Bio-fuels :

OMCs’ Learning & Perspective

11.05.2016

By: Subodh Kumar, GM I/c (AE&SD), IOCL

Need for Biofuels in India

Ethanol Blending in India

Bio-diesel Blending in India

Waste to Fuel

Way Forward

Outline

OMCs – Learning & Perspectives

Crude Ol Import

• Production: 37.5 MMT

• Import: 189.4 MMT ( Rs 687, 369 Cr)

Crude Oil Import

• Production: 36.9 MMT

• Import: 202.8 MMT ( Rs 4.2 Lakh Crore)

Increase in demand of Fossil Fuels

• Increase in Green House Gas Emission

Imperative need for

Renewable Energy like Bio Fuels

Economic and Environmental Issues to drive Bio Fuel Usage

Source: PPAC- 2015-16

Need for Biofuels

Bio-diesel Blending in India

2002

Chronology & Key Milestones

2014

2012

2008-09

2009

2005

2015

●Bio-diesel Purchase Policy by MoPNG for procurement of

B100 by OMCs at a uniform price at 20 purchase centres

●National Policy on Biofuels : 20% ethanol blending by 2017

● Target achieved : negligible

● JVs incorporated by OMCs for Plantation of Jatropha,

Pongamia etc.

●Exemption of Excise Duty on Bio-diesel (B 100) and its

blend up to 20% by volume with normal HSD

●Union Cabinet decided to allow Bio-diesel (B-100) sales by

OMCs and private players

● Inception of Bio-diesel blending in the country

Bio-

diesel

● Joint initiative by IOC & Railway for pilot project of Jatropha

plantation on 500 hectares of Railway land

●Announcement for usage of Bio-diesel upto 5% of total fuel

consumption of Indian Railway

HSD & Bio-diesel Demand Projection

Quantity in TKL

Bio-diesel Demand for Blending (@ 10%) HSD (Diesel) Projection

Source: Petroleum Planning and Analysis Cell and In-house projections

Quantity in TKL

102677 108935

115809 123196

131107

0

20000

40000

60000

80000

100000

120000

140000

2017-18 2018-19 2019-20 2020-21 2021-22

10268 10893

11581 12320

13111

0

2000

4000

6000

8000

10000

12000

14000

2017-18 2018-19 2019-20 2020-21 2021-22

Bio-diesel Blending & Supply Issues

Procurement 2015-16

HSD Industry Sale

2015-16

(TKL)

Bio-diesel (B 100)

Requirement @ 5%

(TKL)

B100 Supply/

Procurement

(TKL)

Blending Target

Achieved

(%)

88,330 4,417 12.3 0.014

Bio-diesel production from domestic non-edible oil seeds is not viable

Low seed yield of existing Jatropha plantations under wasteland conditions

Absence of High Yield Varieties (HYVs)

Higher plantation maintenance cost

Non availability of wastelands on commercial scale

Current Production Scenario

Annual production capacity - 1.2 MMT

Major feedstock - Palm Stearin

Capacity Utilization - very limited

No direct linkage between Crude Palm Oil & Crude Oil import price

Taxation and storage issues

Supply Issues

First generation biodiesel projects (Jatropha plantation and other Tree-

Borne Oilseed crops):

- subject to development of High Yielding Varieties (HYVs)

- Limited contribution due to inherent issues i.e. huge wasteland land

requirement, supplemental irrigation, harvesting etc.

Key drivers - Policy framework along with suitable infrastructure

development :

- Necessary infrastructure already developed by OMCs @ 5% Bio-diesel

Blending

Commercially viable next generation Biofuels

- May change Bio-diesel landscape in the future

Bio-diesel : Way forward

Ethanol Blending in India

2002

EBP: Chronology & Key Milestones

2014

2013

2009

2010

2007

2015

●Mandatory target : 5% ethanol blending with Gasoline

●With fixed Ethanol procurement price : INR 21.50 per litre

● Fixed provisional ex-factory price of INR 27 per litre

●Expert Committee formed for final ethanol pricing policy

●National Policy on Biofuels : 20% ethanol blending by 2017

● Target achieved less than 2%

●Directives for upto 10 % blending; overall 5% blending target

●Ethanol production only from indigenous molasses

●Market driving pricing of ethanol through tenders

●Ethanol Blending Achieved : 3%

EBP

● Inception with non mandatory targets

●Rates determined through tenders; did not take off

●Revised Price Mechanism

● Fixed delivered ethanol price ; INR 48.50 - 49.50 per litre

Gasoline & Ethanol Demand Projection

Quantity in TKL

Ethanol Demand For Blending (@ 10%) Gasoline Projection

Quantity in TKL

28629 31086

33697 36469

39411

42650

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Source: Petroleum Planning and Analysis Cell and In-house projections

2863 3109

3370 3647

3941

4265

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Ethanol Blending & Supply Issues

Ethanol Blending

Ethanol Supply Issues

200

280

100 50

365 305

382 350

800

1.41

1.82 1.76 1.40

1.61 1.35

2.83

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

0

100

200

300

400

500

600

700

800

900

2007 2008 2009 2010 2011 2012 2013 2014 2015

Ethanol Supplies (TKL) Blend rate (%)

● Feedstock Availability (Molasses)

●Single feedstock & no uniform availability across the country

● Sugarcane as water intensive crop

●Next generation Ethanol - no commercial scale production

● State wise policies and duty structure for Ethanol

●Restriction on movement of Ethanol across states

●Competitive usage by Potable & Chemical Industries

Blending with

Gasoline, 35%

Potable Liquor, 43%

Industrial Consumption, 22%

Total Production: 2600 TKL

Necessary infrastructure available with OMCs @ 10% blending

Waste to Fuel

Indian Perspective

Composting, 279

Vermi-Compost,

138

Bio-gas plant, 172

Pelletization, 29

Waste to Energy, 8

• Total urban MSW : 62 MMT/ annum

o Waste Collection : 68%

• Organic Waste : 51%

• Inert & Non Organic : 32%

• Recyclable : 17%

• MSW Treated & processed : 10 MMT/ annum

• Projected MSW 2031 : 165 MMT/ annum

• Potential

• Bio-gas : 3 MMT/annum

• RDF : 32 TMT ( 5 MW x 88 power plants)

Number of Waste to Fuel Plants

Waste : Revenue Streams

Waste collection &

segregation

Bio-

methanation Compost

Bio-gas

Combustible RDF

Brick

making

Plastic Waste to Fuel

Oil

Recyclables

Swatch Bharat: Waste to Energy at Varanasi

Anaerobic Digester

Waste Receipt & Segregation

by VMC

Organic Waste

Briquetting

Plastic, paper, cloth

Refuse Derived Fuel

Bio-gas Bio-gas storage H2S & CO2 separators

Bio-CNG compressor

Bio-CNG

Bio-fertilizer

Bio gas generator for captive power

• Expected Commissioning – July’17

• 10 x 5 TPD • Produce : Bio-gas (generate electricity for street lamps) & compost • Expected Commissioning : July’16

Decentralized Waste to fuel plants under CSR

Integrated 200 Tonnes/day plant

Thank You….