R.E.M Assignment

Course Coordinator: Dr. M.D Omprakash

Submitted by:

Siddhant Das (1484)Varun Rathi (1440)

Abhishek Das (1403)Noopur Singh (1424)

Table of Contents

1 Introduction and Types of Bio-fuels..........................................................................1

1.1 Types of biofuels...............................................................................................................1

1.1.1 Bio-Alcohol...............................................................................................................2

1.1.2 Aviation Biofuel........................................................................................................2

1.1.3 Biodiesel....................................................................................................................3

1.1.4 Bio-ether....................................................................................................................3

1.1.5 Biogas........................................................................................................................3

1.1.6 Syngas........................................................................................................................3

1.1.7 Solid Biofuel..............................................................................................................4

1.1.8 Advanced Biofuel......................................................................................................4

2 Pros and Cons of Bio-Fuels...........................................................................................5

2.1 Advantages of biofuels......................................................................................................5

2.1.1 Safety.........................................................................................................................5

2.1.2 Lesser carbon emissions............................................................................................5

2.1.3 Reduced dependence on fossil fuels..........................................................................5

2.1.4 Economic Security and Rural employment...............................................................5

2.1.5 Cost Benefit...............................................................................................................5

2.1.6 Easy To Source..........................................................................................................6

2.2 Disadvantages of biofuels.................................................................................................6

2.2.1 High Cost of Production............................................................................................6

2.2.2 Monoculture...............................................................................................................6

2.2.3 Use of Fertilizers........................................................................................................6

2.2.4 Shortage of Food........................................................................................................6

2.2.5 Industrial Pollution....................................................................................................7

2.2.6 Water Use..................................................................................................................7

2.2.7 Future Rise in Price...................................................................................................7

2.3 Environmental Impacts of Biofuels..................................................................................7

3 Economics of Bio-fuels....................................................................................................9

3.1.1 Biofuels and carbon financing...................................................................................9

3.1.2 Energy Plantations.....................................................................................................9

3.1.3 Biofuel Blending........................................................................................................9

3.2 Cost-Benefit Analysis of Biofuels in India.....................................................................10

3.3 Economic issues related to Biofuels...............................................................................11

4 Biofuels and co2 Mitigation.........................................................................................13

4.1 Results.............................................................................................................................14

4.1.1 Net energy Balance..................................................................................................14

4.1.2 Net Carbon Balance.................................................................................................15

4.1.3 Net Energy Ratio.....................................................................................................15

4.1.4 Percentage reduction in carbon emissions...............................................................16

4.2 Constraints......................................................................................................................17

5 References..........................................................................................................................18

List of Figures

Figure 1: Types of Biofuels.............................................................................................................1Figure 2: Biodiesel Production across the world.............................................................................3Figure 3: Net Energy Balance........................................................................................................14Figure 4: Net Carbon Balance.......................................................................................................15Figure 5: Net Carbon Ratio............................................................................................................15Figure 6: % Carbon Reduction......................................................................................................16

List of Tables

Table 1: Average octane of various biofuels...................................................................................2Table 2: Cost Benefit Matrix for Biodiesel...................................................................................11

Section 1: Noopur Singh (1424)

1 Introduction and Types of Bio-fuels

Due to skyrocketing prices of crude oil, increasing pollution and depleting natural resources in the 21st century, biofuels grabbed the attention of people and politicians all over the world and emerged as a trustworthy complement to traditional fossil fuels.

Bio-fuels are solid or gaseous fuels that are produced from biomass (Giampietro et al.1997; IEA 2011). Bio-fuels are produced by biomass and organic matter like agriculture residua, food crops, forestry waste, oil seeds, animal manure and municipal waste. The raw material or biomass used to generate bio-fuel is known as bio-fuel feedstock.

1.1 Types of biofuels

There are two broad classes of biofuels – first generation and second generation.

First Generation Biofuels: First generation bio-fuels are made from vegetable oil, animal starch, sugar starch, bio-degradable products from industries, forestry, households using conventional technologies. First generation constitute majority of bio-fuels which are currently in use. But we can only produce a certain level of bio-fuels because it may hamper food security.

