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Promoting Sustainable Energy Production & Use from Biomass in
Pakistan
Project Steering Committee – July 29, 2016
Project Status, Challenges and Plans
Ali Yasir National Project Manager
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Table of Contents I. Project Overview
II. Component 1: Demonstration of Technical and Financial Feasibility
III. Component 2: Awareness Raising and Knowledge Dissemination
IV. Component 3: Policy Advisory
V. Component 4: Capacity Development
VI. Project Budget and Spending
VII. Challenges Going Forward
VIII. Glimpses of the Project
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Project Overview
Objective
Promoting market-based adoption of modern biomass conversion
technologies in Pakistan for application in SME Industries and Rural
Electrification (with particular focus on introduction of biomass gasification)
GEF Grant: 1.82 mil. USD
Cofinance: 5.34 mil. USD
Executing Agency: Ministry of Climate Change Implementation Partners: SMEDA, AEDB, NUST, Private Sector Duration: May 2012 - Dec 2017 Beneficiaries: SMEs, rural communities, academia & govt
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Demonstrating Technical &
Financial Feasibility of
modern Biomass Tech.
Policy
Advisory
Capacity Building of
Biomass Gasification
Support System
Information Dissemination & Confidence
Building
Pro
ject
Ove
rvie
w
Project Components
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Component 1 - Demonstrating
Technical Feasibility and Commercial Viability of Modern
Biomass Conversion Technologies in SMEs in Clusters and Power Generation in Rural Areas
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Outcome 1: Three demonstration projects installed with an installed capacity of 4.3 MW, to demonstrate technical feasibility and commercial viability of biomass systems
Component 1: Outcome
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Output 1.1: Assessment and feasibility analysis of demo projects
Feasibility studies for 3MW and 1 MW biomass gasification
based combined heat and power application in Amir Rice Mills and KDC Boards have been completed. Call for expressions of interest for high-efficiency combustion-
based industrial biomass power plants for 1MW and 3 MW have been made. Deadline for submission of EoI is 29th July, 2016. Data collection for finalisation of feasibility study for the rural
electrification biomass project in Rajanpur, Punjab is underway.
Component 1: Status
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Output 1.1: Assessment and feasibility analysis of demo projects 1. Drop in oil and grid electricity prices resulting in Amir Rice and KDC
becoming unable to recover project cost
2. Project site for rural electrification demo project became inaccessible due to military operation in Southern Punjab (Rajanpur area) causing delay in final field visit
Proposed Alternative:
1. Going for high efficiency biomass combustion plants in Industries due to better project financials
Output 1.2: Demo projects installed and in operation 1. Project unable to exercise control over beneficiaries to invest in demo
units following feasibility studies
Proposed Alternative: Ensuring implementation of demo projects by offering grant that will be tied to on-ground demo unit implementation milestones
Component 1: Challenges faced during activity implementation
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Output 1.1: Assessment and feasibility analysis of demo projects
Best EOIs will be eligible for a small grant by UNIDO that will be disbursed at specific implementation milestones. Implementation of both units to be concluded by October, 2017.
After completion of the feasibility study, the study will be disseminated with various rural development organizations for implementation by August 2017
Conceptualisation and subsequent feasibility of a small on-farm gasifier demonstration project at the National Agricultural Research Centre (NARC), Islamabad
Output 1.2: Demo Projects installed and in operation
Ensuring timely implementation of demo projects through monitoring and grant disbursements
Component 1: Planned Activities
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Component 2 – Information Dissemination & Confidence
Building
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Component 2: Outcomes
Outcome 1: Awareness on benefits and use of biomass gasification technologies (BGTs) created amongst decision-makers in SMEs, financial institutions and other stakeholders
Outcome 2: Investment and replication strategy for gasification in SMEs and rural areas is developed; Knowledge and information on gasification applications disseminated
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Component 2: Status
Output 1.1: Awareness raising campaign with International conference, seminars, media
Awareness raising workshop on biomass gasification was jointly organized by UNIDO and SMEDA at the Gujranwala Chamber of Commerce and Industry in Feb, 2015.
UNIDO sponsored the technical session on bio-energy (that included presentations on biomass gasification technology) during the 2nd International Biotechnology Conference, Lahore in Feb 2016
UNIDO and NUST held the 1st International Biomass Gasification Conference and Expo on 27-28, July 2016 with participation from SMEs, entrepreneurs, public sector organizations, NGOs and academia.
UNIDO actively engages in information dissemination via social media. Conducted a promotional show on radio and TV
Challenge: Delay in international conference due to personnel changes at NUST & UNIDO
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Component 2: Planned Activities
Output 1.1: Awareness raising campaign with International conference, seminars, media
Awareness session with State Bank of Pak, SMEDA, commercial banks and potential project developers from industry on financial aspects of biomass gasification projects
Video documentary based on demo pilot units, local manufacturing, technology transfer aspects, financing etc for awareness raising
Dissemination of promotional material to SMEs for biomass based development projects
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Component 2: Planned Activities
Output 2.1: Portfolio of biomass gasification projects technologies in SME clusters and rural areas developed for dissemination
Development and dissemination of portfolio of biomass gasification projects
Output 2.2: Elaboration of a guidebook on the use of gasification technologies in SMEs in Pakistan
Development and outreach of biomass gasification guidebook
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Component 3 - Concrete regulations and policy instruments and
provisions promoting the use of modern biomass energy conversion
technologies (in particular gasification) are developed as part
of the RE Law
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Component 3: Outcomes
Outcome 1: Concrete regulations and policy instruments and provisions promoting the use of modern biomass energy conversion technologies (in particular gasification) are developed as part of the RE Law)
Outcome 2: Standardization and minimum performance standards for gasification technology developed and adopted
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Component 3: Status
Output 1.3: Improvements in the current RE framework that are tailored for the promotion of BGT systems
Policy advisory on promotion of biomass technology is underway. International consultant was contracted in March 2016. Scope of work includes:
I. Development of a concrete set of policy recommendations based for promotion of biomass for existing policies and regulations
II. Development of a biomass feedstock pricing mechanism along with pricing model
III. Policy recommendations for indigenization of biomass gasification technology in Pakistan
Draft policy recommendations have been developed incorporating the comments from UNIDO and AEDB.
