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Sustainable Development of Sustainable Development of BiofuelsBiofuels ProgramProgram
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 MTOE8 times growth envisaged to 203075% import dependentFossil fuel basedCrude oil consumption 111 million tonnes growing 5.6% per yearGasoline consumption 11 million tonnes, growing 5% per yearDiesel consumption 55 million tonnes, growing 5.2% per yearAdministered price regimeHigh 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.
24%32%% Penetration of biofuel opportunity
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 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
NA13%% Penetration of biofuel 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 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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SocialSocial--Economic Opportunity Economic Opportunity
Biofuels have significant social benefits, most important among them being higher farm incomes and better rural life.
BenefitsBetter energy securityHigher farm incomesBetter quality of rural lifeUse of marginal landCarbon Sequestering
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BiofuelsBiofuels –– Product/Market Product/Market
Biofuels primarily comprise bioethanol, biobutanol and biodiesel for blending with gasoline, diesel and fuel oils.
ProductsBioethanolBiobutanolBiodieselRenewable dieselBTL DieselDiMethyl EtherETBE
MarketsGasolineDieselJet fuelFuel 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/BiobutanolSugars
Sugarcane, Sugar beetStarch
Corn, Sweet Sorghum, Wheat
BiodieselVegetable Oils
Non-edible: Jatropha, Pongamia, Jojoba, SimarubaEdible: Palm, Rape seed, Soybean, coconut, others
Animal Fats and oilsAlgaeYeast
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Technology Technology
While first generation technologies are commercially used, several second generation technologies are being developed.
First generationSugars/Starch to bioethanol
Fermentation; Downstream separation and purification
Oils & Fats to biodieselPre processing and trans-esterification
Second generationBiomaterials
Hybrids; Transgenics; Algae; YeastBiomass to bioethanol/butanol
Hydrolysis, fermentation, separationGasification, fermentation, membrane separation
ChemicalRenewable 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 Govt. of India BiofuelsBiofuels Policy Policy -- Summary Summary Development of biofuels will be to utilisedegraded forest and wastelands for cultivation of biofuel crops, using non-food feedstocks20% 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 Biofuels –– Competitiveness Challenge 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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BiofuelBiofuel Development Issues (1) Development Issues (1)
Product IssuesSelection, blend ratios, GHG emission savings and oxygen content.
Industry IssuesFeed stock availability, site, technology and competitiveness
Supply chain IssuesPlantation material, plantation window, produce aggregation and transportation cost
Business IssuesOperability, scale, economics and sustainability.
There are significant development challenges for biofuels, primarily on the linkages, logistics and competitiveness.
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BiofuelBiofuel Development Issues (2) Development Issues (2)
Farm IssuesFarm productivity, Yield and intercrop income
Technology IssuesFeed stock engineering, second generation technology, by-product value addition and IP
Socio-Economic IssuesNon-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.
Lubricity useful for ultra low sulphur fuels
Better cetane
Better lubricityOthers
NOx can be improved with ignition improvements
Better on CO and unburnt hydrocarbons
Better on NOxEmissions
60 % over diesel20 % over gasolineFossil energy savings
45 % over diesel
(Rapeseed-based BD)
30 % over gasoline
(Grain-based alcohol)GHG emissions savings
LowHighWater use in crops
30% additional efficiency of diesel engines
Remarks
5.3 mm BTU/bbl
(90 % of diesel)
Biodiesel
3.5 mm BTU/bbl
(67 % of gasoline)Energy content
BioethanolAspect
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 Energy Ratios -- Reliance StudyReliance 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
0.53700.5770
1.10BTL Biodiesel
0.48600.5060
0.60800.6480
Bioethanol, $/lit High/low 2009RM cost, $/kgRaw Material
Biodiesel, $/litHigh/low 2009
RM Cost, $/litHigh/low 2009
Raw Material
0.540Molasses0.930**Jatropha
0.4200.099Sugar Beet0.782/0.5850.710/0.498Palm
0.415/0.331Sugar Cane (Brazil)0.837/0.7250.764/0.628Soybean
0.545/0.4750.1588Corn0.917/0.7560.848/0.665Rape seed
Conventional0.43
0.34
Diesel*, $/lit
0.583
50
40
Crude, $/ bbl
Biodiesel
Conventional
Animal fat
0.3950
0.3240
Gasoline*, $/litCrude, $/ bbl
Bioethanol
* Ex Factory gate price; ** Jatropha seeds - Rs.12/kg
Cost Competitiveness Cost Competitiveness
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Biofuels Biofuels –– Role of Bio Technology Role of Bio Technology
Biofuels can bring about rural transformation through higher farm incomes and better quality of life.
AgronomyPlantation in irrigated, rain fed conditionsCultivation with intercropsHybrid development
Plant Tissue CultureLeaf disc regenerationImmature embryo transformation
Plant Metabolic EngineeringTransgenic Jatropha
Bio-Process TechnologyFermentationEnzyme manufacturingBy-product value additionYeast 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 directedconversion
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.
PhilosophyEnergy securityRural transformation opportunity
Focus areaBiodiesel
CropsNon-edible seedsNon-compete with alcohol
AgronomyWork with marginal farmersFocus on rain-fed areasNo RIL land ownership
TechnologyFor higher farm yieldsFor 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.
AgronomyR&D (Kakinada, Nagothane, Gandhar)Plantation (Jatropha, Simarouba, Pongamia)Jatropha cultivation with intercrops (Pulses, Millets, beans, oil seeds, vegetables)Jatropha hybrid development
Farm AdvocacyScale-up of biofuel cropsFive states in India (Andhra Pradesh, Maharashtra, Madhya Pradesh, Gujarat, Chhatisgarh)NGO partnersMultiple 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 EngineeringHigh expression of oils in JatrophaAlgal cultures
Plant Tissue CultureTransesterification
Pilot plant at Kakinada for feed stock validation and engine performance.
Industrial BiotechnologyGlycerol to 1,3 propanediol to polymerOil expression in yeastBiomass to bioethanol/biobutanol
EnzymologyEnzymes 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 ImperativeUS$ 1 trillion + economy1 billion + peopleSeriously energy deficient
India Biofuels EndowmentArable land (142 mill Ha)Cultivable waste land (40 mill Ha)Cost advantageBiotech talent
India Biofuels OpportunityHigher farm incomesBetter quality of rural lifeJatropha biodiesel and Sugar cane bioethanol are sustainable
ChallengesCosts and Competitiveness
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Thank You