Second Generation Biofuels: Second generation Bio-fuels are greener, sustainable and environment friendly fuels made from sustainable feed stocks. These bio-fuels are made from wood waste, vegetative grasses, algae, municipal waste.

The following figure breaks down the fuel into different type of fuels.

Figure 1: Types of Biofuels

Bio-fuelsBio-alcoholsAviation BiofuelsBio-DieselBioethersBiogasSolid BiofuelsAdvanced BiofuelsSyngas

1.1.1 Bio-AlcoholBio-Alcohol is an old concept. Henry Ford made an eco-friendly model-T car in 1940’s which used to run on ethanol and made up of hemp. "There's enough alcohol in one year's yield of an acre of potatoes to drive the machinery necessary to cultivate the fields for one hundred years." - Henry Ford

Methanol, ethanol, propanol, and butanol, are of greatest interest for fuel use as their chemical properties make them useful in internal combustion engines. The below chart shows the energy densities and octane vale of first four alcohols:

Table 1: Average octane of various biofuels

Octane value is the measure of the ignition quality of gas. Higher octane value indicates a fuel that burns slowly and it shows how much susceptible is the fuel to 'knocking'.

1.1.2 Aviation BiofuelAs the Carbon foot print of the aviation industry is very high so by using these aviation bio-fuels the carbon foot print of the Aviation industry can be reduced significantly. Aviation fuel has an energy density of 42 to 50 MG/kg, which is much higher than the bio-alcohols. So we required a fuel which has high quality, High freezing point, and Low risk of explosion, high octane value and low contamination. There are two types of Aviation Bio-fuel present:

1. Avgas2. Jet fuels

1.1.3 BiodieselBiodiesel produced from organic waste materials, including used cooking oils and biogas produced from animal manure & organic household wastes can be categorized under 2nd generation bio-fuels.

Figure 2: Biodiesel Production across the world

Above pie chart is showing the bio-diesel production in all over the world.

1.1.4 Bio-etherBioether is fuel which contains ether compound .Bioether can be made from wheat, waste glycerol and sugar beet.. Bioether can be used as an additive to the current fossil fuels in the place of petro-ether as an additive .But it has a low energy density. 

Bio gas is produced from the anaerobic breakdown of organic matter. Organic matter can include anything ranging from manure to sewage to plant material and even crops. As In IIFM we produce bio-gas by the kitchen waste. And that waste slurry can be used as fertilizer.

1.1.5 BiogasBiogas is produced through the use of bacteria or other microorganisms like acid forming bacteria (Acetogens) and metane forming archaea (methanoges) .These bacteria digest and degrade organic matter in oxygen-free (anaerobic) environments and participate in fermentation reactions.

1.1.6 SyngasSyngas is the mixture of carbon monoxide, hydrogen, and carbon dioxide. Syngas is produced by gasification process. Gasification process is a thermo chemical process that converts organic material into the mixture of hydrogen, carbon monoxide and carbon dioxide. The syngas is used in the production of other fuels, namely methanol, and diesel fuel produced.

1.1.7 Solid BiofuelSolid Biofuel is nothing but Fuel like wood, animal dung, municipal waste ,crop residue etc.

1.1.8 Advanced BiofuelAdvanced fuels are the fuel generated from Lignocelluloses ,Jatropha , Camelina and algae.

1.1.8.1 LignocellulosesLignocelluloses are a derivative of plant biomass that contains cellulose and lignin. Lignocellulosic biomass has an advantage over other agriculturally important biofuels feedstock such as corn starch, soya beans and sugar cane because it can be produced quickly ,at very low cost. It is an important component of the major crops. It is the non edible portion of the plant, which is currently underutilized.

Jatropha: Jatropha is a flowering plant and with the help of the jatropha seeds we can generate biofuel. The oil from Jatropha can be refined into biodiesel and the leftover can be used as a solid biofuel or as a feedstock for producing syngas

Camelina: This is also a flowering plant that produces seeds rich in oil. Like Jatropha, its seeds can contain up to 40% oil that is easily converted into biodiesel and even jet fuel.

