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Thursday, June 16, 2022

Need for more Bio-ethanol, Bio-LNG and Bio-CNG Link 

Nitin Gadkari during ‘Industrial Decarbonization Summit 2022’ (IDS-2022) Link 

Let me state that Energy security is a serious concern for us. We are determined to raise living standards in India regardless. We will not shut down our industries for want of energy, even if there are global pressures on us and protests are held inside the country.

Our energy requirement is growing very fast. Yet, we have had real difficulty in increasing our power and energy capacities due to activities of environmental pressure groups. Funds for new thermal projects have dried up thanks to global climate change lobbies. Solar or renewable energy is already at 38% of total capacity— which can go up to 50%. 50 GW Hydro projects are stopped or delayed because of legal cases filed by NGOs at every stage, from forest clearances to land acquisition. Should we be happy with power shortages in the next few years? No, our approach will be to do power and environment both, and take strict action to get things done.

Ethanol from farmers' fields Inside India, there was strong opposition to making bio-fuels from foodstuffs like sugar and cereals. It meant we could not use our annual surplus of sugar and cereal production—that we can't even export due to high cost!!

Remember transport causes 40% of air pollution in India. Green fuels are our highest priority as it helps with pollution, and also employment, import substitution, foreign exchange, less dependence on foreigners, more weath creation inside India, etc. PSUs like Indian Oil are doing a lot on Green fuels. India makes 450cr litres of bio-fuels. As per our 20% blending target, we need 1000cr litres. We signed MOUs with domestic producers for the same but non-serious players took the quota and delayed everything. Then we decided to look at production in more detail.

We asked what are the problems with making ethanol from sugarcane juice or B-molasses. I was told disposing of mollases spentwash (a dark coloured residue left after distillation of ethanol) was a serious problem —that new boilers were required to burn it and it will cause pollution. As it happens, burning mollases spentwash gives us Potash which is a fertilizer that is in shortage and we import in quantity! Now I am very happy, and am wishing 100s of projects come up for making Potash from burning mollases spentwash!!

Sugar economy :- We consume 28m MTPA of sugar and produce 34m MTPA. Sugar in Brazil is Rs 22/kg, here it is Rs 32/kg. Export of sugar, as seen recently, happen only when Brazil has production problems. Sugar growers are in 186 out of 543 Lok Sabha constituencies—in places like Western UP, Bihar, Kar, Maha which are politically very sensitive for us. We faced complaints from farmers that Sugar mills are shut—which is understandable as mills' costs of getting sugarcane and processing it were 10% more than the wholesale price of sugar! Ethanol has turned this around and sugar mills are humming again.

Food grains :- Corn was selling at Rs400 below MSP—and, due to low global corn prices we could not export the surplus. In fact, Govt foodgrain storage facilities were overloaded with annual surplus production of Rice, Wheat, Corn, etc. Covid and Ukraine war have been a blessing out of a misfortune.

I managed to convince the powers to work on foodgrain ethanol. I argued strongly that at times when farmers' production of cereals is excessive, and Govts stocks are overloaded, then we must make ethanol from our surpluses eg. corn, broken rice, poor-quality wheat. Now, it matters not if farmers go overboard on cereal production—in fact, we should encourage them!!

Non-food feedstuff

Coal based Methanol :- In Assam, we have started blending 15% methanol in diesel. Methanol is a clean fuel that we should use more. BTW, Methanol comes from locally-mined, low-quality coal which also produces DME (20% can be blended LPG), ammonium nitrate (explosives or fertilizer, imported for mining), and 350 other products. India has hundreds of such coal deposits that can & should be mined. In Raipur, Bengal, coal-based CNG is produced. Should we not invest heavily in indigenous CNG as much as we do in importing LNG?

Bamboo feed :- In Assam, Indian Oil is making 2nd gen ethanol from bamboo.

