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  OGPL's biomass power business focuses on the development, commissioning and operation of biomass-based power plants which generate electricity from a variety of biomass fuels such as agri-residues and waste from agriculture crops, forestry and related industries such as rice, mustard, Soya bean husks, straw, cotton stalks, maize stalks, ground nut shells, wood chips, bagasse, coconut shells and fonts.

As of December 31, 2009, OGPL had a total installed capacity of 40.5 MW of biomass power projects in operation, a total estimated installed capacity of 74 MW of biomass power plants under construction and more than 200 MW under implementation and development stages.

To build upon the expertise of SEPC as EPC contractor for biomass based projects and its ability to implement projects across geographies, OGPL has devised a business strategy for developing and managing biomass-based assets.
   
       
 

Operational Strategy

   
 

Each of the assets would be owned directly /implemented through a Special Purpose Vehicle (SPV). The SPV would sell power under long term Power Purchase Agreements (PPA) to State Utilities in India or through Power Trading Companies.

Further, OGPL has devised a fuel collection strategy for its projects. The company is tying up with local NGO's who are directly in touch with farmers. Besides, OGPL is also trying to identify and interact with key people in the nearby villages to source the fuel. The locations of the projects have been chosen keeping in mind proximity to fuel sources so as to reduce transportation costs. The fuel would be sourced from adjoining areas and within 25-50 KM radius.

To further mitigate the fuel supply risk, the company does not depend only on one fuel and generally ensures that there are at least two more alternative fuels available. It deploys multi-fuel boilers, which are designed for a minimum of three fuels. The capacity of the power plants is also restricted to about 5 MW ~ 10 MW so as to ensure adequate availability of fuel in lean season.
 

   
 
 
 
 
 
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