Algae: Algae produce lipid, which is oil that can be converted into a number of different fuels including biodiesel, ethanol, methanol, butanol, jet fuel, and others. Algae-derived biofuels cannot be used in standard engines because they can erode and damage the seals, gaskets, and lines made of rubber. Specialized rubber is needed if algae-based biofuels are to be used in an internal combustion engine.

Section 2: Abhishek Das (1403)

2 Pros and Cons of Bio-Fuels

2.1 Advantages of biofuels

2.1.1 SafetyBiofuels are safe to handle and transport because they are biodegradable, much less toxic than even table salt, and have high flashpoints of about 300F compared to gasoline and petroleum diesel fuel. Because of its safety, the number of incidence of severe vehicle fires can be reduced, and its safety making it to be one of the safest of all alternative fuels. Also, biofuels produce fewer by-products than conventional hydrocarbon based fuels after combustion or burning. The conventional hydrocarbon-based fuels will produced a greater output of some noxious by-product, for example, carbon monoxide. That means, biofuels could lead to less localized smog in urban centers (Michael & oloruntoba, 2007)

2.1.2 Lesser carbon emissionsWhen biofuels are burned, they produce significantly less carbon output and fewer toxins, making them a safer alternative to preserve atmospheric quality and lower air pollution. The higher octane numbers in the biofuels helps it to improve combustion. Since biofuels can be made from renewable resources, they cause less pollution to the planet.

2.1.3 Reduced dependence on fossil fuelsSince most plants producing bio-fuels can be easily grown, it reduces the dependency on foreign countries for oil. Plants like Jatropa are weeds that are non-browsable and could be grown in any kind of soil and climatic conditions, so it becomes easy to cultivate them.

2.1.4 Economic Security and Rural employmentNot every country has large reserves of crude oil. For them, having to import the oil puts a huge dent in the economy. If more people start shifting towards biofuels, a country can reduce its dependence on fossil fuels. More jobs will be created with a growing biofuel industry, which will keep our economy secure.

2.1.5 Cost BenefitBiofuels almost costs the same in the market as gasoline does. However, the overall cost benefit of using them is much higher. They are cleaner fuels, which mean they produce fewer emissions on burning. Biofuels are adaptable to current engine designs and perform very well in most conditions. This keeps the engine running for longer, requires less maintenance and brings down overall pollution check costs. With the increased demand of biofuels, they have a potential of becoming cheaper in future as well. So, the use of biofuels will be less of a drain of the national capital.

2.1.6 Easy To SourceGasoline is refined from crude oil, which happens to be a non-renewable resource. Although current reservoirs of gas will sustain for many years, they will end sometime in near future. Biofuels are made from many different sources such as manure, waste from crops and plants grown specifically for the fuel.

2.2 Disadvantages of biofuels

2.2.1 High Cost of Production

Even with all the benefits associated with biofuels, they are quite expensive to produce in the current market. As of now, the interest and capital investment being put into biofuel production is fairly low but it can match demand. If the demand increases, then increasing the supply will be a long term operation, which will be quite expensive. Such a disadvantage is still preventing the use of biofuels from becoming more popular.

2.2.2 Monoculture

Monoculture refers to practice of producing same crops year after year, rather than producing various crops through a farmer’s fields over time. While, this might be economically attractive for farmers but growing same crop every year may deprive the soil of nutrients that are put back into the soil through crop rotation.

2.2.3 Use of FertilizersBiofuels are produced from crops and these crops need fertilizers to grow better. The downside of using fertilizers is that they can have harmful effects on surrounding environment and may cause water pollution. Fertilizers contain nitrogen and phosphorus. They can be washed away from soil to nearby lake, river or pond thus resulting in Eutrophication.

2.2.4 Shortage of Food

Biofuels are extracted from plants and crops that have high levels of sugar in them. However, most of these crops are also used as food crops. Even though waste material from plants can be used as raw material, the requirement for such food crops will still exist. It will take up agricultural space from other crops, which can create a number of problems. Even if it does not cause an acute shortage of food, it will definitely put pressure on the current growth of crops. One major worry being faced by people is that the growing use of biofuels may just mean a rise in food prices as well.

