‘Biomethanation’

Context:

• The Ministry of New and Renewable Energy (MNRE) has launched a loan interest subvention scheme in association with United Nations Industrial Development Organization (UNIDO) and Global Environment Facility (GEF) to provide financial assistance for innovative waste to energy biomethanation projects.

Biomethanation process:

• It is a process by which organic material is microbiologically converted under anaerobic conditions to biogas.
• Microorganisms degrade organic matter via cascades of biochemical conversions to methane and carbon dioxide.

• The industrial organic waste-to-energy bio-methanation projects are generally capital intensive and financially sensitive to both operating costs, including waste availability and revenue.
• Innovations in such projects seek to improve overall energy output thereby minimising the cost of energy generation.
• The loan scheme provides financial assistance to beneficiaries to reduce the financial burden on account of interest on the loan component faced by such demonstration projects.

Inventory tool

• A Geographic Information System (GIS) based inventory tool of organic waste streams is also unveiled.
• The tool provides district level estimates of available urban and industrial organic wastes and their energy generation potential across India.
• The tool will enable SMEs and project developers to set up new waste to energy projects and may facilitate the rapid growth of biomethanation in waste-to-energy sector in the country.

About Global Environment Facility (GEF):

• It was established on the eve of the 1992 Rio Earth Summit to help tackle our planet's most pressing environmental problems.
• The GEF unites 184 countries in partnership with international institutions, civil society organizations (CSOs), and the private sector to address global environmental issues while supporting national sustainable development initiatives.
• An independently operating financial organization, the GEF provides grants for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, persistent organic pollutants (POPs), mercury, sustainable forest management, food security, sustainable cities.
• The GEF also serves as financial mechanism for the following conventions:
• Convention on Biological Diversity (CBD)
• United Nations Framework Convention on Climate Change (UNFCCC)
• United Nations Convention to Combat Desertification (UNCCD)
• Stockholm Convention on Persistent Organic Pollutants
• Minamata Convention on Mercury
• The GEF, although not linked formally to the Montreal Protocol on Substances that Deplete the Ozone Layer (MP), supports implementation of the Protocol in countries with economies in transition.

About United Nations Industrial Development Organization (UNIDO)

• It is a specialized agency of the United Nations that assists countries in economic and industrial development.
• It is headquartered at the UN Office in Vienna, Austria, with a permanent presence in over 60 countries.
• UNIDO's strategic priorities include creating shared prosperity; advancing economic competitiveness; safeguarding the environment; and strengthening knowledge and institutions.
• Each of these goals is to be achieved through technical cooperation, policy advice, analysis and research, the development of uniform standards and quality control, and partnerships for knowledge transfer, networking and industrial cooperation

https://www.business-standard.com/article/economy-policy/mnre-launches-interest-subvention-scheme-for-energy-biomethanation-projects-121081001741_1.html