Set Up Grain and Molasses-Based Ethanol Distillery
Set Up Grain and Molasses-Based Ethanol Distillery- Government Approves Scheme for Increasing Ethanol Production.
Cabinet Approves Scheme for Increasing Ethanol Production
The govt’s move will help bear the interest of loans taken for setting up ethanol distilleries for a period of 5 years
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a modified scheme for extending interest subvention for those setting up grain-based along with molasses-based ethanol distilleries.
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The total outlay of the scheme is Rs. 8,460 crore for increasing India’s ethanol production capacity, with the scheme extended to those setting up distilleries using grain, molasses, dual feed, sugar beet, sweet sorghum, and cereals as a feedstock.
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Pradhan said that India will need about 1,000 crore litre of ethanol for doping in petrol by 2030 with a view to cut dependency on imports for meeting oil needs. “The nation currently has a capacity of 684 crore litres,
The assistance comes against the backdrop of ongoing protests by farmers against the new farm laws.
“The government would bear interest subvention for five years, including a one-year moratorium against the loan availed by project proponents from banks at 6% per annum or 50% of the rate of interest charged by banks whichever is lower,” the government said.
The government has been trying to connect with the politically-sensitive constituency of farmers through various policy measures. As part of the initiative, it has been pushing for ethanol production after surplus sugar production depressed sugar prices, which consequently increased the dues of sugarcane farmers.
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“There has been surplus production of sugar in the country since the sugar season of 2010-11 (other than the drought in the sugar season of 2016-17) and there is likely to be surplus sugar production in the country in coming years because of the introduction of improved varieties of sugarcane,” it said.
“In the normal sugar season (October-September) about 320 lakh metric tonnes (LMT) of sugar is produced, against a domestic consumption of about 260 LMT. This surplus sugar of 60 LMT in the normal sugar season put pressure on domestic ex-mill prices of sugar. The excess stock of 60 LMT, which remains unsold, also blocks the funds of sugar mills to the tune of about ₹19,000 crore, thus affecting the liquidity positions of sugar mills and resulting in accumulation of cane price arrears of farmers,” it said.
The government’s move will help bear the interest of loans taken for setting up ethanol distillation capacity for a period of five years and will also help double the income of farmers, petroleum and natural gas minister Dharmendra Pradhan said after the CCEA meeting.
Increased ethanol blending with fossil fuels will help reduce pollution and strengthen India’s resolve towards fulfilling commitments made at COP-21, the UN Climate Change Conference held in France in 2015. It will also help lower India’s energy import dependency and lead to lowering the crude oil import bill.
“Interest subvention would be available to only those distilleries that supply at least 75% of ethanol produced from the added distillation capacity to oil marketing companies (OMCs) for blending with petrol,” the government said.
Pradhan said that the expanded interest subvention scheme will fuel investment of about 40,120 crore in the ethanol value chain, encouraging “urja-kheti, which will augment farmer’s income, transform our ‘annotates’ into ‘urjadatas’ and contribute to the overall vision of Aatmanirbhar Bharat.”
The blending percentage of ethanol with petrol is expected to go up from 1.53% in 2013-14 to 8.5% in 2020-21. The National Biofuel Policy 2018 envisages an indicative target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2030. India has an ethanol production capacity of 684 crore liter. For the targeted 20% blending of ethanol in petrol by 2030, the country will need a 1,000 crore liter capacity.
Molasses is a one precious byproduct of sugarcane, about 1 ton of it produces 4% of molasses by the sugar processing industry in every single run. Molasses contain rich source of nutrients, and it is employed as an effective raw material for the production of organic acids especially ethanol. Ethanol is the major product obtained from the molasses by means of anaerobic fermentations using microorganisms.
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Ethanol is a renewable biofuel because it is made from biomass. Ethanol is a clear, colorless alcohol made from a variety of biomass materials called feedstocks (the raw materials used to make a product). Fuel ethanol feedstocks include grains and crops with high starch and sugar content such as corn, sorghum, barley, sugar cane, and sugar beets. Ethanol can also be made from grasses, trees, and agricultural and forestry residues such as corn cobs and stocks, rice straw, sawdust, and wood chips. Ethanol is made from these feedstocks in several ways.
