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ADB and SAEL Sign Agreement for INR 754 Crore to Promote Biomass Energy in India

The Asian Development Bank (ADB) and SAEL Industries Limited have signed an agreement of up to INR 754 Crores (around $91.14 million) to promote the generation of biomass energy using agricultural residue, helping diversify India’s energy mix and reduce carbon intensity.

March 24, 2023. By News Bureau

The Asian Development Bank (ADB) and SAEL Industries Limited have signed an agreement of up to INR 754 Crores Indian rupees (around $91.14 million) to promote the generation of biomass energy using agricultural residue, helping diversify India’s energy mix and reduce carbon intensity.

Each year farmers in Northern India burn crop stubble in their fields to remove paddy residue, resulting in severe air pollution with devastating health effects in the region.

SAEL Industries Limited has developed a business model where crop residues are used as fuel in waste-to-energy projects. Company’s ambition is to grow its portfolio to 3.5 GW over the next four years by adding 100MW of new biomass and 600MW of new solar capacity annually.

ADB’s support will fund the construction of five biomass powerplants in the districts of Bikaner, Churu, Hanumangarh, Jhunjhunu, and Sikar in the state of Rajasthan.

“By collecting the crop stubble to be used as fuel in our waste-to-energy plants, we contribute to combat one of our nation’s greatest health issues, while at the same time creating local employment and generate extra income to farmers and local entrepreneurs. We are happy to have ADB partnering with us in these efforts,” said Jasbir Singh, Chairman and Managing Director of SAEL Limited.

“Establishing biomass power plants that can repurpose agricultural residue will help protect the environment while contributing to the government’s goal of expanding renewable energy sources and reducing carbon dioxide emissions. It will also help increase income of local farmers through sales of agricultural residue and reduce burning of agricultural waste, contributing to improvement of air quality,” said ADB Vice-President for Private Sector Operations and Public–Private Partnerships, Ashok Lavasa.

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Biomass

Asian Development Bank

ADB

SAEL Industries Limited