PROJECT REPORT

ON

BIOFUELS IN INDIA

SUBMITTED BY

MR. SHLOK UMESH SUBHEDAR

T.Y.B.M.S SEMESTER VI

ROLL NO.: 217654

ACADEMIC YEAR: 2021-22

PROJECT GUIDE

PROF. VIJI KANNAN

SUBMITTED TO

UNIVERSITY OF MUMBAI

MULUND COLLEGE OF COMMERCE

MCC COLLEGE MARG,

MULUND (WEST), MUMBAI-400080

UNIVERSITY OF MUMBAI

1
 PROJECT REPORT
ON

BIO FUELS IN INDIA

“SUBMITTED TO UNVIERSITY OF MUMBAI

IN PARTIAL FULFILMENT OF REQUIREMENT
FOR THE DEGREE OF
BACHELOR’S OF MANAGEMENT STUDIES”

SUBMITTED BY
SHLOK UMESH SUBHEDAR

T.Y.B.M.S SEMESTER VI

ROLL NO: 217654

TO

PROJECT GUIDE

PROF. VIJI KANNAN

MULUND COLLEGE OF COMMERCE

MCC COLLEGE MARG,

MULUND (WEST)

MUMBAI 400080

UNIVERSITY OF MUMBAI

2
 Parle Tilak Vidyalaya Association’s

MULUND COLLEGE OF COMMERCE

NAAC “A” Grade Re-accredited
2004, 2011, 2016 (3 Cycles)
DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE
This is to certify that the project entitled “BIO FUEL IN INDIA”
undertaken at PTVA’s MULUND COLLEGE OF COMMERCE by
Mr. SHLOK UMESH SUBHEDAR, Seat no.217654 submitted black
book in partial fulfillment of B.M.S degree (Semester VI) Examination
has successfully completed all the phases of the project under my
supervision during the academic year 2019– 2020.

Project Guide Co-ordinator Principal

Date: External Examiner

College Seal

3
 DECLARATION

I MR. SHLOK U SUHEDAR OF MULUND COLLEGE OF COMMERCE

T.Y.B.M.S HERE BY DECLARE THAT I HAVE COMPLETED THIS
PROJECT ON “ BIO FUEL IN INDIA” DURING ACADEMIC YEAR 2021-
2022 AND THE INORMATION GIVEN IN THIS PROJECT IS TRUE AND
ORIGINALTO THE BEST OF MY KNOWLEDGE

DATE:

PLACE: MUMBAI

________________________

Signature of the student

ACKNOWLEDGEMENT

4
It gives me an immense pleasure to present this project on “Bio
fuel in India”

in front of you.

I would like to thank our Principle Dr. Sonal Pednekar . I would

also

Like to thank our B.M.S Coordinate and my project guide Prof. Viji
Kannan

for assisting me throughout my project preparation.

I would like thank the non-teaching all the library staff of our
college and my family and my friends who directly or indirectly
contributed their valuable time and help me complete this project

I thank my fellow well- wishers and my parents for their

continuous support and encouragement.

___________________

SIGNATURE

EXECUTIVE SUMMARY

In the Rising Petroleum and Crude oil price “BIOFUEL ”would be

an affordable alternative to use . As the price are rising due to

5
demand ,short supply and artificial Inflation in the global market .
Big Super Powers like USA ,Russia and China try to create artificial
inflation in Crude Market to get more commison and earnings out
of it, they try to sell it to Under Developed country at higher
quantity. BIOFUEL would be an excellent Petroleum Product to
pull an end on the artificial inflation as most country would have
its own BIOFUEL and would we self dependent. It would also end
terrorism as the main terrorism group and helped in exchange of
crude oil in the global market . USA buys Crude oil from black
market from the countries like Somalia and terrorism group and
they are funded with money and Armors.

BIOFUEL was discovered in 1890 by Rudolph diesel . It was mainly

invented as BIO Diesel which was used in Agriculture and in
Diesel car . Mainly in Eary 90’s mainly diesel was used as in Cars
and trucks . Refinery was not in the peaks so low grade diesel ws
used. As the burning point of diesel is high and usually big
Vehicles and machinery mainly use diesel due to fuel efficiency so
1stBIOFUEL was BIO DIESEL which was used widely in Market and
has huge demand in the market .

BIOFUEL has various quality and types involved in it . Every

country or company has its own formula of making BIOFUEL .
There are various blend available in market . The Blend of Ethanol
is from natural extract known as E10 . Use of ethanol was
introduced by FIAT 147. The blend with ethanol can 10% Ethanol
and 90% Petroleum. It is a flex fuel. There is another blend which
is know as Methanol which can whole used as independently or
with the blend as it is one of the cheap fuel available in the
market. It has some draw backs like its more toxic and has lower
energy density as it is used in heavy vehicles. Butanol is
compared to day to day used fuel as it is just like Ethanol and
methanol .

TABLE OF CONTENT

6
 Sr no. INDEX
Page no.

1 INTRODUCTION
8-22

2 REVIEW LITERATUR
23-28

3 RESEARCH METHODOLOGY
29-37

4 DATA ANALYSIS AND

38-56

INTERPRETATION

5 CONCLUSION
57

6 FINDING
58-60

7 BIBLIOGRAPHY AND
60

7
 WEBLIOGRAPHY

8 QUESTIONAIRE
61-62

CHAPTER 1

8
 Introduction

Biofuel Is produced through contemporary process from biomass,

rather than by the very slow geological processes involved in the
formation of fossil fuels, such as oil. Since biomass technically can
be used as a fuel directly (e.g. wood logs), some people use the
terms biomass and biofuel interchangeably. The word biomass
simply denotes the biological raw material which is drived from
the nature. Fuel is made up of , or some form of thermal or
chemical altered solid end product. Biofuel is also obtain from
energy crops

The word biofuel is known for or reserved for liquid or gaseous

fuel use for transportation. Bio fuel is completely okay to use in a
vehicle which are used on petroleum and fully compatible with
the existing with petroleum like Diesel or petrol. There is no
engine modification required in a vehicle for using of biofuel in it.

Biofuel can be produced by energy crop or from agriculture,

commercial , domestic or industrial waste. Biofuel generally
involve contemporary carbon fixation, such as those that occur in
plants or microalgae through the process of photosynthesis. The
greenhouse gas mitigation potential of biofuel varies
considerably, from emission levels comparable to fossil fuels in
some scenarios to negative emmisions in other

9
There are two and most common types of biofuel they are
bioethanol and biodiesel.

Bioethanol is an alcohol made by fermentation, mostly from

carbohydrates produced in sugar or starch crops such as corn,
sugarcane, or sweet sorghum. Cellulosic biomass, derived from
non-food sources, such as trees and grasses, is also being
developed as a feedstock for ethanol production. Ethanol can be
used as a fuel for vehicles in its pure form (E100), but it is usually
used as a gasoline additive to increase octane and improve
vehicle emissions. Bioethanol is widely used in the United States
and in Brazil.

Biodiesel is made from oil, fats or energy crops using

transesterification and is the most common biofuel in Europe. It
can used in vehicle like trucks , cars , boats and any other diesel
using vehicle . B100 is the purest form of the biodiesel which can
be directly used in a vehicle but it usually used as diesel additive
to reduce level of particulates carbon monoxide, and
hydrocarbons from diesel-powered vehicles.

Biodiesel can also be used in blends with crude diesel if the

biodiesel is not in a purest form like B5 , B20 , B60 and B100.
B100 is most purest of it all. B5 is 5% percent blend of bio diesel
with diesel. B20 is 6 to 20% blend of biodiesel to diesel. B60 is
60% of biodiesel to diesel blend . Blends can help in smooth
function of an engine.

10
In 2019, worldwide biofuel production reached 161 billion liters.
Upto 6% from 2018 which is higher ever recorded and bio fuels
provided world fuels upto 3% to road transport in 2019. The
International Energy Agency want Biofuel to to meet more than a
quarter of world demand for transportation fuels by 2050, in order
to reduce dependency on petroleum. However, the production
and consumption of biofuels are not on track to meet the IEA's
sustainable development scenario. From 2020 to 2030 global
biofuel output has to increase by 10% each year to reach IEA's
goal. Only 3% growth annually is expected in the next 5 years.

