Hutah Industries, a pioneering biomass-based power generator, on 25th August, 2023, signed a Power Purchase Agreement (“PPA”) with the Department of Power, Nagaland, marking a significant step toward sustainable energy generation. This historic deal marks the start of a 10 MW bamboo biomass project that will thrive in the scenic terrain of AK Industrial Village in Dimapur, Nagaland. Notably, the plant will be built, owned, and operated, indicating a significant step toward cleaner energy sources.
The AK Industrial Village will serve as the nucleus of this huge bamboo power initiative, spanning an astonishing 1,500 acres of land and secured on a long-term lease of 25 years and will be developed on the basis of build, own, operate model. Hutah Industries will lead the project’s execution, using a turnkey Engineering, Procurement, and Construction (“EPC”) strategy.
One of the primary features of this programme is the competitive tariff rate of Rs. 5.06 ($0.061)/kWh, which will remain constant for the full 25-year term of the Power Purchase Agreement. With a definite timeline, the project is scheduled to be completely operational within 24 months after the PPA signing. The commitment of the Nagaland Department of Power to facilitate the evacuation line from the factory to the Ganesh Anagar 33 kV substation is critical to the project’s success. Hutah Industries will pay for this vital infrastructure 18 months before the project is completed.
The selection of Beema bamboo, a tissue culture variant developed by Indian scientist N Barati, as the major crop for this project offers considerable promise. From sowing to harvest, a technological platform will be integrated to rigorously control and monitor the complete life cycle of bamboo. Furthermore, an innovative agri-drone monitoring system will be used to optimize bamboo estate operations in the difficult steep terrain.
Hutah Industries has previously signed an Emission Reduction Purchase Agreement (“ERPA”) with EKI Energy to trade carbon credits for the next 10 years, which is a noteworthy step toward environmental sustainability. The process of listing these credits has already begun, emphasizing the government’s commitment to a greener future.
This development is consistent with the recent adjustment of the Biomass Co-Firing Policy by the Ministry of Power. The regulation change attempts to establish baseline prices for biomass pellets used in co-firing at thermal power facilities. This modification is in reaction to changing market conditions and the expressed needs of many stakeholders, which include thermal power plants, pellet manufacturers, farmers, bankers, and others. Additionally, the Madhya Pradesh Electricity Regulatory Commission has approved a pricing of Rs. 5.07 ($0.062)/kWh for distribution firms (DISCOMs) acquiring power from biomass-based plants in Madhya Pradesh.
The 10 MW bamboo biomass plant in Nagaland by Hutah Industries represents not only a big step forward in sustainable energy generation but also a model for leveraging the potential of renewable resources to power our future. As this initiative grows, it serves as a light of hope for cleaner, greener energy options around the world. Stakeholders must continue to collaborate, develop, and adapt to changing market circumstances to ensure its success. We can accelerate the transition to a more sustainable, environmentally friendly energy landscape that benefits not only the current generation but also leaves a lasting legacy for future generations.