Bidding Adieu to Crude Imports and Greenhouse Gases

As the country is on the path to recovery from the economic brunt of the pandemic, cutting expenditures that affect the national coffers seems like a logical move. India’s annual crude oil imports have been increasing year on year, while the global petroleum prices have become too prohibitive. Fortunately, India has an advantage in its abundant agricultural produce and surplus raw materials that can be used to manufacture ethanol, a viable renewable energy source. The Indian government has set in motion various schemes and regulations that will make biofuels, a crucial component to meet the country’s increasing energy needs. The oft-repeated Atmanirbhar Bharat vision seems to be at play here, empowering not just the farmers, but also India’s future towards self-reliance in terms of energy demands.

As the country is on the path to recovery from the economic brunt of the pandemic, cutting expenditures that affect the national coffers seems like a logical move. India’s annual crude oil imports have been increasing year on year, while the global petroleum prices have become too prohibitive. Fortunately, India has an advantage in its abundant agricultural produce and surplus raw materials that can be used to manufacture ethanol, a viable renewable energy source. The Indian government has set in motion various schemes and regulations that will make biofuels, a crucial component to meet the country’s increasing energy needs. The oft-repeated Atmanirbhar Bharat vision seems to be at play here, empowering not just the farmers, but also India’s future towards self-reliance in terms of energy demands.

The Department of Biotechnology has been promoting R&D for biofuel technology development by recognising the need for clean and renewable energy for transportation. The Government of India had, in June 2018, announced a new policy on biofuels and an indicative target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2030.

After the country took a massive financial hit due to the outbreak of COVID-19, the government bodies have been actively endorsing biofuel and its usage as it will help the country to cut down on its crude oil imports. In 2019, India imported around 226 million metric tonnes (MMT) of crude oil and this volume keeps rising every year. By mixing a small portion of biofuel with other processed fuels will help the government to provide a renewable source of energy to its citizens and that too at a very low price.

In 2015, Prime Minister Narendra Modi had stated that India needs to bring down its oil import dependence from 77 per cent in 2013-14, to 67 per cent by 2022, when India will celebrate its 75th year of independence. Now, stretching further on this concept of using green energy, the central government is planning to direct oil companies to sell up to 20 per cent ethanol blended petrol from April 1, 2023.

According to reports, India imports 83 per cent crude oil for its domestic use after processing. Similarly, 50 per cent of its natural requirement is fulfilled by imports. The government has set a target to reduce this import dependence by 10 per cent in the next two years.

As per the report by NITI Aayog 2021,

India’s net import of petroleum was 185 Million Metric Tonnes (MMT) at a cost of $55 billion in 2020-21. Most of the petroleum products are used in transportation. Hence, a successful E20 programme can save the country $4 billion per annum, which is around Rs 30,000 crore. Besides, ethanol is a less polluting fuel, and offers equivalent efficiency at lower cost than petrol. Availability of large arable land, rising production of food grains and sugarcane leading to surpluses, availability of technology to produce ethanol from plant based sources, and feasibility of making vehicles compliant to ethanol blended petrol make E20 not only a national imperative, but also an important strategic requirement.

Relying on biofuels inevitable

Biofuels obtained from organic matter or waste are one of the most valuable renewable energy sources that can help reduce carbon emissions. Bio-diesel, bio-ethanol and biogas are the three most commonly used biofuels. Apart from being a renewable source of energy, biofuels help in reducing the air pollution of the globe. As per the Renewable Fuels Association, an association for America’s ethanol industry, the usage of biofuels has helped in reducing more than 230 million metric tonnes of carbon emissions since 2007.

Adopting biofuels as an alternative source of energy can significantly improve farmers’ income, generate employment opportunities, reduce imports, augment waste to wealth creation, etc. Therefore, the government, through several programmes, promotes the production and usage of biofuels.

In order to further encourage the production and the usage of biofuels, the Government of India has launched various schemes and policies such as National Policy on Biofuels, 2018, Pradhan Mantri JIVAN Yojana, Biogas Power Generation and Thermal Energy Application Programme (BPGTP), New National Biogas and Organic Manure Programme (NNBOMP), Sustainable Alternative Towards Affordable Transportation (SATAT) etc.

Elaborating on the government's schemes and policies, Atul Mulay, President, Bioenergy, Praj Industries, said, “Government has already taken various strategic interventions to boost the ethanol production and consumption in the country. Government has recently released a five year roadmap, advancing the E20 target by five years to FY 2025. This has created ethanol capacity building opportunities.”

