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					Sustainable Development of Biofuels Program

       Biofuels 2010 - For Sustainable Rural Livelihood &
                        Energy security




                Swaroop Sarangan, Vice President




                November 19, 2010, New Delhi, India
                                                            1
Contents


    1. Indian Biofuels context

    2. Biofuels Development Challenges

    3. Reliance Biofuels Initiative

    4. Summary




                                         2
India Energy Context
   Energy demand 315 million MTOE
   8 times growth envisaged to 2030
   75% import dependent
   Fossil fuel based
   Crude oil consumption 111 million
    tonnes growing 5.6% per year
   Gasoline consumption 11 million
    tonnes, growing 5% per year
   Diesel consumption 55 million
    tonnes, growing 5.2% per year
   Administered price regime
   High taxes (30% of value chain)
   Limited alternate energy play
    (mainly wind)


India’s energy demand is estimated to grow eight times to
the year 2030.
                                                            3
   Global Biofuels Opportunity

  Aspect                                               Gasoline Diesel

  Global consumption (million MT)                         1600        900

  % Blending with biofuels*                               10%         5%

  Biofuels opportunity (million MT)                        160         45

  Current biofuel consumption
                                                            51         11
  (million MT)
  % Penetration of biofuel
                                                          32%         24%
  opportunity
                                                                             Jatropha with Corn as intercrop
  % 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.

    Global biofuels opportunity is significant, but current market
    penetration of biofuels is very low.
                                                                                                               4
 India Biofuels Opportunity

 Aspect                                Gasoline         Diesel
 Consumption (million MT)                  12             60

 % Blending with biofuels*                10%             5%
 Biofuels opportunity
                                          1.20             6
 (million MT)
 Current biofuel
                                          0.16        negligible
 consumption (million MT)
 % Penetration of biofuel
                                          13%             NA
 opportunity
                                                                               Jatropha with Groundnut as intercrop
 % Penetration of total fuel
                                         1.3%             NA
 opportunity
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
                                                                                                                      5
Social-Economic Opportunity



 Benefits
      Better energy security
      Higher farm incomes
      Better quality of rural life
      Use of marginal land
      Carbon Sequestering




Biofuels have significant social benefits, most important
among them being higher farm incomes and better rural life.
                                                              6
Biofuels – Product/Market
    Products
          Bioethanol
          Biobutanol
          Biodiesel
          Renewable diesel
          BTL Diesel
          DiMethyl Ether
          ETBE
    Markets
          Gasoline
          Diesel
          Jet fuel
          Fuel oils


Biofuels primarily comprise bioethanol, biobutanol and
biodiesel for blending with gasoline, diesel and fuel oils.
                                                              7
Renewable Biomaterials
 Bioethanol/Biobutanol
      Sugars
         Sugarcane, Sugar beet
      Starch
         Corn, Sweet Sorghum, Wheat
 Biodiesel
      Vegetable Oils
         Non-edible: Jatropha, Pongamia,
          Jojoba, Simaruba
         Edible: Palm, Rape seed,
          Soybean, coconut, others
      Animal Fats and oils
      Algae
      Yeast


Sugar and grain crops are used to make bioethanol, while
vegetable oils, animal fats are used to make biodiesel.
                                                           8
Technology
 First generation
    Sugars/Starch to bioethanol
         Fermentation; Downstream separation
          and purification
                                                          August, 2007           November, 2007
    Oils & Fats to biodiesel
         Pre processing and trans-esterification
 Second generation
    Biomaterials
                                                          December, 2009            July, 2008
         Hybrids; Transgenics; Algae; Yeast
    Biomass to bioethanol/butanol
         Hydrolysis, fermentation, separation
         Gasification, fermentation, membrane
                                                         Jatropha yield cycle, Andhra Pradesh, India
          separation
    Chemical
         Renewable diesel (refinery hydrotreater)
         Pyrolysis or gasification and FT to jet fuel

While first generation technologies are commercially used,
several second generation technologies are being developed.
                                                                                                       9
Govt. of India Biofuels Policy - Summary
 Development of biofuels will be to utilise
  degraded forest and wastelands for
  cultivation of biofuel crops, using non-food
  feedstocks
 20% 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      Jatropha with Black gram as intercrop
  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.
                                                                                         10
Biofuels – Competitiveness Challenge


 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




Farm productivity, seed oil content and by-product value are
critical drivers of biofuels productivity.
                                                               11
Contents


    1. Indian Biofuels Context

    2. Biofuels Development Challenges

    3. Reliance Biofuels Initiative

    4. Summary




                                         12
Biofuel Development Issues (1)
 Product Issues
      Selection, blend ratios, GHG
       emission savings and oxygen
       content.
 Industry Issues
      Feed stock availability, site,
       technology and competitiveness
 Supply chain Issues
      Plantation material, plantation
       window, produce aggregation
       and transportation cost
 Business Issues
      Operability, scale, economics and
       sustainability.


