Transcript Reliance Presentation - Biodiesel Association of India

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
(million MT)
51
11
32%
24%
% Penetration of biofuel
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
(million MT)
1.20
6
Current biofuel
consumption (million MT)
0.16
negligible
% Penetration of biofuel
opportunity
13%
NA
% Penetration of total fuel
opportunity
Jatropha with Groundnut as intercrop
1.3%
NA
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
 Oils & Fats to biodiesel
November, 2007
 Pre processing and trans-esterification
 Second generation
 Biomaterials
December, 2009
 Hybrids; Transgenics; Algae; Yeast
July, 2008
 Biomass to bioethanol/butanol
 Hydrolysis, fermentation, separation
 Gasification, fermentation, membrane
separation
Jatropha yield cycle, Andhra Pradesh, India
 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
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).
Jatropha with Black gram as intercrop
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
3.5 mm BTU/bbl
5.3 mm BTU/bbl
(67 % of gasoline)
(90 % of diesel)
30 % over gasoline
45 % over diesel
(Grain-based alcohol)
(Rapeseed-based BD)
Fossil energy
savings
20 % over gasoline
60 % over diesel
Emissions
Better on NOx
Better on CO and
unburnt hydrocarbons
Water use in
crops
High
Low
Energy content
GHG emissions
savings
Others
Better cetane
Better lubricity
Remarks
30% additional efficiency
of diesel engines
NOx can be improved with
ignition improvements
Lubricity useful for ultra
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)
6000
Sugarcane
5700
Sugar Beet
4800
Palm
3700
Corn
3500
Sorghum
2000
Jatropha
Wheat
b
1800
Rapeseed
1500
Soyabeans
Jatropha bund plantation
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
1110
Pongamia under drip
703
Jatropha rainfed with support irrigation
9853
Mustard under flood
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
4.87
Pongamia under drip
5.29
Jatropha rainfed with support irrigation
5.83
Mustard under flood
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)
83.8
Fossil fuel
14
Biodiesel from palm oil
5
19
Biodiesel from soybean
13
29
Biodiesel from rapeseed
18
Biodiesel from sunflow er
12
Ethanol from sugar beet
1
0
2
1
b
2
14
Ethanol from sugar cane
26
1
23
Ethanol from w heat w ith cogen
Biodiesel from w aste
49
22
19
22
26
9 1
13
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
High/low 2009
Biodiesel, $/lit
High/low 2009
Rape seed
0.848/0.665
0.917/0.756
Corn
Soybean
0.764/0.628
0.837/0.725
Sugar Cane
(Brazil)
Palm
0.710/0.498
0.782/0.585
Sugar Beet
**
0.930
Raw Material
Jatropha
Animal fat
0.583
BTL Biodiesel
1.10
Conventional
*
Raw Material
RM cost, $/kg
Bioethanol, $/lit
High/low 2009
0.1588
0.545/0.475
0.415/0.331
0.099
Molasses
0.420
0.540
Crude, $/ bbl
Diesel*, $/lit
Crude, $/ bbl
Gasoline*, $/lit
40
0.34
40
0.32
50
0.43
50
0.39
60
0.50
60
0.48
70
0.57
70
0.53
80
0.64
80
0.60
Conventional
Ex Factory gate price; ** Jatropha seeds - Rs.12/kg
At current seed prices, biodiesel is not competitive.
Bioethanol (sugarcane based) is competitive at US$ 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
Characterisation
And Sourcing
Hybrid Plants
Development
Tissue Cultured
Plants
Jatropha
Farming
Cellulosic
Biomass
Transgenic Plants
Development
Jatropha Seeds
Protein
Extraction
Jatropha Oil
Jatropha
Seed Cake
Glycerol
Enzyme directed
conversion
Transesterification
3GT Biopolymer
Via
1,3 Propane Diol
Biodiesel
Bioethanol
Biobutanol
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