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BioPetrol
Biomass for Bio-ethanol
Ethanol made from cellulosic biomass is called bioethanol. A major challenge is developing biocatalysts capable of fermenting lignocellulosic biomass for efficient industrial application. In the coming years it is believed that cellulosic biomass will be the largest source of bioethanol. The broad category of biomass for the production of ethanol includes agricultural crops & residues and wood. Biomass resources are abundant and have multiple application potential. Among the various competing processes, bioethanol from lignocellulosic biomass appears to have near-term economic potential. The crops residues such as rice straw, bagasse etc are not currently used to derive desired economic and environmental benefits and thus they could be important resource bases for bioethanol production. The table below indicates potential of such biomass for ethanol production.

Potential for ethanol from cellulosic matter

Feedstock
Gallons ethanol/dry ton
Bagasse
112
Corn stover
113
Rice straw
110
Forest thinnings
82
Hardwood sawdust
101
Mixed paper
116
 
Review of Technologies for Manufacture of Bioeth
The degree of complexity and feasibility of biomass conversion to ethanol depends on the nature of the feedstock. The three largest components of the biomass sources are cellulose, hemicellulose, and lignin ranges of which are presented in Table 2.13. Ranges of sugar content in hardwoods, softwoods, and agricultural residues are provided in Table 2.14. Lignin remains as residual material after the sugars in biomass have been fermented to ethanol. Economic use of this byproduct is critical to the financial feasibility of biomass-to-ethanol technology.
Typical levels of cellulose, hemicellulose and lignin in biomass
Component
Percent Dry Weight
Cellulose
40-60%
Hemicellulose
20-40%
Lignin
10-25%
 
Sugar and Ash Composition of Various Biomass Feedstocks (Weight Percent)
Material
Sugars
Lignin
Ash
Hardwoods
57-78%
15-28%
0.3-1.0%
Softwoods
49-69%
24-27%
0.1-0.4%
Ag Residues
42-81%
11-29%
2-18%
 
