Improved Biomass Energy Technologies (BET)

Power plant

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Improved Biomass Energy Technologies (BET)
For thermal energy applications in MSMEs and commercial Institutions such as Air Dryers and Hot Water Boilers
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Invest in or project financing for improved (Biomass Energy Technologies - BETs) for thermal energy applications in the MSME sector and institutions. The technologies under consideration are improved solid biofuel fired Air dryers and Hot water boilers. Processed biofuels include Wood chips, Pellets, and Briquettes.

There are a number of private sector companies involved in supplying solid biofuel-fired air dryers, furnaces and hot water boilers with different capacities and for a wide range of applications. Design and development of Biomass Energy Technologies (BETs) are also performed by R&D institutes, including universities. National Engineering Research and Development Centre (NERDC) is the lead agency. Examples of companies active in the IOA space:

Spectra Industries Lanka (Pvt) Ltd: This company was founded in 1983 and manufactures small scale biomass energy conversion devices for thermal applications, including cook-stoves and hot water boilers. Biofuel fired hot water boiler is one of the main products manufactured. The cost of a water boiler is around USD 2,850/unit (9).

Saviru Technologies & Services: This company is in operation for the last 15 years, providing food and agro-product drying technologies with processing capacities from 5 to 5,000 kg. The principle technology is an innovative downdraft fuelwood combustion technology with a heat-exchanger. The heat capacity of the driers typically ranges from 30 to 80 kWth (Kilowatt Thermal), with a selling price of USD 3,000 to 8,000/unit (10).

Enerfab (Pvt) Ltd (EnerFab) was founded in 2005. The main focus of this company is RE technologies such as biomass thermal gasifiers, biomass electricity generation, solar and recycling energy (11).

National Engineering Research and Development Centre (NERDC) of Sri Lanka: NERDC was established in 1974. It has developed several improved BETs and has commercialized through private industrial partners. These BETs include Bakery Oven, Wood Gas Stove, Efficient Biomass Combustion System for Tea Industry, Biomass Rice Cooker, Industrial Stove, Smoked Fish Processing Unit, etc.(12).

Expected Impact

Deployment of Improved BETs in MSMEs and institutions, utilizing biofuels to replace imported fossil fuels and conventional biomass, for energy security and sustainability

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Industry, Innovation and Infrastructure (SDG 9) Responsible Consumption and Production (SDG 12)
Sector Sources
  • 1) Renewable Energy Resource Development Plan 2021-2026 (Draft) 2) National Energy Policy and Strategies of Sri Lanka (August 2019), Ministry of Power, Energy and Business Development, Government of Sri Lanka. Web link: " 3) ADB (July 2016), Sri Lanka: Gender Equality Diagnostic of Selected Sectors, Asian Development Bank (ADB) "4) WEF (April 2021), Fostering Effective Energy Transition 2021 edition, Insight Report, World Economic Forum (WEF). " 5) SLSEA (2021), Sri Lanka Energy Balance 2019, Sri Lanka Sustainable Energy Authority (SLSEA), 6) A. Wickramasinghe (2009), Gender and Energy in Sri Lanka: A Brief Analysis of the Situation. 7) S.S. Punchihewaa, C. Chandrakumar, and A.K. Kulatungaa (2016), Adaptation of Biomass Based Thermal Energy Generation of Sri Lankan Manufacturing Sector: Paragon for Policy Development, 13th Global Conference on Sustainable Manufacturing - Decoupling Growth from Resource Use, Procedia CIRP, Volume 40, pp. 56-61, 8) UNEP (June 2013), Technologies for Converting Waste Agricultural Biomass to Energy, Compiled by United Nations Environmental Programme (UNEP), Division of Technology, Industry and Economics International Environmental Technology Centre (DTIE-IETC), 9) Spectra Industries Lanka - Pvt Ltd, 10) Saviru Technologies & Services, 11) Enerfab (Pvt) Ltd, 12) National Engineering Research and Development Centre of Sri Lanka, 13) National Environment Action Plan (NEAP) 2022-2030 (July 2022), Ministry Environment, Government of Sri Lanka, ISBN 978-624-5817-24-5, 14) Department of Census and Statistics (November 2017), Economic Census 2013/14, Final Report on InformalNon Agricultural Activities,
IOA Sources
  • 15) P.G. Joseph (January 2011), Market and Economic Study of the Biomass Energy Sector in Sri Lanka, United Nations Industrial Development Organization (UNIDO), 16) UNDP (2013), Promoting Sustainable Biomass Energy Production and Modern Bio-Energy Technologies. GEF Project Document, 17) N. Musafer, Biomass energy policy perspectives of Sri Lanka: A review, International Journal of Scientific and Research Publications, Volume 10, Issue 12, pp. 674-681, December 2020, ISSN 2250-3153 18) PISCES (June 2009), Policies and Regulations Affecting Biomass-Related Energy Sector Development in Sri Lanka, PISCES Policy Brief No. 3, 19) UNDP (October 2018), Model Fuelwood Plantations for Sustainable Energy Supply and Livelihood Development, ISBN 978-955-1476-24-3, file:///C:/Users/HP/Downloads/UNDPLKA_Biomass-Phase-I-Fuelwood-Plantation.pdf 20) UNDP (January 2018), Across the nation, Promoting sustainable biomass energy Production and Modern Bio-Energy Technologies. ISBN 978-955 1478-19-9 21) Jasinghe, A. (2022), A low-carbon industrial sector will pay dividends for Sri Lanka’s economy and the planet, 16.06.2022 Press and information team of the Delegation to Sri Lanka & Maldives, Opinion editorial, 22) A. Ethirajan (January 2022), How the soaring cost of living is hitting Sri Lankans hard, BBC News, Colombo, 23) National Environment Action Plan (NEAP) 2022-2030 (July 2022), Ministry Environment, Government of Sri Lanka, ISBN 978-624-5817-24-5, 24) GoSL (September 2021), Updated Nationally Determined Contributions (NDCs), Government of Sri Lanka (GoSL), 25) IEA (2007), Good Practice Guidelines, Bioenergy Project Development & Biomass Supply, International Energy Agency (IEA), 26) FAO in Sri Lanka (August 2018), From Impoverished to Empowered. Sri Lankan Women Adopt Modern Biomass Technologies, "27) SDC (December, 2021), Sri Lanka: Status of SDG Indicators and Baseline Data, Sustainable Development Council of Sri Lanka (SDC), December 2021, " 28) IRENA (June 2013), Statistical issues: bioenergy and distributed renewable energy, International Renewable Energy Agency (IRENA), 29) GoSL (2003), The National Climate Change Policy of Sri Lanka, Ministry of Environment and Natural Resources, The Government of Sri Lanka (GoSL), 30) GoSL (2008), National Environmental (Protection and Quality) Regulations, No. 1 of 2008, Ministry of Environment and Natural Resources, Government of Sri Lanka (GoSL), 31) Sri Lanka Sustainable Energy Authority (SLSEA) Act No. 35 of 2007, 32) CBSL (May 2022), Sri Lanka Green Finance Taxonomy, Central Bank of Sri Lanka (CBSL),