Energy Conclave
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High and growing demand for imported petroleum is sinking the Rupee and derailing India's macroeconomic strength. People are looking for affordable energy. Gadkari says that govt has found many, practical and uniquely Indian solutions. There are plentiful supplies of cheaper domestic alternatives, and it is up to govt, industry, farmers and consumers to get clued up and harvest the opportunities.
▐ Ethanol blending from sugarcane & foodstuffs▐
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Govt has allowed sugar cane juice and B-molasses to be diverted to manufacturing ethanol, rather than the use of just sugar by-product (C-molasses). To improve supplies, ethanol prices were fixed higher at Rs 43.5 per litre (▲Rs 3) from C-molasses & Rs 47.5 from B-molasses (new). It also lowered GST on ethanol from 18% to 5%. Govt has allowed ethanol to be directly processed from corn, cassava and other starch-rich foods.
Oil marketing co. bought 665m litres of fuel ethanol in 2016-17, for 2.1% blending and saved Rs 1,750cr in FX. For 2018, procurement is much higher at 1.58b litres. For 10% blending (as per current mandate) & 10%pa growth in demand, sugar mills should be contracted for 3.8b litres of ethanol for 2019. Net 2.2Bb litres if taken from B-molasses will reduce sugar production by 3.5m tonnes. This is equal to half of last year's sugar surplus.
▐ Shift to non-food sources of ethanol▐
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Govt says India has 2G ethanol technology, and 2G ethanol is now commercially viable at $70 per barrel. It is ramping up 2G ethanol production from lignocellulose by targeting 1 billion litre 2G ethanol capacity via Rs 5000cr subsidy. VGF provides 20% cost or Rs 50 per litre capacity (up to max Rs 150cr). States & PSUs can top-up with grant of 20% costs.
To encourage investment, govt has published blending targets of 20% for petrol and 5% for diesel by 2030. It says, with expected petrol demand of 50b litres, fuel ethanol production would have to scale to 10b litres, or Rs 50,000cr at current prices. 5% blending of diesel, at 150b litres demand will result in Rs 40,000cr bio-diesel business.
▐ Working in synergy with farming▐
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Biofuel policy will facilitate supply of large quantities of biomass from farmers to the industry. Key is the sustainable production and happy accommodation along the value chain.
One aim is to boost farmer's incomes. It does this by allowing the use of damaged farm produce and other starch-containing materials such as corn, cassava, and sugarcane. It promotes processing of crop residues like rice straw, cotton stalk, castor stalk, bagasse and bamboo. It advocates cultivation of oilseeds and biomass on marginal lands, as inter-crop and as second crop. To this end, it obliges Govt and industry to assist with irrigation, drip irrigation, seeders and harvesters, seeds and know-how. It will help boost farmer's incomes because it assures farmers of good off-take of crops and crop residue. State agri research centres will research all aspects of biomass cultivation.
The policy's other aim is to create a favourable climate for biofuels infra and R&D. It does this by creating enabling infra, grants for new infra, hand-holding by PSUs, adoption of new technologies, better procurement prices, higher blending targets, raising demand through policies (eg in barges, city buses), etc.
▐ Methanol blending in petrol @ 15%▐
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Methanol appears to be an ideal blending fuel: It is much cheaper, less polluting and saves on FX. By virtue of costing just Rs 20/litre, 15% methanol blended petrol will be 10% cheaper. 20% replacement of crude oil by methanol can save 40% of pollution. 15% blended fuel in transportation and cooking can save $100b pa of FX by 2030. Niti Aayog is coordinating efforts to bring methanol blended petrol to the marketplace. As of now, a stable workable blend of 15% methanol has been identified. Testing is being done to define guidelines & specify tweaks for existing vehicles. These may amount to minor tweaks, as the auto industry reckons India's car fleet can tolerate 20% blend of ethanol & methanol. Govt is running 3 research projects to perfect commercial production of methanol from coal. Separately two pilot projects will trial methanol production in WB & Jharkhand.
1. https://economictimes.indiatimes.com/news/economy/agriculture/government-notifies-ethanol-making-directly-from-sugarcane-juice-b-molasses/articleshow/65161412.cms
2. https://energy.economictimes.indiatimes.com/news/oil-and-gas/india-proposes-new-bio-ethanol-policy-to-spur-rs-5000-crore-investments/61755856
3. https://energy.economictimes.indiatimes.com/news/oil-and-gas/indias-bio-fuel-industry-set-to-become-rs-1-lakh-crore-market-pradhan/61755756
4. http://indiaclimatedialogue.net/2018/07/25/indias-new-biofuel-policy-to-amplify-clean-energy-use/
5. https://economictimes.indiatimes.com/industry/energy/oil-gas/niti-aayog-may-test-drive-plan-to-run-petrol-cars-on-15-methanol/articleshow/65251618.cms
Report on Gadkari video
https://www.newsx.com/health-and-environment/newsx-energy-conclave-nitin-gadkari-says-modi-government-is-atleast-5-times-better-than-upa
≈≈≈≈≈≈≈≈≈≈≈≈≈
High and growing demand for imported petroleum is sinking the Rupee and derailing India's macroeconomic strength. People are looking for affordable energy. Gadkari says that govt has found many, practical and uniquely Indian solutions. There are plentiful supplies of cheaper domestic alternatives, and it is up to govt, industry, farmers and consumers to get clued up and harvest the opportunities.