DEVELOPMENTS IN BIOETHANOL PRODUCTION TECHNOLOGIES
Process steps
There are four basic steps in converting biomass to bioethanol:
1. Producing biomass results in the fixing of atmospheric carbon dioxide into organic carbon.
2. Converting this biomass to a useable fermentation feedstock (typically some form of sugar) can be achieved using a variety of different process technologies. These processes for fermentation feedstock production constitute the critical differences among all of the bioethanol technology options.
3. Fermenting the biomass intermediates using biocatalysts (microorganisms including yeast and bacteria) to produce ethanol is probably the oldest form of biotechnology developed by humankind.
4. Processing the fermentation product yields fuel-grade ethanol and byproducts that can be used to produce other fuels, chemicals, heat and/or electricity.
Technologies
There are four technologies for bioethanol production as given below.
The first three are based on producing sugars from biomass and then fermenting the sugars to ethanol. The fourth is a very different approach involving thermal processing of biomass to gaseous hydrogen and carbon monoxide, followed by fermentation to ethanol.
1.Concentrated Acid Hydrolysis
This process is based on concentrated acid decrystallization of cellulose followed by dilute acid hydrolysis to sugars. Separation of acid from sugars, acid recovery, and acid reconcentration are critical unit operations. Fermentation converts sugars to ethanol.
The concentrated sulfuric acid process has been commercialized in the past, particularly in the former Soviet Union and Japan. However, these processes were only successful during times of national crisis, when economic competitiveness of ethanol production could be ignored. They cannot be economical because of the high volumes of acid required. Improvements in acid sugar separation and recovery have opened the door for commercial application. Two companies in the United States(Arkenol and Masada) are currently working with DOE and NREL to commercialize this technology
Arkenol holds a series of patents on the use of concentrated acid to produce ethanol. They are currently working with DOE to establish a commercial facility that will convert rice straw to ethanol. Arkenol plans to take advantage of opportunities for obtaining rice straw a cheap feedstock in the face of new regulations that would restrict the current practice of open field burning of rice straw. Arkenol's technology further improves the economics of raw straw conversion by allowing for the recovery and purification of silica present in the straw. NREL is working with Arkenol to develop a recombinant Zymomonas Mobilis strain for the project. The facility is located in Sacramento County.
Masada Resource Group holds several patents related to municipal solid waste (MSW)-to-ethanol conversion. DOE and NREL have been working with Masada to support their MSW-to-ethanol plant, which is located in Middletown, NY. The plant will process the lignocellulosic fraction of municipal solid waste into ethanol using technology based on concentrated sulfuric acid process. The robustness of this process makes it well suited to complex and highly variable feedstocks like municipal solid waste to take advantage of relatively high tipping fees available in the area for collection and disposal of municipal solid waste.
2. Dilute Acid Hydrolysis
Hydrolysis occurs in two stages to maximize sugar yields from the hemicellulose and cellulose fractions of biomass. The first stage is operated under milder conditions to hydrolyze hemicellulose, while the second stage is optimized to hydrolyze the more resistant cellulose fraction. Liquid hydrolyzates are recovered from each stage, neutralized, and fermented to ethanol.
There is quite a bit of industrial experience with the dilute acid process. Germany, Japan, and Russia have operated dilute acid hydrolysis percolation plants off and on over the past 50 years. However, these percolation designs would not survive in a competitive market situation. Today, companies are beginning to look at commercial opportunities for this technology, which combine recent improvements and niche opportunities to solve environmental problems.
BC International (BCI) and the DOE have formed a cost-shared partnership to develop a biomass-to-ethanol plant. The facility will initially produce 20 million gallons per year of ethanol. BCI has utilized an existing ethanol plant located in Jennings, LA. Dilute acid hydrolysis will be used to recover sugar from bagasse, the waste left over after sugar cane processing. A proprietary, genetically engineered organism will ferment the sugars from bagasse to ethanol.
Tembec and Georgia Pacific are operating sulfite pulp mills in North America, which utilize a dilute acid hydrolysis process to dissolve hemicellulose and lignin from wood, and produce specialty cellulose pulp. The hexose sugars in the spent sulfite liquor are fermented to ethanol. The lignin is either burnt to generate process steam or converted to value-added products such as dispersing agents, animal feed binders, concrete additives, drilling mud additives, and soil stabilizer.
3.Enzymatic Hydrolysis
The first application of enzymes to wood hydrolysis in an ethanol process was to simply replace the cellulose acid hydrolysis step with a cellulase enzyme hydrolysis step. This is called separate hydrolysis and fermentation. An important process modification made for the enzymatic hydrolysis of biomass was the introduction of simultaneous saccharification and fermentation (SSF), which has recently been improved to include the co-fermentation of multiple sugar substrates. In the SSF process, cellulase and fermenting microbes are combined. As sugars are produced, the fermentative organisms convert them to ethanol. Enzymatic hydrolysis will be used in Iogen/Petro Canada's Ottawa, Canada project and is being explored for BCI's Gridely project. The current high cost of cellulase enzymes is the key barrier to economical production of bioethanol from lignocellulosic material, research is on to achieve a tenfold reduction in the cost of these enzymes.
Cellulase Enzyme Research
The goal is to reduce the cost of using cellulase enzymes in the bioethanol process by employing cutting-edge and efficient biochemical technologies. The current estimate for cellulase ranges from 30 to 50 cents per gallon of ethanol produced. The objective is to reduce cellulase cost to less than 5 cents per gallon of ethanol. This requires a tenfold increase in specific activity or production efficiency or some combination thereof. Nearer-term goals include a threefold increase in cellulase-specific activity (relative to the Trichoderma reesei system) by FY 2005. This may be possible by genetic manipulation of microbes.
Biomass Gasification and Fermentation
Biomass can be converted to synthesis gas (consisting primarily of carbon monoxide, carbon dioxide, and hydrogen) via a high temperature gasification process. Anaerobic bacteria are then used to convert the synthesis gas into ethanol. Bioresource Engineering Inc. has developed synthesis gas fermentation technology that can be used to produce ethanol from cellulosic wastes with high yields and rates. The feasibility of the technology has been demonstrated, and plans are under way to pilot the technology as a first step toward commercialization. The conversion of a waste stream, the disposal of which is costly, into a valuable fuel adds both environmental and economic incentives. The yields can be high because all of the raw material, except the ash and metal, is converted to ethanol. BRI has developed bioreactor systems for fermentation that results in retention times of only a few minutes at atmospheric pressure and less than a minute at elevated pressure. These retention times result in very economical equipment costs. The biocatalyst is automatically regenerated by slow growth of the bacteria in the reactor.
Development of Microbes
Microorganisms that ferment sugars to ethanol include yeasts and bacteria. Research has focused on expanding the range and efficiency of the organisms used to convert sugar to ethanol. Breakthroughs in fermentation technology in the past decade lead to commercialization of biomass conversion technology
For most of this century, researchers assumed that many of the sugars contained in biomass were not fermentable particularly those contained in hemicellulose. This meant that as much as 25% of the sugars in biomass were out of bounds as far as ethanol production was concerned. In the 1970s and 80s, microbiologists discovered microbes that could ferment these sugars, albeit slowly and inefficiently. With the advent of new tools in the emerging field of biotechnology, researchers at DOE labs and at universities acrossUSA, have succeeded in producing several new strains of yeast and bacteria(E. coli, Zymomonas, Saccharomyces) that exhibit varying degrees of ability to ferment the full spectrum of available sugars to ethanol.
Today's ethanol producers are turning their attention to corn fiber-the shell of the kernel as a source of additional sugars for ethanol production. But, corn fiber, like other forms of biomass, contains sugars that are not fermentable by today's industrial fermentation organisms. Research is on to tailor new microbes that can ferment these specific sugars.
Raw materials for making bioethanol
Ethanol producers in the United States produce around 1.5 billion gallons of ethanol each year, mostly derived from corn. As demand for ethanol increases, other biomass resources, such as agricultural and forestry wastes, municipal solid wastes, industrial wastes, and crops grown solely for energy purposes, will be used to make ethanol. Research activities over the past 20 years have developed technology to convert these feedstocks to ethanol
Fuel ethanol is currently produced from the easily fermented sugars and starches in grain and food processing wastes. Soon, new technologies will be economically viable for converting plant fiber to ethanol. A portion of the agricultural and forestry residues (corn stover ,stalks, leaves, branches) which are presently burned or left in the field may therefore be harvested for biofuel production. There will be many benefits by connecting the established corn ethanol industry with the emerging technologies that produce ethanol from agricultural wastes and other types of biomass.
Meeting the Ethanol demand for blending:
The ethanol demand for blending can be calculated from the plan projection of the future growth in gasoline use. The tables below provide the figures for the tenth plan together with the availability.
Ethanol Demand And Supply For Blending In Gasoline

