1 sustainable development of biofuels program swaroop sarangan, vice president biofuels 2010 - for...
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Sustainable Development of Biofuels ProgramSustainable Development of Biofuels Program
Swaroop Sarangan, Vice President
Biofuels 2010 - For Sustainable Rural Livelihood & Energy security
November 19, 2010, New Delhi, India
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ContentsContents
1. Indian Biofuels context
2. Biofuels Development Challenges
3. Reliance Biofuels Initiative
4. Summary
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India Energy Context India Energy Context
India’s energy demand is estimated to grow eight times to the year 2030.
Energy demand 315 million MTOE 8 times growth envisaged to 2030 75% import dependent Fossil fuel based Crude oil consumption 111 million tonnes growing 5.6% per year Gasoline consumption 11 million tonnes, growing 5% per year Diesel consumption 55 million tonnes, growing 5.2% per year Administered price regime High taxes (30% of value chain) Limited alternate energy play (mainly wind)
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Global Biofuels Opportunity
Global biofuels opportunity is significant, but current market penetration of biofuels is very low.
Aspect Gasoline Diesel
Global consumption (million MT) 1600 900
% Blending with biofuels* 10% 5%
Biofuels opportunity (million MT) 160 45
Current biofuel consumption (million MT)
51 11
% Penetration of biofuel opportunity
32% 24%
% Penetration of total fuels 3.2% 1.2%
Source : BP, US Energy Information Ad ministration, PFC Energy, US Chamber of Commerce, Reliance Research
* Biofuels (especially biodiesel) blending limit can potentially go up to 100% which would provide upside to the above projections.
Jatropha with Corn as intercrop
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India Biofuels Opportunity
Aspect Gasoline Diesel
Consumption (million MT) 12 60
% Blending with biofuels* 10% 5%
Biofuels opportunity (million MT)
1.20 6
Current biofuel consumption (million MT)
0.16 negligible
% Penetration of biofuel opportunity
13% NA
% Penetration of total fuel opportunity
1.3% NA
Source : Frost & Sullivan, Govt. of India Planning Commission, Ethanol India
* Biofuels blending limit can go up to 100% which would provide upside to the above projections.
India biofuels opportunity is also large, but current market penetration is negligible. India has 40 million ha of wasted land
Jatropha with Groundnut as intercrop
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Social-Economic Opportunity Social-Economic Opportunity
Biofuels have significant social benefits, most important among them being higher farm incomes and better rural life.
Benefits Better energy security Higher farm incomes Better quality of rural life Use of marginal land Carbon Sequestering
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Biofuels – Product/Market Biofuels – Product/Market
Biofuels primarily comprise bioethanol, biobutanol and biodiesel for blending with gasoline, diesel and fuel oils.
Products Bioethanol Biobutanol Biodiesel Renewable diesel BTL Diesel DiMethyl Ether ETBE
Markets Gasoline Diesel Jet fuel Fuel oils
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Renewable Biomaterials Renewable Biomaterials
Sugar and grain crops are used to make bioethanol, while vegetable oils, animal fats are used to make biodiesel.
Bioethanol/Biobutanol Sugars
Sugarcane, Sugar beet
Starch Corn, Sweet Sorghum, Wheat
Biodiesel Vegetable Oils
Non-edible: Jatropha, Pongamia, Jojoba, Simaruba
Edible: Palm, Rape seed, Soybean, coconut, others
Animal Fats and oils Algae Yeast
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Technology Technology
While first generation technologies are commercially used, several second generation technologies are being developed.
First generation Sugars/Starch to bioethanol
Fermentation; Downstream separation and purification
Oils & Fats to biodiesel Pre processing and trans-esterification
Second generation Biomaterials
Hybrids; Transgenics; Algae; Yeast
Biomass to bioethanol/butanol Hydrolysis, fermentation, separation Gasification, fermentation, membrane
separation
Chemical Renewable diesel (refinery hydrotreater) Pyrolysis or gasification and FT to jet fuel
August, 2007 November, 2007
December, 2009 July, 2008
Jatropha yield cycle, Andhra Pradesh, India
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Govt. of India Biofuels Policy - Summary Govt. of India Biofuels Policy - Summary Development of biofuels will be to utilise
degraded forest and wastelands for cultivation of biofuel crops, using non-food feedstocks
20% blending of biofuels by 2017. Storage, distribution and marketing of
biofuels would rest with Oil Marketing Companies (OMC).
Policy proposes Minimum Purchase Price (MPP) for biodiesel by OMC’s.
The policy proposes Minimum Support Price (MSP) for non-edible oilseeds.
R & D grants would be provided for projects involving second generation biofuels, new feedstock development, utilization of byproducts etc.
