Ethanol Value Chain

Ethanol Value Chain National Seminar on Biofuels – Need of the hour Dr. R. K. Malhotra Executive Director IndianOil R&D Centre, Faridabad Oct 13, 2008 New Delhi Outline of Presentation • Drivers for Bio-industry Development • Ethanol An Answer to Energy Needs • Ethanol Production technologies – 1st Generation – 2nd Generation • Ethanol as Transportation fuels • Ethanol Initiatives : Background • Issues Associated with Ethanol • Way Forward Drivers for Bio-industry Development Energy Security • 1st Generation Supply of Petroleum Products • Ethanol • Biodiesel • 2nd Generation Global warming & Climate change • Clean Diesel & Gasoline • Alcohols • Chemicals etc Pollution abatement & waste management Ethanol Feed Stocks & Production Technologies Feedstocks Sugar cane/ Beet molasses & juice Grain and Tubers (other starchy sources) Lignocellulosic Biomass Process Fermentation Enzymatic saccharification & Acidic Hydrolysis Acidic Hydrolysis & enzymatic fermentation Ethanol Production from Sugar Crops Feedstock (Beet, sugarcane) Steam Sugar Extraction Crushing Fermentation CO2 Rectification Animal Feed & Bagasse Distillation Dehydration Heat & Power Production Anhydrous Fuel Ethanol, 90% v/v Source : Institute of Technology for Biogenic Resources, Technical University of Munich Technology options for 2nd Gen Ethanol Pretreatment/ fermentation/ hydrolysis of lignocellulosic material to ethanol production Conversion technology for syngas to liquid fuels available Integrated Biorefinery Approach Ethanol Production from Starchy Crops Water Thermo-stable Alpha Amylase Liquefaction Glucoamylase Saccharification Yeast Alcohol Recovery Fermentation Distillation Feedstock Grinding Slurry Tank DDGS Animal Feed Source : SUSTAINABILITY AND THE BIOBASED ECONOMY, Genencor International, Inc. Ethanol Production from Lignocellulosic Biomass Source : Cynthia Riley, Future Energy Sources: Renewable Biomass, Blue Skies 2002 Today The Emphasis is to look for new types of biofuels and production and distribution routes for existing biofuels, their integrated production and other added value products: Biorefinery is the Answer Source :US DOE, Energy Efficiency & Renewable Energy Energy balance of alcohol production from different Feedstocks 12 10 8 energy output/input ratio 6 4 2 0 Sugarcane Sugar beet Wheat straw Corn Wood ethanol feedstock Sources: (Macedo et alii, 2004; UK DTI, 2003 and USDA, 1995) Ethanol as Transport Fuel • Ethanol advantages as Transport Fuel; • Octane enhancer • No engine modification required for E10 and lower blends • Higher compression operation of the engine feasible • Environmental benefits; • Lower emissions of CO, VOC and hydrocabons • Lower CO2 emissions with high compression ratio • Complete CO2 cycle • Higher biodegradability and low toxicity 5% Ethanol blending in gasoline is being done in India. Further, BIS has issued specs for E10 blending. International Experience on use of Ethanol • Brazil started commercial use of ethanol as automotive fuel in 1989 as neat hydrated ethanol and 24% ethanol -gasoline blend • US Clean Air Act of 1990 made use of oxygenates mandatory in 41 most polluted cities during winter months to reduce emissions • In 2001, US made it mandatory to increase the Renewable content of gasoline and diesel fuel 1.6 % by 2005 & 3% by 2010 • Europe has mandated biofuels use up to 2% in 2005, which will go up to 5.75 % in 2010 Ethanol Initiative in India • All India Distillers Association reported surplus ethanol during 2001 • MoP&NG decided to commission pilot projects in sugar producing states • IOC R&D entrusted responsibility for studies on new generation 2 wheelers and passenger cars • 5% ethanol started based on successful R&D studies and pilot projects • Government intends to increase blending to 10% R&D Studies on the use of Ethanol in India Studies on Ethanol in Gasoline • Elaborative R&D studies conducted on 5% and 10% ethanol gasoline blends • Physico-Chemical tests • Identification of additive needs • Material Compatibility • Cold / hot startability