Year

 

 

Gasoline

demand

MMT

Ethano

ldemand

Th KL

Molasses

production

MMT

Ethanol production Utilisation of ethanol
Molasses

Th KL

Cane

Th KL

Total

Th KL

Potable

Th KL

Industry

Th KL

Balance

Th KL

2001-02 7.07 416.14 8.77 1775 0 1775 648 600 527
2006-07 10.07 592.72 11.36 2300 1485 3785 765 711 2309
2011-12 12.85 756.35 11.36 2300 1485 3785 887 844 2054
2016-17 16.4 965.30 11.36
2300 1485 3785 1028 1003 1754

Notes:

1. Area under cane cultivation is expected to increase from 4.36 mha in 2001-02 to 4.96 in 2006-07 which would add additional cane production of around 50 MMT.

2. About 30% of cane goes for making gur and khandsari. If there is no additional increase in khandsari demand, sugar and molasses production would increase.

3. The present distiller capacity is for 2900 Th kL of ethanol and looks to be sufficient for 5% blend till 12 th plan

4. A growth of 3% in potable use and a 3.5% in chemical and other use has been taken

As per the All India Distellers Association, the present installed capacity of alcohol production in the country is 2900 million liters. With the present availability of molasses to the tune of 9 million tonnes the alcohol production is around 1800 million liters. Out of which around 600 million liters is surplus after meeting the demand of industrial use (540 million litres) and potable use, (650 million litres). This is capable of providing a 5% blend to the gasoline. The present consumption of gasoline is estimated at 8.5 million tonnes requiring 502 million litres for 5% blend. The industry expects that the present capacity able to meet the blending requirement of the gasoline till the end of the Tenth Plan with the terminal years gasoline consumption at 11.6 million tonnes needing 682 million liters of ethanol for blending where 823 million liters will be surplus from the production of 2300 million liters of alcohol. Decision has already been taken to make it compulsory for a 5% blend of ethanol in gasoline.
Since there is a surplus production of sugar and export not giving much value addition it will not be irrational to convert sugar to alcohol or directly came to alcohol in much more proportion than being carried now. By this a 10% blend of ethanol with gasoline can be maintained for considerable period. Apart from sugarcane, other agro-products including grains can be used for fermentation. Taking the crop yield in account, sugarcane is the best choice as it is the crop having the highest efficiency of photosynthesis and provide a possibility of 1200 gallons of 99% alcohol from a acre. Potato provides the next highest yield of alcohol on unit area of land; 300 gallons per acre.
From the table it is clear that for meeting 5% blending demand, the ethanol capacity in the country is sufficient. For higher blend and till the demand stablises, the crop productivity, or use of bio-mass into converting to alcohol would be much more needed. The Government has taken the decision to make the 5% blending in gasoline as mandatory in phased manner. As stated above, the industry can easily meet the requirement if the land is not diverted from cane production.
Alcohol Production from molasses and Use

