Role of BioFuels in the Indian Transport Sector

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Role of Bio-Fuels in the Indian Transport Sector

• Regional Workshop
• Climate Change Mitigation in the Transport Sector
• Aditi Dass
• Winrock International India
• ADB, May 24-25, 2006

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Winrock International India (WII)

• An independent, not for profit organization
  established in 1998
• Pursuing activities related to energy,
  environment, natural resource management and
  sustainable development
• Staffed by 60 professionals drawn from diverse
  disciplines
• Affiliated to Winrock International, US

WII SPONSORS

• Ministries and Departments of Central and State
  Governments
• Bilateral and Multilateral Agencies
• Foundations
• Corporate Sector

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Biofuel Options in India

• Biodiesel - non-edible tree borne (TBOs) seeds
• Pongamia pinnata (Karanja)
• Jatropha curcas (Ratan Jyot)
• Azadirachta Indica (Neem)
• Shorea robusta (Sal)
• Bioethanol molasses a byproduct of sugar
  industry

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• Biodiesel

Biodiesel
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Government Actions on Biodiesel
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Government Actions on Biodiesel
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State level policies and activities

• Andhra Pradesh
• Jatropha plantation on 40,000 acres during
  2005-06
• Free seedling material to Jatropha cultivation
  farmers
• Grant to BPL (below poverty line) families to
  cover plantation cost
• INR 9.85 million for R D on biofuel
• Reduction in value added tax (VAT) to the
  biodiesel industries
• Uttaranchal
• Uttaranchal Biofuel Board created to coordinate
  biofuel activities.
• Plantation of Jatropha is being taken up on
  un-irrigated degraded forest-land
• Plantation during 2004-05 360 Ha
• Plantation during 2005-0610,000 Ha
• Plantation planned till 2012 200,000 Ha
• State Government signed agreement with private
  company to process 600,000 tonnes of Jatropha
  seeds to bio-diesel

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State level policies and activities

• Chattisgarh
• Biofuel development authority from 26th January,
  2005 under the Chattisgarh Renewable Energy
  Development Agency
• 80 million Jatropha seedlings planted during
  2005
• Target for 2006 - 160 million Jatropha seedlings
• Most of these plantations are on government
  wasteland and fallow land
• Pilot demonstration plantation in 300 acres of
  land of farmers in each district.

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KSRTC experience use of pongamia oil in buses

• Trials of 10 oil blend in 2 new buses taken up
  in 2004
• Performance compared with 2 new diesel buses
  running on same route.
• Initial problems in achieving proper mixing of
  pongamia oil with diesel solved by adding an
  enzyme-based additive
• Cost of additive is INR 2200/litre and 1 litre of
  additive added in 6000 litres of fuel.
• 12.5 mileage improvement observed in comparison
  with diesel buses
• Slightly higher maintenance costs as fuel filters
  replaced after every 8,000 km (10,000 km on
  diesel operation)
• Current market price of pongamia oil is INR
  28/litre compared to price of diesel at INR
  37/litre.
• Overall saving of INR 3/litre by using blended
  diesel

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Biodiesel Resources

• Tree borne oil seeds
• More than 300 different species of trees
  producing oil-bearing seeds. Current utilization
  of non-edible oilseeds is very low

Source Subramanian et. al, 2005
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Wasteland Availability
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Diesel and Biodiesel Demand
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• Ethanol

Ethanol
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Ethanol

• Production from following sources
• Sugarcane - Major source of ethanol production in
  India. Average sugarcane productivity is about 70
  MT per/ ha and ethanol productivity is 70 lt/ 1
  MT of sugarcane.
• Sugar beet Sugar beet cultivation and its
  processing to ethanol needs to be promoted in the
  country
• Starch (grain, corn etc) - Corn oil is edible and
  its use in India for production of ethanol is
  not economically feasible.
• Cellulosic biomass currently, economics are not
  favourable.

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Government Actions on Ethanol
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Government Actions on Ethanol
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Ethanol Production
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• Biofuel as Transportation Fuel

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Markets for biofuels as transportation fuel

• Biodiesel
• Commercial biodiesel production is yet to start
• Current usage is limited to trials on vehicles
  and lab experiments
• Current market price of biodiesel varies from INR
  55 -110/ lt
• Cost of Jatropha biodiesel is high (INR
  80-110/lt) as Jatropha seeds are in high demand
  for raising new plantations
• Bio-ethanol
• During Mar 2003 to Sep 2004, 0.37 billion liters
  of ethanol purchased by the oil industry as part
  of the 5 ethanol blending program
• During 2003-04, sugar cane production went down
  due to drought and ethanol producers were unable
  to meet demand of oil companies
• During 2003-05, ethanol prices increased from INR
  15.50/l to INR 19.50/lt

