1
ETHANOL BLENDING PROGRAM WITH
DUAL-FEED DISTILLERIES
G.S.C. RAO AND
B.B. PATHAK
GLOBAL CANESUGAR SERVICES PVT. LTD., NEW DELHI
CONTENTS1. AGRIBUSINESS:FUTURE FOR SUGAR INDUSTRY AND FARMERS2. SOME FACTS3. INTERCROPPING SUGARCANE WITH MAIZE4. DUAL FEED DISTILLERY WITH MOLASSES AND MAIZE5. CURRENT SCENARIO FOR EBP-MOLASSES6. CURRENT SCENARIO FOR EBP- GRAINS AND B HEAVY-MOLASSES7. MAIZE USAGE IN INDIA8. FUTURE SCENARIO9. ETHANOL BALANCING FOR 20% EBP10. FUTURE FORWARD11. PROCESS TECHNOLOGY12. ECONOMICS OF ETHANOL PRODUCTION13. SWOT ANALYSIS14. US ETHANOL PRODUCTION FROM MAIZE15. 4-E MODEL16. CONCLUSIONS
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COMPATIBILITY
Farmers
Processing Space
Manpower Management
Technical Man power
Land Availability
Power & Fuel
Storage
Finance & Material
management resourcesWaste
Treatment Plant
Off-season availability
Communication System
Agribusiness Hub
AGRIBUSINESS:FUTURE FOR SUGAR INDUSTRY AND FARMERS
Sugar Complex can be converted into Agri-business Complex by
converting molasses based distilleries to DUAL FEED
DISTILLERIES (Molasses + Maize)
It would help farmers to supply maize directly to the
sugar factories
Government’s 20% Ethanol Blending Program (EBP) can
be achieved
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Sugar Industry is CYCLIC…… EBP can be influenced by CYCLICALITY
Grain ethanol is not CYCLIC
SUGARCANE and MAIZE can be grown as INTERCROP
Ethanol from Sugarcane: 4900 L per hectare (12 month crop)
Ethanol from Maize: 3600 L per hectare (3 month crop)
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SOME FACTS…..
INTERCROPPING SUGARCANE WITH MAIZE
Duration: 60-90 daysProduction: 6-8 t/haCan be grown with
sugarcane in Autumn and Spring seasonThree crops of maize
can be grown in a year
Maize production in India is increasing at CAGR of 5.5%.
In 2017-18 it was 219 Lakh Mt
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DUAL FEED DISTILLERY WITH MOLASSES AND MAIZE Out of 360 distilleries in India only 25
are dual feed distilleries
Dual feed distilleries producingethanol from molasses and grain canoffer availability of ethanol across theyears
Maize and grain (Millets and brokenrice) based ethanol distilleries cancome up in different parts of country
Maize and millets can be grown underrainfed conditions. These cropsrequire much less irrigation comparedto sugarcane
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S. No. Particulars Production UOMEquivalent
Ethanol Production
UOM
1 Sugarcane 355 MMT 24.85 Billion Liters
2Sugar production 32.8 MMT
Molasses C grade 15.6 MMT 3.59 Billion Liters
3 Alcohol used for potable and other purpose 1.96 Billion Liters
4 Ethanol available for EBP through C-molasses 1.63 Billion Liters
5 Ethanol required for 10% Blending 3.29 Billion Liters
6 Ethanol required for 20% Blending 6.60 Billion Liters
CURRENT SCENARIO FOR EBP: C-MOLASSES
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CURRENT SCENARIO FOR EBP- GRAINS AND B HEAVY-MOLASSES
1 Additional Ethanol made from B Heavy 0.29 Billion Liters
2 Ethanol made from Grains (Current) 0.50 Billion Liters
3 Total Ethanol available for EBP (Current) 2.42 Billion Liters
4 Short fall @ 10% 0.87 Billion Liters
5 Short fall @ 20% 4.18 Billion Liters
Number of Present Distilleries
Molasses based distilleries 360
Grain based distilleries 85
dual Feed Distilleries 25
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This shortfall of 0.87 Billion Litres (10% EBP) and 4.18 billion litres (20% EBP) will mainly come from maize/broken rice based distilleries
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MAIZE USAGE IN INDIA
Beverage 7%
Directly Consumed
20%
Starch 12%
Cattle Feed 14%
Poultry Feed 47%
Scenario after using 50% of Poultry and cattle feedPresent scenario
Directly Consumed
20%Starch (12.00)
Cattle Feed 7%Poultry
Feed 23.5%
DDGS 18.19%
Ethanol 19.32%
Ethanol made from Molasses 1.92 Billion Litres
Ethanol made from Maize 3.20 Billion Litres
Ethanol made from Broken Rice 1.35 Billion Litres
Ethanol made from other Raw Mat. 0.13 Billion Litres
Ethanol required for 20% Blending 6.60 Billion Litres
Approximately 250 distilleries are about to be modernized and newly set up. However, the molasses quantity will remain the same. The option is dual feed distilleries.