Any import or export of biofuels would be permitted only to extent necessary (exports only after meeting domestic requirements).
GOI biofuels policy revolves around growing non-edible crops on cultivable waste lands.
Jatropha with Black gram as intercrop
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Biofuels – Competitiveness Challenge Biofuels – Competitiveness Challenge
Farm productivity, seed oil content and by-product value are critical drivers of biofuels productivity.
Competitiveness with prices of gasoline (51 Rs/L) and administered prices of diesel (41 Rs/L)
Competitiveness drivers Biodiesel (farm productivity,
seed oil content) Bioethanol/Biobutanol (biomass
cost, enzyme cost) Byproduct value
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ContentsContents
1. Indian Biofuels Context
2. Biofuels Development Challenges
3. Reliance Biofuels Initiative
4. Summary
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Biofuel Development Issues (1) Biofuel Development Issues (1)
Product Issues Selection, blend ratios, GHG
emission savings and oxygen content.
Industry Issues Feed stock availability, site,
technology and competitiveness
Supply chain Issues Plantation material, plantation
window, produce aggregation and transportation cost
Business Issues Operability, scale, economics
and sustainability.
There are significant development challenges for biofuels, primarily on the linkages, logistics and competitiveness.
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Biofuel Development Issues (2) Biofuel Development Issues (2)
Farm Issues Farm productivity, Yield and
intercrop income
Technology Issues Feed stock engineering, second
generation technology, by-product value addition and IP
Socio-Economic Issues Non-food crops, feed stock cost,
subsidies, sustainability and farmers long term commitment
Other significant development challenges for biofuels are on the development of sustainable feedstock and technology.
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Product Issues Product Issues
Biodiesel goes twice as far and is better on GHG, fossil energy savings and emissions, as compared to bioethanol.
Aspect Bioethanol Biodiesel Remarks
Energy content3.5 mm BTU/bbl
(67 % of gasoline)
5.3 mm BTU/bbl
(90 % of diesel)
30% additional efficiency
of diesel engines
GHG emissions
savings
30 % over gasoline
(Grain-based alcohol)
45 % over diesel
(Rapeseed-based BD)
Fossil energy
savings20 % over gasoline 60 % over diesel
Emissions Better on NOxBetter on CO and
unburnt hydrocarbons
NOx can be improved with
ignition improvements
Water use in
cropsHigh Low
OthersBetter cetane
Better lubricity
Lubricity useful for ultra
low sulphur fuels
Source: CERA
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Land ProductivityLand Productivity
Bioethanol crops score better from a land productivity point of view.
Source: CERA
Biofuels Crop Productivity (Litres/Ha)
5700
6000
4800
1500
500
1800
3700
3500
2000
0 1000 2000 3000 4000 5000 6000 7000
Soyabeans
Rapeseed
Wheat
Jatropha
Sorghum
Corn
Palm
Sugar Beet
Sugarcane
b
Jatropha bund plantation
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Water UsageWater Usage
Water usage varies based on nature of crop and irrigation, but Jatropha and algae (brackish) perform best.
Biofuels Water Usage (CuM/MT of biofuel)
1162
444
2499
1110
736
3077
1226
703
9853
15596
0 5000 10000 15000 20000
Sugarcane under drip
Jatropha under drip
Calophylum under drip
Soybean under flood
Mustard under flood
Jatropha rainfed with support irrigation
Pongamia under drip
Madhuka under drip
Algae brackish
Maize under flood
b
Source: Reliance Life Sciences Research
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Energy Ratios - Reliance StudyEnergy Ratios - Reliance Study
Biodiesel crops generally perform better from an energy ratio standpoint.
Biofuels Energy Efficiency Ratios
4.52
3.32
2.89
4.87
7.34
8.5
6.77
5.29
5.83
6.74
0 2 4 6 8 10
Sugarcane under drip
Jatropha under drip
Calophylum under drip
Soybean under flood
Mustard under flood
Jatropha rainfed with support irrigation
Pongamia under drip
Madhuka under drip
Algae brackish
Maize under flood
b
Source: Reliance Life Sciences Research
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GHG EmissionsGHG Emissions
Both bioethanol and biodiesel crops perform better from a GHG emissions standpoint.
Source: Union for Promoting Oilseeds and Protein Plants
Greenhouse Gas Emissions (gCO2eq/MJ)
1
14
12
18
23
29
19
14
13
9
2
1
2
1
13
5
1
26
22
19
22
26
49
83.8
0 10 20 30 40 50 60 70 80 90
Biodiesel from w aste
Ethanol from sugar cane
Ethanol from sugar beet
Biodiesel from sunflow er
Ethanol from w heat w ith cogen
Biodiesel from rapeseed
Biodiesel from soybean
Biodiesel from palm oil
Fossil fuel
b
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At current seed prices, biodiesel is not competitive. Bioethanol (sugarcane based) is competitive at US$ 50/bbl.
