Bioenergy:Techno-economic Assessment

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BioenergyTechno-economic Assessment
Energy Conclave-2006

• Dr. Jyoti Parikh
• Integrated Research and Action for Development
• (IRADe), New Delhi
• 27 July, 2006

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Contents

• Biodiesel
• Bioethanol
• Biomass Gasification

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Integrated Energy Policy (IEP)

• Biomass provides 1/3 of Indias total primary
  energy.
• Biomass based fuels provide 81 of domestic
  energy.
• This non-commercial energy sector is mainly
  managed by women without technology, management
  or investment involving backbreaking drudgery.

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Integrated Energy Policy

• Biodiesel
• Biodiesel provides an option to substitute
  diesel. Its economic practicability depends
  largely on the yields one can get from wasteland
  and /or returns one can get from good quality
  land with irrigation and fertiliser compared to
  other crops.

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Integrated Energy Policy

• Bioethanol
• Ethanol is used in Brazil as a fuel for cars.
• Under Indian situation, there is scarcity of
  land and water , and the available quantities of
  ethanol.
• There is need to find more economic use of other
  feedstock for the production of chemicals and
  potable alcohol.
• Biomass
• Biomass can become a major energy source if fuel
  wood plantations are developed. This requires
  land which may have other competitive use.

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Biodiesel
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Biodiesel System
 
 
Modification needed to use in Transport vehicles,
stationary equipment, and oil cakes
Separation of seeds, kernels, Procurement of
seeds plantation of Oil bearing trees
Oil extraction, blending and processing
Plantation of Oil bearing trees
Energy Policy
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Selection of Species

• 450 oil seeds species identified in various parts
  of India
• For focused development only one or two species
  like Jatropha and Pongamia should be selected
• However oil seeds which can yield suitable grade
  oil on economic scale can be tried to run RD
  projects
• Ratanjot (Jatropha curcas)
• Adaptability to difficult agroclimatic conditions
• Recommended by Committee on Biofuel Development,
  GOI
• Karanj (Pongamia pinnata)
• Avenue tree and wide adaptability
• 27 oil from seeds

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Possible Yield Levels

• Under favourable agro-climatic conditions, it has
  potential to yield seeds up to 1 to 2 kg /plant
  or 2 to 5 tons /ha.
• Assuming
• Yield variability 2 5 tons and average oil
  content 33
• For producing 1 mt of biodiesel seeds required
  will be 3.3 mt
• Land required for producing 3.3 mt Jatropha
  seeds
• At yield level 2 tons/ha 1.65 m ha
• At yield level 5 tons/ha 0.66 m ha

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Wasteland that can be considered for Jatropha
plantation
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Criteria for Land Availability

• Department of Land Resources under Ministry of
  Rural Development, GOI has proposed the criteria
• Annual rainfall should exceed 600mm
• The pH of soil should be less than 9
• Temperature should not fall below 00 C.
• The slope of land should not exceed 300
• The land should not be waterlogged
• The land should not be barren rocky/stony

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Byproducts

• The marketing of byproducts is necessary for
  economic viability
• Glycerol
• Oil seed cake
• There will be 1.9 mmt oil seed cake (excluding
  shell) and 0.095 mmt glycerol as byproducts while
  producing 1mmt of clean Jatropha oil.

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Overall Assessment

• Uncertainty about Jatropha oilseeds yields,
  quotes for which range from 2 to 5 tons per ha.
• Availability of land and competition of oilseeds
  crops with food crops.If arable land is diverted
  for Jatropha cultivation, economic returns should
  be around Rs. 30,000/ha/year.
• Extent of byproducts, their potential uses and
  market availability and their prices

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POLICY FRAMEWORK
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Policy Interventions

• Allocating community/forest land for Jatropha
  plantation
• Minimum Support Price (MSP)/ Buy Back Guarantee
  of seeds
• Bank Finance for plantation
• Tax Exemptions/holiday
• National Coordinated Research Project

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Recommendations and Action Plan

• Increasing the yield of Jatropha plants by using
  elite planting material.
• Selection of varieties/strains which have more
  seed production and oil content.
• Development of processing techniques which
  results in maximum oil recovery from seeds.

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Bioethanol
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Indian Government Initiatives

• The Government of India has already announced the
  use of 5 ethanol-blended petrol from 30th Sep.
  2003 in certain regions of nine states, the
  proportion of which would be increased to 10 in
  the later stage.
• The price of ethanol is less than Rs 19 with no
  incentive for oil companies.