United states of America biofuel is over 24% has more carbon

intensive than petroleum orginated gasoline as it most and it is
bigger contribution of global warming than any other gasoline or
petroleum products.

First-generation biofuels

First-generation biofuels are fuels made from food crops grown on

arable land. The crop's sugar, starch, or oil content is converted
into biodiesel or ethanol, using transesterification, or yeast
fermentation

Second-generation biofuels

Second-generation biofuels are fuels made from lignocellulosic or

woody biomass, or agricultural residues/waste. The feedstock
used to make the fuels either grow on arable land but are
byproducts of the main crop, or they are grown on marginal
[Link]-generation feedstocks include straw, bagasse,
perennial grasses, jatropha, waste vegetable oil, municipal solid
waste and so forth.

11
12
Third-generation biofuel

Third generation biofuel is algae can be produced in ponds or

tanks on land, and out of the sea. Algal fuels have high yields, can
be grown with minimal impact on fresh water resources, can be
produced using saline water and wastewater, have a high ignition
point, and are biodegradable and relatively harmless to the
environment if spilled. Production requires large amounts of
energy and fertilizer, the produced fuel degrades faster than
other biofuels, and it does not flow well in cold temperatures. By
2017, due to economic considerations, most efforts to produce
fuel from algae have been abandoned or changed to other
applications

Fourth-generation biofuels

This class of biofuels includes electrofuels and solar fuels.

Electrofuels are made by storing electrical energy in the chemical
bonds of liquids and gases. The primary targets are butanol,
biodiesel, and hydrogen, but include other alcohols and carbon-
containing gases such as methane and butane. A solar fuel is a
synthetic chemical fuel produced from solar energy. Light is
converted to chemical energy, typically by reducing protons to
hydrogen, or carbon dioxide to organic compounds.

These where the generation how biodiesel changed and new fuel
extraction products where introduced to the biofuel. It is how
biodiesel evolved an types can into bio fuel through out they
human years from when biofuel where introduced.

13
The following can be produced using first , second and third or
fourth generation production of bio fuel procedures . Many of
these can be produced using two or three of the different biofuel
generation procedures

Gaseous biofuel

Biogas and biomethane

Biogas

Biogas is methane produced by the process of anaerobic

digestion of organic material by [Link] can be produced
either from biodegradable waste materials or by the use of
energy crops fed into anaerobic digesters to supplement gas
yields. The solid byproduct, digestate, can be used as a biofuel or
a fertilizer. When CO2 and other impurities are removed from
biogas, it is called biomethane.

Biogas can be recovered from mechanical biological treatment

waste processing systems. Landfill gas, a less clean form of
biogas, is produced in landfills through naturally occurring
anaerobic digestion. If it escapes into the atmosphere, it acts as a
greenhouse gas.

14
Farmers can produce biogas from manure from their cattle by
using anaerobic digesters.

Syngas

Gasification

Syngas, a mixture of carbon monoxide, hydrogen and other

hydrocarbons, is produced by partial combustion of biomass, that
is, combustion with an amount of oxygen that is not sufficient to
convert the biomass completely to carbon dioxide and water.
Before partial combustion, the biomass is dried, and sometimes
pyrolysed. The resulting gas mixture, syngas, is more efficient
than direct combustion of the original biofuel; more of the energy
contained in the fuel is extracted.

Syngas may be burned directly in internal combustion engines,

turbines or high-temperature fuel cells. The wood gas generator,
a wood-fueled gasification reactor, can be connected to an
internal combustion engine.

Syngas can be used to produce methanol, DME and hydrogen, or

converted via the Fischer–Tropsch process to produce a diesel
substitute, or a mixture of alcohols that can be blended into
gasoline. Gasification normally relies on temperatures greater
than 700 °C.

Lower-temperature gasification is desirable when co-producing

biochar, but results in syngas polluted with tar.

15
Liquid biofuel

Ethanol

Biologically produced alcohols, most commonly ethanol, and less

commonly propanol and butanol, are produced by the action of
microorganisms and enzymes through the fermentation of sugars
or starches (easiest), or cellulose (which is more difficult).
Biobutanol (also called biogasoline) is often claimed to provide a
direct replacement for gasoline, because it can be used directly in
a gasoline engine.

Ethanol fuel is the most common biofuel worldwide, particularly in

Brazil. Alcohol fuels are produced by fermentation of sugars
derived from wheat, corn, sugar beets, sugar cane, molasses and
any sugar or starch from which alcoholic beverages such as
whiskey, can be made (such as potato and fruit waste, etc.). The
ethanol production methods used are enzyme digestion (to
release sugars from stored starches), fermentation of the sugars,
distillation and drying. The distillation process requires significant
energy input for heat (sometimes unsustainable natural gas fossil
fuel, but cellulosic biomass such as bagasse, the waste left after
sugar cane is pressed to extract its juice, is the most common fuel
in Brazil, while pellets, wood chips and also waste heat are more
common in Europe) Waste steam fuels ethanol factory – where
waste heat from the factories also is used in the district heating
grid.

16
Ethanol can be used in petrol engines as a replacement for
gasoline; it can be mixed with gasoline to any percentage. Most
existing car petrol engines can run on blends of up to 15%
bioethanol with petroleum/gasoline. Ethanol has a smaller energy
density than that of gasoline; this means it takes more fuel
(volume and mass) to produce the same amount of work. An
advantage of ethanol (CH

3CH

2OH) is that it has a higher octane rating than ethanol-free

gasoline available at roadside gas stations, which allows an
increase of an engine's compression ratio for increased thermal
efficiency. In high-altitude (thin air) locations, some states
mandate a mix of gasoline and ethanol as a winter oxidizer to
reduce atmospheric pollution emissions.

Ethanol is also used to fuel bioethanol fireplaces. As they do not

require a chimney and are "flueless", bioethanol fires are
extremely useful[citation needed] for newly built homes and
apartments without a flue. The downsides to these fireplaces is
that their heat output is slightly less than electric heat or gas
fires, and precautions must be taken to avoid carbon monoxide
poisoning.

Corn-to-ethanol and other food stocks has led to the development

of cellulosic ethanol. According to a joint research agenda
conducted through the US Department of Energy, the fossil
energy ratios for cellulosic ethanol, corn ethanol, and gasoline.

17
Ethanol has roughly one-third lower energy content per unit of
volume compared to gasoline. This is partly counteracted by the
better efficiency when using ethanol (in a long-term test of more
than 2.1 million km, the BEST project found FFV vehicles to be 1–
26% more energy efficient than petrol cars, but the volumetric
consumption increases by approximately 30%, so more fuel stops
are required).

18
Other bioalcohols

Methanol is currently produced from natural gas, a non-renewable

fossil fuel. In the future it is hoped to be produced from biomass
as biomethanol. This is technically feasible, but the production is
currently being postponed for concerns that the economic
viability is still pending. The methanol economy is an alternative
to the hydrogen economy to be contrasted with today's hydrogen
production of from natural gas.

Butanol

C4H9OH is formed by ABE fermentation (acetone, butanol,

ethanol) and experimental modifications of the process show
potentially high net energy gains with butanol as the only liquid
product. Butanol will produce more energy than ethanol because
of its lower oxygen content and allegedly can be burned "straight"
in existing gasoline engines (without modification to the engine or
car), and is less corrosive and less water-soluble than ethanol,
and could be distributed via existing infrastructures. DuPont and
BP are working together to help develop butanol.[citation needed]
Escherichia coli strains have also been successfully engineered to
produce butanol by modifying their amino acid metabolism. One
drawback to butanol production in E. coli remains the high cost of
nutrient rich media, however, recent work has demonstrated E.
coli can produce butanol with minimal nutritional supplementation

19
BIO DIESEL

Biodiesel is the most common biofuel in Europe. It is produced

from oils or fats using transesterification and is a liquid similar in
composition to fossil/mineral diesel. Chemically, it consists mostly
of fatty acid methyl (or ethyl) esters (FAMEs). Feedstocks for
biodiesel include animal fats, vegetable oils, soy, rapeseed,
jatropha, mahua, mustard, flax, sunflower, palm oil, hemp, field
pennycress, Pongamia pinnata and algae. Pure biodiesel B100,
also known as "neat" biodiesel currently reduces emissions with
up to 60% compared to diesel Second generation B100. As of
2020, researchers at Australia's CSIRO have been studying
safflower oil as an engine lubricant, and researchers at Montana
State University's Advanced Fuels Center in the US have been
studying the oil's performance in a large diesel engine, with
results described as a "game-changer".