Cost Competitiveness
Biodiesel Bioethanol
Raw MaterialRM Cost, $/lit
High/low 2009
Biodiesel, $/lit
High/low 2009Raw Material RM cost, $/kg
Bioethanol, $/lit High/low 2009
Rape seed 0.848/0.665 0.917/0.756 Corn 0.1588 0.545/0.475
Soybean 0.764/0.628 0.837/0.725Sugar Cane (Brazil)
0.415/0.331
Palm 0.710/0.498 0.782/0.585 Sugar Beet 0.099 0.420
Jatropha ** 0.930 Molasses 0.540
Animal fat 0.583
BTL Biodiesel 1.10
Conventional
Crude, $/ bbl Diesel*, $/lit
Conventional
Crude, $/ bbl Gasoline*, $/lit
40 0.34 40 0.32
50 0.43 50 0.39
60 0.50 60 0.48
70 0.57 70 0.53
80 0.64 80 0.60
* Ex Factory gate price; ** Jatropha seeds - Rs.12/kg
Cost Competitiveness Cost Competitiveness
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Biofuels – Role of Bio Technology Biofuels – Role of Bio Technology
Biofuels can bring about rural transformation through higher farm incomes and better quality of life.
Agronomy Plantation in irrigated, rain fed
conditions Cultivation with intercrops Hybrid development
Plant Tissue Culture Leaf disc regeneration Immature embryo transformation
Plant Metabolic Engineering Transgenic Jatropha
Bio-Process Technology Fermentation Enzyme manufacturing By-product value addition Yeast to oil
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ContentsContents
1. Indian Biofuels Context
2. Biofuels Development Challenges
3. Reliance Biofuels Initiative
4. Summary
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Biofuels Architecture Biofuels Architecture
The biofuels initiative of Reliance group is unique in its architecture and content.
Biodiesel
Jatropha Oil
Jatropha Seeds
JatrophaFarming
Tissue CulturedPlants
Elite PlantsCharacterisation
And Sourcing
Hybrid PlantsDevelopment
Transgenic Plants Development
Extraction
Transesterification
JatrophaSeed Cake
Biobutanol
Glycerol
3GT BiopolymerVia
1,3 Propane Diol
Enzyme directed conversion
Protein
Bioethanol
CellulosicBiomass
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Reliance Business Design PrinciplesReliance Business Design Principles
Business design is based on biodiesel non-edible crops on cultivable wasteland owned by marginal farmers.
Philosophy Energy security Rural transformation opportunity
Focus area Biodiesel
Crops Non-edible seeds Non-compete with alcohol
Agronomy Work with marginal farmers Focus on rain-fed areas No RIL land ownership
Technology For higher farm yields For higher oil content Pursue competing technologies
Hybrid variety of Jatropha with intercrop
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Components (1) Components (1)
The agronomy and farm advocacy components focus on the farm to address productivity, incomes and scale.
Agronomy R&D (Kakinada, Nagothane, Gandhar) Plantation (Jatropha, Simarouba, Pongamia) Jatropha cultivation with intercrops (Pulses, Millets, beans, oil seeds, vegetables) Jatropha hybrid development
Farm Advocacy Scale-up of biofuel crops Five states in India (Andhra Pradesh, Maharashtra, Madhya Pradesh, Gujarat, Chhatisgarh) NGO partners Multiple points of engagement
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Components (2) Components (2)
Plant and industrial biotechnology components focus on technology to address yields, costs and value addition.
Plant Metabolic Engineering High expression of oils in Jatropha Algal cultures
Plant Tissue Culture Transesterification
Pilot plant at Kakinada for feed stock validation and engine performance.
Industrial Biotechnology Glycerol to 1,3 propanediol to
polymer Oil expression in yeast Biomass to bioethanol/biobutanol
Enzymology Enzymes for bioethanol/biobutanol
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ContentsContents
1. Indian Biofuels context
2. Biofuels Development Challenges
3. Reliance Biofuels Initiative
4. Summary
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Summary Summary
Biofuels is an imperative for India for energy security and an opportunity for rural transformation.
India Biofuels Imperative US$ 1 trillion + economy 1 billion + people Seriously energy deficient
India Biofuels Endowment Arable land (142 mill Ha) Cultivable waste land (40 mill Ha) Cost advantage Biotech talent
India Biofuels Opportunity Higher farm incomes Better quality of rural life Jatropha biodiesel and Sugar cane bioethanol are sustainable
Challenges Costs and Competitiveness