▐ Ethanol blending from sugarcane & foodstuffs▐
Govt has allowed sugar cane juice and B-molasses to be diverted to manufacturing ethanol, rather than the use of just sugar by-product (C-molasses). To improve supplies, ethanol prices were fixed higher at Rs 43.5 per litre (▲Rs 3) from C-molasses & Rs 47.5 from B-molasses (new). It also lowered GST on ethanol from 18% to 5%. Govt has allowed ethanol to be directly processed from corn, cassava and other starch-rich foods.
Oil marketing co. bought 665m litres of fuel ethanol in 2016-17, for 2.1% blending and saved Rs 1,750cr in FX. For 2018, procurement is much higher at 1.58b litres. For 10% blending (as per current mandate) & 10%pa growth in demand, sugar mills should be contracted for 3.8b litres of ethanol for 2019. Net 2.2Bb litres if taken from B-molasses will reduce sugar production by 3.5m tonnes. This is equal to half of last year's sugar surplus.
▐ Shift to non-food sources of ethanol▐
Govt says India has 2G ethanol technology, and 2G ethanol is now commercially viable at $70 per barrel. It is ramping up 2G ethanol production from lignocellulose by targeting 1 billion litre 2G ethanol capacity via Rs 5000cr subsidy. VGF provides 20% cost or Rs 50 per litre capacity (up to max Rs 150cr). States & PSUs can top-up with grant of 20% costs.
To encourage investment, govt has published blending targets of 20% for petrol and 5% for diesel by 2030. It says, with expected petrol demand of 50b litres, fuel ethanol production would have to scale to 10b litres, or Rs 50,000cr at current prices. 5% blending of diesel, at 150b litres demand will result in Rs 40,000cr bio-diesel business.
▐ Working in synergy with farming▐
Biofuel policy will facilitate supply of large quantities of biomass from farmers to the industry. Key is the sustainable production and happy accommodation along the value chain.
One aim is to boost farmer's incomes. It does this by allowing the use of damaged farm produce and other starch-containing materials such as corn, cassava, and sugarcane. It promotes processing of crop residues like rice straw, cotton stalk, castor stalk, bagasse and bamboo. It advocates cultivation of oilseeds and biomass on marginal lands, as inter-crop and as second crop. To this end, it obliges Govt and industry to assist with irrigation, drip irrigation, seeders and harvesters, seeds and know-how. It will help boost farmer's incomes because it assures farmers of good off-take of crops and crop residue. State agri research centres will research all aspects of biomass cultivation.
The policy's other aim is to create a favourable climate for biofuels infra and R&D. It does this by creating enabling infra, grants for new infra, hand-holding by PSUs, adoption of new technologies, better procurement prices, higher blending targets, raising demand through policies (eg in barges, city buses), etc.
▐ Methanol blending in petrol @ 15%▐
Methanol appears to be an ideal blending fuel: It is much cheaper, less polluting and saves on FX. By virtue of costing just Rs 20/litre, 15% methanol blended petrol will be 10% cheaper. 20% replacement of crude oil by methanol can save 40% of pollution. 15% blended fuel in transportation and cooking can save $100b pa of FX by 2030. Niti Aayog is coordinating efforts to bring methanol blended petrol to the marketplace. As of now, a stable workable blend of 15% methanol has been identified. Testing is being done to define guidelines & specify tweaks for existing vehicles. These may amount to minor tweaks, as the auto industry reckons India's car fleet can tolerate 20% blend of ethanol & methanol. Govt is running 3 research projects to perfect commercial production of methanol from coal. Separately two pilot projects will trial methanol production in WB & Jharkhand.
1. https://economictimes.indiatimes.com/news/economy/agriculture/government-notifies-ethanol-making-directly-from-sugarcane-juice-b-molasses/articleshow/65161412.cms
2. https://energy.economictimes.indiatimes.com/news/oil-and-gas/india-proposes-new-bio-ethanol-policy-to-spur-rs-5000-crore-investments/61755856
3. https://energy.economictimes.indiatimes.com/news/oil-and-gas/indias-bio-fuel-industry-set-to-become-rs-1-lakh-crore-market-pradhan/61755756
4. http://indiaclimatedialogue.net/2018/07/25/indias-new-biofuel-policy-to-amplify-clean-energy-use/
5. https://economictimes.indiatimes.com/industry/energy/oil-gas/niti-aayog-may-test-drive-plan-to-run-petrol-cars-on-15-methanol/articleshow/65251618.cms
Report on Gadkari video
https://www.newsx.com/health-and-environment/newsx-energy-conclave-nitin-gadkari-says-modi-government-is-atleast-5-times-better-than-upa
NewsX-TSG Energy Conclave: Union Minister Nitin Gadkari speaks over the cost of petrol
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- National Policy on Biofuels
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1) National Policy on Biofuels was notified on 16th May 2018. It allows ethanol production from damaged farm produce and other starch-containing materials such as corn, cassava and sugarcane. Its puts emphasis on 2G ethanol production from crop residues like rice straw, cotton stalk, castor stalk and sugarcane trash.
