Five Options Beyond Imported Gas for India

In the current uncertain geopolitical landscape, energy security has emerged as a major issue for the Indian industry. The recent tensions in the international arena have caused fuel supply disruptions, which have, in turn, revealed the dependence of the nation on imported fuels, particularly Liquefied Natural Gas (LNG). Supply cuts of up to 40-50% have already hit the industrial units in western India, which has caused a slowdown in the production activities of some of the major manufacturing hubs. This is a reflection of a basic truth that the strength of the Indian industry lies in the fuels that power its boiler rooms.

India has one of the largest numbers of industrial boilers across the globe, with over 45,000 boilers producing over 1.26 billion tonnes of steam every year. This steam is required to power critical sectors such as food processing, chemicals, textiles, pharmaceuticals, and paper. Nevertheless, a large proportion of this energy comes from imported energy sources. In 2023, India imported over half of its natural gas demand as LNG. Of this, industries consumed nearly 40%. In addition, the cost of LNG in Asia varies between $10 and $15 per MMBtu. The need of the hour is not to look at the transition to domestic, reliable, and resilient energy sources as an option but as a necessity.

Biomass Energy: India’s Strategic Domestic Fuel

Biomass energy presents one of the most accessible and scalable alternatives to imported gas. India produces over 500 million tonnes of agricultural residue annually. This includes rice husk, bagasse, groundnut shells, cotton stalks, and sawdust. Most of these residues are underutilized and often wasted by burning them, causing air pollution.

The agricultural residues produced annually can be converted into high-density fuels by briquetting and pelletisation. Biomass briquettes have a calorific value of 3200 to 4200 kcal/kg. Similarly, biomass pellets have a calorific value of 3800 to 4500 kcal/kg. This is almost on par with coal and is adequate for steam production.

The advantages of biomass energy are evident. It is a domestic source of energy and hence protects industries from global gas price shocks. Another advantage of biomass energy is its contribution to a sustainable economy. It reduces waste by turning agricultural waste into energy. It is also a buffer for uncertain times.

Gobar Gas (Biogas): Waste-to-Energy at the Source

Another strong energy alternative that combines energy production with waste recycling is gobar gas or biogas. Gobar gas is derived from an anaerobic digestion process of organic matter including cattle dung, food scraps, and crop residue. Luckily because it has a large livestock base and agrarian economy, India is particularly suited for this type of energy.

Biogas can be used as a fuel for applications that require heat and steam, such as small- to medium-sized businesses. For instance, a food processing plant, a dairy farm, or a rural manufacturing facility can produce their biogas using different waste streams. This reduces costs associated with fuel and waste disposal.

Additionally, biogas systems generate nutrient-rich (slurry) that is available to use as an organic fertilizer. This provides an example of closed-loop production. Therefore, the decentralized processing of gobar gas reduces reliance on energy from outside sources and will enhance the ability of local communities to access energy and improve their resilience.

Compressed Biogas (CBG): Scaling Clean Energy for Industry

Compressed Biogas (CBG) is based on the idea of upgrading and purifying biogas so that it is comparable to natural gas in quality. Once it is compressed, it can be used as a substitute for CNG and natural gas.

India is encouraging CBG through schemes like SATAT, which aims at developing a large number of plants across India. The advantage of CBG is that it can be easily adapted into existing infrastructure which makes it easy for industries to switch from LNG.

Another advantage of CBG is that it is a part of the circular economy, which helps in using agricultural waste, MSW, and organic waste from industries. This not only helps in reducing dependence on imports but also solves the problem of waste management. CBG can be used as a fuel for industries, making it a major player in India.

Biomass-Based Boilers: Strengthening the Industrial Backbone

The boiler room is where the real action on industrial energy security begins. The boiler is a key part of any industry’s operation, providing the steam that powers many crucial processes. Traditionally running on coal or gas, these boilers are now being converted to burn biomass fuels.

New biomass-based boilers have been developed that are efficient for burning, minimize emissions, and are compatible with briquettes and pellets. Industries in textiles, chemical, food processing, and many other sectors have already started making the change to these new boilers to cut their fuel bills and ensure a more reliable supply.

By moving to biomass-based boilers, industries can protect themselves against the uncertainties of global fuel markets. Moreover, they also become part of a movement that is reducing greenhouse gases in the atmosphere because biomass is a near carbon-neutral fuel—i.e., the amount of carbon emitted during burning is matched by the amount that was absorbed during growth.

Fuel-Flexible Boiler Systems: The Future of Industrial Energy

While individual fuel alternatives are important, the most reliable alternative lies in the adoption of fuel flexible (multi-fuel) boiler systems. This is due to their capacity to utilize different types of fuels. This means they can burn different types of fuels, including biomass briquettes and coal blends.

The main advantage of these systems is their capacity to avoid dependency on single fuels. This means that if there is an interruption in the imported LNG fuels, industries can easily turn to alternative fuels like biomass. This flexibility ensures that there is no interruption of activities and control of costs.

In an age where disruptions in energy supplies are becoming common, flexibility is the ultimate form of security. This is why fuel flexible boiler systems are critical for the development of a futuristic industry. This is due to their capacity to adapt to changing market conditions.

Local Energy as the Foundation of Resilience

The current issues are not transitory but reflect a more uncertain future, as dependence on imported gas would expose India’s industries to cost and supply risks. The way forward is to create a diversified, locally driven energy system. Options like biomass, gobar gas, compressed biogas, and fuel-flexible systems can help break dependence on imported fuels, promote sustainability, and benefit rural India. Energy security needs to look beyond efficiency and into resilience, as in times of global disruption, local sources of energy can provide the strongest base for ensuring industrial stability.

(The author is Managing Director of Vihaan Clean & Green Tech and Go Green Mechanisms.)