Output 2.1: Minimum quality and performance standards for biomass gasifiers are prepared based on internationally accepted practices
First draft of standards prepared for consultations with relevant stakeholders
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Component 3: Planned Activities
Output 1.1: Capacity strengthening of selected national and provincial government ministries and agencies
Biomass policy training session for federal and provincial agencies to be conducted along with dissemination of policy recommendations planned in September 2016
Output 1.2: Established policy dialogue amongst relevant stakeholders
Draft policy recommendations are discussed with relevant stakeholders in bilateral meetings and also in a large dissemination workshop
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Component 3: Planned Activities Output 1.3: Improvements in the current RE framework that are
tailored for the promotion of BGT systems
Final draft of policy recommendations will be prepared after a series of bilateral meetings with stakeholders by end of August 2016
Final draft will be presented to a wide range of stakeholders in a dissemination workshop. Comments received during the workshop will be incorporated to prepare the final policy recommendations by end of September 2016
Finalized policy recommendations are presented to the AEDB board for approval and onward action
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Component 3: Planned Activities
Output 2.1: Minimum quality and performance standards for biomass gasifiers are prepared based on internationally accepted
practices Final draft of quality standards will be prepared after a series of bilateral
meetings with stakeholders by end of August 2016 Final draft will be presented to a wide range of stakeholders in a
dissemination workshop. Comments received during the workshop will be incorporated to prepare the final quality standards by end of September 2016
Output 2.2: Adoption of technical standards for BGT equipment as a voluntary control system (and promoted by AEDB)
Final standard document is approved by AEDB and set as voluntary standard document for review of feasibility studies, provision of incentives and onward submission to relevant authorities
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Component 4 - Staff in technical service and product providers for projects involving modern BGTs is
trained in providing technical products and expertise to such
projects
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Component 4: Outcomes
Outcome 1: Staff in technical service and product providers for projects involving modern BGTs is trained in providing technical products and expertise to such projects
Outcome 2: Capacity of training and research institutions that support markets for BGTs enhanced through organizing training and conducting applied research
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Component 4: Status
Output 1.1: Assessment of capacity of market players and training needs defined
Capacity needs assessment study for relevant stakeholders conducted in December 2014
Output 1.2: Training of SMEs, Technology/service providers on BGT
Series of five trainings on biomass gasification conducted
Training manual prepared
Output 1.3: Matchmaking and technology transfer agreements between Companies in Pakistan and abroad
MoU signed between Knoef Consulting (Netherlands) and K-Axis Engineering (Pvt.) Ltd Pakistan on with the former agreeing to support the latter on technical designs for support in manufacturing biomass gasifiers
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Component 4: Status
Output 2.2: Cooperation agreements with Pakistani institutions and selected R&D institutions abroad
Purdue University has signed MoUs with UET Peshawar and NUST on research and academic cooperation on renewable energy (including biomass). The MoU will allow for student and faculty exchange as well as external supervision for research work
Challenge: Delay in activities due to personnel changes at both NUST & UNIDO
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Output 2.1: Integrating biomass energy into curriculum of relevant academic and educational Institutions
Engineering course on biomass-to-energy is under development by a consortium of academics for inclusion in the curricula of 2 universities in Pakistan
Technicians course on biomass for polytechnic institutions is underway and discussions are being held with the relevant authorities. Both sets of curricula are expected to be ready by end of August 2016
Training of potential R&D institutions on biomass gasification fabrication (PCRET, PSCIR, PARC, NUST, UAF), preparation of training materials and implementation of training
Component 4: Planned Activities
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Project Budget & Spending
Total Project Budget: 1,877,181/- USD
Total Expenditure to Date: 1,200,962/- USD
Total Available Budget: 676,219/- USD Expected Spending Until Dec 2016: Approximately 250,00/- USD Budget Available for 2017: Approximately 426,000/- USD
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Challenges Going Forward
• Ensuring timely completion of activities,
particularly pilot projects
• Ensuring mobilization of required co-finance
• Project mid-term review expected in Feb 2017
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Glimpses of the Project
UET Peshawar
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ICBGT at NUST ICB
GT
at N
US
T
Locally fabricated Gasifier
Awareness Raising Workshop at
Gujranwala Chamber
Thank you for your kind attention
UNIDO/GEF PROJECT - Promoting Sustainable Energy
Production & Use from Biomass in Pakistan
CONTACT DETAILS
Alois Posekufa Mhlanga
Industrial Development Officer
UNIDO, Vienna, Austria
Ali Yasir
National Project Manager
UNIDO, Pakistan
+92-51-8354821
