Spin Off Benefits of Bio Energy
Carbon Sinks There is a vital difference between energy production from fossil fuels and from biomass. Burning fossil fuels releases CO2 that has been locked up for millions of years. By contrast burning biomass simply returns to the atmosphere the CO2 that was absorbed as the plants grew and there is no net release of CO2 If the cycle of growth and harvest is sustained. Thus the biomass option is proven to be CO2 neutral. Energy plantations will act as carbon sinks. As such the energy producers using bio mass could benefit from the Carbon Credits under the Cleaner Development Mechanism
( CDM ) formulated under the Kyoto Protocol carbon credits are being traded for US $ 2-4 per MT.
Soil Enrichment
The establishment of SRC plantations with Nitrogen fixing trees such as Gliricidia and Leucena in degraded lands previously used by shifting cultivators will over time upgrade the land to its original status.
Soil Erosion
Gliricidia has been proven to be ideal for Sloping Agricultural Land Technology (SALT). Through a method of planting along the grid lines in twin hedgerows soil erosion can be arrested. This method has been very effectively sustained in the hill country in tobacco growing lands.
Pricing Energy efficiency wise 4 tonnes of fuelwood is equivalent to 2 tonnes of Coal or 1 Tonne of oil. At current prices for oil at around Rs 22,000.00 per tonne the energy equivalent price of fuel wood would be around Rs 4000.00 per tonne. The current delivered price of sustainably grown fuel wood (Gliricidia) is Rs 1500.00per tonne. Presently, energy for energy, sustainably grown fuel wood ( SGF) is three times cheaper than oil. With the creation of the market fuelwood is likely to be even cheaper to the future. As the price of fossil fuel continue to increase and the supply becoming volatile, domestically grown fuelwood will become increasingly attractive.
Employment & Growth in Rural Economy Fuelwood farming can become an attractive employment opportunity to the rural youth. A fully grown energy plantation of 50 Acres can provide employment to around 40 persons on a sustainable basis bringing an income of around Rs 200 a day for manual labour. A one MW power plant would inject a sum of Rs 22 million to the rural economy. This sum will be shared between the farmers and the collecting agents. This opportunity will also prevent migration by the rural youth to urban areas.
Foreign Exchange
Large sums of foreign exchange will be saved from not importing fossil fuel and can be diverted to other important areas or reserves.
Land Use/Green cover
Large extents of unproductive lands would now be better utilised as energy plantations. Not only will there be plantations but simultaneously the green cover in the country will be enhanced. If 50,000 Hectares of energy plantations are grown it can increase the forest cover from the current 19% to 25%.
Electricity to Inaccessible areas
There are many areas in the country where grid electricity may not reach due to transmission difficulties. Biomass electricity is an ideal solution to such areas.
Economic/Social/Environmental Impact
The economic, social, and environmental impact from the above will be a tremendous boost to the country as a whole.