Second Generation Biofuels in India – Relevance and Status Narasimhan Santhanam Energy Alternatives India (EAI)

About EAI Leading Indian renewable energy business intelligence, market strategy consulting firm Work on all primary renewable energy sectors – solar, wind, bio-fuels / biomass, waste-to-energy and small hydro Work on market research, entry and diversification strategy, economic and financial modeling and pre-feasibility analysis Team comprises professionals from IITs and IIMs, with renewable energy, industry research and economics backgrounds Based out of Chennai, India More at www.eai.in

Contents Biofuels Biofuels in India Second Generation Biofuels in India Cellulosic Ethanol Jatropha Biodiesel Opportunities for India Benefits for India Second Gen Biofuels – Current Status The Road Ahead

Introduction to Biofuels 1st generation 2nd generation 3rd generation Corn Cane Maize Switchgrass Cellulosic Gasification Palm Soybeans Rapeseed Jatropha Algae Ethanol Biodiesel

Biofuels in India Mainly uses first generation feedstocks Ethanol - Sugarcane molasses Biodiesel - Rapeseed and other edible oils for biodiesel

Govt Incentives and Plans Specific mandates and incentives for biofuels 20% biofuels by 2017 (National Policy on Biofuels, 2008) Mandatory 5% blending for ethanol and biodiesel (Nov 2009) Government agreed on a price of 34 rupees per liter of petrol for biodiesel purchase by oil companies (Nov 2009) Incentives for Jatropha cultivation (IREDA…)

Inspite of Mandates & Incentives… Fuel Ethanol - 60 million gallons in India vs. 15 billion gal worldwide in 2008 (0.4%) Biodiesel - 10 million gallons vs. 3 billion gallons in 2008 (0.3%) Less than 0.5% of total transportation fuel in India uses biofuels It can be inferred that India’s performance in biofuels has been very poor

Second Generation Biofuels Possible Solution Second Generation Biofuels

Why Second Gen Biofuels Could Be the Solution First Gen Second Gen Food vs. Fuel Non food biomass Needs arable land Can grow on marginal lands Not scalable Vast range of biomass makes it scalable Low yields and viability Higher yields; more viable

Second Generation Biofuels in India

2nd Gen Ethanol - Cellulosic Ethanol Made from cellulosic biomass Examples of cellulosic biomass – corn stover, switchgrass, crop residues. Scalability is high, but so is current cost of production High cost owing to need for pretreatment In late pilot stage, not yet commercialized

2nd Gen Ethanol - Cellulosic Ethanol

Cellulosic Ethanol Potential in India India produces about 440 million tons of crop residues annually; this translates to about 130 million T of ethanol per annum India has 63 million ha waste land; translates to about maximum potential of over 500 million T of cellulosic ethanol per annum.This is equivalent to 350 tons of petroleum. India’s total crude oil import is about 110 MT per annum

Cellulosic Ethanol Status Been primarily a North American phenomenon Relatively new to India Mostly in R&D stage, only a few pilot projects

Cellulosic Ethanol – Prospects & Problems Effective utilization of waste biomass Technology not yet commercial Could take care of all India’s gasoline substitute needs High costs of production Some process routes highly scalable Lack of R&D in India

2nd Gen Biodiesel - Jatropha Biodiesel First plantations started in the early part of this decade India was the first country to grow it on large scale Plantations now in other parts of Asia and Africa. No large scale Jatropha biodiesel production yet

2nd Gen Biodiesel - Jatropha Biodiesel Source: http://www.rrbconference.com/bestanden/downloads/125.pdf

Jatropha Biodiesel Growth in India Year Area under cultivation (mill ha) CAGR 2008 0.5 2010 1.2 55% 2015 1.9 10%

Jatropha Biodiesel in India - Prospects & Problems Significantly reduce our fossil fuel dependency Much lower yields than expected Utilize marginal lands Lack of expert knowledge across entire value chain Generate rural employment Not reliable enough for farmers to invest in it

Opportunities for India in Second Gen Biofuels Oil companies Farmers Agri R&D companies Equipment manufacturers Vegetable oil companies Sugar mills and distilleries

Opportunities for India in Second Gen BF Logistics Companies Biomass to fuels requires significant transportation and material handling Local employment opportunities The investment in the ethanol industry per job created is $11,000, which is significantly less than the $220,000 per job in the petroleum field.

Benefits for India from Second Gen Biofuels Lower fuel import bill Less dependence on Middle East for oil More environmentally sustainable transport fuels Higher rural employment

India’s Current Status in Second Gen Biofuels Second Gen biofuels yet to make any impact in India Reasons: Govt not enforcing mandates and not enough incentives Low investments by govt and private sector Little R&D

The Road Ahead Set up apex bodies that can act co-ordinate national level activities – equivalent of National Biodiesel Board for the US Invest significantly in R&D for both Jatropha and Cellulosic Ethanol Sponsor grants and other funding to accelerate research and pilot plant projects in second gen biofuels

Second Generation Biofuels Can Provide a Solution to India’s Transport Fuel Woes, But Only If Government and Industry Take Proactive Measures and Make Significant Investments

Thank You