(in million litre)

year Molasses Prod.MMT Production of Alcohol (mil. litre) Industrial use(mil. litre) Potable use (mil litre) Other uses (mil. litre) Surplus availability of alcohol (mil. litre)
1998-99
7.00
1411.8
534.4
5840
55.2
238.2
1999-00
8.02
1654.0
518.9
622.7
576
455.8
2000-01
8.33
1685.9
529.3
635.1
588
462.7
2001-02
877
1775.2
5398
647.8
59.9
527.7
2002-03
9.23
1869.7
550.5
660.7
61.0
597.5
2003-04
9.73
1969.2
578.0
693.7
70.0
627.5
2004-05
10.24
2074.5
606.9
728.3
73.5
665.8
2005-06
10.79
2187.0
619.0
746.5
77.2
742.3
2006-07
11.36
2300.4
631.4
765.2
81.0
822.8

 

Potential of ethanol production from sugarcane
Year Area under cane Cane prod Cane utilization Sugar production Addl. Alcohol prod. (in million litre)
Sugar
Gur & khand
Seed & chew
Target
Revised prod.
From addl. molasses prod.
Addl. cane available for alcohol prod.
2002-03
4.36
309.9
181
92.0
37
182
192
69
475
2003-04
4.53
321.6
188
95.6
38
192
202
99
795
2004-05
4.63
333.3
195
98.3
40
199
212
128
1000
2005-06
4.79
345.1
202
102.1
41
206
223
168
1222
2006-07
4.96
356.8
209
104.8
43
213
233
198
1485
 
Economics of alcohol production:
From sugarcane:
A tonne of sugarcane, on an average, would provide 110 kg of fermentable sugar in the juice. If all the sugar juice is fermented directly, the ethanol yield will be 70 litres taking a sugar loss of 2% in spent wash and specific gravity of ethanol as 0.79. The present price of sugarcane as fixed by Centre under the minimum statutory price stands at Rs. 695/- per tonne with 8.5% recovery . At higher recovery which is the case always, the effective price comes to Rs. 900/- per tonne if State Governments does not add further cost to it. For example, the UP state has added the statutory price by Rs. 45/- per tonne on the Centre's price of Rs. 695/- . Therefore the feed stock price itself comes to Rs. 900/70 = Rs. 13/- per liter of ethanol. A minimum of Rs. 2/- per litre would be the conversion cost i.e. salary and wages of the operational staff. In other words, direct conversion of sugar juice to ethanol will cost more than Rs. 20/- per liter, if we add the capital related charges of investment, profit to the manufacturer, energy cost of making anhydrous alcohol, transport, marketing, blending etc. This may not be financially viable with present ex-factory cost of gasoline. To make it viable following options are available:-
i. Sugarcane prices are decontrolled and left for the market to decide. This may result into cane prices lower than Rs. 500/- per tonne.
ii. Combining with sugar production so that major part of cane cost is off-loaded to sugar. This is the present situation also where all the ethanol production from sugarcane is coming through molasses, a by-product in sugar production. A tonne of sugarcane produces 100 kg of sugar as well as 40 kg of molasses the latter will produce around 10 liters of ethanol. Even if sugar is sold at Rs. 10/- per kg it will be sufficient to pay all the cost of the sugarcane.
iiii. Use of by-products bagasse and spent wash very efficiently. The spent wash which is produced in large quantity (around 15 liter for 1 lire of ethanol produced) can be subjected to anaerobic digestion which not only removes its BOD and COD but will also provide valuable bio-gas (60% methane) which can meet 2/3rd of energy cost of making anhydrous alcohol through conventional route. Using absorption or membrane technology of drying alcohol above 95% purity, the biogas generation would be sufficient for all its energy demand (if short by any margin, the same could be made from the bagasse based cogeneration facility). The bagasse which is left after crushing can provide electricity through efficient co-generation. As per an estimate, a cane crushing mill with 455 tph crushing capacity can generate 44 MW of power. This comes to about 97 kWh/tonne of cane crushed. At a Rs. 2/- kWh rate of power exported to grid the earning will be far sufficient to meet the cane prices even after meeting the capital rated charges of installing the power generation facility. To realise the energy efficiency as sated above, the followings would have to be set up having the magnitude of the capital investments as indicated -

· Molecular sieve costing around Rs 2-2.5 crore for 30 kld plant.
· Anaerobic bio-gas production costing Rs 4-5 crore.
· Steam and power generation plant (co-generation) costing around Rs 3 crore/MW.

