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Biofuel industry, Company News, Sustainability, World

This ethanol-based technology is the world’s first viable next-generation SAF technology capable of scaling production to the levels needed to decarbonize aviation through widely available and sustainable feedstock, emerging commercial waste-based feedstock solutions

LanzaJet, a leading sustainable fuels technology company and sustainable fuels producer joined government officials, industry leaders, partners, and supporters to open LanzaJet Freedom Pines Fuels, the world’s first ethanol to sustainable aviation fuel (SAF) production facility.

LanzaJet’s technology is recognised as the pioneering ethanol-to-SAF production process and pathway. This ethanol-based technology is the world’s first viable next-generation SAF technology capable of scaling production to the levels needed to decarbonize aviation through widely available and sustainable feedstock, emerging commercial waste-based feedstock solutions, and promising economic conditions. Located in Soperton, Georgia, LanzaJet Freedom Pines Fuels represents one of the most promising SAF technologies in nearly a decade to reach commercial readiness and will produce 10 million gallons of SAF and renewable diesel per year from low carbon, sustainable, and certified ethanol which meets U.S. and global standards. LanzaJet’s technology enables current and future supply volume to support a scaled SAF industry as well as the White House’s SAF Grand Challenge, which calls for a supply of at least 3 billion gallons of SAF annually by 2030 to tangibly reduce aviation emissions. With its proprietary ethanol to SAF technology, LanzaJet Freedom Pines Fuels serves as a blueprint for utilising first-of-its-kind innovation to scale SAF production and combat the worsening climate crisis.

This ethanol-based technology is the world's first

AgroPolicy, Sugar industry, Supply Chain

The additional sugar in the domestic market will ensure reasonable prices all over the country

Keeping in view the strong demand for sugar for the upcoming festivals of Onam, Raksha Bandhan, and Krishna Janmashtami, the additional quota of 2 LMT (over and above 23.5 LMT already allocated for August 2023) is being allocated for August 2023. The additional sugar in the domestic market will ensure reasonable prices all over the country.

Despite a 25 per cent increase in international sugar prices in the last year, the average retail price of sugar in the country is about ₹ 43.30 per kg and is likely to remain in range bound only. There has been less than 2 per cent annual inflation in the country in sugar prices in the last 10 years.

During the current Sugar Season (Oct-Sep) 2022-23, India is estimated to have produced of 330 LMT sugar after the diversion of about 43 LMT for ethanol production. Domestic consumption is expected to be around 275 LMT.

At the present stage, India has sufficient sugar stock to meet its domestic demand for the remaining months of the current SS 2022-23 and the optimum closing stock of 60 LMT (sufficient to meet sugar consumption for 2 ½ months) will be available at the end of this season i.e. 30.09.2023.

The recent increase in sugar prices will cool down soon as each year during July-Sep, just before next season, prices increase and then come down on the start of cane crushing. Thus, the price rise in sugar is very nominal and for a short duration.

The additional sugar in the domestic market

AgroPolicy, Sugar industry, Supply Chain

At the end of July 2023, India has a sugar stock of about 108 LMT, which is sufficient to meet domestic demand for the remaining months of the current SS 2022-23.

The government of India has been successfully maintaining stable retail prices of sugar in the country. Though international sugar prices have touched the highest level in a decade in April-May 2023, domestic prices of sugar have nominal inflation of about 3 per cent, which is commensurate with the hike in Fair & Remunerative Price (FRP) of sugarcane.

At the end of July 2023, India has a sugar stock of about 108 LMT, which is sufficient to meet domestic demand for the remaining months of the current SS 2022-23 and also for optimum stock of about 62 LMT at the end of the season. Thus, enough sugar is available for domestic consumers at reasonable prices throughout the year.

In addition, the interests of sugarcane farmers are being addressed by ensuring Fair & Remunerative prices as well as their timely payments by sugar mills. 99.9 per cent of cane dues of sugarcane farmers for the sugar seasons up to 2021-22 have already been cleared by sugar mills. Even for the current sugar season 2022-23, with payments of more than ₹ 1.05 lakh crores, about 93 per cent of cane dues payments have already been cleared as of date.