Ethanol production

In India, ethanol is produced through various sources and depending on the raw materials used for their production, their outputs are categorised in 1G, 2G and 3G, where ‘G’ stands for ‘generation’. The source of 1G – the first generation of biofuels – include edible sources like molasses, sugar-containing materials like sugarcane, sugar beet and sorghum, starchcontaining materials like corn, cassava and rotten potatoes, and edible oil seeds. 2G biofuels use non-edible sources like non-edible oilseeds (e.g. Jatropha curcas), used cooking oil, agriculture

residue such as rice straw, cotton stalk, corn cobs, saw dust, bagasse, etc. 3G biofuels are drawn from industrial waste, municipal solid waste, etc. 2G and 3G biofuels are recognised as being more advanced.

“The supply chain for 1G ethanol production from sugar is well established. Different sugar mills have their own ethanol production capacity. Recently, the government has permitted use of starchy feedstock (surplus and damaged grains) for ethanol production. Starchy feedstock from Food Corporation of India (FCI) will be made available to ensure uninterrupted supply,” said Mulay. Echoing similar sentiments, Dr Anjan

Ray, Director Council of Scientific and Industrial Research-indian Institute of Petroleum (CSIR-IIP) said, “The new biofuel policy has opened up new avenues of using 1G, as well as 2G and also mixed feedstock. While 1G-bioethanol technologies are well established, and the 2G-bioethanol processes are moving towards maturity, the Indian energy sector now has to roll out production by focusing on economically viable and scalable technologies using waste-based feeds as far as possible and also by enhancing productivity and utilisation of 1G crops other than sugarcane.”

Some of the leading players in India ethanol market are Praj Industries, India Glycols, Bajaj Hindusthan Sugar, Shree Renuka Sugars Ltd., Triveni Engineering & Industries Ltd., Balrampur Chini Mills Ltd., Mawana Sugars Ltd., HPCL Biofuels Limited, Jeypore Sugar Company Ltd., Simbhaoli Sugars Ltd., BSM Sugar and E.I.D Parry India Ltd.

Compressed Biogas

Waste / Biomass sources such as agricultural residue, cattle dung, sugarcane press mud, municipal solid waste and sewage treatment plant waste etc. produce biogas through the process of anaerobic decomposition. The biogas is purified to remove hydrogen sulfide (H2S), carbon dioxide (CO2), water vapour and compressed as Compressed Bio Gas (CBG), which has methane (CH4) content of more than 90 per cent.

In order to expand the scope of CBG in

India, the then Petroleum Minister Dharmendra Pradhan stated that the country is well poised to receive a whooping investment of Rs 2 trillion to set up 5,000 CBG units across the country. On that note, the Ministry of Petroleum and Natural Gas signed memorandum of understandings

(Mous) with energy companies like JBM Group, Adani Gas, Torrent Gas and Petronet LNG for setting up the CBG plants. The ministry, likewise, inked Mous with technology providers in CBG sectors like Indian Oil, Praj Industries, CEID Consultants, and Bharat Biogas Energy. Through these arrangements, the government under the SATAT is aiming to complete its target of 5000 CBG plants by 2023-24 with a production target of 15 MMT.

Further, Pradhan said that the Government is in the process of including CBG under Priority Sector Lending. This move will provide ease in the financing of CBG plants. He added that Central

Financial Assistance or Subsidy for setting up CBG plants has been extended to 2020-21 to promote new projects. As per the Ministry of Petroleum and Natural Gas, CBG projects are viable and have an attractive rate of return for new entrepreneurs. A new package for MSME shall also assist to fund CBG Plants across India. The ministry is also exploring global funds to fund CBG projects.

Reducing stubble burning menace

Stubble burning is a very big issue especially in Delhi NCR region as the entire zone gets covered with haze of air pollution causing serious health issues to living beings. The root cause of this hazardous issue is farmers have their backs against the wall with no other option to burn massive biomass as they need to prepare the field for the next crop. These farmers have limited storage space and with almost no offtake available, they prefer burning the stubble.

Last year, the Government of Punjab gave its nod to Indian Oil Corporation Ltd. (IOCL) to install a CBG plant at the site of closed cooperative sugar mills at Rakhra in Patiala. This newly developed plant will use paddy straw to produce biogas hence it will drastically reduce the stable burning in the region.

On a similar note, Praj Industries is all set to install CBG project at Badaun in Uttar Pradesh. This set up will use Rengas technology developed using proprietary microbes to produce CBG from rice straw. This project which has received a green signal from Hindustan Petroleum Corporation (HPCL) will have the capacity to process 35000

MT of rice straw as feedstock to generate 5250 MT of CBG annually.