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Potential of ethanol production
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Sugar Industry

• In India, about 60 the cane is utilized for
  sugar production, 30 for alternative sweeteners
  and balance 10 for seeds.
• In Brazil, 45 goes for sugar production and 55
  for production of ethanol directly from sugarcane
  juice.

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Barriers and Constraints

• Market constraints
• Biofuel Prices
• State government clearance
• Pricing of Ethanol
• Interstate movement of ethanol
• Concessional excise duty surcharge

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Technological Constraints

• Lower Plant Capacity
• Use of batch fermentation process
• Pollution control technologies in India
• Non-economic returns from the Co-products and
  Effluents

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Policy Interventions
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At National Level

• Detailed timeline for implementation of the
  programme
• Incentive similar to other renewable sources of
  the energy (reduced taxes, duties etc.).
• R D for alternative subtract, processing
  technology
• Institutional framework among different
  stakeholders involve in the production and
  distribution of the ethanol.

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At national level.

• Uniform tax policy for all states and UTs
• Institutional support for the fuel grade
  certification, labeling, and standardizing
• Centralized agency for license to the agents
  involved in the supply and distribution
• Maximizing the research and development effort in
  this field to develop efficient technology for
  processing and production of ethanol

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At State Level

• Clear cut state policy on the charges, levies
  fees etc related to the production and interstate
  transportation and use of the ethanol.
• Proper incentives, licensing facility and
  cooperation for alcohol industry and
  entrepreneurs to set up ethanol plants.
• Less interference of state excise department for
  the repair, modification, and expansion of the
  ethanol plants.
• Remove restriction on the use of subtracts
  involve in the production of ethanol like
  sugarcane, bagasse, cane juice etc.

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Recommendations and Suggestions

• Elite planting material for producing sugarcane.
• Uniform policy for Sales Tax on molasses and
  rectified spirit.
• Removal of Export Pass Fees for inter-state
  movements
• Permission to sugar mills to manufacture alcohol
  from cane juice
• Use of secondary juice for fermentation and
  production of ethanol.

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Biomass Gasification
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Potential of Biomass Gasification in India

• In the area of small-scale biomass gasification,
  significant developments in technology have made
  India a world leader.

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Barriers

• Technical barriers
• The induction of a gasifier system into a
  specific industry is not a simple add-on job.
• Many small, trivial matters related to operation
  and maintenance procedure are act as barriers.
• Financial barriers
• Both the small industry user and conventional
  financing institutions hesitate to invest in new
  technologies such as gasification.

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Barriers cont

• Social barriers
• Biogasifiers are feasible given the inequalities
  with in villages, lack of skilled manpower to
  install and operate systems.
• Institutional barriers
• The lack of in-house capabilities of small and
  medium industries in solving operational and
  maintenance problems

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Policy Interventions
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Financial Incentives

• A host of fiscal incentives and facilities
  should be available to both manufacturers and
  users of biomass gasification systems, including
• 100 accelerated depreciation for tax purposes in
  the first year of the installation of
  projects/systems.
• No excise duty on manufacture of most of the
  finished products.
• Low import tariffs for capital equipment and most
  of the materials and components.
• Soft loans to manufacturers and users for
  commercial and near commercial technologies.
• Five year tax holiday for power generation
  projects.

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State government's policy

• A number of States have announced policy packages
  including Wheeling, Banking, Third Party sale and
  Buy-Back which have been outlined.
• In addition some of the states are providing
  concession/exemption in State Sales Tax and
  Octroi etc.

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Recommendations and Action Plan

• Define mission statement
• Support the development of gasification
  technologies for the conversion of biomass into
  clean, sustainable energy and other products
• Conduct situation analysis
• It will lead to conclusions defined in terms of
• Science Not sufficient
• Technology Barriers exist
• Market Large potential exists
• Awareness Limited

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Recommendations and Action Plan

• Define strategic elements/goals
• Build on successful and existing technology
  platforms
• Plan and implement a robust R D program
• Establish supportive infrastructure
• Promote public communication programs
• Implement strategic planning process

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Conclusion

• The availability of land was considered as a
  major barrier in IEP for the development of
  bioenergy in India.
• A massive programme is needed to develop energy
  plantations consisting of oil seeds species on
  large tracts of wastelands and fast growing tree
  species in pockets around villages for a national
  network of small, decentralised biomass gasifiers
  power plants.
• The irrigated crop area could be used for
  sugarcane growing for bioethanol production.

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Thank You!

• Contact us
• Integrated Research and Action for Development
• ( IRADe),
• C-50, Asiad Game Village,
• Khel Gaon, New Delhi
• www.irade.org