There are significant development challenges for biofuels,
primarily on the linkages, logistics and competitiveness.
                                                             13
Biofuel Development Issues (2)

 Farm Issues
      Farm productivity, Yield and
       intercrop income
 Technology Issues
      Feed stock engineering, second
       generation technology, by-product
       value addition and IP
 Socio-Economic Issues
      Non-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.
                                                               14
Product Issues

    Aspect              Bioethanol              Biodiesel                Remarks

                 3.5 mm BTU/bbl          5.3 mm BTU/bbl         30% additional efficiency
Energy content
                 (67 % of gasoline)      (90 % of diesel)       of diesel engines

GHG emissions    30 % over gasoline      45 % over diesel
savings          (Grain-based alcohol)   (Rapeseed-based BD)
Fossil energy
                 20 % over gasoline      60 % over diesel
savings
                                         Better on CO and       NOx can be improved with
Emissions        Better on NOx
                                         unburnt hydrocarbons   ignition improvements
Water use in
                 High                    Low
crops
                                         Better cetane          Lubricity useful for ultra
Others
                                         Better lubricity       low sulphur fuels

                                                                              Source: CERA

Biodiesel goes twice as far and is better on GHG, fossil
energy savings and emissions, as compared to bioethanol.
                                                                                             15
  Land Productivity
                       Biofuels Crop Productivity (Litres/Ha)

Sugarcane                                                           6000

Sugar Beet                                                        5700

     Palm                                                  4800

     Corn                                         3700

  Sorghum                                       3500

  Jatropha                        2000      b


    Wheat                     1800

Rapeseed                   1500
                                                                                  Jatropha bund plantation
Soyabeans        500

             0    1000      2000     3000        4000    5000     6000     7000
                                                                Source: CERA



  Bioethanol crops score better from a land productivity point
  of view.
                                                                                                             16
Water Usage
                    Biofuels Water Usage (CuM/MT of biofuel)
                     Maize under flood               2499
                        Algae brackish         444
                   Madhuka under drip           1162
                 Pongamia under drip            1110

Jatropha rainfed with support irrigation        703
                   Mustard under flood                         9853
                                                 b
                  Soybean under flood                                        15596
                Calophylum under drip           1226
                   Jatropha under drip         736
                 Sugarcane under drip                3077

                                           0          5000   10000    15000       20000
                                                               Source: Reliance Life Sciences Research

Water usage varies based on nature of crop and irrigation,
but Jatropha and algae (brackish) perform best.
                                                                                                         17
Energy Ratios - Reliance Study
                         Biofuels Energy Efficiency Ratios
                     Maize under flood                 2.89
                        Algae brackish                  3.32
                   Madhuka under drip                          4.52
                 Pongamia under drip                             4.87

Jatropha rainfed with support irrigation                           5.29
                   Mustard under flood                                5.83
                                               b
                  Soybean under flood                                        6.74
                Calophylum under drip                                     6.77
                   Jatropha under drip                                        7.34
                 Sugarcane under drip                                                8.5

                                           0       2     4            6        8           10
                                                               Source: Reliance Life Sciences Research

Biodiesel crops generally perform better from an energy
ratio standpoint.
                                                                                                         18
GHG Emissions
                             Greenhouse Gas Emissions (gCO 2eq/MJ)
                     Fossil fuel                                                 83.8

         Biodiesel from palm oil       14            5                                49

       Biodiesel from soybean           19                        13                  26

      Biodiesel from rapeseed                    29                    1         22

Ethanol from w heat w ith cogen             23                2             19

      Biodiesel from sunflow er         18               1    b        22

       Ethanol from sugar beet         12        2                26

      Ethanol from sugar cane          14                9 1

          Biodiesel from w aste    1   13

                                   0        10           20            30        40        50      60      70      80      90
                                                                                       Source: Union for Promoting Oilseeds and Protein Plants

