Green Steam Supply for Dairy Industry

Thermax Onsite Energy Solutions Limited

Biomass Boiler Installation at ITC, Munger – Dairy Plant

ITC Group is one of India’s foremost multi – business enterprise with a robust portfolio encompassing Fast
Moving Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology.

In the modern dairy, steam is used in a variety of processes and to help maintain clean, sterile conditions. Steam is used because it is an efficient carrier of heat providing constant temperatures essential for achieving good quality of products.

Thermax Onsite Energy Solutions Limited (TOESL), a subsidiary of Thermax Limited, provides outsourced
utility delivery services based on the Build-Own-Operate (BOO) business model, enabling customers to optimize costs, reduce CO2 footprint and remain focused on their core business.


ITC uses steam in its Dairy plant for indirect heating for the following manufacturing processes:

  • Skimmed Milk Powder
  • Dairy Whitener
  • Ghee, and
  • In the process of Pasteurization

Of the above applications, major steam consumption is to produce powdered milk in the Spray Dryer.

Previously, TOESL had set up 2 biomass utility plants for steam supply under BOO model for Tobacco and
Snacks & Noodle plants of ITC. Having reaped the benefits from said projects, TOESL was re-approached by ITC Group for a Steam Supply proposition based on biomass as fuel for their first milk processing facility in Munger, Bihar. This facility is a part of customer’s CSR initiative to create sustainable livelihoods in villages through a livestock development program.

In a move to generate cost savings and to be carbon-positive, ITC chose TOESL offering of Biomass-fired
boiler and entered into a long term BOO/T based Steam Supply Contract, inked in September 2013.

TOESL now supplies green steam to ITC’s Tobacco, Food and Dairy businesses.


  • Fuel survey undertaken for the particular site location to identify biomass fuels available within a 300 km radius of the site, in the province of Bihar
  • Fuels identified: Paddy Husk Paddy husk is available throughout the year in and around the site location
  • Vendor development to establish fuel supply chain network from source to site
  • Evaluation of biomass price and available quantity over the course of a year


  • Study of load patterns of the process plant
  • Study of steam consumption by the processes – minimum, average and peak
  • Establish the minimum steam off-take
  • Evaluate space available on-site


  • Leverage state-of-the-art, multi-fuel technology by Thermax and provide optimized, highly efficient and sustainable offerings to the customer
  • Undertake detailed engineering to deliver customized high-end solutions


Install and commission the biomass-fired boiler along with boiler accessories, fuel and ash handling systems and air pollution control equipment


  • Undertake comprehensive O&M along with fuel, ash, chemicals, consumables and spares management
  • Deploy experienced and trained manpower
  • Routine regulatory compliance
  • Maximize uptime and operating efficiency
  • Online & remote performance monitoring


  • Biomass Fired Boiler having Fluidized Bed Combustion
  • Boiler Type: Horizontal Multi-tubular Shell Type Smoke Tube with Water Wall Furnace Boiler
  • Boiler Model: CPFD80
  • Boiler Capacity: 8 TPH F&A 100 °C
  • Boiler Design Pressure: 21 kg/cm 2 (g)
  • Primary Fuel: Paddy Husk


  • Customer invests in the civil foundations and structure for the utility plant
  • Complete capital expenditure of the equipment undertaken by TOESL
  • Agreement period of 10 years
  • Customer shall pay interest free security deposit at the time of signing of agreement which shall be
    refunded at the end of agreement period
  • Fuel is charged on a pass-through basis
  • Utility is charged as per off take
  • Utility costing is done on the basis of the minimum off take decided between customer and TOESL
  • Utility price reduction on consumption exceeding minimum off take
  • Guaranteed delivery of uptime


  • Cost reduction due to effective utility price
  • Sizeable carbon savings as against fossil fuel boiler
  • Guaranteed boiler uptime & efficiency throughout product lifecycle
  • Operational Excellence – uptime and efficiency delivered higher than committed
  • Downtime planned in conjunction with process plant shutdown
  • No investment in utility plant and machinery by customer
  • Minimal SPM through advanced APC equipment
  • Dedicated biomass fuel supply chain ensuring consistent quality at right price

On operation of biomass-fired boiler over the years, ITC-Munger Dairy Division has contributed to reduction in CO2 emissions of over 7740 tons as of January 2019.
(Biomass Boiler Plant commissioned in August 2015)

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