International sugar prices are almost 50 per cent higher than those in India. The average retail price of sugar in the country is about ₹ 43 per kg and is likely to remain in range bound only. It can be seen from the chart below that there has been less than 2 per cent annual inflation in the country in sugar prices in the last 10 years. Domestic prices have been kept stable with little increase as a result of pragmatic government policy interventions.

Timely government interventions have brought the sugar sector out of the crisis. Strong fundamentals of the sugar sector and more than sufficient production of sugarcane and sugar in the country have ensured that sugar remains within easy access to each & every Indian consumer.

During the current Sugar Season (Oct-Sep) 2022-23, India is estimated to have produced of 330 LMT sugar after the diversion of about 43 LMT for ethanol production. Thus, total sucrose production in the country would be about 373 LMT which is the second highest in the last 5 years. Further, there has been a considerable increase in the production of sugar during the last 10 years; however, the consumption has not increased in the same proportion; thereby, ensuring the availability of sufficient stock for any unforeseen event.

At the end of July 2023, India

AgroPolicy, Biofuel industry, Sugar industry, Sustainability

In the last 9 years, the sugar sector has been self-sufficient with more than 99.9%

The growth of the ethanol sector has been tremendous which has set a sort of example for the world, said Piyush Goyal, Union Minister for Consumer Affairs, Food and Public Distribution, Textiles and Commerce and Industry while addressing a one-day seminar on ‘National Seminar on Maize to Ethanol’ organised by Department of Food and Public Distribution.

Goyal said that in the last 9 years, the sugar sector has been self-sufficient with more than 99.9 per cent payment to farmers for the previous season. Now, ethanol will support maize farmers in increasing their income and bringing growth with stability along the lines of sugarcane farmers. Investments of thousands of crores have come creating thousands of jobs in the rural sector which has generated a multiplier effect on the Indian economy. He highlighted that environment-friendly fuel like ethanol has been on the top priority list which has resulted in more than doubling of ethanol blending in just 2 years and the target of 20 per cent ethanol blending has also been preponed from 2030 to 2025.

Timely planning, industry-friendly policies and a transparent approach of the Government of India with the collaboration of industry have made these achievements a reality, he said. He stressed the need for synchronous efforts of the Central Government, States, Research Institutes, OMCs and Distilleries to achieve the target of 20 per cent ethanol blending while keeping the interests of the farmers always on top priority.

The Union Minister highlighted that India has transformed to accomplishing bigger goals in a shorter time to be the world leader. The Target of E 20 was preponed from 2030 to 2025 so that India can have clean fuel with propagating farmers’ interests.

In the last 9 years, the sugar

India, R&D

The new facility will come up on 1.25 acre land at total cost of about Rs 5 Cr

Dr T R Sharma, Deputy Director General (Crop Science), ICAR lays the foundation stone of the new building of ICAR-IISR, Lucknow Biological Control Centre at Pravaranagar (Maharashtra). 

The proposed building and facilities of Biological Control Centre is constructed on about 1.25 acre land with the total cost of about Rs 5 crore, which is sanctioned by the Government of Maharashtra under RKVY scheme.

A Discussion on the ongoing research projects and experiments in the sugarcane fields and the research work and outreach activities of the centre for the benefit of sugarcane farmers of the Maharashtra also took place. 

Dr T R Sharma said that in view of the increasing demand for sugar and ethanol in the country, sugarcane farmers need to obtain high production of sugarcane by using modern technology developed and advocated by the ICAR-Indian Sugarcane Research Institute. Dr Sharma also advocated the use of bio agents for the management of pests and diseases in sugarcane.

The new facility will come up on

AgroPolicy, Agrotech, Allied Industry, Biofuel industry, India, Sugar industry

Nitin Gadkari , Union Minister for Road Transport and Highways, while addressing the felicitation programme of National Cogeneration Awards 2022 in Mumbai gave out a few clarion calls for the agri sector. He said, “Over-production of sugar is a problem for the economy; we spend Rs 15 lakh crore” per year for import of petroleum products, hence we need to diversify the agriculture sector towards energy and power sectors”. 