2.2.5 Industrial Pollution

The carbon footprint of biofuels is less than the traditional forms of fuel when burnt. However, the process with which they are produced makes up for that. Production is largely dependent on lots of water and oil. Large scale industries meant for churning out biofuel are known to emit large amounts of emissions and cause small scale water pollution as well. Unless more efficient means of production are put into place, the overall carbon emission does not get a very big dent in it.

2.2.6 Water Use

Large quantities of water are required to irrigate the biofuel crops and it may impose strain on local and regional water resources, if not managed wisely. In order to produce corn based ethanol to meet local demand for biofuels, massive quantities of water are used that could put unsustainable pressure on local water resources.

2.2.7 Future Rise in Price

Current technology being employed for the production of biofuels is not as efficient as it should be. Scientists are engaged in developing better means by which we can extract this fuel. However, the cost of research and future installation means that the price of biofuels will see a significant spike. As of now, the prices are comparable with gasoline and are still feasible. Constantly rising prices may make the use of biofuels as harsh on the economy as the rising gas prices are doing right now.

2.3 Environmental Impacts of Biofuels

It is widely assumed that the replacement of fossil fuels with bio-fuel will have significant and positive climate-change impacts by generating lower levels of the greenhouse gases that contribute to global warming. Biofuel crops can reduce or offset greenhouse gas emissions by directly removing carbon dioxide from the air as they grow and sequestrating it in crop biomass and soil. In addition to biofuels, many of these crops generate co-products such as protein for animal feed, thus saving on energy that would have been used to make feed by other means.

Despite these potential benefits, however, scientific studies have revealed that different biofuels vary widely in their greenhouse gas balances when compared with petrol. Depending on the methods used to produce the feedstock and process the fuel, some crops can even generate more greenhouse gases than do fossil fuels. For example, nitrous oxide, a greenhouse gas with a global warming potential around 300 times greater than that of carbon dioxide, is released from nitrogen fertilizers. Moreover, greenhouse gases are emitted at other stages in the production of bio energy crops and biofuels: in producing the fertilizers, pesticides and fuel used in farming,

during chemical processing, transport and distribution, up to final use. Greenhouse gases can also be emitted by direct or indirect land-use changes triggered by increased biofuel production, for example when carbon stored in forests or grasslands is released from the soil during land conversion to crop production. For example, while maize produced for ethanol can generate greenhouse gas savings of about 1.8 tons of carbon dioxide per hectare per year, and switch-grass – a possible second-generation crop – can generate savings of 8.6 tons per hectare per year, the conversion of grassland to produce those crops can release 300 tons per hectare, and conversion of forest land can release 600–1000 tons per hectare. (Fargione, 2008)

The conversion of rainforests, peat-lands, savannahs or grasslands to produce ethanol and biodiesel in Brazil, Indonesia, Malaysia or the United States of America releases at least 17 times as much carbon dioxide as those biofuels save annually by replacing fossil fuels. They find that this “carbon debt” would take 48 years to repay in the case of Conservation Reserve Program land returned to maize ethanol production in the United States of America, over 300 years to repay if Amazonian rainforest is converted for soybean biodiesel production, and over 400 years to repay if tropical peat land rainforest is converted for palm-oil biodiesel production in Indonesia or Malaysia. (Fargione, 2008)

Among the options for reducing greenhouse gas emissions that are currently being discussed, biofuels are one important alternative – but in many cases improving energy efficiency and conservation, increasing carbon sequestration through reforestation or changes in agricultural practices, or using other forms of renewable energy can be more cost-effective. For example, in the United States of America, improving average vehicle-fuel efficiency by one mile per gallon may reduce greenhouse gas emissions as much as all current United States ethanol production from maize. Also, the processing of biofuel feed stocks can affect local air quality with carbon monoxide, particulates, nitrogen oxide, sulphates and volatile organic compounds released by industrial processes. (Tollefson, 2008)

Section 3: Siddhant Das (1484)

3 Economics of Bio-fuels

3.1.1 Biofuels and carbon financing

Biofuels reduces carbon emissions on two fronts: first, at the generation stage, where plantations qualify for carbon credits under the land use, land use change, and forestry (LULUCF) segment of accounting for GHG emissions; and second, at the consumption level, when it replaces diesel and emits less carbon. Hence, it was anticipated that there would be a large potential for biodiesel projects to receive Clean Development Mechanism (CDM) or similar benefits.