Biodiesel can be used in any diesel engine when mixed with

mineral diesel. It can also be used in its pure form (B100) in diesel
engines, but some maintenance and performance problems may
then occur during wintertime utilization, since the fuel becomes
somewhat more viscous at lower temperatures, depending on the
feedstock used..

In some countries, manufacturers cover their diesel engines under

warranty for B100 use, although Volkswagen of Germany, for
example, asks drivers to check by telephone with the VW
environmental services department before switching to B100. In
most cases, biodiesel is compatible with diesel engines from 1994
onwards, which use 'Viton' (by DuPont) synthetic rubber in their
mechanical fuel injection systems. Note however, that no vehicles
are certified for using pure biodiesel before 2014, as there was no
emission control protocol available for biodiesel before this date.

20
Electronically controlled 'common rail' and 'Unit Injector' type
systems from the late 1990s onwards may only use biodiesel
blended with conventional diesel fuel. These engines have finely
metered and atomized multiple-stage injection systems that are
very sensitive to the viscosity of the fuel. Many current-
generation diesel engines are made so that they can run on B100
without altering the engine itself, although this depends on the
fuel rail design. Since biodiesel is an effective solvent and cleans
residues deposited by mineral diesel, engine filters may need to
be replaced more often, as the biofuel dissolves old deposits in
the fuel tank and pipes. It also effectively cleans the engine
combustion chamber of carbon deposits, helping to maintain
efficiency. In many European countries, a 5% biodiesel blend is
widely used and is available at thousands of gas stations.
Biodiesel is also an oxygenated fuel, meaning it contains a
reduced amount of carbon and higher hydrogen and oxygen
content than fossil diesel. This improves the combustion of
biodiesel and reduces the particulate emissions from unburnt
carbon. However, using pure biodiesel may increase NOx-
emissions

Biodiesel is also safe to handle and transport because it is non-

toxic and biodegradable, and has a high flash point of about 300
°F (148 °C) compared to petroleum diesel fuel, which has a flash
point of 125 °F (52 °C)

In the US, more than 80% of commercial trucks and city buses run
on diesel. The emerging US biodiesel market is estimated to have
grown 200% from 2004 to 2005. "By the end of 2006 biodiesel

21
production was estimated to increase fourfold [from 2004] to
more than" 1 billion US gallons (3,800,000 m3).

In France, biodiesel is incorporated at a rate of 8% in the fuel

used by all French diesel vehicles. Avril Group produces under the
brand Diester, a fifth of 11 million tons of biodiesel consumed
annually by the European Union. It is the leading European
producer of biodiesel.

Green diesel

Biodiesel production

Green diesel is produced through hydrocracking biological oil

feedstocks, such as vegetable oils and animal [Link]
is a refinery method that uses elevated temperatures and
pressure in the presence of a catalyst to break down larger
molecules, such as those found in vegetable oils, into shorter
hydrocarbon chains used in diesel engines. It may also be called
renewable diesel, hydrotreated vegetable oil (HVO fuel) or
hydrogen-derived renewable diesel. Unlike biodiesel, green diesel
has exactly the same chemical properties as petroleum-based
diesel. It does not require new engines, pipelines or infrastructure
to distribute and use, but has not been produced at a cost that is
competitive with petroleum. Gasoline versions are also being
developed. Green diesel is being developed in Louisiana and
Singapore by ConocoPhillips, Neste Oil, Valero, Dynamic Fuels,
and Honeywell UOP as well as Preem in Gothenburg, Sweden,
creating what is known as Evolution Diesel.

22
23
Straight vegetable oil

Straight unmodified edible vegetable oil is generally not used as

fuel, but lower-quality oil has been used for this purpose. Used
vegetable oil is increasingly being processed into biodiesel, or
(more rarely) cleaned of water and particulates and then used as
a fuel.

As with 100% biodiesel (B100), to ensure the fuel injectors

atomize the vegetable oil in the correct pattern for efficient
combustion, vegetable oil fuel must be heated to reduce its
viscosity to that of diesel, either by electric coils or heat
exchangers. This is easier in warm or temperate climates. MAN
B&W Diesel, Wärtsilä, and Deutz AG, as well as a number of
smaller companies, such as Elsbett, offer engines that are
compatible with straight vegetable oil, without the need for after-
market modifications.

Vegetable oil can also be used in many older diesel engines that
do not use common rail or unit injection electronic diesel injection
systems. Due to the design of the combustion chambers in
indirect injection engines, these are the best engines for use with
vegetable oil. This system allows the relatively larger oil
molecules more time to burn. Some older engines, especially
Mercedes, are driven experimentally by enthusiasts without any
conversion. A handful of drivers have experienced limited success
with earlier pre-"Pumpe Duse" VW TDI engines and other similar
engines with direct injection. Several companies, such as Elsbett
or Wolf, have developed professional conversion kits and
successfully installed hundreds of them over the last decades.

24
Oils and fats can be hydrogenated to give a diesel substitute. The
resulting product is a straight-chain hydrocarbon with a high
cetane number, low in aromatics and sulfur and does not contain
oxygen. Hydrogenated oils can be blended with diesel in all
proportions. They have several advantages over biodiesel,
including good performance at low temperatures, no storage
stability problems and no susceptibility to microbial attack.

Bioethers

Bioethers (also referred to as fuel ethers or oxygenated fuels) are

cost-effective compounds that act as octane rating
enhancers."Bioethers are produced by the reaction of reactive
iso-olefins, such as iso-butylene, with bioethanol. Bioethers are
created from wheat or sugar beets. They also enhance engine
performance, while significantly reducing engine wear and toxic
exhaust emissions. Although bioethers are likely to replace
petroethers in the UK, it is highly unlikely they will become a fuel
in and of itself due to the low energy [Link] greatly reducing
the amount of ground-level ozone emissions, they contribute to
air quality.

When it comes to transportation fuel there are six ether additives:

dimethyl ether (DME), diethyl ether (DEE), methyl tert-butyl ether
(MTBE), ethyl tert-butyl ether (ETBE), tert-amyl methyl ether
(TAME), and tert-amyl ethyl ether (TAEE).

The European Fuel Oxygenates Association (EFOA) identifies

methyl tert-butyl ether (MTBE) and ethyl tert-butyl ether (ETBE)
as the most commonly used ethers in fuel to replace lead. Ethers
were introduced in Europe in the 1970s to replace the highly toxic
compound. Although Europeans still use bioether additives, the

25
US no longer has an oxygenate requirement therefore bioethers
are no longer used as the main fuel additive.

Chapter 2

26
 REVIEW LITERATURE

India is one of the fastest growing economies and the third largest
consumer of primary energy in the world after the US and China.
India’s fuel energy security will remain vulnerable until alternative
fuels are developed based on renewable feedstocks. The
government of India targets reducing the country’s carbon
footprint by 30-35% by the year 2030. These targets will be
achieved through a five-pronged strategy which includes:
Increasing domestic production, adopting biofuels and
renewables, implementing energy efficiency norms, improving
refinery processes and achieving demand substitution. This
strategy envisages a strategic role for biofuels in the Indian
energy basket. The government of India has proposed a target of
20% blending of ethanol in petrol and 5% blending of biodiesel in
diesel by 2030 and introduced multiple initiatives to increase
indigenous production of biofuels.

Feedstock availability and production cost are the key drivers

towards sustainable and commercial production and
implementation of biofuels in India. A strong focus on technology
is imperative for the development of second generation and other
advanced biofuels utilizing domestic feedstocks (including
agricultural residues/wastes that otherwise are burnt). A collective
effort from all involved organizations will lead to effective and full
implementation of India’s biofuels blending programme.