The minister exhorted the industry of the crucial need to focus on alternative fuels with the help of futuristic technologies. “While 65 to 70 per cent of our population depends on agriculture, our agricultural growth rate is 12 to 13 per cent only; the sugarcane industry and farmers are a growth engine for our industry. And the next move should be cogeneration to increase revenue from sugar. The industry should produce less sugar and produce more by-products, embracing the vision for futuristic technologies and using the power of leadership to convert knowledge into wealth. This will enable the farmers to become not only food growers, but energy producers as well,” Gadkari said.

The minister highlighted that while our requirement was 280 lakh tonnes of sugar this year, the production was more than 360 lakh tonnes; this could be utilised due to the situation in Brazil.  However, we need to divert production towards ethanol as the ethanol requirement is very high. “Last year’s capacity was 400 crore litres of ethanol; we have taken a lot of initiatives to increase ethanol production. Now is the time for the industry to plan demand for ethanol, using technologies such as power generators run by bioethanol,” pointed out Gadkari.

The minister reminded the industry that there is scope of using harvesting technologies for cutting of sugarcane. “Harvesting machines can use ethanol as a fuel, making the circular economy possible.”

Gadkari said that the sugar industry faces many problems and that we need rationalisation of power purchase rates; some states are not giving rates as per the central government policy, this is one reason why the sugarcane industry is not economically viable. The minister also urged the industry to raise this matter at appropriate forums.

Nitin Gadkari , Union Minister for Road

AgroPolicy, Biofuel industry, Sugar industry, Trade

Ethanol production capacities increased from 421 cr litrs to 867 cr litrs in last eight years

Export of sugar in current sugar season 2021-22 is 15 times of export as compared to export in sugar season 2017-18. The major importing countries are Indonesia, Afghanistan, Sri Lanka, Bangladesh, the UAE, Malaysia and African Countries.

In sugar seasons 2017-18, 2018-19 & 2019-20, about 6.2 LMT, 38 LMT & 59.60 LMT of sugar was exported. In sugar season 2020-21 against target of 60 LMT about 70 LMT have been exported. About Rs 14,456 Cr released to sugar mills in past five years to facilitate export of sugar and Rs 2000 cr as carrying cost for maintaining buffer stock. Since, the international prices of sugar are in uptrend & stable, so, contracts for export of about 90 LMT have been signed to export sugar in current sugar season 2021-22 & that too without announcement of any export subsidy; out of which 75 LMT have been exported till May 18, 2022.

In the current ESY 2021-22, about 186 cr ltrs ethanol have been blended with petrol till 08.05.2022 thereby achieving 9.9 per cent blending. It is expected that in current ethanol supply year 2021-22, we will be achieving 10 per cent blending target.

In sugar seasons 2018-19 , 2019-20 & 2020-21 about 3.37, 9.26 & 22 LMT of sugar was diverted to ethanol. In sugar season 2021-22, it is likely that about 35 LMT of excess sugar will be diverted to ethanol. By 2025, it is targeted to divert more than 60 LMT of excess sugar to ethanol, which would solve the problem of high inventories of sugar, improve liquidity of mills there by help in timely payment of cane dues of farmers.

In the sugar season 2021-22, sugarcane of worth Rs 1,10,000 crore is likely to be purchased by sugar mills which is at all time high level and is the second highest next to the procurement of paddy crop at Minimum Support Price.

For the current sugar season 2021-22, out of total cane dues payable of Rs 1,06,849 cr, about Rs. 89,553 cr was paid and only Rs 17,296 cr are pending as on 17.05.2022; thus 84 per cent of cane dues have been paid. The domestic ex-mill prices of sugar are also now stable & are in the range of Rs 32 -35/ kg which would enable sugar mills to make timely payment of cane dues to farmers in current sugar season 2021-22. The average retail price of sugar in the country is about Rs 41.50/ kg and is likely to remain in the range of Rs 40-43/ kg in coming months which is not a cause of worry.