Fortunately, apart from a low pay back period for return in investments, there are several sources of getting finance for setting up the facilities above (to increase efficiency)-

· Assistance from Asian Development Bank, KfW, Germany, JBIC, Japan
· Assistance from IREDA under renewable energy plan
· Carbon credit of nearly $10/te of carbon saved under CDM of the Kyoto Protocol.

From other feedstocks:
The other major source can be corn, sugarbeet, potatoes etc. Depending on the starch content's in the feedstock, the yield of ethanol would vary. Taking corn, it can be at 2.75 tonne of grains per kilolitre of ethanol. The feedstock cost at Rs. 7/- per kg itself would cost Rs. 20/- in one litre of ethanol so produced. The sale of the residue, (i.e. dried distillers grains and solubles which is produced in the quantity of 0.56 kg per litre of ethanol produced would fetch a maximum of Rs. 3.5 @ Rs. 6/- per kg of residue unless the latter is converted to more value added products. Thus the feedstock price after taking the credit of the DDGS sale would not be lower than Rs. 16.5 per litre. The spoiled grain available in large quantity (2-5 lakhs tonnes per year from FCI) would certainly make a very cheap alcohol. For others, it is the market price that will determine the economics. Generally foodgrain price will be dictated by its use for human consumption which, in turn, will be subjected to prices across other grains and alternatives.
R&D work

While a boundary can be drawn to limit R&D activities in the area of ethanol production from agro-crops or biomass in general, but for short term requirement , the following areas of research & development should be stressed mainly towards the compatibility of the use of blends in existing engines:-

Ethanol-gasoline blend:
a. Performance of engine and corrosion of ethanol gasoline blend at higher ethanol percentage above 10%. Because of the low water tolerance of alcohol-gasoline blends, anhydrous ethanol must be used & great care must be exercised to avoid water contamination. For 25 % alcohol blend, less than 2% of water will cause separation. Ethanol can also be used in modified engines, specifically designed and manufactured to operate on ethanol fuel, and will generally be more efficient than modified gasoline engines.
b. Most conventional vehicles on the road today can use E10 (a 10% ethanol- 90% gasoline blend also known as gasohol) without any special modifications. However, auto manufacturers are also producing vehicles that are specially modified to run on a higher percentage of ethanol. Generally, the use of ethanol blending reduces the harmful emissions like CO, CO2 & hydrocarbons. However, additional studies are required to understand potential emissions benefits for all engine models and driving cycles. Effect on exhaust treatment devices using ethanol blending should also be established. The main mechanical differences between ethanol and gasoline vehicles lie in the engine calibration and the fuel management system. Ethanol vehicles come with a special computerized system that monitors the ethanol/gasoline ratio of the fuel, optimizes performance, and adjusts emissions control devices. Ethanol may also corrode certain materials that are commonly used in automobile parts, such as rubber and plastic. Components that come in contact with the fuel, such as piston rings, engine block, and valve seals, must be made of ethanol-compatible materials.
c. Suitable additive for ethanol gasoline blend to be used in two stroke engines. The use of ethanol in specially designed two-cycle engines has been demonstrated on a limited basis. The problem of using ethanol in these engines is that the ethanol does not blend well with lubricating oil. To get around this problem, research is under way to find lubricating oils that are not affected by ethanol engines. The study on In-use vehicle must also be considered because they are having totally different configuration compared to new generation vehicles.
d. Andehyde Emission: Aldehyde emissions from ethanol blends are generally higher than those from gasoline. Formaldehyde, the major constituent in aldehyde emissions, is a suspected carcinogen. However, the catalytic converters used vehicles reduce aldehyde emissions to near the level produced when unblended gasoline is combusted. The Royal Society of Canada has concluded that any increases are minute, and harmful effects are remote .
Ethanol-diesel blends:

