 of the Hazardous Wastes (Management, Handling and Trans-boundary
Movement) Rules, 2008.
License to dispense Compressed Biogas in vehicles in a station is also granted under it.
Page 1
GOVERNMENT SUPPORT
PROGRAMME ON ENERGY FROM URBAN, INDUSTRIAL AND AGRICULTURAL WASTES/RESIDUES
DURING 12TH PLAN PERIOD
The Ministry of New and Renewable Energy, Government of India supports Biogas Power Plants under above
program. Following projects for Production of Power from biogas produced from sewage and industrial wastes
or from Urban and Agricultural wastes through biomethanation gets subsidy under this programme.
i) Projects based on any bio-waste from urban, agricultural, industrial/agro – industrial sector (excluding
bagasse).
ii) Projects for co-generation /power generation and production of bio-CNG from biogas.
iii) Mixing of other wastes of renewable nature, including rice husk, bagasse, sewage, cow-dung, other biomass
and industrial effluents (excluding distillery effluents) will be permissible.
There will be no minimum / maximum limit on capacity of projects supported under this program;
AMOUNT OF CAPITAL SUBSIDY TO THE PROMOTERS:
WASTES/PROCESSES/TECHNOLOGIES CAPITAL SUBSIDY
1. Bio-CNG / Enriched Biogas from Urban Rs 4.0 crore.
waste / Agricultural wastes / Industrial Per 4800 kgs of Bio CNG/day generated from
waste / Effluents or mix of these wastes. 12000 m3 Biogas /day.
NO INCOME TAX
Under Section 80JJA: Deduction in respect of profits and gains from business of collecting and processing of bio-
degradable waste is allowed. Only MAT 18.5% has to be paid on the income.
NO FEES CHARGED FOR CHANGE OF LAND USE PERMISSION - NO CONVERSION CHARGES FOR SETTING UP
OF RENEWABLE ENERGY PROJECTS IN AGRICULTURE ZONE.
We do not have to pay fees for application under change of land use from state housing and urban development
department.
LONG TERM PURCHASE AGREEMENT SIGNED BY INDIAN OIL CORPORATION LIMITED AT THE CNG RATES
IOCL will sign long term agreement at the present rates declared of CNG.
INDUSTRY STATUS
Loan is available from institute and banks.
Page 2
The Gold Standard (GS) seeks to provide a credible but simple set of criteria that will provide integrity to the
voluntary carbon market. In particular, the GS will ensure that all project-based voluntary emission reductions
that are independently verified to meet its criteria – defined as Carbon credits - represent real, quantifiable,
additional and permanent project-based emission reductions.
The Gold Standard was established in 2003 by WWF and other NGO to provide assurance of integrity, effective
regulation and strong governance in carbon markets and, more broadly, to define, demonstrate and drive best
practice in international compliance carbon markets. It is the only ‘compliance grade’ standard also operating
in the voluntary market and is structured to operate as a genuine regulator on behalf of civil society in these
markets.
A project of 6000 CU M capacity will receive about 25000 carbon credits per year for next 20 years. It will mean
a gain of Rs 40 Lakh per year at the present market rates of carbon credits.
Page 3
CITIZEN CARE BIO CNG PROJECTS
TECHNOLOGY
2020
TECHNOLOGY 2020
BIOGAS TECHNOLOGY
BIOMETHANATION
Bio-methanation process is one of the most essential processes for treating the Bio-degradable portion of Solid
Waste. In this process the organic matter is converted into biogas that is a very useful form of energy. For the
bio-methanation process, the bio-methanation process reactor, called Bio-digester are used in which the
temperature and atmosphere is controlled for the process to occur. Anaerobic processing of organic material is
a two-stage process, where large organic polymers are fermented into short-chain volatile fatty acids. These
acids are then converted into methane and carbon dioxide. Both the organic polymers fermentation process and
acid conversion occur at the same time, in a single-phase system. The separation of the acid-producing (acid-
organic) bacteria from the methane producing (methano-genic) bacteria results in a two-phase system.
The main feature of anaerobic treatment is the concurrent waste stabilization and production of methane gas,
which is an energy source. The retention time for solid material in an anaerobic process can range from a few
days to several weeks, depending upon the chemical characteristics of solid material and the design of the bio-
gasification system (e.g., single stage, two-stage, multi-stage, wet or dry, temperature and pH control). In the
absence of oxygen, anaerobic bacteria decompose organic matter as follows:
The conditions for bio-gasification need to be anaerobic, for which a totally enclosed process vessel is required.
Although this necessitates a higher level of technology than compared to composting, it allows a greater control
over the process itself and the emission of noxious odours. Greater process control, especially of temperature,
allows a reduction in treatment time, when compared to composting. Since a biogas plant is usually vertical, it
also required less area than a composting plant.
Biomethane, after installation of the requisite equipment, is essentially free, as opposed to buying natural gas.