To overcome the menace, Col Rohit Dev

(Retd), Chief Operating Officer, Punjab Renewable Energy Systems Private Limited (PRESPL) has suggested, “A People Public Private Partnership (PPPP) Model could be evolved to foster mitigation of the stubble burning and use of biomass in Bio-energy Projects; with first, for BIO-CNG, being under the aegis of the PMO, and to be implemented for next season, next year and secondly for Bio-ethanol (2G) in Bhatinda, Punjab of HPCL / Barghar, Orissa of BPCL by year 2022. This model can be replicated for all small, medium and large industrial applications later”.

He further added that such installations will enhance rural development with double income for farmers, financial inclusion, more jobs etc.

It is the best way to establish ‘Anna Daata to

Oorja Daata’ for the farmer community. Also lead the climate change initiative and work towards Sustainable Development Goals (SDGS) agreed upon during the Paris Agreement, through the Biomass-based Bio-energy Sector by getting green fuels and reducing dependency on fossil fuels and also, reducing carbon, sulfur oxide and nitrogen

“The new biofuel policy has opened up new avenues of using 1G, as well as 2G and also mixed feedstock. While 1G-bioethanol technologies are well established, and the 2G-bioethanol processes are moving towards maturity, the Indian energy sector now has to roll out production by focusing on economically viable and scalable technologies using waste-based feeds as far as possible and also by enhancing productivity and utilisation of 1G crops other than sugarcane.”

Dr Anjan Ray, Director, Council of Scientific and Industrial Research-indian Institute of Petroleum

“Government has already taken various strategic interventions to boost the ethanol production and consumption in the country. Government has recently released a five year roadmap, advancing the E20 target by five years to FY 2025. This has created ethanol capacity building opportunities.”

Atul Mulay, President, Bioenergy, Praj Industries

oxides emissions. India being a huge market for biofuels, will attract tremendous Foreign Direct Investment (FDI) and establishment of projects and manufacturing units of varied kinds in India and that will give impetus to Make in India, more employment, better market share of production of biofuels in the world, growth boost to economy etc.

Moved by the potential of India’s CBG sector, a German company called Verbio AG is gearing up to set up its CBG plant at Bhutal Kalan village in Punjab’s Sangrur district. As per the company, it will be using paddy stubble as raw material which will be collected within the 15 km radius of the plant. Claus Sauter, CEO, Verbio, stated, “On the one hand, the Indian Government is promoting the expansion of gas mobility as a cheap alternative to expensive fossil fuels in the country. On the other hand, it urgently needs and wants to contain the problem of massive air pollution caused by the large-scale burning of waste straw in the fields. Our straw biomethane technology is so far the only concrete answer to both challenges.”

The company uses an advanced technology

Uttar Pradesh is dominating the ethanol production domain in

India with 58 crore litres of ethanol produced by 54 distilleries established across the state.

which enables the raw materials to ferment in big fermenters with a capacity of 8,000 to 10,000 cubic metres. The biomass is left in the fermenters with the addition of bacteria for about 30 days. During fermentation, raw biogas is produced comprising about 60 per cent methane. It also contains carbon dioxide, sulphur and inorganic elements, which are removed in the next steps in first a desulphurisation plant and then a CO2 capture plant. The inorganic components are also removed. The resulting biomethane with a purity of 99 per cent is then fed into the natural gas grid. Ammonium sulphate solution, straw humus, phosphate and potassium are also produced and can be used as organic fertilizer. The company further states that four big bales of straw (two tonnes of straw) transformed into biomethane provide enough biofuel to run a mid-class CNG car for a whole year (ca. 11,500 km).

Experts agree that only a synergetic effort by the government, farmers and companies involved in the production of ethanol will help transform the country economically and safeguard the environment for the future generations.

A People Public Private Partnership (PPPP) Model could be evolved to foster mitigation of the stubble burning and use of biomass in Bio-energy Projects; with first, for BIO-CNG, being under the aegis of the PMO, and to be implemented for next season, next year and secondly being for Bio-ethanol (2G) in Bhatinda, Punjab of HPCL / Barghar,

Orissa of BPCL by year 2022. This Model can be replicated for all small, medium and large industrial applications later”.

Col Rohit Dev (Retd), COO, Punjab Renewable Energy Systems Private Limited

“On the one hand, the Indian Government is promoting the expansion of gas mobility as a cheap alternative to expensive fossil fuels in the country. On the other hand, it urgently needs and wants to contain the problem of massive air pollution caused by the large-scale burning of waste straw in the fields. Our straw biomethane technology is so far the only concrete answer to both challenges.”

Claus Sauter, CEO, Verbio