‘Producer gas’ is produced through the process of gasification - an efficient method of extracting heat from biomass. Natural gas, diesel or furnace oil can be replaced by producer gas for making steam in order to generate electricity and heat for industries.

It is estimated that for each 100 kcal of potential energy in solid fuels, gasification can extract about 80 kcal in hot raw gas. The process is more efficient than many other devices that burn biomass directly in a hearth or firebox. Also, very little modifications are required in most conventional oil-fired installations to run on producer gas.

Potential users of low-calorific fuel-gas are found among ceramic, metal reheating, food processing and chemical drying units. Producer gas generators in several industrial plants may also substitute small steam boilers (non IBR) and thermic fluid heaters. Production of CO2 for aerated drinks is another application.

Implementation of gasifier-based systems in medium industries offers the possibility of increasing the efficiency of process-heat delivery. In some cases, biomass-based electricity may also allow the replacement of grid power or other existing fuels for electricity generation (individually or in clusters).

The study here assesses the applicability of the concept of small Energy Service Companies (ESCOs) for biomass gasifiers. It also evolves a mechanism to tap the concept as a tool, and propagate its extensive commercialization in India. It is based on CII‘s information base updated with selective literature survey, questionnaire survey, field visits and interactions with some of the stakeholders