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Comprehensive Policy for Co-firing of Biomass Pellets & Torrefied MSW Charcoal in Coal-Based Thermal Power Plants

India’s Ministry of Power has introduced a revised and comprehensive framework to promote cleaner power generation by mandating the co-firing of biomass pellets and torrefied charcoal made from Municipal Solid Waste (MSW) in coal-based Thermal Power Plants (TPPs). This policy supersedes all previous guidelines on biomass utilisation and establishes a unified roadmap for sustainable fuel blending in the thermal power sector. As one of India’s advanced torrefaction technology providers, Alfa Therm Limited is strategically positioned to support industries transitioning toward these new compliance-driven fuel requirements.

 

Preamble

    The Government of India recognises the urgent need to reduce greenhouse gas emissions, curb stubble burning, and ensure responsible utilisation of agricultural residues and MSW. To address challenges in fuel supply chains, inconsistency in biomass quality, and the lack of processing infrastructure, the Ministry has issued a Comprehensive Policy for Co-firing of Biomass & Torrefied MSW Charcoal.

    With its proven Continuous Torrefaction Technology, Alfa Therm Limited helps power producers, waste authorities, and private developers convert MSW, RDF, and biomass into consistent, high-calorific-value torrefied fuel—directly supporting the policy’s objectives.
     

Preamble

Scope of the Policy

As India moves toward large-scale adoption of torrefied MSW charcoal, Alfa Therm’s high-capacity continuous torrefaction solution (up to 300 TPD) offers industries the ability to create stable fuel streams that meet co-firing guidelines.

The policy applies to:
 

  • All Central, State, and private coal-based Thermal Power Plants (TPPs)
  • TPPs within and outside the NCR region
  • Biomass pellet manufacturers and MSW-based torrefied charcoal producers
  • Municipal bodies and waste processors

Objectives

Alfa Therm’s robust torrefaction technology directly contributes to these national goals by converting varied waste streams into uniform, energy-dense fuel suitable for co-firing with coal.

The policy aims to:

  • Reduce GHG emissions through biomass and MSW-based torrefied fuel
  • Promote circular waste management
  • Minimise stubble burning
  • Standardise co-firing requirements nationwide
  • Strengthen local biomass utilisation

Mandatory Co-firing Requirements

A. NCR Thermal Power Plants

Beginning FY 2025–26, NCR plants must co-fire:

  • 5% biomass pellets, plus.
  • 2% torrefied MSW charcoal, by weight.


This creates a significant opportunity for MSW-processing infrastructure. Alfa Therm’s torrefaction technology allows municipal corporations and private operators to produce policy-compliant MSW-based torrefied charcoal reliably and at scale.

B. Non-NCR Thermal Power Plants

TPPs outside NCR must co-fire:

  • Minimum 5% biomass pellets and/or torrefied MSW charcoal

Alfa Therm’s adaptable torrefaction system can process mixed waste, agro-residue, and RDF—making it ideal for regions seeking flexible, decentralized fuel production.

Approved Fuel Types

Approved Fuel Types

    Fuel categories permitted include:

    • Non-torrefied pellets
    • Semi-torrefied pellets (22–40% VM)
    • Torrefied pellets (<22% VM)
    • Torrefied MSW charcoal

    Alfa Therm’s technology produces highly stable torrefied fuel with consistent GCV and low moisture—meeting the combustion performance requirements of modern TPPs.

Regional Raw Material Requirements

Approved raw materials include paddy straw, husk, bamboo, maize stalk, jute, castor shells, coconut shell, and horticultural waste. For NCR and adjoining states:

  • At least 50% of pellet raw material must be paddy residue sourced locally

Alfa Therm’s torrefaction systems handle high-moisture and mixed waste streams, enabling smoother processing of region-specific biomass such as paddy straw.

Implementation & Procurement Guidelines

The Ministry has released a revised model contract for biomass procurement. Benchmark pellet prices will be periodically notified.

Alfa Therm’s turnkey torrefaction solutions allow industries and municipal bodies to produce their own torrefied fuel, reducing dependence on external suppliers and ensuring steady compliance with procurement regulations.
 

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