27
28
Government has emphasized on achieving energy security of the
country with A. National Policy on Biofuels-2018 a

target of reducing import dependence i.e. usage of fossil fuels by

10% from 2014-

15 levels by the year 2022. This target it to be achieved by

adopting a five

pronged strategy which includes, Increasing Domestic Production,

Adopting

Biofuels & Renewable, Energy Efficiency Norms, Improvement in

Refinery

Processes and Demand Substitution. This envisages a strategic

role for biofuels in

the Indian Energy basket.

The growing concern about the import dependence forfuel

requirement in tandem with environmental pollution issues have
driven theneed for biofuels that have superior environment
benefits and are economicallycompetitive with fossil [Link] order
to promote biofuels in the country, first National Policy on Biofuels
wasmade by Ministry of New and Renewable Energy during the
year 2009. Globally,biofuels have caught the attention in last
decade and it is imperative to keep upwith the pace of
developments in the field of biofuels. This National Policy
onBiofuels -2018 builds on the achievements of the earlier
National Policy on Biofuelsand sets the new agenda consistent
with the redefined role of emerging developments in the
renewable sector. This policy aims to bring in renewed
focustaking into context the international perspectives and
National scenario.

29
30
First Generation Ethanol Blended Petrol (EBP), Programme

Government of India, with effect from 01.01.2003 resolved to

supply ethanol

blended petrol in nine States and four Union Territories for sale of
5% ethanol

blended Petrol. EBP Programme is aimed at achieving multiple

outcomes such as;

reducing import dependency, conserving foreign exchange,

reducing carbon emissions

and provide boost to agriculture sector.

The Ministry of Petroleum & Natural Gas its notification

dateddirected the Public Sector Oil Marketing Companies (OMCs)
to sell 5% ethanol blendedpetrol subject to commercial viability
as per Bureau of Indian Standards specifications inthe notified 20
States and 4 UTs of the country with effect from 1st November,
2006.

3. Department of Food and Public Distribution (DFPD) had put

forth a note forthe Cabinet dated 25th September, 2007, which
was considered by the Cabinet

Committee on Economic Affairs (CCEA) in its meeting held on

09th October, 2007. The

CCEA in this meeting inter-alia decided on 5% mandatory

blending of ethanol with Petrol

and 10% optional blending w.e.f. October, 2007 and 10%

mandatory blending from

October 2008.

31
4. However, low availability and State specific issues continued to
hinder theprogress of EBP Programme at desired level. The
erstwhile National Policy on Biofuels —2009, promulgated by
Ministry of New and Renewable Energy (MNRE) allowed ethanol to

be procured from non-food feed stock like molasses, celluloses

and lignocelluloses

material including petrochemical route. A Gazette Notification was

issued on 2nd January,

2013, directing OMCs to sell ethanol blended petrol with

percentage of ethanol up to 10%

as per BIS Specification to achieve 5% ethanol blending across

the country as a whole.

5. Later, CCEA in its decision dated 3rd July, 2013, inter-alia

decided that

ethanol be procured only from domestic sources; ethanol be

blended with petrol to meet

the mandatory requirement in areas/parts of the country where

ethanol from domestic

sources becomes available in sufficient quantity, and depending

upon the quantity of

ethanol available, blending in other parts of the country be

increased progressively to

reach the mandatory level; and Sugarcane or sugarcane juice

may not be used for

production of ethanol and it be produced only from molasses.

6. With splitting of Andhra Pradesh and formation of new State

Telangana, EBP

32
Programme was being implemented in 21 States and 4 UTs till
31.03.2019, wherein Public

Sector OMCs procured ethanol from suppliers and sold up to 10%

ethanol blended petrol.

7. However, supplies were not forthcoming. To increase

indigenous production

of ethanol the Government since 2014 took multiple interventions

including, Reintroduction of administered price mechanism,
Opening of alternate route for ethanol

production, Regular Interaction with the State Governments,

Amendment to Industries

(Development & Regulation) Act, 1951 which legislates exclusive

control of denatured

ethanol by the Central Government, Reduction in Goods & Service

Tax (GST) on

ethanol meant for EBP Programme from 18% to 5%, Notification

of National Policy on

Biofuels — 2018 which indicates a target of 20% ethanol blending

in petrol by 2030,

DFPDs Interest Subvention scheme namely — "Scheme for

augmenting and enhancing

ethanol production capacity".

8. The aforesaid actions helped in increasing ethanol procurement

by PSU

OMCs from 38.0 crore liters during ethanol supply year 2013-14
to 150.5 crore liters durinf 2017

33
CHAPTER 3

34
 RESEARCH METHODOLOGY

India has brought forward its target of blending petroleum with

20% ethanol by five years in its efforts to accelerate towards
renewables and make its overall energy basket cleaner, Prime
Minister Narendra Modi said.

Modi, who was speaking on the occasion of the World

Environment Day, said the country would now aim to achieve the
target of 20% blending by 2025, instead of 2030.

He said this was a move that will not only prepare the country for
energy transition, but also aim to support the livelihood of
farmers in the country.

"The focus on ethanol is having a better impact on the

environment as well as on the lives of farmers," Modi added.

The Prime Minister said that until 2014, on an average, only 1.5%
of ethanol could be blended in India.

However, this has now reached about 8.5% adding that the
multifold increase had benefitted the country’s sugarcane
farmers.

Modi said India has placed a lot of emphasis on building the

necessary infrastructure for the production and purchase of
ethanol in the country.

The ethanol manufacturing units are mostly concentrated in four

to five states where sugar production is high, S&P Global Platts
reported.

The government was now speeding up the process of establishing

food grain-based distilleries as well as setting up modern
technology plants to make ethanol from agricultural waste.

35
"India is also aware of the challenges that are being faced due to
climate change and is also working actively,"PM Modi said.

He said the country's capacity for renewable energy had

increased by more than 250% in the last six to seven years,
making India one of the top five countries of the world in terms of
installed renewable energy [Link] is working with a
holistic approach through the National Clean Air Programmeto
curb air pollution.

He also said that the government had identified 11 sectors which

could potentially make good use of resources by recycling them
using modern technology.

Immense benefits can accrue to the country by 20% ethanol

blending by 2025, such as saving Rs 30,000 crore of foreign
exchange per year, energy security, lower carbon emissions,
better air quality, self-reliance, use of damaged foodgrains,
increasing farmers' incomes, employment generation, and greater
investment opportunities.

The inter-ministerial committee was headed by Dr Rakesh Sarwal,

Additional Secretary, NITI Aayog. The committee had
representatives from the Ministries of Petroleum; Food and Public
Distribution; Road Transport and Highways; Heavy Industry; and
Indian Oil Corporation and Automotive Research Association of
India.

The E-20 roadmap proposes the following milestones:

Raise pan-India ethanol production capacity from the current 700

to 1500 crore litres

Phased rollout of E10 fuel by April 2022

Phased rollout of E20 from April 2023, its availability by April 2025

36
Rollout of E20 material-compliant and E10 engine-tuned vehicles
from April 2023 Production of E20-tuned engine vehicles from
April 2025

37
Bio diesel and its benefits in India

Bio-diesel is an eco-friendly, alternative diesel fuel prepared from

domestic renewable resources ie. vegetable oils (edible or non-
edible oil) and animal fats. These natural oils and fats are
primarily made up of triglycerides. These triglycerides when
reacted chemically with lower alcohols in presence of a catalyst
result in fatty acid esters. These esters show striking similarity to
petroleum derived diesel and are called "Biodiesel". As India is
deficient in edible oils, non-edible oil may be material of choice
for producing biodiesel. Examples are Jatropha curcas, Pongamia,
Karanja, etc.

The benefits of using biodiesel are as follows

It reduce vehicle emission which makes it eco-friendly.

It is made from renewable sources and can be prepared locally.

Increases engine performance because it has higher cetane

numbers as compared to petro diesel.

It has excellent lubricity.

Increased safety in storage and transport because the fuel is

nontoxic and bio degradable (Storage, high flash pt)

Production of bio diesel in India will reduce dependence on foreign

suppliers, thus helpful in price stability.