Ethanol production capacities increased from 421 cr

Biofuel industry, Finance, Schemes - Banks, Sustainable Energy

The agreement is designed to ensure that payment received by ethanol plants is utilised for servicing the finance extended by these banks

The Oil Marketing Companies (OMCs) – Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) have entered into a long-term purchase agreement (LTPA) for upcoming dedicated ethanol plants across India. The first set of Tripartite-cum-Escrow Agreement (TPA) was signed among OMCs, project proponents and banks of the respective ethanol plant projects in presence of Sandeep Poundrik (IAS), Principal Secretary, Department of Industries, Government of Bihar, Ashwani Bhatia, MD State Bank of India and Sukhmal Jain, Executive Director I/C, Marketing Corporate, BPCL.

State Bank of India, Indian Overseas Bank and Indian Bank are three banks who are involved in this tripartite agreement with OMCs and project proponents. The agreement is designed to ensure that payment received by ethanol plants is utilised for servicing the finance extended by these banks.

As per the agreement, ethanol produced by these dedicated ethanol plants shall be sold to OMCs for blending with Petrol as per Govt of India’s Ethanol Blended Petrol (EBP) Program. Payment towards the supply of ethanol shall be credited to the escrow account maintained with the financing bank to ensure servicing of the loan as per schedule. TPAs were signed with Micromax Biofuels, Bihar, Eastern India Biofuels, Bihar, Muzaffarpur Biofuels, Bihar, K P Biofuels, Madhya Pradesh and Visag Biofuels, Madhya Pradesh.

In Ethanol Supply Year 2021-22, India achieved 9.9 per cent ethanol blending, consuming 186 crore litre of ethanol, saving over Rs 9000 crores of foreign exchange. However, the government has advanced the target of achieving 20 per cent blended ethanol by 2025, which is commonly known as E20 target. The major challenge is the deficit of ethanol to achieve this target. As per E20 scenario, the country requires 1,016 crore litre of ethanol to achieve the target in 2025-26. But, there is a deficit of approx. Rs 650 crore of ethanol as per the current availability. These five projects are likely to contribute to around 23 crore litres of ethanol per annum.

Ethanol blended petrol not only gives us a cleaner environment as it produces 38 per cent lesser carbon dioxide emission, as well as, supports the rural economy with investment in rural areas and employment generation.

The agreement is designed to ensure that

Agro chems – Chemicals, Biofuel industry

Holds Bhoomi Poojan for Sakarwadi manufacturing facility

Manufacturer of ethanol-based chemicals Godavari Biorefineries Ltd (GBL) held a Bhoomi Poojan ceremony for its Sakarwadi manufacturing facility at Sakarwadi in Maharashtra. GBL also inaugurated a research laboratory for bio-chemical research and new product development. Subhash Desai, Cabinet Minister of Industries, Maharashtra, presided at the bhoomi poojan while unveiling the research laboratory to augment its pioneering work in biochemical research.

Desai, said, “The advancement in research in bio-chemicals and introductions of new green products will propel the Indian chemical industry to become a global manufacturing hub.”

Samir Somaiya, CMD, GBL said, “We are delighted that the specialty chemicals facility and our ramped up research laboratory will enable us to expand the bio-chemical industry. Our vision is to make green chemicals that reduce the impact on the environment, focus on bio-diversity and the prudent use of scarce resources. Our investments in research and development have been instrumental in our growth and are aimed at creating value as well as optimising resources and processes.”

The manufacturing facility utilises ethanol and rectified spirits and can use ethanol and rectified spirits manufactured by them to manufacture speciality chemicals including bio-ethyl acetate, MPO, 1,3 butylene glycol, crotonaldehyde and paraldehyde and commodity chemical ethyl acetate. The company is in the process of expanding its plant to expand its capacity for existing products and introduce additional ethanol based chemicals.

Holds Bhoomi Poojan for Sakarwadi manufacturing facilityManufacturer

AgroPolicy, Biofuel industry

The move will facilitate project proponents to complete the projects and to avail of the benefits of interest subvention

The Central Government has decided to extend the timeline for disbursement of loans up to September 30, 2022, in respect of all the schemes notified during 2018-2021. The move will facilitate project proponents to complete the projects and to avail of the benefits of interest subvention.

