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

2. 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

3. 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

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

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

6. 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…)

7. 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 (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

8. Second Generation Biofuels
Possible Solution
Second Generation Biofuels

9. 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

10. Second Generation Biofuels in India

11. 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

12. 2nd Gen Ethanol - Cellulosic Ethanol

13. 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

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

15. 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

16. 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

17. 2nd Gen Biodiesel - Jatropha Biodiesel
Source:

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

19. 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

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

21. 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.

22. 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

23. 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

24. 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

25. 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

26. Thank You