Reduction of greenhouse gases at least by 3.3 kg CO2 equivalent

per kg of biodiesel.

38
TYPES OF BIOFUELS AVAILABLE IN INDIA

Jatropha

Jatropha curcas is multi purpose non edible oil yielding perennial

shrub. This is a hardy and drought tolerant crop can be raised in
marginal lands with lesser input. The crop can be maintained for
30 years economically.

Jatropha Production Technology

Jatropha curcas is multi purpose non-edible oil yielding perennial

shrub originated in

tropical America and West Asia. It has the tendency to

produce latex and hence animals do not browse the plant.

This is a hardy and drought tolerant crop can be raised in

marginal lands with lesser input. The crop can be

maintained for 30 years economically. The oil from

Jatropha curcas can be used as biodiesel blend upto 20%.

However, the refined oil is a qualified neat biodiesel.

Sugarbeet

Sugarbeet (Beta vulgaris Var. Saccharifera L.) is a biennial sugar

producing tuber crop, grown in temperate countries. Now tropical
sugarbeet varieties are gaining momentum in tropical and sub
tropical countries, as a promising alternative energy crop for the
production of ethanol.

39
Sorghum

Sorghum (S. bicolor) is the most important millet crop occupying

largest area among the cereals next to rice. It is mainly grown for
its grain and fodder. Alternative uses of sorghum include
commercial utilization of grain in food industry and utilization of
stalk for the production of value-added products like ethanol,
syrup and jaggery and bioenriched bagasse as a fodder and as a
base material for cogeneration.

Pongamia

There is several non edible oil yielding trees that can be grown to
produce biofuel. Karanja (Pongamia) is one of the most suitable
trees. It is widely grown in various parts of the country.

Iodine Value 90.8 to 112.5

Refractive Index (30°C) 1.47Salient features of Pongamia

It is a Nitrogen fixing tree and hence enriches the soil fertility

It is generally not grazed by animals

It is tolerant to water logging, saline and alkaline soils,

It can withstand harsh climates (medium to high rainfall).

It can be planted on degraded, waste/fallow and cultivable lands

Pongamiaseeds contain 30-40% oil.

It helps in controlling soil erosion and binding sand dunes,

because of its dense network of lateral roots.

Its root, bark, leaves, sap, and flower have medicinal properties.
Dried leaves are used as an insect repellent in stored grains.

40
feedstock base for ethanol production, scheme of augmenting
capacity and exploring Used Cooking Oil (UCO) for Biodiesel
production, this figure may increase upto maximum of 450- 500
crore litres by 2022 which will still be very less as compared tothe
targets envisaged under National Policy on Biofuels-2018.

Therefore, the thrust is being given to Advanced Biofuels such as

Second Generation

(2G) Ethanol, BioCNG/ Compressed BioGas (CBG), UCO based

biodiesel etc. which

can be sourced from wastes such as crop residues, Biomass,

industrial waste, sewage

water etc. and are abundantly available in the Country.

Subsequent to opening of alternate route i.e. Second Generation

(2G) route for Ethanol

production Public Sector Oil Marketing Companies (0MCs) i.e.

Indian Oil Corporation

Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL), Bharat

Petroleum

Corporation Ltd. (BPCL), Numaligarh Refinery Ltd. (NRL) and

Mangalore Refineryand Petrochemicals Ltd. (MRPL) have planned
to set up 12 number of 2G Ethanol

Biorefineries in 11 States across the country. Their locations are:

IOCL — Panipat (Haryana), Gorakhpur (UP), Dahej *(Gujrat); HPCL

— Bhatinda

(Punjab), Badaun (UP), Supaul/Saharasa* (Bihar), W.

Godavari*(AP); BPCL —Bargarh (Odisha), Bina (MP), Bhandara*
(Maharashtra); NRL — Numaligarh (Assam)

41
Gasification of biomass yields wood gas or syngas which can be
converted into carbon neutral Methanol. Nearly 750 million tons
of non edible (by cattle) biomass is available annually in India
which can be put to higher value addition use and substitute
imported crude oil, coal, LNG, urea fertiliser, nuclear fuels, etc. It
is estimated that renewable and carbon neutral biomass
resources of India can replace present consumption of all fossil
fuels when used productively. Biomass is going to play crucial role
to make India self sufficient in energy sector and carbon neutral.

Huge quantity of imported coal is being used in pulverised coal-

fired power stations. Raw biomass can not be used in the
pulverised coal mills as they are difficult to grind into fine powder
due to caking property of raw biomass. However biomass can be
used after Torrefaction in the pulverised coal mills for replacing
imported [Link] west and southern regions can replace
imported coal use with torrefied biomass where surplus
agriculture/crop residual biomass is available. Biomass power
plants can also get extra income by selling the Renewable
Purchase Certificates (RPC). Central Government has made
cofiring (minimum 5%) of biomass mandatary from October 2022
in all coal fired plants.

In cement production, carbon neutral biomass is being used to

replace coal for reducing carbon foot print drastically.

Biogas or natural gas or methane produced from

farm/agro/crop/domestic waste can also be used for producing
protein rich feed for cattle/fish/poultry/pet animals economically
by cultivating Methylococcus capsulatus bacteria culture in a
decentralised manner near to the rural / consumption areas with

42
tiny land and water foot print. With the availability of CO2 gas as
by product from these units, cheaper production cost of algae oil
from algae or spirulina particularly in tropical countries like India
would displace the prime position of crude oil in near future.

India's three Oil Marketing Companies (OMCs) are currently

setting up 12 second-generation ethanol plants across the
country which will collect agriculture waste from farmers and
convert it into bio-ethanol. In 2018, India has set target to
produce 15 million tons of biogas/bio-CNG by installing 5,000
large scale commercial type biogas plants which can produce
daily 12.5 tons of bio-CNG by each plant.

Biopropane is also produced from non-edible vegetable oils, used

cooking oil, waste animal fats, etc.

43
Chapter 4

44
 DATA ANALYSIS AND INTERPRETATION

Biofuel development in India centres mainly around the

cultivation and processing of Jatropha plant seeds which are very
rich in oil (40%). The drivers for this are historic, functional,
economic, environmental, moral and political. Jatropha oil has
been used in India for several decades as biodiesel for the diesel
fuel requirements of remote rural and forest communities;
jatropha oil can be used directly after extraction (i.e. without
refining) in diesel generators and engines. Jatropha has the
potential to provide economic benefits at the local level since
under suitable management it has the potential to grow in dry
marginal non-agricultural lands, thereby allowing villagers and
farmers to leverage non-farm land for income generation. As well,
increased Jatropha oil production delivers economic benefits to
India on the macroeconomic or national level as it reduces the
nation's fossil fuel import bill for diesel production (the main
transportation fuel used in the country); minimising the
expenditure of India's foreign-currency reserves for fuel allowing
India to increase its growing foreign currency reserves (which can
be better spent on capital expenditures for industrial inputs and
production). And since Jatropha oil is carbon-neutral, large-scale
production will improve the country's carbon emissions profile.
Finally, since no food producing farmland is required for
producing this biofuel (unlike corn or sugar cane ethanol, or palm
oil diesel), it is considered the most politically and morally
acceptable choice among India's current biofuel options; it has no
known negative impact on the production of the massive amounts
grains and other vital agriculture goods India produces to meet
the food requirements of its massive population (circa 1.1 Billion
people as of 2008). Other biofuels which displace food crops from
viable agricultural land such as corn ethanol or palm biodiesel
have caused serious price increases for basic food grains and
edible oils in other countries.

45
India's total biodiesel requirement is projected to grow to 3.6
million tonnes in 2011–12, with the positive performance of the
domestic automobile industry. Analysis from Frost & Sullivan,
Strategic Analysis of the Indian Biofuels Industry, reveals that the
market is an emerging one and has a long way to go before it
catches up with global competitors.

