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BIOMASS BRIQUETTES by Mr Con nA Quarterly Newsletter of the Project - T EEnergy Conservation in Small Sector Tea Processing Units in South India ea Issue - 6 September 2009 Mr. R.D. Nazeem, I.A.S., PROJECT IN BRIEF EDITORIAL Executive Director, Tea Board The project - Energy Conservation National Project Director of the Project in Small Sector Tea Processing Units in south India, has been As I write the editorial for a position to sustain even uncertain initiated by the Tea Board to the sixth issue of the market conditions'. remove barriers to energy newsletter, I have in I had highlighted this issue in my last conservation and energy efficiency front of me, co- editorial as well. I think the project that inhibit the realization of large incidentally, the implementation team may be missing energy saving potential in the tea quarterly progress out on some key issues impeding sector. This 4-year project is reported given to me by transition to energy efficiency. I am supported by the United Nations the implementation team. I realize that therefore suggesting to them that an Development Programme - Global the project has done good work in external financial consultant be reaching out to all factories in south Environment Facility. The project’s identified who would interact with the India with very relevant information, objective is to remove barriers and tea industry, assess financial risks and and has created a good enabling to develop replicable strategies for then work towards developing a risk mechanism for energy conservation. energy efficiency and energy management strategy for the tea This quarter, in fact, we have had a industry. This activity has been conservation interventions in the plethora of events related to tea processing industry in south mandated by the project as well. I awareness creation. The project has welcome suggestions from the sector India. The objective would be for the first time reached out to achieved by: on how implementation can be given factories in the north east by an impetus. a. Awareness creation among the conducting an awareness meeting in target sector about energy Kolkata. The response to the same We have been grappling with issues efficiency/renewable energy was very heartening and there were relating to creation of additional technologies and their relation several requests for similar activities briquetting infrastructure to increase to profitability to be initiated in tea clusters in the east supply of good quality briquettes to the and north east. The Annual General industry at a reasonable cost. I have b. Elimination of financial barriers Meeting of UPASI, the inauguration of had meetings with briquette that inhibit investment in the Kaikatty and the Energy lab at manufacturers, suppliers of raw energy conservation UPASI by the Chairman, Tea Board, materials and understood that equipment the talk on energy efficient drying creation of this infrastructure is c. Adoption and procurement of techniques by Mr. Lalit Meisheri, the possible and should be done. I hope energy efficiency/renewable buyer seller meet were all events for that we have something positive to energy equipment /practice mainstreaming energy conservation in report in the next newsletter. Some the tea industry. other issues that we would take up in d. Learning, knowledge sharing the coming months would be to enable and replication But the one issue that needs to be tea estates to generate power for their addressed very seriously and very needs from streams in their estates. 2 Viewpoint soon is the implementation of energy The first such application for a subsidy Mr. Sunil Goyal conservation measures in tea from the Ministry of New and factories, because that is the ultimate 3 Dehydration At Room Renewable Energy has been indicator of the success of the hard forwarded and we would expedite Temperature work that we have all been putting in. By Mr. Lalit D. Meisheri more such applications from the tea Kaikatty and Highfields have taken the estates. 4 Emerging Options For lead in moving to energy efficient Conservation Of equipment and I am told that about Another idea that we are considering Thermal Energy: Biomass 20% electrical energy conservation is to understand how tea factories can Briquettes has been achieved in Kaikatty. Mr. avail carbon credits for energy By Mr. Praveen, Mr. Swaminathan makes a very poignant conservation activities. We think that Manigandan & Mr. statement after the implementation of we can come back to you with an Radhakrishnan energy audit recommendations when awareness package about this in the next quarter but it would be great to Events he says 'Kaikatty Industrial 5 see progress on the implementation INSIDE Cooperative Tea Factory has gained a Resources competitive edge over others and is in front. 