Both bioethanol and biodiesel crops perform better from a
GHG emissions standpoint.
                                                                                                                                            19
Cost Competitiveness
                                              Cost Competitiveness
                             Biodiesel                                                  Bioethanol
                          RM Cost, $/lit           Biodiesel, $/lit                                  Bioethanol, $/lit
    Raw Material                                                      Raw Material   RM cost, $/kg
                          High/low 2009            High/low 2009                                     High/low 2009
Rape seed                   0.848/0.665             0.917/0.756       Corn              0.1588        0.545/0.475
                                                                      Sugar Cane
Soybean                     0.764/0.628             0.837/0.725                                       0.415/0.331
                                                                      (Brazil)
Palm                        0.710/0.498             0.782/0.585       Sugar Beet        0.099             0.420
Jatropha                          **                      0.930       Molasses                            0.540
Animal fat                                                0.583
BTL Biodiesel                                             1.10
                           Crude, $/ bbl            Diesel*, $/lit                   Crude, $/ bbl   Gasoline*, $/lit
                                 40                       0.34                            40               0.32
                                 50                       0.43                            50               0.39
    Conventional                                                      Conventional
                                 60                       0.50                            60               0.48
                                 70                       0.57                            70               0.53
                                 80                       0.64                            80               0.60
*   Ex Factory gate price; ** Jatropha seeds - Rs.12/kg



At current seed prices, biodiesel is not competitive.
Bioethanol (sugarcane based) is competitive at US$ 50/bbl.
                                                                                                                         20
Biofuels – Role of Bio Technology
 Agronomy
      Plantation in irrigated, rain fed
       conditions
      Cultivation with intercrops
      Hybrid development
 Plant Tissue Culture
      Leaf disc regeneration
      Immature embryo transformation
 Plant Metabolic Engineering
      Transgenic Jatropha
 Bio-Process Technology
      Fermentation
      Enzyme manufacturing
      By-product value addition
      Yeast to oil
Biofuels can bring about rural transformation through higher
farm incomes and better quality of life.
                                                               21
Contents


    1. Indian Biofuels Context

    2. Biofuels Development Challenges

    3. Reliance Biofuels Initiative

    4. Summary




                                         22
Biofuels Architecture
       Elite Plants
                         Tissue Cultured
     Characterisation
                             Plants
      And Sourcing

       Hybrid Plants
       Development          Jatropha                              Cellulosic
                            Farming                               Biomass
     Transgenic Plants
        Development
                         Jatropha Seeds               Protein

                                Extraction

                                                      Jatropha
                          Jatropha Oil
                                                     Seed Cake



         Glycerol
                                                                       Enzyme directed
                               Transesterification                     conversion
     3GT Biopolymer
            Via            Biodiesel                 Bioethanol   Biobutanol
     1,3 Propane Diol




The biofuels initiative of Reliance group is unique in its
architecture and content.
                                                                                         23
Reliance Business Design Principles
 Philosophy
       Energy security
       Rural transformation opportunity
 Focus area
       Biodiesel
 Crops
       Non-edible seeds
       Non-compete with alcohol
 Agronomy
       Work with marginal farmers
       Focus on rain-fed areas
       No RIL land ownership              Hybrid variety of Jatropha with intercrop

 Technology
       For higher farm yields
       For higher oil content
       Pursue competing technologies
Business design is based on biodiesel non-edible crops on
cultivable wasteland owned by marginal farmers.
                                                                                       24
Components (1)
 Agronomy
      R&D (Kakinada, Nagothane,
       Gandhar)
      Plantation (Jatropha, Simarouba,
       Pongamia)
      Jatropha cultivation with
       intercrops (Pulses, Millets,
       beans, oil seeds, vegetables)
      Jatropha hybrid development
 Farm Advocacy
      Scale-up of biofuel crops
      Five states in India (Andhra
       Pradesh, Maharashtra, Madhya
       Pradesh, Gujarat, Chhatisgarh)
      NGO partners
      Multiple points of engagement
The agronomy and farm advocacy components focus on the
farm to address productivity, incomes and scale.
                                                         25
Components (2)
 Plant Metabolic Engineering
      High expression of oils in Jatropha
      Algal cultures
 Plant Tissue Culture
 Transesterification
      Pilot plant at Kakinada for feed
       stock validation and engine
       performance.
 Industrial Biotechnology
      Glycerol to 1,3 propanediol to
       polymer
      Oil expression in yeast
      Biomass to bioethanol/biobutanol
 Enzymology
      Enzymes for bioethanol/biobutanol
Plant and industrial biotechnology components focus on
technology to address yields, costs and value addition.
                                                          26
Contents


    1. Indian Biofuels context

    2. Biofuels Development Challenges

    3. Reliance Biofuels Initiative

    4. Summary




                                         27
Summary
 India Biofuels Imperative
      US$ 1 trillion + economy
      1 billion + people
      Seriously energy deficient
 India Biofuels Endowment
      Arable land (142 mill Ha)
      Cultivable waste land (40 mill Ha)
      Cost advantage
      Biotech talent
 India Biofuels Opportunity
      Higher farm incomes
      Better quality of rural life
      Jatropha biodiesel and Sugar cane
       bioethanol are sustainable
 Challenges
      Costs and Competitiveness
Biofuels is an imperative for India for energy security and an
opportunity for rural transformation.
                                                                 28
Thank You

            29

				
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