Evolving Policy on Transport and Energy sectors (pollution, indigenous clean fuel)

Changing norms, govt policy shifts and market forces will disrupt the auto and fuel sectors (and other industries) for years to come but these are needed to curb vehicular pollution, to keep abreast of advancements and for promoting new industries. Govt is framing policy for indigenously-sourced, clean fuels for Indian roads (ethanol, CNG, electric), airways (butane) and waterways (methanol).

Improved BS-VI norms

1. BS-VI fuel will be the standard, specified transport fuel across India, to severely curtail the high concentrations of harmful emissions (SOx, NOx, particulates) in major cities, and other places with intense car use. Delhi became the first city to receive BS-VI fuel. 

Ethanol as transport fuel

2. India is poised to ramp up the use of ethanol & methanol as transport fuel to dent the Rs 7 lakh cr spent on fossil-fuel imports. Ethanol economy will grow from Rs 11,000cr to Rs 20,000cr in CY, and there is enough feedstuff to perhaps scale it upto Rs 200,000cr! Minister says all technologies are available in the country. Crops used for sourcing ethanol are as follows: 1G ethanol (sugarcane molasses- byproduct),  2G ethanol (sugarcane juice- food), 3G ethanol (biomass-crop waste). 

3. Ethanol, beyond the 20% outer limit for blending in regular fuel, can be promoted with 100% ethanol vehicles. Minister mentioned that flex-fuel engines (sold in Brazil, US & Canada) can use regular fuel or 100% ethanol, making them ideal for early adopters. He thanked TVS for introducing 100% ethanol bikes and said ethanol pumps will soon be permitted by the oil ministry. Transport ministry has finalised vehicle emission norms for alternative fuels.

4. Bio-butane is made from sugarcane juice (ethanol?) and is used in the West as aviation fuel. (As such Boeing, Airbus are qualified to use butane). It costs the same as regular aviation fuel (~Rs60/- litre) but its higher energy density (100:70) makes it 30% cheaper per unit energy. Also, lower loading of butane in aircraft requires less fuel to carry it. Minister says that savings of butane can help India's struggling aviation sector.

Bio-degradable plastic from ethanol

5. Bioethanol can make bio-degradable plastic, which is environmentally safer than petroleum-derived plastic. Ethanol for making plastic is imported from Brazil. 

Surplus sugar and supply-side benefits

6. lndia is producing so much surplus sugar (NB. 3rd estimate 2018/19 of sugarcane production is 400mt up from 300-350mt, mainly due to higher UP yields) that India gives Rs 450cr (or 900/-tonne) subsidy to export 5m tonnes of sugar. 

7. Minister says there will be good domestic & international demand for butane, so India should promptly open 10-15 butane refineries in sugarcane producing states. This can dispose of surplus sugar, eliminate export subsidies, save Rs 40,000cr forex, create high value-added exports, and boost the aviation sector by manufacturing cheap, homegrown aviation fuel. 

8. Surplus agricultural capacity can be diverted to making ethanol feedstuff and farmers will earn more because sugarcane which has a high value/ha. Drip irrigation will allow much higher sugarcane plantations with existing water resource, and new high yield varieties can boost sugarcane production. Govt reduces procurement, storage and disposal costs. Rural industries and economy will be benefited, thereby providing rural employment, lower imports and boost India's GDP. Minister adds, "there is no pollution in ethanol"!

9. "Diversion of sugarcane juice to ethanol can be a long term solution to the industry woes and can pave the way for a profitable and sustainable industry taking care of all its stakeholders – growers, sugar mills, technology providers and consumers," says President of STAI at the 77th Annual Convention & International Sugar Expo.