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Perspective of indian ethanol
1. Sugarcane Ethanol
Advantages of Sugarcane as Crop
Existent Infrastructure in Sugar
Developments in Sugarcane Crop
Policy Support from Government
Future Focus to Advance
2. Advantages of Sugarcane as Crop
Sugarcane is a Perennial crop with requires abundant Photosynthesis.
Sugarcane Sequests Co2 .
Entire Biomass has utility value to derive byproducts like Sugar, Alcohol,
Power, Paper, Particle Board, Bioplastics.
Savings to Exchequer minimising dependency on OPEC.
Developing Degradable Plastics and Chemicals which replace traditional ones
which are major Pollutants and cause for Urban infrastructure Collapses.
Enabling new Logistic infrastructure & Trade developments.
3. Existent Infrastructure in Sugar
•Most of Indian Sugar is in Cooperative or Small Private holding.
•Indian Farmer has marginal Landholdings, restricting complete mechanization of
Harvesting and Cultivation and Corporate farming.
•Lack of Innovative developments by Industry, Scientific community, Agri Universities
alike Australian BSES/SRI/QUT and lack of Policy support.
•Practicing Redundant and Polluting practices with no accountability to Human health,
Environment and putting no investments to better Practices like GAP( Good
agricultural Practices ).
•Lack of Skilled and Properly trained Human resources in Sugar Sector.
4. Developments in Sugarcane Crop
•QUT, SRI, FARMACULE & Syngenta have been doing in AU.
•Crystalsev-Dow / Crystalsev-Amyris / Cosan-Petrobras in Brazil.
•Indonesia’s University of Jember & Gadjha Mada inducing Sugars in Sugarcane leaves
to convert to ethanol.
•Cuba /Peking University in Beijing China working on Cellulosic ethanol.
•Vietnam’s University of Tech & Petro Chem Center & Japan’s Univ of Tokyo / Mitsui
Eng working on Ethanol from various feedstock's.
•USA’s Louisiana/Florida along with SRU on Cane Ethanol.
•Dupont –Danisco on Cellulosic ethanol.
•Praj Industries, NCL, CSIR working on 2nd
generation Biofuels in India.
5. Policy Support from Government
•Indian Government is yet to come up with Comprehensive Ethanol Policy Inspite of having
introduced blending in 2003.
•Excise duty waiver on Molasses, Sales Tax and interstate Sale to be Uniform.
•Ethanol Price awarded is not on par with MTBE pricing or even Crude.
•Blending should be also allowed at manufacturing/Pump Premise for possible CDM.
•Ban Old vehicles and insist Auto manufacturers to go for multi flex vehicles.
•Policy Decisions interlinked with several ministries of which none have given impetus to
Ethanol Inspite of having not failed like Biodiesel to raise feedstock's.
•Highlighting Global Ethanol Success stories and Practicing them in India.
6. Future Focus to Advance
•Sugarcane Cultivation has been dropping drastically due to Agronomical , Management
failures handicapped by Labor shortage and Lack of Incentives .
•New revenue streams to better financial health of sector like Fortified sugar, Chemicals ,
Bioplastics be looked in to.
•Work on Carbon Footprint across entire value chain to reduce Pollutants and develop
possible CDM templates.
•Allow free trade of ethanol and develop requisite infrastructure as Ethanol is Hygroscopic
and also a Class A product with high Flash/Fire point.
•Manufacture multiflex vehicles.
•Work on 2G distillation , Feedstock's supporting such initiatives with possible partnerships.
7. Vehicle Population
•Most of Indian vehicles are above 10 years and they need to be replaced with Multiflex
vehicles which can use Petrol, Ethanol or a mix of both.
•Indian RTA is one among the most defunct and with low accountability .
•In India, the vehicle population is growing at rate of over 5% per annum and today the
vehicle population is approximately 40 million.
•The vehicle mix is also unique to India in that there is a very high proportion of two
wheelers (76%) which are major cause of pollution.
•Improving Multi transit infrastructure and encourage its usage.
8. Ethanol Economics
•The direct employment potential is likely to be at least 50 times that of a Petroleum
refinery.
•A 6 billion liters ethanol production, could save an estimated around US$1 billion in
foreign exchange in diesel / petrol equivalent.
•This in turn would provide an additional income per year to the tune of Rs 6500 Crore at
an average price of Rs. 650 per tone.
•Petrol consumption in India during 2006-07 is 9,295,000 MT and only 0.64% of petrol is
replaced with Ethanol.
•At 10 per cent levels India would need at least 1,200 million litres of ethanol. Purchases
of sugarcane, the primary feedstock for ethanol production would be about Rs 12,600
crore at current prices.
10. Positives of Ethanol
•Reduces tailpipe carbon monoxide emissions by as much as 30%
•Reduces exhaust VOC emissions by 12%
•Reduces toxic emissions by 30%
•Reduces particulate emissions, especially fine-particulates that pose a health threat
to children, senior citizens, and those with respiratory ailments
•Reduces carbon dioxide greenhouse gases by over 35% compared to gasoline
In terms of reduction of Co2, the nation can save nearly 5 to 6 million tones of carbon
equivalent per year including carbon substitution by bagasse, meaning additional
income from carbon trading estimated to be to the tune of $ 100 million.
11. Negatives of Ethanol
•Limitation to single feedstock of Molasses as Tapioca , Sweet Sorghum, Sweet Beet yet to
prove Commercial success.
•India still dependent on Traditional Distillation procedures of C6 & C12
C5, Distillation using multifeed stocks and wastes yet to get support.
•Indian Sugar Cycles and Global prices have not enabled Ethanol to be traded freely.
•Infrastructure for Domestic Storage, Transport, Handling and at Ports for export yet to be
developed alike Thailand as a Consortium.
•Opposition from Chemical and Potable alcohol manufacturers to compete for feedstock and
pricing.
•Political and Public support almost non existent Inspite of $135 crude pricing.