FUTURE SCENARIO
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6.60 BL Ethanol
required for 20% EBP
Molasses (1.92)
B Rice (1.35)
Others (0.13)
Maize (3.20)
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Ethanol balancing for 20% EBP
Figures in Billion Litres
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FUTURE FORWARD
Only few states like Uttar Pradesh, Maharashtra and Karnataka supplies
molasses based Ethanol to OMCs.
Almost 6.6 billion litres of Ethanol is required for 20% targeted EBP by 2022
onwards. Present capacity of molasses based distilleries can produce 1.93
billion litres of Ethanol, even after considering B-Heavy Molasses.
Even 250 distilleries are to be put up, thus there will be severe shortage of
molasses.
If dual feed distilleries will come up, the Ethanol production and EBP can
be met.
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Govt. of India extended EBP to J&K and North-East States, it is therefore:
Transportation cost will be increased if Ethanol is taken from UP and Bihar for OMCs to NorthEast States , Chhattisgarh, Jharkhand and Orissa etc.
It is therefore make commercial sense to put up Grain Based distilleries for EBP nearer toNorth East States like Assam and West Bengal.
To cater up to 20% EBP the state where sugarcane is not grown, suitable size of Ethanol Plantsusing Maize and Rice and other coarse grains as raw material can be put up.
It is also relevant in states like MP, Chhattisgarh, Orissa, Jharkhand and Telangana.
Installation of Grain based Ethanol distilleries will save on logistic cost and also cater to overall Ethanol availability to OMCs for EBP.
Contd…..
PROCESS TECHNOLOGY
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Reused
Spent Wash Recycle
Water Molasses
ExhaustFermentation Section
Multi Pressure Distillation
Evaporation
Concentrate Slop
MSDH
Yeast Sludge
CO2 Emissions
Steam Condensate to Boiler
Process Condensate
Ethanol
Spent Wash
Condensate Polishing UnitETP Sludge
Spent Lees
Incineration Boiler
Fuel + Concentrate Spent Wash
Steam
Power
To Incineration Boiler
Diluter
Yeast Propagation
Decantation
Power
PROCESS FLOW: MOLASSES BASED DISTILLERY
Additional cost for 60 KLPD
Distillery is INR approx. 10-11
Crores
Revenue per day from DDGS is
INR 9-10 Lakhs
Reused
Exhaust
Flour Handling Section
Grain Cleaning, Milling Section
Slurry Preparation and Liquefaction Section
Fermentation Section
Multi Pressure Vaccum Distillation
Decantation
Wet Cake
DWGS
Dryer
DDGS Rich in Protein use as Cattle feed
Evaporation
Concentrate Syrup
MSDH
CO2 Emissions
Steam Condensate
Process Condensate
Ethanol
Spent Wash
Condensate Polishing UnitETP Sludge
Spent Lees
Thinslop
Boiler
Fuel
Steam
Power
Rejects
Rejects
Water
*Incineration in case of Molasses
Active Dry yeast
PROCESS FLOW: GRAIN BASED DISTILLERY [60 KLPD]
Additional cost for 60 KLPD
Distillery is INR approx. 10-11
Crores
Revenue per day from DDGS is
INR 9-10 Lakhs
Reused
Exhaust
Flour Handling Section
Grain Cleaning, Milling Section
Slurry Preparation and Liquefaction Section
Fermentation Section
Multi Pressure Vaccum Distillation
Decantation
Wet Cake
DWGS
Dryer
DDGS Rich in Protein use as Cattle feed
Evaporation
Concentrate Syrup
MSDH
Yeast Sludge
CO2 Emissions
Steam Condensate
Process Condensate
Ethanol
Spent Wash
Condensate Polishing UnitETP Sludge
Spent Lees
Thinslop
Boiler
Fuel
Steam
Power
Rejects
Rejects
Molasses + Water
Incineration*
*Incineration in case of Molasses
Yeast + Nutrients
PROCESS FLOW: GRAIN/MOLASSES BASED DISTILLERY [60 KLPD]
ENVIRONMENT
Grain based distilleries offer ZLD as DDGs are produced
Process Condensate and Spent Lees