Bio-methane has similar qualities of methane and both are used in interchangeably, and each may be a substitute
for the other.
Page 1
TECHNOLOGY 2020
The primary component of an AD system is the anaerobic digester, a waste vessel containing bacteria that digest
the organic matter in waste streams under controlled conditions to produce Biomethane. As an effluent, AD
yields nearly all of the liquid that is fed to the digester. This remaining fluid consists of mostly water and is
recycled to flush manure from the swine building to the digester.
Page 2
TECHNOLOGY 2020
• WATER SCRUBBING
Carbon dioxide has a higher solubility in water than
methane. Carbon dioxide will therefore be dissolved to
a higher extent than methane, particularly at lower
temperatures. In the scrubber column carbon dioxide is
dissolved in the water, while the methane concentration
in the gas phase. There are technologies available
through which 97% purity of methane can be achieved
with minimal (<5%) methane loss.
Page 3
TECHNOLOGY 2020
• MEMBRANE SEPARATION
Dry membranes for biogas upgrading are made of materials that are permeable to carbon dioxide, water and
ammonia. Hydrogen sulphide, and oxygen permeate through the membrane to some extent while nitrogen
and methane only pass to a very low extent. Usually membranes are in the form of hollow fibers bundled
together.
Page 4
TECHNOLOGY 2020
Also as per the IS 16087:2016 specifications, the following shall also be met
i. CBG shall be free from liquids over the entire range of temperature and pressure
encountered in storage and dispensing system
ii. The CBG shall be free from particulate matter such as dirt, dust, etc.
iii. CBG delivered shall be odorized similar to a level found in local distribution (ref. IS 15319)
Waste coming out of the digester can be separated (solid/liquid) to use the solid part as fertilizer and use the
liquid part as fertilizing irrigation or to be treated further for rejection in nature.
Page 5
TECHNOLOGY 2020
The digested slurry can also be fed directly to the crop through the irrigation channels or it can be stored and
used later whenever required. To derive maximum benefits from the stored digested slurry, it is essential to
prevent its exposure to the sun as any such exposure would result in loss of ammonical nitrogen content of the
slurry. It is advisable to dig, two or three manure pits near the biogas plant. The slurry is then carried and stored
in these pits which are covered with solid waste from the farm.
The fresh biogas slurry when used by mixing with irrigation water to growing crops gives better yields as
compared to other modes of its applications.
POTENTIAL APPLICATIONS
Thermal Application: Biogas Plants could be used for any heating, melting, burning, drying process where an
operating temperature is up to 1250 degree centigrade is required. Thermal application is done either by filling
the compressed biogas in cylinders and then taking those cylinders to the application site.
Other than use as a automotive fuel, some of the other potential applications of Biogas are as under:
• It leads to energy security via conservation of natural resources (LPG, wood, kerosene, coal, etc.).
• Many types of raw material (other than dung) can be used in the plant: Kitchen Waste, Vegetable & Fruit
Market Waste, Agro & Farm Waste, Food Processing Waste and other Bio Degradable Waste.
• It destroys Methane, which is a potent greenhouse gas with a heat trapping capacity of approximately 21
times that of carbon-di-oxide. It thus leads to reduction of global warming.
Page 6
TECHNOLOGY 2020
• Biogas plants also produce enriched organic manure. This can be used as fertilizers. Liquid slurry is rich in
micro & macro nutrients along with NPK and can be directly applied in fields. It leads to soil improvement due
to high nitrogen contents.
• Biogas as a gas provides improvement in the environment, sanitation and hygiene by proper management of
waste.
• It improves ground water quality as anaerobic digestion provides several water quality benefits.
• Biogas digesters can destroy more than 90% of disease causing bacteria that can otherwise enter surface
water. Thus it reduces risk to human and animal health.
Page 7
CITIZEN CARE BIO CNG PROJECTS
PLANT AND
MACHINERY
2020
DIGESTER
(Anaerobic Digester) Water recycle
EXCESS GAS
FLARING SYSTEM EFFLUENT BUFFER
TANK
Raw Biogas Biogas Slurry (Slurry evacuation)
WET SCRUBBER
Dried Slurry
BIOGAS ONLINE MONITORING
(Sensor based system)
SETTLING AND
AERATION TANK
HIGH PRESSURE COMPRESSOR (Water recovery for recycle)
Page 1
It deals in generation of biogas from Cow Dung or Poultry droppings. Biogas is produced in an anaerobic digester
i.e. a Biogas plant. Biogas in its natural self consists of Methane gas, Carbon dioxide, Hydrogen sulphide, Moisture
and traces of other gases. These are the components of the section:
I. RECEIVING TANK: The Dung is mixed with water in the receiving tank with the help of mechanical stirrer.
The ratio of the mixing of water and waste depends upon quality of material. The material is thoroughly
mixed till homogeneous slurry is formed.
