Ethanol as Biofuel

WHY IN NEWS?

Ethanol storage capacities have been brimming, as oil marketing companies (OMCs) are unable to take ethanol supplies from the distilleries because of a steep drop in petrol consumption post the COVID-19 lockdown.

THE CURRENT ISSUE

• The sugar mills in Uttar Pradesh especially those with distilleries have run out of their storage capacity as the Oil Marketing Companies (OMC) are unable to take up ethanol due to steep drop in petrol consumption.
• Representatives of distilleries have requested for reallocation of depots in other faraway states like Assam and Odisha, which make zero ethanol blending as of now.
• It is observed that with the fall in crude price, ethanol has become costlier and if it has to be transported to faraway states it adds to the cost.
• While the OMCs bear a fixed cost of the freight distillers bear the remaining cost.

ETHANOL

• What is ethanol?
  • Ethanol is a clear, colourless liquid with a characteristic agreeable odour.
  • It is produced from the fermentation of simple sugars.
  • Major ethanol consumers in India are potable liquor sector (45%), alcohol based chemical industry (40%), the rest for blending and other purposes.
• Ethanol as biofuel
  • In India, ethanol is primarily produced using sugarcane molasses. This is an example of first generation biofuels that uses biomass containing large amounts of sugar or materials that can be converted to sugar such as starch, for the generation of ethanol.
  • Enzyme from yeast, changes the simple sugars into ethanol and carbon dioxide. Starches from potatoes, corn, wheat and other plants can also be used in the production of ethanol by fermentation. However, the starches must first be broken down into simple sugars.
• Benefits and uses
  • Ethanol provides high quality, high octane for exceptional engine performance and reduced emissions.
  • Since ethanol is produced from plants that harness the power of the sun, ethanol is also considered a renewable fuel.
  • Ethanol-blended fuel keeps the fuel system clean for optimal performance because it does not leave gummy deposits.
  • Ethanol helps prevent wintertime problems by acting as a gas-line antifreeze.

HOW IT CAN BENEFIT INDIA

• • Because the ethanol molecule contains oxygen, it allows the engine to more completely combust the fuel, resulting in fewer emissions.
  • It can help in saving of a substantial amount of forex reserves, as India is import depended on fuels.
  • There will be a positive impact on the environment as there will be lesser emissions of CO2 and by reducing crop burning & conversion of agricultural residues/wastes to biofuels there will be further reduction in Green House Gas emissions.
  • The industry can generate employment such as in plant operations, Village entrepreneurs and supply chain management.
  • Conversion of surplus grains and agricultural biomass can help in price stabilization

CHALLENGES OF USING ETHANOL AS BIOFUEL

• Technically, blend wall and transportation-storage are the major challenges towards the biofuel targets. Blending wall is the maximum percent of ethanol that can be blended to fuel without decreasing the fuel efficiency.
• In India, sugarcane molasses is the major resource for bioethanol production and inconsistency of raw material supply holds the major liability for sluggish response to blending targets.
• The non-uniform distribution of raw material throughout the country demands a compulsory transportation and storage, especially inter-state movement, encountering diverse climatic and topographic conditions.

RECENT GOVERNMENT INITIATIVES

• Pradhan Mantri JI-VAN Yojana
  • The scheme was approved in 2019 for providing financial support to integrated bioethanol projects using lignocellulosic biomass and other renewable feedstock.
  • Under the scheme - 12 commercial scale and 10 demonstration-scale second generation (2G) ethanol projects will be provided a viability gap funding (VGF) support in two phases.
• The Cabinet Committee on Economic Affairs  (CCEA) approved funds towards interest subvention for extending loan by banks to the sugar mills under ‘Scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity’
• Also, the government has started administering the price of ethanol, by setting an ex-mill price of ethanol.
• National Biofuel Policy, 2018
  • Apart from sugarcane – government plans to include corn, damaged food grains, potato and even municipal solid waste as ethanol sources.
  • It also allows the use of surplus food grains for production of ethanol for blending with petrol, with the approval of the National Biofuel Coordination Committee.
  • The policy creates two categories of biofuels –
    • Basic biofuels - include first generation bioethanol.
    • Advanced biofuels - Advanced biofuels include second generation ethanol, municipal solid waste, third generation biofuels, bio-CNG etc
  • The policy also envisions a budget of 5,000 crores for supply chain infrastructure enhancement in the bio-fuel sector.
  • The policy indicates a viability gap funding scheme of Rs 5,000 crore in six years for second generation ethanol bio refineries. Further, advanced biofuels will also get additional tax incentives and higher purchase price as compared to basic biofuels.

CONCLUSION

• Sourcing ethanol from various raw materials are likely to reduce the cost of producing bio-fuels and improve affordability for consumers, particularly during oil price hikes.
• It can benefit farmers who will be able to sell various types of agricultural waste to industry at remunerative prices.
• It will also serve as an incentive for farmers to not burn their stubble and other farmland waste which can reduce air pollution.
• There should be use of sufficient technology and production scale in order to be financially feasible and implementable. 
• If implemented promptly ethanol as a biofuel can help the government in achieving the ambitious targets of doubling of Farmers Income. It can also help in import reduction, employment generation and waste to wealth creation.

Practice question

Q. What are the scope, challenges and advantages of promoting ethanol as a biofuel in India?