2) Policy encourages farmers to grow oilseeds and biomass for feedstuffs on marginal lands, as inter-crop and as second crop. It will help boost farmer's incomes because it assures farmers of good off-take for these supplies and crop residue.
3) Policy mostly offers Indian-specific solutions. “To virtually eliminate pollution in Delhi, policy aims to convert entire agricultural residue, currently burnt around Delhi, into 2G ethanol.”
4) Investment climate must be improved to enable setting up of appropriate infra. Entrepreneurship should be encouraged so new technologies can be developed and utilised. Marketing and distribution must be made easier by reducing the role of monolithic Central PSUs. To expand gross sown area, farming must emphasise water conservation, irrigation and better farming practices.
Biomass pellets
1) Biomass burning in thermal power plants (co-fired with coal) helps lower sulphur emissions, reduce the amount of fly-ash generated, is environmentally sustainable and lowers CO2 emissions.
2) Non-availability of feedstock had has held back the industrial use of biomass. Lack of proper assessment and quantification of feedstuff has led to poor outcomes for investments. The key to success is sustainable production & supply of feedstock, as practised in countries with larger biofuels programmes.
3) Under the policy, large quantities of biomass pellets are expected to be produced. This is because policy assures farmers that if feedstock is grown as additional income, there will be a market for it. State agri research centres will be tasked to further research & develop technology to produce & harvest biomass at low cost.
Example of new technology in crop stubble management------------------------------------
CSIR-Indian Institute of Petroleum (along with European Bioenergy Research Institute of Aston University, UK) will soon bring out the "Pyroformer". Pyroformer is a truck-mounted machine that is taken to farms and helps convert stubble into fuel for brick kilns, lime kilns and small industrial furnaces, etc. It can partly process the stubble to make it easier to transport to central depots.
Setting and achieving targets
1) India imported about 220 million tonnes of hydrocarbons last year (incl LPG, petcoke, etc). Agri waste can provide half the hydrocarbons if harnessed into alternative fuels. So a useful aim in the short term would be a reduction of 10% of crude oil imports.
2) 1G ethanol is poised to achieve 5% blending in petrol in 2018. This can be increased to 20% in 10 year through 2G ethanol.
3) Biodiesel can be made from used cooking oil. Whilst collections must be encouraged as much as possible, precautions must be taken to ensure used cooking oil is not re-used in cooking.
REPLY 33w - STATS: 2017-18 hydrocarbons consumption
https://energy.economictimes.indiatimes.com/news/oil-and-gas/indias-fuel-demand-grows-5-30-in-fy18/63848708
REPLY 34w - Report on Conclave
https://www.sundayguardianlive.com/news/achieving-energy-justice-india-needs-self-reliant-sector
A worthwhile video70% Population To Get Pipeline Access To Gas Says Gail Chairman BC Tripathi on NewsX Energy ConclaveREPLY 33w - NewsX-TSG Energy Conclave: Ajay Girotra, A.G. Dauters speaks over Ghazipur landfill
REPLY 33w - Quantity of bio-fuels will soon be the limiting factor
─ Methanol use can raise % of blending
─ 15+% bio-gas or hydrogen can be added to natural gas
─ Existing passenger fleet can tolerate up to 20% total blending incl ethanol, methanol
─ Pure ethanol (cars) and pure methanol (barges & ships) fuelled vehicles are available
─ A shift away from diesel to blended petrol or pure bio-fuels, will also reduce crude oil imports
─ Ramp up is required in domestic production of biofuels, bio-CNG, hydrogen, etc
Methanol blending proposal
─ 15% methanol blend in petrol
─ methanol costs ~Rs20 vs Rs 43 for ethanol
─ 15% methanol blend is 10% cheaper
Efforts to bring methanol to marketplace----------------------------
1) Stability of final blend ✅ (done)
2) Compatibility of blend for cars: ⌛ (oil and auto sectors working together)
♣─ tweaks for cars being studied
3) In-country methanol production ✅ / ⌛ (FDIs and awaiting domestic pilots)
♣─ M of ST is running R&D projects (Rs 100cr) in Pune, Hyderabad and Trichi
♣─ Pilots for commercial production of methanol to start in WB and Jharkhand.
https://economictimes.indiatimes.com/industry/energy/oil-gas/niti-aayog-may-test-drive-plan-to-run-petrol-cars-on-15-methanol/articleshow/65251618.cms
REPLY 33w REPLY 33w REPLY 33w
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