e. E-diesel cannot be safely handled like conventional diesel but must be handled like gasoline. This may necessitate some modifications to storage and handling equipment, as well as vehicle fuel systems. Stability is much less of a concern for micro-emulsions as these have proven stable for extended periods. However, stability of e-diesel micro-emulsions under a range of storage conditions will need to be demonstrated. Emulsifiers are known to extend the stability of ethanol-diesel blends to lower temperatures at ethanol blending levels as high as 15% or even 20% in conventional diesel. Detailed data on the efficacy of emulsifiers as a function of temperature and fuel aromatic content do not appear to be publicly available & most manufacturers have not optimized emulsifier. A large body of test data acquired in close cooperation with the OEM's will be necessary to address this issue.Development of better emulsifier for ethanol diesel blend.
f. Lubricity of e-diesel: Lubricity is the ability of the fuel to lubricate metal surfaces and is relevant to wear in fuel pumps and other engine components that are lubricated by the fuel. Severely hydrotreated, ultralow sulfur diesel fuels as well as Fischer-Tropsch diesel fuels tend to have low lubricity. This can be remedied through the use of a lubricity additive or by blending with higher lubricity components. Ethanol is not expected to impart increased lubricity to diesel fuel. However, most emulsifier manufacturers claim that the emulsifier itself can impart improved lubricity. This would seem to be substantiated by data made public by PEC that shows premium lubricity properties (i.e. HFRR of less than 300 micron and SLBOCLE of more than 5200 g [jht1]). Better quantification of the effect of e-diesel on fuel lubricity for both conventional and ultra-low sulfur fuels is needed. The inclusion of lubricity in an e-diesel standard may be desirable.

g. Other problem of e-diesel: Concerns are expressed related to engine performance using e-diesel. These include the idea that the solvency effect of ethanol might loosen deposits in older vehicles causing breakdowns. Another concern is that because of e-diesel's higher volatility, there may be a greater incidence of pump and injector cavitation, leading to increased wear and hot restart problems. The lower energy content may require changes to governing strategy to prevent stalling under certain conditions such as steep grades, high temperature, and altitude. While some of these concerns may prove to be unfounded, they will require investigation.
Ethanol production from biomass:

h. Development of more energy efficient and economical process for fermenting cellulose materials into ethanol. In the coming years it is believed that cellulosic biomass will be the largest source of bioethanol. The broad category of biomass for the production of ethanol includes agricultural crops & residues and wood. Biomass resources are abundant and have multiple application potential. Among the various competing processes, bioethanol from lignocellulosic biomass appears to have near-term economic potential. The crops residues such as rice straw, bagasse etc are not currently used to derive desired economic and environmental benefits and thus they could be important resource bases for bioethanol. A major challenge is developing biocatalysts capable of fermenting lignocellulosic biomass for efficient industrial application. Some narration on the possibility would be in order which would also highlight the need of research in the area.
Conclusion:
1. Though it is technically feasible to design and run automobiles on 100% ethanol, for the reason of availability and compatibility with vehicles presently in use blending of ethanol with motor spirit needs to make a very modest beginning.
2. Five percent blending has already been introduced in some states. According to the information availability about production and demand of ethanol for all applications, production of molasses and distillery capacity, 7% blend of ethanol in gasoline is feasible provided facilities to dehydrate alcohol are added to the required extent. The target should be to raise the blending in stages to 10% by the end of the X Plan.
3. Ethanol may be manufactured using molasses as the raw material. If the industry finds it economically feasible, it should be encouraged to produce alcohol also from sugarcane juice directly in areas where sugarcane is surplus.
4. Restrictions on movement of molasses and putting up ethanol manufacturing plants may be removed.
5. Imported ethanol should be subject to suitable duties so that domestically produced ethanol is not costlier than the imported one.
6. Ethanol diesel blending requires emulsifier and also poses certain storage and technical problems. Indian Institute of Petroleum is working on the subject. Ethanol diesel blending should await the solution of the problems.
7. Buyback arrangement with oil companies for the uptake of anhydrous alcohol should be made.
8. To reduce cost of production of ethanol, the following measures may be considered:

A) Provision of incentives for new economic sized distilleries incorporating state of art technology such as, molecular sieve technology for making anhydrous alcohol.
B)Integration of distillery with sugar plant to have multiple choice of making sugar, or direct sugarcane to ethanol.

9. The cost of ethanol produced using other raw materials such as grains, potato, sugar beet and straw is estimated to be more than the price of motor spirit and may need subsidy. Economics of ethanol production from other feedstocks as sugar beet, corn, potatoes, etc should be studied. It may be left to the industry to use these raw materials for producing ethanol as and when if it finds them economical.
10. R&D may be supported to reduce the cost of ethanol production from different feed stocks.

 

 
 
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