The Government is currently implementing an ethanol-blending

program and considering initiatives in the form of mandates for
biodiesel. Due to these strategies, the rising population, and the
growing energy demand from the transport sector, biofuels can
be assured of a significant market in India. On 12 September
2008, the Indian Government announced its 'National Biofuel
Policy'. It aims to meet 20% of India's diesel demand with fuel
derived from plants. That will mean setting aside 140,000 square
kilometres of land. Presently fuel yielding plants cover less than
5,000 square kilometres

The country aims to replace 20% of the country's diesel

requirement with biodiesel in accordance with the National
Biodiesel Mission (NBM) by 2012. The NBM has been, and will
continue to be, implemented in two stages: First is a
demonstration project, which was carried out over the period
2003-2007 aimed at cultivating 400,000 hectares of Jatropha
expected to yield about 3.75 tons of oilseed per hectare annually.
The project has also demonstrated the viability of other related
activities/projects such as seed collection and oil extraction. In
addition, the government will build a transesterification plant.
Second, a commercialisation period which started in 2007 and will
proceed until 2012 will continue with Jatropha cultivation. The
plan also involves the installation of more transesterification
plants that will position India to meet 20% of its diesel needs

46
through biodiesel. High ethanol prices and low availability of
sources has compelled the government to amend its 5% blending
target with the notification that 5% bioethanol blended petrol
shall be supplied in identified areas if (a) the indigenous price of
ethanol offered for ethanol blended petrol programme is
comparable to that offered by the indigenous ethanol industry for
alternative uses, (b) the indigenous delivery price of ethanol
offered for the ethanol blended petrol programme at a particular
location is comparable to the import parity price of petrol at that
location, and (c) there is an adequate supply of ethanol. To
encourage investment, there are also tax incentives and excise
cuts. At the state level, the Maharashtra government offers
waivers of government fee from the 1 percent turnover tax on
anhydrous ethanol, ₹ 500 per kilolitre (kl) (US$0.048 per US
gallon) permit fee, 4% sales tax, 10% surcharge on sales tax, ₹
1,500/kl (US$0.14/US gal) import fee, ₹ 300/kl (US$0.029/US gal)
service charges and 3% Octroi, which is a local tax collected on
various articles brought into the district for consumption.[10] By
2030, it is expected that India will soon become the world's third
largest economy due to its speedy growth. In 2005, the GDP of
India was US$0.6 trillion, and it is forecasted to reach US$6.1
trillion by the year 2030 at an annual growth rate of 9%

MoP&NG announced a Biodiesel Purchase Policy which became

effective 1st January 2006. On 10.08.2015, Government allowed
direct sale of Biodiesel (B100) for blending with diesel to Bulk
Consumers such as Railways, State Road Transport Corporations.
On 29.06.2017 Government allowed sale of biodiesel to all
consumers for blending with diesel.

Government has notified Guidelines for sale of biodiesel for

blending with High Speed Diesel for transportation purposes on

47
30.4.2019. Through this Notification Government has granted
permission exclusively for sale of biodiesel (B-100) only and not
for any mixture thereof of whatever [Link] Biodiesel
procurement by OMCs increased from 1.1 crore litres during
2015-16 to 10.56 crore litres during [Link], bio-diesel
is being produced in the country primarily from imported palm
stearin oil.
In order to phase-out palm stearin, and as a measure towards
import substitution, it has been decided to promote domestically
available used cooking oil (UCO) as the [Link] has been
identified as a potential raw material for biodiesel production in
National Policy on Biofuels-2018. UCO can be collected from Bulk
Consumers such as hotels, restaurants, canteens, etc. for
[Link] Marketing Companies (OMCs) are periodicaly
floating Expression of Interest (EoI) for procurement of Biodiesel
produced from UCO.

Why biodiesel in automobile sector?

Pollution is increasing day by day and one the major reasons

behind this is automobile pollutants, which come out due to the
use of petrol or diesel based automobiles. If we have an option of
an alternative fuel, which least harms the environment, then why
not use it. There are several reasons in the support of using
biodiesel as an alternative fuel-

It is biodegradable, nontoxic and produces fewer pollutants when

burnt completely. It can be used in pure form (B100) or blended
with petroleum diesel. Most of the common blend includes B2 (2%
biodiesel, 98% diesel), B5 (5% biodiesel, 95% petrodiesel) or B20
(20% biodiesel, 80% petrodiesel).

48
It has reduced exhaust emissions as compared to petroleum
diesel fuel and also it has lower toxicity as compared to the
petroleum diesel fuel.

If we compare biodiesel with petroleum diesel, it is safer to handle

and its quality is governed by ASTM D 6751 quality parameters.

There were will be a major reduction in all types of pollutants

adding to global warming and smog because it burns clean

It is the only alternate fuel, which has been approved by the

Environment Protection Agency (EPA). It has also passed every
Health – Effects Test of the Clean Air Act and meets the
necessities of the California Air Resources Board (CARB)

Biodiesel is much more economical than petrol and diesel since

recycling materials such as vegetable oil or animal feces are
much cheaper than fossil fuel. And also petrol prices may increase
with time as natural resources shrink

One of the most important advantages of using biodiesel is that it

burns clear than fossil fuels and hence does not produce sulfur or
any other harmful chemicals and also there is no unpleasant
smell associated with burning biodiesel

Other advantages of biodiesel fuel are that it can also be blended

with other energy resources and oil. Biodiesel fuel can also be
used in existing oil heating systems and diesel engines without
making any alterations

It can also be distributed through existing diesel fuel pumps,

which is another biodiesel fuel advantage over other alternative
fuels. The lack of sulfur in 100% biodiesel extends the life of
catalytic converters and also the lubricating property of the
biodiesel may lengthen the lifetime of engines.

49
"Diesel consumption pattern in Metros and adjoining areas

For instance, taking Delhi and Gurugram together 16,99,000 tons

of diesel is consumed per year. Just for an estimated use, if 5% of
biodiesel is blended with petroleum diesel then 84,950 tons of
diesels will be saved per year. According to a research, the
population of Delhi – NCR is 4.7 crores. The usage of edible oil by
per person in India is 14.4 kg per year and the total consumption
of oil in Delhi – NCR itself is 6,76,800 tons per year, which is a
quite huge number. If we consider only 10% of this as waste, then
the potential to collect UCO will be 67,680 tons per year.

Government commitment

Biodiesel can prove to be a game changer for the energy security

of our country, which is aspiring big. Yes, our government has
come up with the National Policy on Biofuels 2018, which includes
harnessing of biodiesel to meet the energy security of India. The
goal of the policy is to enable availability of biofuels in the market
thereby increasing its blending percentage. Currently, the ethanol
blending percentage in petrol is around 2.0% and biodiesel
blending percentage in diesel is less than 0.1%.

As an indicative target the government has approved 20%

blending of ethanol in petrol and 5% blending of biodiesel in
diesel is proposed by 2030. Additionally, on World Biofuel Day,
the Food Safety and Standards Authority of India (FSSAI) launched
RUCO – Repurpose Used Cooking Oil, an ecosystem that will
enable the collection and conversion of used cooking oil to
biodiesel.

50
The Policy aims to increase usage of biofuels in the energy and
transportation sectors of the country during the coming decade.
The various efforts by the government to solve the transportation
and mobility solutions have not worked well so far.

It’s the biodiesel which can work as an effective and great

alternative for the country. And, this will also help India to meet
its global climate commitments."

51
Introduction to Ethanol: Ethanol is a clear, colourless liquid with a
characteristic, agreeable odour. In dilute aqueous solution, it has
a somewhat sweet flavour, but in more concentrated solutions it
has a burning taste. Ethanol melts at -114.1°C, boils at 78.5°C,
and has a typical density of 0.789 g/ml at 20°C.

Ethanol has been made since ancient times by the fermentation

of sugars. All the beverage ethanol, and more than half of
industrial ethanol, is still made by this process. Simple sugars are
the raw materials. Internationally, sugarcane, sweet sorghum and
sugar beet are used for the production of ethanol as sugar
containing feedstock. Maize, wheat and other cereals contain
starch that can relatively easily be converted to sugar. 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. An enzyme released by germinating barley,
diastase, converts starches into sugars. Thus, the germination of
barley, called malting, is the first step in brewing beer from
starchy plants, such as corn (maize) and wheat.