There are two broad categories under which biofuels can be eligible for CDM benefits:

Energy plantations Biofuel blending

3.1.2 Energy Plantations

Energy plantation is the practice of planting oil-bearing trees, which sequester carbon dioxide(CO2) and help reduce GHG emissions into the atmosphere. Energy plantations are thereforeeligible as CDM payments.

A typical forestry or reforestation project on barren or degraded land or wasteland will have an average certified emission reduction (CER) generation of 7 tons per hectare per year for 30 years of crediting period. The actual CER potential of a given plantation is site specific and is based on soil conditions, type of tree species, tree canopy, and agronomic practices. One CER is 1 ton of carbon equivalent avoided or sequestered, and it is generated in a project activity that is verified by a third party and certified by the United Nations Framework Convention for Climate Change (UNFCCC). To calculate the total CER generation potential of a biodiesel development activity, one needs to know the total area of the plantation, the species planted (jatropha, pongamia, etc.), the baseline condition (soil type), and the package of practices followed. India’s projected cultivation area of about 32 million hectares, conservatively assumed to generate 5 CERs per hectare per year, could generate up to 160 million CERs per year. At an estimated price of $5 per ton of CER, revenue generation across India could be as high as Rs36,000 million per year.

3.1.3 Biofuel Blending

Although biofuel combustion emits co2, this emission is defined as “carbon neutral” under the Intergovernmental Panel on Climate Change (IPCC) guidelines. Because this co2 is deemed to have been absorbed and sequestered by plants during its growth, the net co2 emission can be

counted as zero when it is burned in the atmosphere. India’s Department of Biotechnology has estimated the extent of carbon emissions avoided through the blending of ethanol and biodiesel. A quick, back-of-the-envelope calculation of the potential CERs, based on these figures, shows that if the targeted 20% blend of biodiesel is achieved by 2017, the GHG emissions avoided will amount to 83.87 million tons of co2 equivalent (t co2e) per year. If all these potential reductions are carried forward for CDM registration at an estimated rate of $5 per t co 2e, the projected revenue-earning potential per year from biodiesel is Rs18,870.75 million

3.2 Cost-Benefit Analysis of Biofuels in India

For the cost benefit analysis of biofuels, only the National Biodiesel Project and related data has been used to calculate the net present values and the expected internal rates of return. A situation where only Jatropha and Pongamia are used for biodiesel production has been assumed in the economic feasibility calculations. Costs were aggregated along the supply chain to obtain the total costs. The financial price of biodiesel is not market determined; it is administratively set. Therefore, estimating the shadow price was the most critical element of the economic analysis. Resource cost savings, based on the quantity of displaced diesel, were used as the benefits of biodiesel. The following formula was used to estimate the shadow price of biodiesel:

Pbd = (Pd − Td + Sd) Ep

Where, Pbd = shadow price of biodieselPd = market price of dieselTd = total amount of taxes on dieselSd = subsidies on dieselEp = energy parity factor

Prevailing market price in August, 2015 (Rs 48.5.00 per liter) was considered as the diesel price. Three types of taxes are levied on diesel: excise tax, educational levy, and value-added tax. The taxes and subsidies that applied in March 2015 in the national capital region were used in the shadow price estimate. The excise tax and educational levy (Rs 4.47 per liter) and value-added tax (Rs 4.20 per liter) were deducted from the market price. Depending on the crude oil prices on the international markets, these taxes lead to loses for the oil marketing companies. The government provides a subsidy to companies (under recovery) to make up for the losses. This subsidy (Rs 2.89) was added to the calculated amount. Since 1 liter of biodiesel is assumed to provide only 90% of the energy in diesel, 0.9 was used as the energy parity factor. The estimated shadow price coefficient was 0.84.

