What’s up with India’s crazy ethanol policy? – a Biofuels Digest special report

By Biofuels Digest special correspondent Joelle Brink

Weren’t they going to buy ethanol from Brazil, or was that invest in Brazilian sugar plantations? And what about those sugar mills in Bihar? Are they in or out of the picture now? What’s the feedstock going to be—molasses, sugar, bagasse, or all three? You’re not the only one who’s confused.

As part of an upcoming profile of Praj Industries, the Digest asked company chairman Pramod Chaudhari, who chairs the Confederation of Indian Industry’s National Biofuels Committee, for enlightenment.

“In India,” explains Chaudhari, “molasses is the primary feedstock. Almost 90% of ethanol (for beverage/industrial/fuel) is based on cane molasses. There is an overdependence on one single feedstock, and hence there are issues of allocation, pricing and availability for fuel ethanol.

“One way of solving this is to provide a certain part of damaged grains/surplus grains for beverage alcohol. Apart from feedstock, there are also regulatory issues which need to be addressed.

“At the same time, the agri-diversity of India provides a lot of opportunities.  For example, waste from agri/forestry can be explored for ethanol production.  We are working on this. Many additional feedstocks will provide the key to a successful fuel ethanol program, such as sweet sorghum, on which we have done extensive work in India.

“If feedstock rationalization is allowed, along with direct sugarcane to ethanol as in Brazil, there is every reason to believe that E20 is possible.”

Earlier this week Hindustan Petroleum, the national government’s point agency for biofuels research and investment, announced that it is diversifying into sugar production and will re-start two sugar mills that it had earlier acquired in Bihar. The mills will produce sugar and ethanol, and generate 100 megawatts of power from bagasse for rural electrification.

At the same time, the national government has announced plans to disinvest in Brazil, signaling that a workable national ethanol policy may be in the offing. And Bihar, the nation’s primary sugar-producing state, has announced plans for statewide ethanol and rural power production, funded in part by private investment.

But the story is far from over. Tata Chemicals’ Praj-designed sweet sorghum plant in Maharashtra is likely to be a game-changer, signaling a trend to drought-tolerant non-food feedstocks. And Praj’s cellulosic ethanol pilot plant, which will soon go to commercial scale, could make real the national government’s commitment to cellulosic ethanol and the use of waste as ethanol feedstock.

Stay tuned.

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