and driveability • Mass Emission tests and field trials on Bajaj 2 wheelers and Maruti Zen Cars Observations in R&D Studies with 5% Blends • Octane increases and opportunity for reducing benzene and MTBE • RVP increase and require removal of lighter ends or relaxation of VLI • Additional dosage of anti oxidants and corrosion inhibitors required in blends • Tests with 5% and upto 10% blend satisfactory in select vehicles tested • Emission benefits in terms of CO observed 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Neat Gasoline 5% Ethanol 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 C o m. Gaso line 5% Et hano l 10 % Et hano l CO THC Emission from Motorcycle using Ethanol Gasoline Blends 10% Ethanol Emission from MPFI Cars using Ethanol Gasoline Blends CO HC NOx CO & HC emissions from a scooter w ith &w ithout catalytic converter Emissions g/Km Commer cial 4 3 2 1 0 CO, Without Cat. Converter CO, With Converter HC, Without Cat. Converter HC, With Converter 5% Ethanol 10% Ethanol GHG Reduction Potential of Different Biofuels BTL shows best GHG reduction potential BTL Biodiesel Ethanol from wheat Ethanol from sugar beets Ethanol from wood Natural Gas Diesel -20 0 20 40 60 80 100 Source : JRC/EUCAR/CONCAVE Well to Wheels Report Jan 2005 CO2 Cycle of Ethanol production from Sugarcane Pilot Studies with 5% Blends Pilot Projects • • • • • 2 states – Maharashtra and UP Depots of Manmad, Miraj and Barelly Ethanol Storage and Blending facilities created Silica Gel Traps provided Fuel Supplied to all retail outlets fed from these depots Issues with Blending of 10% Ethanol in Gasoline • BIS Specs initially allowed blending of ethanol upto 5% only, 10% allowed recently. • SIAM agreed for blending upto 5% only • Although limited tests done with 10%, SIAM expressed serious concerns on in-use vehicles • Oil companies expressed difficulty in in sourcing ethanol even for 5% blends • Although, sugar companies informed Government about additional ethanol, sustained availability of ethanol for 10% blending is an issue for oil industry • SIAM also desires clear roadmap and uninterrupted supplies of same blend BIS Specifications for 10% Ethanol Blends Adhoc Panel of BIS Finalized Specs for 10% ethanol Blends on 22th Dec 2007 • • • • • VLI relaxed E10 Recovery @70c relaxed Labelling of E10 at Retail Outlets SIAM desired choice of fuel for in use vehicles Exemption of blending in branded fuel suggested MoP&NG Initiatives on 10% Ethanol Gasoline • In meeting on 2.1.08, MoP&NG discussed issues • SIAM expressed concern for use of 10% ethanol in gasoline • Addl. Secy advised IOC(R&D) and BIS to plan R&D studies jointly with SIAM • 2 pilot projects by OMCs also decided • Plan for R&D program submitted to MoP&NG on 3rd April,08 for funding of Rs 8.93 crores (first phase) R&D Program • Test agencies to be associated -ARAI,ICAT,IIP and IOC(R&D) -Total 29 vehicles - 7of pre 2005 and 22 post 2005 to be tested -Phsico-Chemical tests, fuel economy, emissions, material compatibility, durability and cold/ hot startability tests to be conducted - Time of 16 months indicated by labs. R&D Program Status • MoP&NG on 30.5.08 decided for funding by MoHI and OIDB/OMCs for R&D program • MoHI granted Rs. 1.29 crores • OIDB sought clarifications from IOC(R&D) which have been provided • IOC(R&D) and SIAM decided to start limited tests within fund availability at ARAI • IOC(R&D) decided to start without waiting for funding • Report by June 2009 on work initiated Way Forward • 5% ethanol in gasoline being done. Government intend to increase upto 10% • BIS Specs have been amended to allow upto 10% ethanol blending in gasoline • Sustained availability of ethanol is an issue of concern for oil industry and auto industry • IOC R&D has submitted plans for studies jointly with SIAM. • Part funding received from MOHI. Further funding awaited from MoHI and OIDB. • OMCs to start pilot projects at two depots as blending facilities already exist. Labeling required at retail outlets

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