Thin Slops @5% w/w Solids
Partly Recycled to Process
Product (Alcohol)Distillation
Spent Wash Decanter Evaporation Condensate Treatment Plant
Treated Water to Cooling Towers
Thick Syrup Wet Cake
DWGS Dryer
Dryer inlet @20-25% w/w Solids
DDGS @88-90% w/w Solids
ETP SLUDGE
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Figures in INRCost of raw material (INR/Mt Maize) 14,000 16,000 17,000Cost of Raw Material (INR/Liter Ethanol) 35.90 41.03 43.59COVERSION COST PER LITER OF ETHANOLProcess Chemicals 1.60 1.60 1.60Boiler Chemicals 0.40 0.40 0.40Steam and Power 7.01 7.01 7.01Effluent treatment cost 0.20 0.20 0.20Finance cost 2.40 2.40 2.40Salary and Overheads 2.95 2.95 2.95Plant maintenance/ boiler 0.30 0.30 0.30Sub Total 14.86 14.86 14.86EXTRA REVENUESDDGS 10.65 10.65 10.65CO2 0.69 0.69 0.69Fusel Oil 0.03 0.03 0.03Total (Extra Revenues) 11.37 11.37 11.37TOTAL(Raw Material + Conversion cost) 39.39 44.51 45.99Selling Cost Ethanol 47.13 47.13 47.13Margin per Liter 7.74 2.62 1.14
ECONOMICS OF ETHANOL PRODUCTION FROM MAIZE
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Details At different Rice price regimesA Cost of broken Rice per MT 16000 17000 18000 19000B Cost of Raw Material per Liter 35.16 37.36 39.56 41.76C Coversion Cost1 Process Chemicals/ Ltr 1.6 1.6 1.6 1.62 Boiler Chemicals 0.4 0.4 0.4 0.43 Steam and Power/Ltr 7.01 7.01 7.01 7.014 Effluent treatment cost 0.2 0.2 0.2 0.25 Finance cost 2.4 2.4 2.4 2.46 Salary and Overheads 2.95 2.95 2.95 2.958 Plant maintanance/ boiler 0.3 0.3 0.3 0.39 Sub Total 14.86 14.86 14.86 14.86D Gains
DDGS 10.65 10.65 10.65 10.65CO2 0.69 0.69 0.69 0.69Fusel Oil 0.03 0.03 0.03 0.03Sub Total 11.27 11.27 11.27 11.27
E Total cost of Ethanol (B+C-D) 38.75 40.95 43.15 45.35F Saling Cost Ethanol 47.13 47.13 47.13 47.13G Margin/Liter (F-E) 8.48 6.28 4.08 1.88
ECONOMICS OF ETHANOL PRODUCTION FROM RICE
Strengths Dual feed distilleries are
economically viable oversingle molasses feeddistilleries
Strong demand of ethanolfor 10% and 20% blendingfor EBP
Environmentally sound
WeaknessesMaize and grain pricing
vis-à-vis ethanol pricing Food Vs. fuel
controversies Additional investment
Opportunities Smooth EBP across years Scope for expanding EBP to
20% By-product through DDGS
Threats High preference to maize
and other grains forGovernment programs
Future preferences of OMCson grain based ethanol
Preferences of OMCs formolasses based ethanol
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SWOT ANALYSIS
Particulars 2011 2012 2013 2014 2015 2016 2017Total maize Production (M Mt)
312.7 273.3 351.3 361.2 345.4 384.6 370.8
Maize used for ethanol production(M Mt)
127.0 117.9 128.3 131.3 132.6 137.9 142.2
Ethanol produced from Maize(Billion Liters)
49.5 46.0 49.0 51.2 51.7 53.8 55.5
Total Ethanol production (All grains) (Billion Liters)
52.8 50.4 50.4 54.3 56.1 58.0 59.8
US ETHANOL PRODUCTION FROM MAIZE
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INDUSTRIAL SECTOR AGRICULTURE SECTORLAND RESOURCES SYSTEM MANAGEMENT
ETHANOL FROM JUICE
ETHANOL FROM C
MOLASSES
ETHANOL FROM GRAINS
ETHANOL FROM B
MOLASSES
DUAL FEED DISTILLERIES
4EMODELTECHNOLOGY UPGRADATION IS KEY TO GROWTH
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CONCLUSIONS
Maize can give 400 L ethanol/ Mt compared to 72 L/ Mt Sugarcane
Maize require less water and can be grown as intercrop with sugarcane
Zero liquid discharge
Maize can be used in molasses based distilleries with some modifications
Maize can be used independently, anywhere in the country
Ensures Ethanol availability throughout the year
20% EBP can be achieved
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