The government to increase the production of ethanol and its supply under the Ethanol Blended with Petrol (EBP) Programme, especially in the surplus season and thereby improve the liquidity position of the sugar mills enabling them to clear cane price arrears of the farmers, notified different interest subvention schemes for sugar mills and distilleries during 2018-2021. The government is extending financial assistance in the form of interest subvention @ 6 per cent per annum or 50 per cent of the rate of interest charged by banks, whichever is lower, on the loans to be extended by banks for five years including a one-year moratorium.

Under the schemes, the timeline for disbursement of loans for ethanol projects is up to March/April 2022. However, due to the unavoidable and unfortunate situation caused by COVID-19, project proponents were unable to adhere to the time limit for disbursement of loans from Banks/ Financial institutions and unable to complete their projects in a given time frame. Therefore, there is a need to extend the timeline for disbursement of loans under interest subvention schemes announced earlier during 2018-2021.

The ethanol distillation capacity of molasses-based distilleries was only 215 crore litres before 2014. However, in past seven years due to the policy changes made by the government, the capacity of molasses-based distilleries has increased by one and a half times and is currently at 555 crore litres. The capacity of grain-based distilleries which was 206 crore litres in 2013 increased to 280 crore litres. Thus, the total ethanol production capacity in the country has reached 835 crore litres. However, ethanol production capacities are required to be enhanced to about 1700 cr litres to achieve 20 per cent blending by 2025. The decision to extend of timeline for ethanol projects would help in enhancing ethanol production capacities further.

The move will facilitate project proponents to

Environment

Summit Carbon Solutions will primarily capture CO2 from ethanol plants and other industrial sources in Iowa, Nebraska, Minnesota, North Dakota and South Dakota

Summit Carbon Solutions has recently announced a strategic investment from Continental Resources, to create the largest carbon capture and sequestration project of its kind in the world.

Continental Resources will commit $250 million over the next two years to help fund the development and construction of the project’s associated capture, transportation, and sequestration infrastructure, while also leveraging its operational and geologic expertise to help ensure the safe and secure storage of CO2.

Summit Carbon Solutions will primarily capture CO2 from ethanol plants and other industrial sources in Iowa, Nebraska, Minnesota, North Dakota and South Dakota. The CO2 will be aggregated and transported to North Dakota via pipeline, where it will be safely and permanently sequestered in extensively researched subsurface geologic formations.

The project has commitments from 31 partner ethanol facilities to deliver more than 8.0 million metric tons per annum (MMtpa) of CO2, with initial pipeline capacity of 12.0 MMtpa, and expansion capabilities to handle up to 20.0 MMtpa.

Recognising the significant growth in demand for low carbon fuels, Summit began developing plans for the project and its partnerships with ethanol producers in 2019. By leveraging decades of experience and relationships across the biofuels and agriculture industries, Summit Carbon Solutions was launched in early 2021, and is on track to achieve its target of being operational in the first half of 2024.

“Summit and Continental have a shared vision to produce clean and cost-effective energy for all Americans. This project will be transformational for the ethanol and agriculture industries and will have a substantial economic impact across the Midwest,” said Bruce Rastetter, CEO of Summit Agricultural Group.

Summit Carbon Solutions will primarily capture CO2

Biofuel industry

The raw material will be supplied by Pune-based Praj Industries

Swaraj Green Power & Fuel (Swaraj)  plans to set up the largest ethanol plant (1100 KLPD) in Maharashtra in two stages, first stage capacity of 500 kilo litres per day (KLPD) and in second stage capacity shall be enhanced to 1100 KLPD based on sugarcane juice and BIOSYRUP.  Necessary permissions have been acquired to enhance the plant capacity up to 1100 KLPD in near future. 

Swaraj and Praj have signed an agreement for expanding up to 500 KLPD capacity that is expected to be operational by the third quarter of FY 2022-23. Praj is responsible for the design, engineering, supply and commissioning of the plant, deploying its advanced sugarcane juice and BIOSYRUP to ethanol technology. Praj’s Innovative solution to process sugarcane juice into a new sustainable feedstock BIOSYRUP will help Swaraj secure round the year ethanol production.

The raw material will be supplied by