Innovative Integrated 3G Bio-Refineries

Presenter Name | Company Name

 PROJECT DESCRIPTION
 Brief description of ethanol & Bio -CNG production.
 Highlights of National Biofuel Policy.
 Details of Ethanol Blending Program.
 Ethanol & Bio-CNG demand and supply.
 Challenges in ethanol production.
 Solution and Innovation.
 Our Vision.
3G
2G
 SWOT analysis.
1G
 Conclusion.
 INTRODUCTION
 Bioethanol: Ethanol produced from plants such as sugar cane or maize, used as an
motor fuel.
 Glucose is converted into ethanol by Saccharomyces cerevisiae (yeast) during
Fermentation process.

Glucose + Yeast → Ethanol + Carbon di-oxide

  Ministry of New & Renewable Energy - GOI has formed
National Policy on Biofuels to achieve National Energy
Security and address environmental concerns.
 Biofuels as a potential to stimulate rural development
and create employment opportunities.
 Petro-based oil meets about 95% of the requirement for
transportation in India.
 Indicative target of 20% blending of biofuels, both for
NATIONAL POLICY ON bio-diesel and bio-ethanol, by 2017 was proposed.
BIOFUELS
Fossil Fuels Biofuels

• Limited • Virtually inexhaustible

• Non – renewable • Renewable
• Polluting • Non – Polluting
• Import dependent • Indigenous
• Ethanol Blended Petrol (EBP) programme was launched in
January, 2003.

• Ministry of Petroleum & Natural Gas has directed the Oil

Marketing Companies (OMCs) to sell 5% Ethanol Blended
Petrol in notified 21 States and 7 UTs with effect from 1st
November, 2006.

• Ministry of Petroleum and Natural Gas, on 1st September, ETHANOL

2015, has asked OMCs to target 10 % blending of ethanol in
Petrol in as many States as possible. BLENDING
• Reduce Import Dependency: One crore lit of E10 saves Rs.28
PROGRAMME
crore of forex at current rates.

• The ethanol supply year 2017-18 is likely to see a supply of

around 150 crore litres of ethanol which will result in savings
of over Rs.4000 crore of forex.
ETHANOL DEMAND AND SUPPLY
 ETHANOL BLENDING NEED FOR MORE ETHANOL
PRODUCTION
5  5% Ethanol blending target is not met.
4.5
4  Recent increase in petrol price.
3.5 3.5
3  Geopolitical concerns.
2.5
2
1.8
2.07  To reduce the trade deficit.
1.5 1.6
1.4 1.4
1  Employment generation.
0.5 0.6
0.3
0  Depleting fossil fuel source to push crude
2010 2011 2012 2013 2014 2015 2016 2017 oil prices higher in future
Blend Rate %
PROJECTED BLENDING ETHANOL DEMANDS

Petroleum
Year. E5 Demand E10 Demand E15 Demand E20 Demand
Demand

2017-18 3328 166 332 499 665

2018-19 3607 180 360 541 721
2019-20 3904 195 390 585 780
2020-21 4219 211 421 632 843
2021-22 4565 228 456 684 913
All values are in crore litres
Source: Indian sugar mills association
 PRODUCTION CAPACITY SHORTAGE
Total ethanol requirement [E10]
Existing capacity
Shortage in capacity
All values are in crore litres
 Shortage of 133 crore liters ethanol
360
production unit to achieve 10% blending.
227
133  Each crore liter production unit can generate
revenue of 40 crores at current price.
 Scale up opportunity is virtually unlimited
considering possibility of > 20% blending in
future.
CHALLENGES WITH ETHANOL PRODUCTION

 Feed stock availability.

 Capital investment.
FEED STOCK AVAILABILTY
Issue:
 Molasses availability and price depends on sugarcane output which in turn depends on
rain.
Solution:
 More than 60% of solid waste collected in Bengaluru is fermentable.
 As per recent statistics 4000 tons of solid waste is collected everyday in Bengaluru.
 Theoretically processing this waste can yield 900KL of ethanol.
BIO-CNG DEMAND AND SUPPLY
BIO GAS
BIO GAS
INTEGRATION
 BIOGAS+BIOETHNOL + BIOFUEL
CLEAR IMAGE
Innovation

 Waste to fuel
 Seasonal feed stock management
 Integration of energy, fuel , and production
 low capital investment , high Rate of Return
 Innovations in Fuel technologies
 Capital investment
Issue:
 To set up 10,000 liters per day ethanol production unit capital needed is 10 crores.
Solution:
 In regular production unit, material used to build fermenter, storage and distillation
columns is keeping the capital cost higher.
, we propose to set up the 10,000 liters per day ethanol production unit with capital
cost of 3 crores which is 70% discount.
 BREAK EVEN ANALYSIS
15

10

5 Break even at quarter 4

>>> 1 Year
0
0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Break even at quarter 14
-5 >>> 3.5 Years
-10

-15

Capital cost 3 crore Capital cost 10 crore

 SWOT ANALYSIS
STRENGTHS WEAKNESSES

 Strategic location to obtain molasses form  High cost structure and lack of inhouse
mandya and waste from bengaluru. R&D facility.

 Innovation to reduce capital investment.  Variation in process can affect on returns.

 Variation in price and availability of  Generate good returns on investment with

molasses. risk of competition.

 Decrease in crude oil price impacts  Huge gap in supply of ethanol, provides
ethanol price. opportunity to expand and grow.
THREATS OPPORTUNITIES
 We aspire to contribute maximum to India’s green energy
OUR VISION program, cities waste management issue, a better
environment for future generations.
 CONCLUSION
 Bioethanol production is a tremendous opportunity as business considering marginal
returns.
 Government is aggressively pursing the policy changes and providing support for
biofuels production to achieve energy security indigenously.
 Transport ministry has already initiated push for E100 vehicles, which tells long term
nature of the opportunity.
 To contribute to a cleaner environment and also participate in carbon trading in turn
reduce country's trade deficit burden.
THANK YOU!