InfraCo Asia Inks Pact for 12MW Biomass Project in MP
May 16: InfraCo Asia Development Pte. Ltd. (InfraCo Asia), part of the Private Infrastructure Development Group (PIDG), has inked a Joint Investment and Development Agreement (JIDA) with Real Energy & Infrastructure Private Limited (REIL) for the development of a 12MW biomass based power plant in Jabalpur, Madhya Pradesh, India. This will be InfraCo Asia’s first biomass project in India, said a news source.
The Madhya Pradesh State Government, as part of a policy to encourage the development of biomass-based power projects, is to allocate 750 acres of leased land for the energy plantation for the Jabalpur Biomass Power Plant. As much as 250 acres of this land have already been allocated to REIL. The Project implementation will be managed by Equicap Asia, InfraCo Asia’s contracted Developer Team for South Asia, and REIL, the report added.
It is being said that, as a commercial-scale producer of forestry biomass that relies on surplus agricultural residue collection, the power plant will be a ‘first-of-its-kind’ biomass power project development in India. It will include a dedicated, sustainable energy plantation, with agricultural biomass sourced from local farmers through modern, mechanised methods and practices. It is hoped that successful implementation of the Jabalpur Biomass Power Plant will lead to a ‘demonstration effect’ that opens new pathways to more private sector investment in fuel-assured biomass power plants in India. Additionally, such projects can serve as an alternative for disposing of post-harvest agricultural waste residue, which is typically burned, but can instead be used as a source of biomass fuel.
Once in operation, the plant will tap into the vast potential for biomass power plant development in both Madhya Pradesh and India as a whole. Current total installed biomass capacity in Madhya Pradesh is 43MW, but the state has the potential to generate in excess of 3.1GW of power from biomass fuel.
The company believes that by investing in the Jabalpur Biomass Power Plant, InfraCo Asia would look to serve as a catalyst for future biomass power development in India. As there is significant potential for greater private sector investment in this space, InfraCo Asia’s involvement in the project is aimed at helping to demonstrate this opportunity for private sector investors.
In partnership with REIL, the company would look to bringing to life a biomass power plant that will set new standards for both securing raw materials and providing sustainable investment for a significant market opportunity.