8 (For Internal Circulation Only) 1 INTERVIEW WITH MR. SUNIL GOYAL, EX-PRESIDENT BOUGHT LEAF TEA FACTORY ASSOCIATION 1. You are one of the few people who participated in incorporate storage requirements, transportation and conceptualization of the project and are observing processing facilities, etc. This would mean we venture project progress. According to you and from the into backward integration. Bought leaf factories perspective of a bought leaf factory, what should operate on a smaller scale and running a briquetting VIEW POINT we be doing next? unit is not necessarily within their capacity, leading to operational constraints. Much has been discussed regarding these issues, in forms of seminars, conferences and presentations, Briquette suppliers exist, however, the problem is often which we have keenly been part of. Visualization and with the briquette quality due to incorrect composition conceptualization are going great, but we should start of the briquette. Raw materials used for the briquette implementing immediately. It is important that we meet should suit factory requirements and be available in to act upon the plans we make, and don't stop at their abundance, for it to be a workable proposition for development. Let awareness programs continue, but entrepreneurs who are willing to set-up briquetting simultaneously, the action part of it should develop units in suitable locations as a separate business more rapidly and strongly. venture. Each briquette supplier can work area-wise, which also solves certain transportation and storage Further, the concepts we build should be viable and issues. One such commercial enterprise can easily feasible. Though very attractive, when considering all provide briquettes to 15+ bought leaf factories. the intrinsic details of certain initiatives, their implementation may not be beneficial for some bought 4. Most equipment manufacturers think that they leaf factories. Another point to be noted here is that any could drop prices of equipment for the bought leaf effort aimed at energy conservation should not be at sector if the tea factories could aggregate their the expense of quality. equipment needs and place bulk orders. Do you think this would work? 2. You have often said that the bought leaf factories cannot invest large amounts in energy efficient Aggregating equipment needs may be quite equipment. Can you suggest financial measures challenging, as the timing and type of requirements in that would stimulate adoption of costlier energy different factories may vary greatly. Also, several other efficient equipment? factors influence the factory owner's decision to make a certain capital investment. Making huge investments in new technology often poses risks and uncertainty to factory owners. They On the other hand, if suppliers of such equipment could need guarantees that their large investments would be called to a common platform, such as our Bought make their operations more efficient and economical. Leaf Tea Mfrs Association, this would result in an Furthermore, reversing the whole set-up, if organized approach. As a whole, we could decide upon unsatisfactory, would again be very costly and time one or two vendors from whom to procure equipments consuming. Discontinuing production even for a few we require. We would repeatedly approach the same days, would result in loss of output and profit. vendors to source our needs and perhaps work out a certain scheme or agreement, from which factory The concept of saving energy is not new, but with owners as well as equipment suppliers could benefit. TIDE, the Tea Board and other organizations stepping in, the focus has turned to these particular aspects. Perhaps, companies like ELPRO could come forward with such a proposal along with finance options. Once If a factory doesn't have the required spare capital, established, one can prove oneself worthy of business companies like ELPRO could assist it with funds for and identify further business potential. better energy efficient technology. The best option would be if the Tea Board offers the industry interest 5. There is much talk of carbon revenues for the tea free loans to invest in energy saving devices. Factories sector. But this would require that the sector take a could periodically pay back this amount, using collective or a consortium approach for making a revenues and savings generated through their case for carbon credits to the sector. How do you investments, without being burdened by the payment think the sector in general and the bought leaf of additional interest upon their loans. This resembles factories in particular could organize themselves a hire-purchase scheme, or a concept of partly funded as a consortium to enable carbon finance? options. This is indeed a very important topic which has not yet 3. The sector faces enormous fuel stress. Do you been deeply looked into. Perhaps, many factory think it would be a good idea for each factory to owners are not clearly aware of this concept, to actually invest in its own briquetting units if the project can consider it and make use of its benefits. help develop linkages with loose biomass For this, perhaps an agency should step in, create suppliers similar to the current firewood supply awareness and allow interested factory owners to take linkages? part in such a consortium.
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