By 2017, if the targeted 20% blending of biodiesel is achieved, about 20.54 million kiloliters of biodiesel will be produced annually. The biodiesel project assumes a gradual increase to that production figure from 2015. Biodiesel crops are long-term crops; therefore, a 25-year project period was considered in the analysis

Different scenarios have been considered in the calculation of various outcomes and these are presented in the table below.

Table 2: Cost Benefit Matrix for Biodiesel

ScenarioInternal Rate

of Return (%)

NPV (Rs million), at Varying Discount Rates10% 12% 15%

Base Case 14.85 % 398,364.16 151,297.19 –6,177.20Base Case + CDM 26.48 % 855,440.55 550,279.29 322,670.2220% Cost Increase 7.59 % –112,900.12 –241,116.59 –30,9311.4020% cost increase + 10%productivity increase

12.21 % 241,662.15 1,487.34 –128,172.15

15% diesel price increase 20.10 % 841,567.00 468,302.11 220,246.8625% diesel price increase 23.04 % 1,137,035.56 679,638.72 220,246.8640% diesel price increase 27.17 % 1,580,238.39 996,643.64 597,620.31

The results show that the biodiesel project, which proposes to meet the 20% blending target by 2017, is economically feasible with an EIRR of 15%. The NPV for the base case is negative at a 15% discount rate, indicating that the results are sensitive to the discount rate. With the inclusion of afforestation, CDM benefits (at a very conservative CER price of $5 per ton) increase the economic attractiveness of the project and the NPV turns positive even at a 15% discount rate. The project becomes economically unattractive in the unlikely circumstance of a 20% increase in costs.

However, even then, a productivity increase of about 12% is enough to bring the project EIRR to 12%. To address concerns about the yield of the two oilseed species, particularly jatropha, yield is assumed to be 25% lower than in the base case. Even at such low yield biodiesel is economically feasible if CDM benefits are realized, as the results show. The economic feasibility of biodiesel at current diesel prices is clearly demonstrated. As diesel prices increase, economic benefits also increase. Given the very high likelihood of oil price increases in the future, the results warrant a proactive promotional program for biodiesel in India.

3.3 Economic issues related to Biofuels

The said analysis paints a positive picture of biodiesel production in India. However, the biodiesel sector has not taken off and some authors consider jatropha in particular a complete failure (Kant and Wu 2011) because the ambitious plans of achieving 20% blending by 2012 never materialized. As some authors have pointed out, the targets were set without proper scientific investigation of jatropha. If jatropha fails to provide the anticipated yield, pongamia or some other wild species may serve the purpose in place of jatropha. Whatever the species

selected out of over 400 wild oil-bearing-seed producers, a proper scientific investigation has to be carried out first.

However, more than scientific uncertainty, policy uncertainty has prevented the development of the biodiesel industry in India. There are many reasons why the biodiesel sector in India has not taken off.

First and foremost, to show interest in biodiesel, private oilseed producers must know that they can make a reasonable profit.

Second, information and coordination failures prevent the development of biodiesel markets. Without a dedicated institute that will successfully correct these information and coordination failures, new sectors like biodiesel sector will not take off.

Third, adequate financial incentives should be complemented with an enabling policy and regulatory framework. Simply put, there is no demand for biodiesel. Demand has to be created through a regulatory measure (such as compulsory blending). The policy environment should be stable over a period that is long enough, as the experience of the Brazilian biofuel sector demonstrates.

Fourth, in view of the market failures in India’s land markets, proper government interventions must be introduced to make wasteland available for biodiesel production. Premature attempts to develop this sector together with ambitious targets are bound to fail

Section 4: Varun Rathi (1440)

4 Biofuels and co2 Mitigation

Promotion of biofuels has been driven by two major forces i.e. overcome the concern of energy security and a desire to reduce greenhouse gas emissions.