II. INLET PIPE: The slurry is moved into the digester through the inlet pipe.
III. DIGESTER: The mixed slurry is then fed to the anaerobic digester for production of biogas. It is equipped
with a stirrer and heating system. Inside the digester, the slurry is fermented. Biogas is produced through
bacterial action. Temperature is maintained around 35°C.
IV. DOUBLE MEMBRANE TOP BALLOON: The biogas thus formed gets collected in the gas holder. It holds
the gas till the time it is transported for purification. A separate biogas balloon can work as gas holder.
V. EFFLUENT BUFFER TANK: The slurry is discharged into the outlet tank. This is done through the outlet
pipe or the opening in the digester.
VI. EXCESS GAS FLARING SYSTEM: The excess gas flaring system is provided to flare the bio gas when the
engine generator set is under maintenance & storage is full. As methane is a greenhouse gas and highly
flammable, it cannot be allowed to evacuate freely in to atmosphere.
Page 2
2. PURIFICATION PLANT:
Biogas is an economical, renewable and an eco-friendly fuel. Biogas produced in anaerobic digester consists of
Moisture, Carbon dioxide, Hydrogen sulfide and Methane gas. Methane has a high calorific value in its pure stage.
Due to the presence of impurities Biogas becomes a very low calorific value fuel and hence finds a very limited
application even though it is cheap and easily available.
We have to extract pure and high calorific value fuel methane from low calorific fuel Biogas to make it suitable
for compression. Once pure Methane is available in suitable quality and quantity it finds a wide range of
applications from Motor car Engine, as cooking fuel and to operating a Gas Turbine for rural power generation.
Main components of the section:
I. WET SCRUBBER: Biogas generated from the digester is allowed to flow through moisture traps. This
process drains out the water droplets present in the gas. Raw Biogas is compressed by the Low Pressure
Compressor and fed to the bottom of Packed Tower and from the top water is sprayed through water
Rota pump. Gas and water interact inside the tower in counter current; as a result, carbon dioxide and
hydrogen sulphide dissolve in water. Water with dissolved gases exits from the bottom of tower and
releases dissolved gases in the cooling tower at atmospheric pressure. The Physical Absorption Device is
a specially designed modern high pressure combined directional flow device for cleaning Biogas of its
high impurities.
II. PSA DRIER: Enriched gas exiting from top of tower contains moisture which is removed by PSA at
scrubber pressure.
III. BIOGAS ONLINE MONITORING: A monitoring device is fitted after the filters to gauge the quantum of
different gases H2S, CO2, CH4 and Moisture present in the gas.
Page 3
I. HIGH PRESSURE COMPRESSOR: The gas is compressed at 200 bar pressure and distributed through Biogas
cylinders to users. This pressure is considered suitable to fill up a Cascade of Biogas cylinders. This Bottle
Rack can then be connected to a standard CNG Dispenser unit. Now this purified Biogas is ready to be
used as Fuel, it is renamed as CBG - COMPRESSED BIOGAS.
Page 4
4. CONTROL SYSTEM:
Page 5
I. SCREW PRESS: Slurry from effluent buffer tank is passed through screw press for Separation of coarse
solids from fine & liquid matter.
II. SETTLING AND AERATION TANK: Residual Slurry is made to pass through settling tank, aeration tank &
secondary clarifier for recycling to process again.
III. BAGGING MACHINE: Solid waste created in decanter centrifuge and Clarifier is passed through drying
yard and bagged.
Page 6
BIOGAS PLANT
ORGANIC
FERTILIZER
The digested slurry can be fed directly to the crop through the irrigation channels or it can be stored and used
later whenever required. To derive maximum benefits from the stored digested slurry, it is essential to prevent
its exposure to the sun as any such exposure would result in loss of ammonical nitrogen content of the slurry. It
is advisable to dig, two or three manure pits near the biogas plant. The slurry is then carried and stored in these
pits which are covered with solid waste from the farm.
The fresh biogas slurry when used by mixing with irrigation water to growing crops gives better yields as
compared to other modes of its applications.
CITIZEN CARE BIO CNG PROJECTS
FINANCE
2020
FINANCE
2020
PROJECT FINANCE
LEASE FINANCE
20% of the project finance we can get lease from any private finance company.
Page 1
FEASIBILITY OF BIO CNG PLANT PROJECT
OFFICE EXPENSES
Sales expenses 5.50 5.50 5.50
Professional fees 2.50 2.50 2.50
Administrative expenses 6.00 6.00 6.00
ESTIMATED COST OF OPERATION 193.19 193.19 193.19
OFFICE EXPENSES
Sales expenses 5.83 5.83 5.83
Professional fees 2.50 2.50 2.50
Administrative expenses 6.00 6.00 6.00
ESTIMATED COST OF OPERATION 148.19 148.19 148.19
OFFICE EXPENSES
Sales expenses 5.50 5.50 5.50
Professional fees 2.50 2.50 2.50
Administrative expenses 6.00 6.00 6.00
ESTIMATED COST OF OPERATION 193.19 193.19 193.19