Ethanol Blended Petrol Program

India as one of the fastest growing economies in the world

continues to experience a high and increasing demand of crude
oil and petroleum products. Traditionally fossil fuels have been

52
the primary source of energy in the transportation sector.
However, biofuels have gained significant attention in recent
years as they have been considered as viable alternatives offering
significant economic and environmental benefits.

The Government of India (GoI) and the Oil Marketing Companies

(OMCs) are aggressively promoting blending of 10 % ethanol in
Motor Sprit (petrol) with a view to reduce the carbon footprint and
conserve foreign exchange by reducing import of crude oil. For
the Ethanol Supply Year (ESY) 2019-20, ethanol supplies of
172.42 crore litres could be effected by suppliers to Public Sector
OMC’s as against the requirement of 511 crore litres enabling
average 5% ethanol blending in petrol. The Government has plans
to gradually increase the blending percentage to 20% by the year
2028 for which the ethanol requirement is expected to be around
900 crore litres. OMC’s have invited Expression of Interest (EOI)
for procurement of 457 crore litres of ethanol from various feed
stocks sourced from Sugarcane (Sugarcane Juice, Sugar Syrup,
Sugar, B-Heavy & C-Heavy Molasses) and also from Grains (Rice
procured from Food Corporation of India (FCI), Maize and
Damaged Food Grains) for ESY 2020-21 against which OMCs have
received offers for 330 crore litres only.

India has achieved the highest ever ethanol blending of 8.1 per
cent with petrol in the just concluded 2020-21 (December-
November) supply year, the government claimed today.

However, sugar companies said that going forward proposed

investments in the ethanol blending programme could suffer as
Oil Marketing Companies (OMCs) have been creating artificial
hurdles of late, preferring maize over sugarcane and rice as

53
feedstock and giving priority to new producers over established
ethanol manufacturers.

“In the ethanol supply year of 2020-21 (Dec-Nov), 3.03 billion

litres of ethanol has been supplied by the distilleries to the OMCs,
which is historically the highest. The supply of ethanol was only
0.38 billion litres with blending levels of only 1.53 per cent in
2013-14 which has increased by eight times in the last seven
years,” the food ministry said in a tweet today.

It said that the government is committed to achieve a blending

target of 10 per cent in the current ethanol supply year of 2021-
22 (Dec-Nov).

Sugar companies meanwhile, in a letter addressed to Prime

Minister Narendra Modi few days ago, welcomed the steps taken
by the government to achieve 20 per cent blending target by
2025, but said some recent conditions by the OMCs for delivery of
ethanol where in direct contravention of the stated policies of the
department of food, finance and petroleum and could seriously
impact the proposed investments by them in the sector.

Sugar firms in the letter alleged that in recent times it has been
seen that OMCs have shown a preference for distilleries that
produced ethanol from maize as against those that produced from
sugarcane and rice which is contradictory to the government’s

54
stated policy of encouragement to all raw materials to make
ethanol and not to show preference for any particular feedstock.

That apart, they said that the OMCs are discouraging the
"existing" ethanol manufacturers by prescribing conditions which
would prioritize new ethanol manufacturers over the existing
ethanol suppliers, including even if they have already signed
contracts to supply ethanol to the OMCs.

55
Ethanol as a fuel in India

India initiated the use of ethanol as an automotive fuel in the year

2003. The Ministry of Petroleum and Natural Gas (MoPNG) issued
a notification in September 2002 for mandatory blending of 5 %
ethanol in 9 major sugar producing states and four union
territories from 2003. Due to ethanol shortage during 2004-05,
the blending mandate was made optional in October 2004, and
resumed in October 2006 in the second phase with a gradual rise
to 10% blending.

In 2008, the Ministry of New & Renewable Energy established a

National Policy on Biofuels to limit the country's future carbon
footprint and dependence on foreign crude. Under this, the
blending level of bio-ethanol at 5 % with petrol was proposed
from October 2008, leading to a target of 20 % blending of bio-
ethanol by 2017. It also laid down a roadmap for the phased
implementation of the programme. Currently, Government is
implementing Ethanol Blended Petrol (EBP) Programme wherein
OMCs sell petrol blended with ethanol up to 10%. This programme
has been extended to whole of India except Union Territories of
Andaman Nicobar and Lakshadweep islands with effect from 01st
April, 2019 to promote the use of alternative and environment
friendly fuels. This intervention also seeks to reduce import
dependence for energy requirements and give boost to
agriculture sector.

During the ethanol supply year 2019-20 about 173.03 crore ltrs of
ethanol was supplied by sugar mills and grain based distilleries to
OMCs thereby achieving 5% blending target. The Government has
10% blending target for mixing ethanol with petrol by 2022 &
20% blending target by 2030 and 5% blending of biodiesel in
diesel in the whole country by 2030.
56
Revision of ethanol price for the Ethanol Blended Petrol (EBP)
Programme for the forthcoming sugar season 2021-22 during ESY
2021-22 from 1st December 2021 to 30th November 2022 is as
follows.

The Price of ethanol from C heavy molasses route be increased

from Rs. 45.69 per litre to Rs. 46.66 per litre

The price of ethanol from B heavy molasses route be increased

from Rs. 57.61 per litre to Rs. 59.08 per litre

The price of ethanol from sugarcane juice, sugar / sugar syrup

route be increased from Rs. 62.65 per litre to Rs. 63.45 per litre

Additionally, GST and transportation charges will also be payable.

OMCs have been advised to fix realistic transportation charges so
that long distance transportation of ethanol is not disincentivised

Government has decided that Oil PSEs should be given the

freedom to decide the pricing for 2G ethanol as this would help in
setting up advanced biofuel refineries in the country. It is
important to note that grain-based ethanol prices are currently
being decided by Oil Marketing Companies (OMCs) only.

The important measures taken to increase the production of

ethanol for blending include:

Encouraging production of ethanol from sugarcane juice and

sugar/ sugar syrup.

57
Fixing remunerative ex-mill price of ethanol from various feed
stocks.

Extending interest subvention to distilleries.

Amendment to Industries (Development & Regulation) Act, 1951,

for free movement of denatured ethanol for Ethanol Blended
Petrol (EBP) Programme.

Reduction in Goods & Service Tax on ethanol meant for EBP

Programme from 18% to 5%.

Extension of EBP Programme to whole of India except island UTs

of Andaman Nicobar and Lakshadweep with effect from
01.04.2019.

Enhancing ethanol storage at Oil Marketing Companies locations.

Formulating an “Ethanol Procurement Policy on a long-term basis

under Ethanol Blended Petrol (EBP) Programme”.

Challenges faced in using Ethanol as a fuel in India

The major source for production of bio-ethanol in India is from

molasses, a by-product of sugarcane. The availability is hence
dependant on the cane and sugar production that are cyclical in
nature.

Ethanol has many other alternative uses such as potable alcohol

and use in chemical and pharmaceutical industry. Hence its use
as a fuel faces stiff competition from such uses

58
Biofuels help reduce the carbon footprint of transportation and
other industries, by making the most of our planet’s carbon cycle.
Every gallon of biofuel that replaces a gallon of fossil fuel helps
reduce greenhouse-gas emissions.

Biofuels work best when they make carbon reduction a priority,

meaning the carbon intensity of the processes needed to make
them and deliver them to market is recorded and carefully
tracked. Only then can the real impact of switching from fossil
fuels to biofuels be measured.

A key aspect of tracking biofuels is to review the life-cycle

assessment or LCA of each fuel, based on the carbon intensity of
its production method, from feedstock to energy intensity of its
production process, to the carbon footprint of its delivery, and
more.

59
ADVANTAGES OF BIOFUEL

Reviewing the advantages of biofuels compared to fossil fuels, the

carbon intensity can be drastically reduced. This is a key
consideration, since the historic impact of infrastructure
investment and delivery systems for petro-based fuels are based
on delivering fossil carbon.

Gevo goes a step further, focusing on decarbonizing the entire

process at every step.

We start by using corn produced using sustainable farming

methods that capture carbon and sequester it in the soil.

Other feedstocks are in our sights, but we examine the carbon

intensity of their origins carefully to make sure to optimize the
LCA of the biofuel that will result, be it sustainable aviation fuel,
isooctane, isobutanol, renewable gasoline or renewable biodiesel.