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Increase in the prices of petrol and diesel(as
of August 2005)

• Retail prices in Delhi

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Petrol/Diesel price build up in DelhiAugust 12,
2005
53 of the prices of petrol and 28.50 of the
prices of diesel are due to taxes, duties, cess,
etc
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Bio-fuel price

• Ethanol
• INR 19.55/ lt
• molasses (INR 5,000/ ton in 2004), stabilize
  around INR 2,500/ ton during 2005
• ethanol at around INR 19/ lt.
• alcohol beverage manufacturers (40-45 of
  molasses), are shifting towards grain-based
  alcohol
• Biodiesel
• INR 55-110/ lt, artificially high
• prices expected to come down as harvest from the
  new plantations would become available
• projected prices of biodiesel in various studies
  ranges from INR 16 50/ lt.

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Issues/ Concerns

• Food Security
• Food grain production increased from average of
  187 MT during Five Year Plan Period (1992-97) to
  202 MT per annum during IX Plan period (1997
  2002), although average area under food grain
  production had remained constant at around 122
  mha
• Increase food production by over 50 in the next
  two decades
• Appx. 56 is arable land, used only for about 3
  months during the monsoon period. Adequate energy
  for irrigation, enable production of current
  levels of food grains, fruits and vegetables
  from a smaller area by multiple cropping
• contd

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Issues/ Concerns

• Energy
• About 125,000 villages in India are
  non-electrified/ poor, erratic and unreliable
  supply and farmers depend on diesel pump-sets for
  irrigation
• Biofuels can help substitute a part of this
• Environmental sustainability of biofuel
• Environmental impacts of biofuels need to be
  studied in detail
• Experiments in India on biodiesel use in vehicles
  have shown reduction in some important air
  pollutants

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Benefits of biofuel

• Generation of new employment opportunities in
  raising, reaping and processing of biofuel crops
• Addition to the renewable energy options for
  decentralised distributed generation (DDG) of
  electricity and for motive power applications
  (water pumping, milling, etc.) in energy
  deficient rural India
• Greening of wastelands and regeneration of
  degraded forest-lands, thereby helping in
  ecorestoration and preventing further land
  degradation
• Better environmental performance through
  reduction in vehicular pollution and GHG
  emissions
• Biofuels in vehicles results in reduction of
  SO2, particulate matter, CO, etc.

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Biofuel in India - Challenges

• Produce large quantities of biofuels at prices
  competitive with fossil fuel products
• Deal with issue of land ownership. The land
  ceiling laws vary from state to state, for which
  resources need to be mobilized as per different
  kinds of farming.
• Putting in place the back-to-back arrangements
  from farmer to expeller to bio-diesel
  manufacturer to final consumers is necessary for
  the successful implementation of the bio-diesel
  policy.
• Financial viability of the biodiesel is yet to be
  proven. The varied experience in yield levels and
  crop management practices has led to hesitation
  for planting biofuel crops

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• Thank you !

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Life cycle analysis for various fuels
Table-3 Biodiesel Emissions Compared to
Conventional Diesel
Source Central Pollution Control Board, GOI, 2002
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Biodiesel pilot trials and lab-scale experiments

• Daimler Chrysler carried out trials with 100
  Jatropha biodiesel on Mercedes-Benz C220 CDI car
  during 2004. Central Salt and Marine Chemicals
  Research Institute (CSMCRI) supplied 1,200 litres
  of Jatropha biodiesel for the trials. Covered
  6,000 km successfully with average mileage of
  13.5 km/litre
• Trail by Indian railways on diesel locomotive
  using 5,000 litres of imported soybean biodiesel
  blends (B10, B20, B50, B100) during April-May
  2004
• State Road Transport Corporations of Haryana,
  Gujarat, Andhra Pradesh and Indian vehicle
  manufacturers - Tata Motors, and Mahindra
  Mahindra carrying out trials with biodiesel
  blends.

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Bio-diesel emissions compared to conventional
diesel
Table-3 Biodiesel Emissions Compared to
Conventional Diesel
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Bioethanol Resourcs

• Area under sugar cane production gt 2.5 times
  since 1950-51
• In recent years both area and yield stagnated

• 1.77 billion litres ethanol produced in 2001-02
  70 (potable/ industrial use), balance 0.53
  billion litres for fuel
• Dependence on single source sugarcane
  molasses.
• Availability expected to increase as the alcohol
  beverage manufacturers (40-45 of molasses),
  shifting towards grain-based alcohol.
• Commercial production of alternate crops, like
  sweet sorghum, Cellulose materials etc

Source Singh J P, 2004