Sustainability of biofuels can be assessed by understanding the energy and carbon displacement potential of biofuels in comparison to the fossil fuels. The general issues related to environment sustainability that are of main concern are: GHG emission reductions; biodiversity; the identification of areas of high conservation value; impacts on water; impacts on air; and impacts on soil.

Biofuels can influence the environment in many ways and can be traced along the production–consumption chain. The processes of planting, harvesting, transporting and transformation lead to GHG emissions in the life cycle of producing biofuels.

For e.g.: -

1. Emissions related to crop production include: Emissions due to energy usage in crop cultivation and harvesting Emissions (N2O) due to fertilizer usage including potentially upstream Emissions associated with chemical fertilizer production Emissions related to land-use change leading to changes in carbon stocks in

carbon pools (e.g., energy crops are planted on areas formerly covered by forests).

2. Biofuel production related emissions include: Energy used in the biofuels refinery (electricity and fossil fuel) Methane emissions resulting from waste-water treatment facilities in the refinery

3. Transport emissions It includes those associated with the transport of agricultural input to the biofuel

refinery and the transport of the (blended) biofuel to the gas station.

Life-cycle analysis is the analytical tool used to calculate the balances of greenhouse gases. The greenhouse gas balance is the result of a comparison between all emissions of greenhouse gases throughout the production phases and use of a biofuel and all the greenhouse gases emitted in producing and using the equivalent energy amount of the respective fossil fuel.

A study to estimate the amount of energy input-output and carbon emissions associated with the production and end use of biofuels was carried out by Confederation of Indian Industry (CII) in 2015 which came out with a framework for estimation of energy and carbon balance of Bio ethanol production from Molasses, Sweet Sorghum and Cellulosic Biomass and Biodiesel from

Jatropha.

The life cycle stages were divided into four parts namely: feedstock development, conversion processes, blending and end use to establish a common framework to estimate energy and carbon balance for the selected biofuels with best feasible technologies. The study then analyzed previously mentioned feedstock on the following four key parameters:

A. Net energy balanceThe energy supplied by the biofuel and associated co-products at the end use minus the energy required during various manufacturing stages of biofuel

B. Net carbon balanceThe net quantity of Greenhouse Gases emitted / avoided to the atmosphere during the various stages of manufacture, distribution and end use of fuel.

C. Net energy ratioThe ratio of energy output obtained from the end use of biofuel and energy input used for the production of biofuel.

D. Percentage reduction in carbon emissionsThe net quantity of Greenhouse Gas emissions avoided compared to the use of the petro fuel substituted by the biofuel.

4.1 Results

4.1.1 Net energy BalanceThe figure below shows that bio ethanol produced using Sweet Sorghum gives the highest net energy ratio (7.06), i.e., energy produced from Sweet Sorghum based bio ethanol per unit of energy input is the highest.

Figure 3: Net Energy Balance

The reason behind being that the energy needed during the processing is supplied by bagasse, hence the energy input and carbon emission are considered nil for most of the processing steps.

The biodiesel from jatropha gives a lower ratio of 3.41 due to the use of pesticides, fertilizers, irrigation and methanol during processing stage.

4.1.2 Net Carbon Balance

Figure 4: Net Carbon Balance

The net energy balance as shown in the Figure above, is highest for Jatropha-SVO followed by transesterified biodiesel, therefore the net carbon balance is also highest for Jatropha SVO followed by transesterified biodiesel.

4.1.3 Net Energy Ratio

Figure 5: Net Carbon Ratio

Since the net energy balance is highest for Jatropha-SVO followed by transesterified biodiesel, therefore the net carbon balance is also highest for Jatropha SVO.

4.1.4 Percentage reduction in carbon emissions

Figure 6: % Carbon Reduction

With the highest net energy ratio, the % carbon emission reduction will be highest. Therefore, the Sweet Sorghum based ethanol is having highest net energy ratio, which will result in highest % carbon emission reduction.

Jatropha biodiesel appears to be a good alternative in terms of delivering net energy per unit of biodiesel produced, though energy and carbon balance of Jatropha biodiesel is dependent on the utilization of co-products obtained during the production of biodiesel.

