The presence of capable IAS officials plays a significant role in conveying the concerns of the state and its people. During the days when Danakishore was the MD of the Water Board, he said that it would be useful to convert biogas from STPs into bio-CNG. Because of this, air pollution will significantly decrease. He believes that if the pollution decreases significantly, the local environment will become more serene. In addition, he expects substantial revenue to flow to the area without disrupting the water sector’s order. He reasons that using bio-CNG instead of traditional fuels not only preserves the environment but also reaps benefits. They have also embarked on projects initiated as part of the circular economy, which have already yielded positive results. ESTPL’s transformation of biogas into bio-CNG was recognised immediately. With the completion of the Ambarpet CNG plant, Danakishore’s hopes have materialised now.
The Water Board has started the process of converting biogas produced from Amberpet STP with 339 MLD capacity and Nagol STP with 172 MLD capacity into bio-CNG.
Both of these STPs have UASB (Up Flow Anaerobic Sludge Blanket) technology. Amberpet STP produces 5000 cubic metres of biogas per day, and Nagol STP produces 2000 cubic metres of biogas per day. It is suitable for converting commercially available bio-CNG into biofuel.
To sell the raw biogas produced from Amberpet and Nagol STPs to authorised agencies like HPCL, IOCL, BPCL, etc., under the circular economy, the water board has taken the initiative to convert the biogas into bio-CNG suitable for sale.
To this end, open tenders were called in October 2022, and an agreement was signed with Energon Logistics Private Limited. An agreement was signed for 15 years to pay Rs. 1.90 per cubic metre of raw biogas. The rate of crude biogas increases at a rate of 5 percent annually.
Further, as per the agreement, the agency will invest the entire capital cost of the CNG plant, including the biogas storage unit, scrubbing unit, chilling plant, suction compressors, low- and high-pressure compressors, membrane filters, gas filling unit, etc.
The CNG plant started at Amberpet STP. The construction of the plant at Nagol STP has reached its final stage.
Amberpet STP will generate income of Rs. 34.67 lakh in the first year. For the 15th year, it will reach Rs. 68.65 lakh. So Rs. 748.23 lakh in total revenue in 15 years.
Nagol STP generates revenue of Rs. 13.87 lakh in the first year. For the 15th year, it will reach Rs. 27.46 lakh. So, Rs 299.29 lakh in income in 15 years.
Total income of Rs. 1047.53 lakh in 15 years through two plants.