Rice straw feed :- People complain that farmers are burning rice straw that causes choking pollution in cities. I say, farmers have no value for the rice straw so they burn it. Now, Indian Oil has a new project in Panipat, Haryana that uses rice straw as feedstuff, and produces 100,000 litres/day ethanol and 150 tonnes/day bitumen. 5 tonne of rice straw is giving 1 tonne of ethanol or 1 tonne of bio-CNG.

Our govt is advocating going for gas, as it is a clean fuel. It is also true that we don't produce enough gas so we must import. But what about setting up 300-400 rice straw based bio-CNG projects in Haryana & Punjab to meet our needs? Project should be vetted carefully but answer to this question is very possible and viable. There is 1) proven technology 2) economic viability 3) availaility of feedstuff and 4) 100% marketability.

Ethanol can take over Petrol economy

Modified ethanol equals calorific value of Petrol :- Earlier 1 litre of petrol had the same energy as 1.3 litres of ethanol. Since ethanol has lower strength, people were not happy to use blended fuel. Indian Oil, using Russian technology has produced ethanol with the same calorific value of petrol—now, ethanol blending will not reduce the strength of the fuel. Oil retailers can market ethanol without hesitation.

Flex engines in automobiles :- US, Brazil and Canada have car engines that work fine with 100% petrol or 100% ethanol. I insisted that Indian car manufacturers should bring out such flex engine models in India. Four companies say they will introduce them here. TVS, Bajaj and Hero have come out with flex engine bikes and scouters. In five years, I can see India virtually do away with petrol in automotives. This is possible if flex engines are heavy promoted or mandated in new cars, bikes & scouters.

[ # Note: Flex engines are great, provided enough ethanol is available (say 4000cr litres/ pa!) & cars are indeed much cheaper to run. Also, is GOI waiting until Tata, Mahindra, etc are ready with their flex engined models?]

ETC

Appendix: Notes from PIB

Farmers can be Power Suppliers, besides being Annadatha [food providers] - farms will grow biomass (like bamboo, sugarcane, corn), recycle any waste and house RE plants.

Not able to make targeted quantity from B-molasses (only 55/ 245cr ethanol) because sugar exports are happening. We have removed export subsidy; thus, domestic sugar supply will rise and price fall. Then, sugar mills will shift to ethanol.

At present it is enough to increase ethanol blend in petrol and discourage diesel autos. E-20 will take ethanol requirement from 465cr litres to 1500cr litres by 2025. Flex engine can push it to 4000cr litres in 5 yrs.

Ethanol pumps are not getting customers as ownership is small and scattered. Promote flex engines then market forces will transition away from fossil fuels. Perhaps road ministry can push it in road construction equipment and also, commercial vehicles. Ethanol derivatives can be used in commercial airliners. Ethanol can make degradeable plastic.

LNG [and bio-CNG] is the future fuel for the country - its economy is one of the best. Mature technology in terms of production and uses, and wrt transport & storage infra. More productive than ethanol. Government’s priority is on CNG and LNG instead of petrol and diesel. In coming times, a lot of biomass will be converted into bio-CNG.

Sewage water is a good source for green hydrogen. Electrolysers have been developed to take sewage water and make green hydrogen. Sewage water is easily available in municipal towns and corporations. 

Bamboo is a great biomass. It is a wood and much more! Bioethanol can be made. In coming days, bamboo (aka "white coal") can substitute for the best coal in industry.

Appendix: Sugar statistics

ISMA estimates another bumper year: CY to 2022-23 (Oct - Sept) est.

Area (via satellite) :- from 5.583m ha to 5.828m ha

Gross sugar juice : - from 39.4m MT to 39.97m MT

Diverted to ethanol : - from 3.4m MT to 4.5m MT

Export CY :- 10m MT +/0 0.7m -1.2m MT

Surplus for exports for 2022-23 8.0m MT

Ethanol blending target :- from 10% to 12%

Ethanol demand (all sources) :- from 444.42cr litres to 545cr litres

Ethanol demand (from sugar) :- from 349.49cr litres to 462.6cr litres