Production of bio ethanol from cellulosic biomass using bagasse and rice straw also yields a good energy and carbon balance result. In future, with further developments in the technology, the energy and carbon balance of producing bio ethanol from cellulosic biomass may further improve.

Reducing the energy input and carbon input during feedstock development and processing stage can further improve the energy and carbon balance for the biofuels. This can be achieved by:

Improved agricultural practices leading to reduced consumption of resources or improving crop yield

Replacement of synthetic fertilizers with organic fertilizers obtained from waste or biogenic sources

Further advancement of technology, particularly for the more recent technologies, like bio ethanol from cellulosic biomass, which gives a higher yield of biofuel per ton of the feedstock would improve the energy and carbon balance.

4.2 Constraints

The present production capacity of biodiesel is constrained by the production of feedstock. The Integrated Energy Policy of India has estimated that the potential for plantation for biodiesel is 20 m ha and that will result in production of biodiesel equivalent to 20 million tons of oil equivalent. This set target will only be a reality only when the constraints in biodiesel production and promotion are identified and addressed properly. Some of these are discussed below:

There is lack of Nodal Agency dealing with biodiesel and also there is lack of coordination among the agencies involved. The State Governments need to take interest in the program in a sustained manner and designate a nodal ministry or a high-powered body for this program.

However, technological advances have made it possible to utilize both low and high FFA oils for conversion to biodiesel but still there is need to look for successful and commercial transesterfication technology such that it is flexible to undertake some variations in the feed stock quality and should be in a modular form. All the transesterfication standardization has been on edible oils, extension to non-edible oils required additional work

Adequate production capacity had not been established to supply biodiesel to the oil Companies. The automobile and engine companies were hesitant to promote biofuels because of frequent fluctuations in international price of crude petroleum products.

One of the major barriers of high cost of production is the small unviable plant size, which does not lead to economies of scale. In order to achieve this, availability of feedstock has to be ensured and would require both consumption and production volumes to grow substantially.

Financial support from Banks and other financial institutions like NABARD is also needed to encourage plantations of biofuel crops.

Prolonged price negations between the biodiesel companies and oil companies were another factor.

Variation in price of seed: Most states have not announced minimum prices of seed that will encourage farmers to take up plantation that will give commercial yield in 3 to 6 years. If the prices of seed fall or the farmer is not able to sell seed he may remove the plantation.

Government needs to announce certain tax incentives and, if required, subsidies for making Biodiesel more attractive.

The cost of biodiesel is at present significantly higher as compared to petro-based diesel. The price of biodiesel is reported to be Rs. 40.00-110.00/litre as against the present retail

price of diesel of Rs 40.00/litre. Since large-scale plantation is taking place in the country the price of Jatropha based biodiesel was reported to be even higher at Rs. 80.00-110.00/litre.

Public awareness needs to be created throughout the country regarding the hazards of using non-edible seeds and oils for edible purposes. 4 Regulatory and Institutional Aspects. The Regulatory and Institutional Issues are important because they can either facilitate in removing barriers or can become barriers themselves. All regulations and rules should be devised in a way so that they encourage and promote biofuels rather than becomes a major hindrance.

5 References

Fargione. (2008). Biofuels and its Feasibility in the Current Scenario. The Royal Society .

Gunnatilake, H. (2013). Financial and Economic Assessment of Biodiesel Production and Use in India. New Delhi: Asian Development Bank.

Jason Hill, E. N. (2013). Environmental, economic, and energetic costs and benefits of biodiesel and ethanol biofuels. Minnesotta: Departments of Ecology, Evolution, and Behavior and Applied Economics.

Michael, R. R., & oloruntoba, R. (2007). Public policy and biofuels: The way forward? pp. 231-255.

S S Raju, S. P. (2013). Biofuels in India: Potential, Policy and Emerging Paradigms. Mumbai.

Tollefson, J. (2008). Biofuels and the Carbon Balance. Nature , 880-883.

Waghmare, J. (2013). Biodiesel - Future Fuel for India? New Delhi: Words Press.