To further reduce our carbon intensity we have devised a

program to use existing ethanol plants, converting them to our
proprietary methods for creating isobutanol.

We constantly research additional next-generation fuels, and

explore untried feedstocks and new production methods.

Independent, global, multi-stakeholder organizations, including

the International Sustainability and Carbon Certification System
and the Roundtable on Sustainable Biomaterials, ensure supply
chains implement and uphold carbon and sustainability standards
through review and certification.

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Alongside these advanced biofuels there are fuels produced from
waste and residues (e.g. the organic fraction of municipal solid
waste, used vegetable oils, biological sludge from urban water
purification plants). Furthermore, biogas and biomethane can also
be produced by capturing and recovering landfill gas and biogas
generated from farming. These fuels produced from waste and
residues can be classified as advanced biofuels according to the
feedstock used and their inclusion is subject to the current
regulations.

Eni has been running projects in these sectors for a long time.
Agreements have recently been signed to receive used cooking
oils with which to feed the biorefineries of Venice and Gela and
produce quality biofuels thanks to Eni's proprietary “Ecofining”
technology. In Gela itself, Eni recently started a pilot plant for
transforming the organic fraction of solid urban waste into bio oil.
In Ragusa, furthermore, an experimental algal biofixation plant is
in operation which captures CO2 by photosynthesis using natural
microalgae, and studies are underway with the Polytechnic of
Turin on new types of photobioreactors to increase the
productivity of this supply chain.

These are examples not only of how we can produce energy

vectors that reduce greenhouse gas emissions, but above all of
circular economy, or how waste can be used to obtain a new
product, avoiding the use of new natural resources and reducing
the volume of waste destined for traditional disposal processes.

Several circular economy initiatives are being considered by Eni

that envisage the reuse of different types of waste (mixtures of
diverse plastics, the dry component of non-hazardous urban and

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special waste, carbon dioxide itself) for the production of energy
carriers.

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Biofuels were once touted as the saviors of the economy and the
answers to our ever growing energy needs. As it turns out, they
aren't quite the silver bullet they were claimed to be. Though
biofuels have a number of advantages over fossil fuels, their
integration into the fuel supply chain has to be done with great
care to ensure that their potential disadvantages are, if not
eliminated, at least minimized.

At the current time, more "radical" alternative fuel technologies

such as solar and wind have one major problem - portability. It is
very difficult to transport large quantities of electricity without
using heavy, relatively inefficient batteries. Biofuels, on the other
hand, are fairly easy to transport, have decent energy densities,
and can be used with only minor modifications to existing
technology and infrastructure. With that in mind, it seems that
biofuels will likely act as a stop gap or filler that helps us as we
transition from fossil fuels to other technologies that aren't quite
ready. We attempt to outline the disadvantages that should be
considered when a biofuel is being implemented, not to
discourage their use, but rather to encourage responsible use of
this technology, which is likely to become our predominant source
of energy as we transition over to cleaner alternatives in the more
distant future. With that in mind, here are the disadvantages to
be aware of.

Despite pushes for Jatropha, Camelina, and algae, it is more likely

that biofuel feedstock will be grown on a regional basis. This is
important for a number of reasons, chief among them being the
fact that some crops just grow better in some locations and not so
well in other. Things that will need to be taken into consideration
are:

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Water use - The less water a crop uses, the better as water is a
very limited resource. This is particularly important in places that
are more arid.

Invasiveness - A crop that kills native plants and which is difficult

to control is not a good choice as it may threaten biodiversity and
severely damage the surrounding ecosystem.

Fertilizer - Nutrients are needed for plants to grow. Some plants

are more frugal with scarce resources than others.

Limitations - Some places just aren't going to be able to grow

biofuel crops. Alaska, for instance, really isn't suited to the rapid
growth needed to produce crops year after year for fuel supplies.
Regions like this will have to import fuels, so energy
independence still will not be possible for every location

Global Warming

This probably goes without saying and won't be belabored here,

but burning biofuels, which are most hydrogen and carbon,
produce carbon dioxide, which contributes to global warming. So,
even though biofuels may be able to help ease our energy needs,
they won't solve all of our problems.

Now, it may be true that biofuels produce LESS GHG emissions

than fossil fuels, but that can only serve to slow global warming
and not to stop or reverse it. Thus, biofuels can only be
substitutes for the short term as we invest in other technologies.
The key to implementing them is to mitigate environmental
impact by being mindful of the disadvantages we have discussed.

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CHAPTER 5

65
CONCLUSION

Advanced biofuels have multiple benefits. The first is that they do

not compete with agricultural production for the food market. The
second is that they often achieve a much lower net greenhouse
gas emission balance than the traditional fuels they replace or
some of the first generation biofuels.

Finally, all biofuels (both first generation and advanced) can be

mixed with traditional fuels, thus helping to immediately reduce
greenhouse gas emissions without having to wait for expensive
adjustments to current energy transport, storage and distribution
systems and existing engines.

Like many other decarbonization tools, biofuels and waste fuels

are currently penalized by cost, which varies depending on the
technology and its maturity. But research and development,
economies of scale or a tightening of greenhouse gas emissions
standards could in the future reduce and in some cases close the
competitive gap with fossil fuels.

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FINDING

As a clean and renewable source of fuel, biofuels are a credible

alternative to fossil fuels. Since they’re created from organic
matter (biomass), they can be easily replenished, while the low
emissions associated with their combustion means they are an
attractive prospect for eco-conscious business owners and private
citizens. But what exactly are they used for? Here are five of the
most common applications of biofuels being practised today:

Heating

Primary biofuels – or materials that are still in their raw state,

without processing or treatment – are a common form of heating
homes in developing countries where no alternative fuel source is
available. While the environmental profile of these types of
biofuels is not as desirable as it could be, secondary biofuels that
have been processed in a refinery can serve as an efficient and
eco-friendly alternative to the natural gas used to heat many
homes in the western world, too.

Transport

Biofuels such as bioethanol and biodiesel can be used as a

substitute or as an additive to traditional sources of fuel for
vehicles like cars and buses. Not only do these alternatives boost
fuel efficiency, but they reduce emissions, as well. However, not
all vehicles in the UK are equipped to handle biofuels on their
own, while analysing them to determine concentrations of
sulphur, chlorine and other impurities is another key
consideration for the biofuels used in road transport.

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Aviation

Air travel is another major contributor to the harmful emissions

that cause pollution and contribute to climate change. For that
reason, many airlines have been researching how biofuels can be
used in jet engines to enhance their environmental credentials.
However, it should be noted that its unique properties make
biodiesel unsuitable for use in the aviation industry. The article
Analysing Jet fuel for Biofuel contaminants - safety first carries
more information on this topic for interested parties.

Lubrication

Regardless of the industry or sector in which it is employed, a

piece of machinery must be maintained and lubricated to ensure
it runs smoothly and enjoys as long a lifespan as possible. This
role has historically been fuelled by diesel-based and oil-based
lubricants, which obviously entail the same damaging
consequences for the environment as all other applications of
fossil fuels. Biofuels can provide a more sustainable alternative
which is also more cost-effective.

Oil clean-up operations

Oil spillages are a sad but inevitable occurrence which happen

periodically in the world of oil extraction, distribution and storage.
When they do take place, they can cause devastating harm to the
ecosystems which they contaminate and the animals that call
them home. Thankfully, biofuels have been demonstrated to
effectively address this problem, since the methyl esters
contained in the fuel source is a powerful solvent that can serve
as a washing agent for contaminated shorelines.

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69
Bibliography And Webliography

1.[Link]
%20for%20blending%20with%20diesel.

2. [Link]

3. [Link]

4. [Link]

5. [Link]
justify-the-costs/

Questionaire :

1). What’s your name ?

Short answer

2) Gender

a. Male

b. Female

c. other

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3) Occupation

a. Student

b. Employee

c. Business

d. other

4) Would you Prefer Bio fuel as an alternative

a. yes

b. no

5) Do you Think India would be clean Energy by 2050

a. Yes

b. No

6) Do you think Bio Fuels have future in India

a. Yes

b. No

7) Which bio fuel would be more useable

a. Bio diesel

b. Ethanol

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