FABON

Introduction: India’s Largest Power Utility Turns to Biomass

NTPC (National Thermal Power Corporation), India’s largest power producer, is aggressively co-firing biomass pellets and briquettes in its coal-based power plants. This initiative is part of India’s mission to reduce carbon emissions, cut stubble burning, support rural income, and increase renewable energy usage.

With thousands of tonnes of biomass required every day, NTPC’s demand has created a massive opportunity for biomass pellet manufacturers, briquette suppliers, farmers, FPOs, and machinery manufacturers like FABON Engineering.

---

WHY NTPC USES BIOMASS PELLETS & BRIQUETTES

1. To Reduce Coal Consumption and Emissions

Coal-fired power plants generate large volumes of CO₂, SOx, and NOx.
Biomass pellets co-firing (5–20%) helps:

• Reduce greenhouse gas emissions
• Lower coal dependency
• Improve combustion efficiency
• Reduce ash generation

Biomass pellets burn cleaner, helping NTPC meet India’s 2070 Net Zero target.

---

2. To Control Crop Residue Burning

Punjab, Haryana, UP and Rajasthan produce huge quantities of paddy straw and agricultural waste.
Burning this causes severe air pollution.

NTPC purchases pellets made from:

• Paddy straw
• Sugarcane trash
• Sawdust
• Bamboo
• Corncob
• Napier grass
• Groundnut shells

This creates rural income while reducing stubble burning by 40–60% in affected regions.

---

3. To Support Rural Entrepreneurs & FPOs

NTPC’s biomass procurement directly supports:

• Rural pellet manufacturers
• Farmer Producer Organizations
• Self-help groups
• Village entrepreneurs
• Biomass collection centres

FABON Engineering plays a major role by supplying advanced machinery that helps new entrepreneurs set up 1 TPH, 2 TPH, 5 TPH biomass pellet plants across India.

---

4. To Promote Renewable Energy in Power Generation

Co-firing biomass increases the renewable energy share in the grid.
Every 1% biomass co-firing reduces thousands of tonnes of CO₂.

NTPC aims for:

• 5–10% co-firing in all major power stations by 2026
• 20% co-firing in select plants by 2030

This opens large-scale business opportunities for pellet suppliers.

---

5. To Utilize Agro-Waste Effectively

India generates over 700 million tonnes of agro-waste annually.
Only 15–20% is used; the remaining is wasted or burnt.

Biomass pellets convert waste into:

• Clean fuel
• Rural jobs
• Environmental benefits
• Alternative to expensive fossil fuels

NTPC’s long-term procurement guarantees continuous demand.

---

NTPC BIOMASS PELLET PROCUREMENT POLICIES (2025 UPDATE)

1. Long-Term Purchase Agreements

NTPC has introduced:

• 3–5 year fixed-rate biomass pellet procurement contracts
• Transparent online bidding
• Assured offtake for pellet manufacturers

This ensures business stability for new pellet plants.

---

2. Minimum Pellet Specifications (NTPC Norms)

Parameter	NTPC Requirement
GCV	3200–4000+ kcal/kg
Moisture	Below 10%
Ash Content	Below 15%
Bulk Density	600–750 kg/m³
Size	6–8 mm pellets

FABON Engineering machines are designed to meet NTPC’s strict quality requirements.

---

3. Priority to Paddy Straw Pellets

To reduce stubble burning, NTPC gives priority to:

• Paddy straw pellets
• Paddy straw briquettes
• Mixed-agro residue pellets

This offers a big market for seasonal paddy straw pellet units.

---

4. Decentralized Pellet Procurement

NTPC has introduced village and district-level procurement centers, helping small pellet units participate without high logistics cost.

---

5. Transparent e-Tendering via GeM

All biomass pellet tenders are listed on:

• Government e-Marketplace (GeM)
• NTPC e-procurement portal

This ensures fair competition and stable pricing.

---

OPPORTUNITIES FOR PELLET MANUFACTURERS IN NTPC PROJECTS

1. Demand of More Than 10 Million Tonnes/Year

NTPC plans to use:

10–12 million tonnes of biomass annually by 2030
→ A massive business sector for pellet and briquette manufacturers.

---

2. New Plants Are Encouraged

NTPC encourages:

• New biomass pellet plants
• Decentralized agro-residue collection
• Women entrepreneurs
• FPO-based pellet manufacturing clusters

---

3. Rising Biomass Prices Create Profitable ROI

NTPC procurement rates typically range:

• ₹6,500 to ₹9,000 per metric ton
  (Depending on region, quality, transportation)

A 2 TPH pellet plant can generate:

• ₹35–50 lakh/month revenue
• 8–12 month ROI

FABON Engineering supplies complete pellet lines supporting high output and low OPEX.

---

WHY FABON ENGINEERING IS A TOP CHOICE FOR NTPC-ORIENTED PELLET PLANTS

FABON Engineering is a trusted manufacturer of:

• Biomass Pellet Machines (Ring Die)
• Sawdust Dryers
• Flash Dryers
• Hammer Mills
• Briquette Machines
• Hot Air Generators
• Conveying Systems
• Complete 1–10 TPH Pellet Lines

FABON Advantage:

✔ NTPC-Compliant Pellet Quality

Our machines deliver pellets with:

• Moisture < 10%
• Balanced density
• Consistent GCV
• Low ash output

✔ High Production Efficiency

Machines designed for 20 hours/day operation with minimal maintenance.

✔ Low Electricity Consumption

Optimized motors and smart airflow control reduce energy cost by 10–15%.

✔ 1-Year Warranty + After Sales Support

Pan-India installation support with AMC options.

✔ Made in India – Export Quality

FABON machines are known for heavy-duty construction and long life.

---

HOW FABON SUPPORTS NEW ENTREPRENEURS FOR NTPC PROJECTS

We provide:

• Complete plant design (1–10 TPH)
• Technical guidance
• Business planning & ROI analysis
• Installation and commissioning
• Operator training
• NTPC pellet specification compliance
• Support for GeM registration

FABON Engineering has already delivered projects across:

• Maharashtra
• Rajasthan
• Punjab
• Haryana
• Gujarat
• Karnataka
• Assam
• MP & Chhattisgarh

---

CONCLUSION: NTPC + BIOMASS = INDIA’S GREEN FUTURE

NTPC’s biomass co-firing policy is a revolutionary move that:

• Reduces pollution
• Supports rural economy
• Creates huge industrial opportunities
• Promotes renewable energy
• Encourages biomass entrepreneurship

With high demand for biomass pellets and briquettes, now is the best time to invest in a pellet manufacturing plant.

FABON Engineering is ready to support you with world-class biomass machinery, complete plant solutions, and end-to-end technical expertise.

---