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Uses & Benefits
Personal Care Products
Ethanol is a common ingredient in many cosmetics and beauty products. It acts as an astringent to help clean skin, as a preservative in lotions and to help ensure that lotion ingredients do not separate, and it helps hairspray adhere to hair.
Household Products
Ethanol mixes easily with water and many organic compounds, and makes an effective solvent for use in paints, lacquers and varnish, as well as personal care and household cleaning products. As an additive to cleaning products, ethanol is also used as a preservative because it is effective in knocking out organisms that could pose a danger to consumers.
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Food Additives
As a food additive, ethanol can help evenly distribute food coloring, as well as enhance the flavor of food extracts. For example, vanilla extract, a common food flavoring, is made by curing and processing vanilla beans in a solution of ethanol and water. In the United States, the Food and Drug Administration (FDA) only allows vanilla to be called “extract” when it has an alcohol or ethanol base.
Fuel
Ethyl alcohol is used to make alcoholic beverages, for example wine, beer and liquor. Ethyl alcohol can also be used as a solvent.
How Is Ethanol Made?
Milling: Whole corn kernels are ground into a form of flour, or meal. The meal is mainly starch. A starch is a carbohydrate made up of long chains of sugar molecules.
Liquefaction: Water is added to the meal to make ‘slurry.’ The slurry is heated to break the long starch molecules into smaller pieces. The enzyme alpha-amylase is added to catalyze (or speed up) the breakdown of the starch molecules.
Saccharification: Starch molecule pieces are broken down into the simple sugar glucose. This reaction is catalyzed by an enzyme called glucoamylase.
Fermentation: Single-celled microorganisms called yeast are added to the slurry. Fermentation is the biochemical process that occurs when yeast break down glucose. Yeast gets energy from glucose. As a result, ethanol is produced.
Distillation and Dehydration: The product of the fermentation process is only 10-15% ethanol. It must be concentrated to become pure (100%) ethanol. Ethanol has a lower boiling point than water. It is selectively evaporated and condensed in a process called distillation. This process produces ethanol that is 95% pure. The remaining 5% of the mixture is water. The mixture is strained and dehydrated to produce pure ethanol.
Denaturation: A small amount of gasoline is added to fuel ethanol to make it undrinkable.
Market Outlook
The global ethanol market size was valued at USD 89.1 billion in 2019 and is anticipated to register a compound annual growth rate (CAGR) of 4.8% from 2020 to 2027. The demand for the product is driven by growing usage of the product as a biofuel. The rising consumption of alcoholic beverages is another major factor supporting market growth. Ethanol can be manufactured by both natural as well as petrochemical feedstock. In the natural process, natural sugars are fermented in the presence of yeast. Ethylene production is increasing owing to the rise in shale gas production. As oil output reduces and new ethylene capacities come online the market is expected to overstock with ethylene, which is expected to bring stagnancy in production of ethanol.
The major factors driving the growth of the market studied are the rising demand for ethanol as biofuel, growing to use in beer production and food processing, and stringent government policies to restrict the usage of fossil fuels. On the flip side, an increase in awareness about the ill effects of alcohol consumption, and the advent of hybrid electric vehicles are likely to hamper the growth.
Alcoholic beverages containing ethanol, which were earlier considered a premium offering are now slowly becoming an essential product that can be found in the majority of the households globally. The major trend fueling growth is entry of premium products in the marketplace. The rising disposable incomes coupled with increased knowledge about ingredients has fueled the demand for premium offerings.
This is expected to create a shortfall of corn with high procurement costs, which is expected to have a negative impact on the growth of the ethanol market. However, the impact of this restraint is expected to remain medium throughout the forecast period due to the fluctuation in the production of raw materials.
Ethanol finds application in end-use industries such as automotive, alcoholic beverages, pharmaceuticals, and cosmetics. Alcoholic beverages segment accounted for the largest share in terms of both revenue and volume, owing to increasing usage of ethanol in alcoholic beverages. Moreover, it is expected to hold dominant position in the market over the forecast period.
Industrial Ethanol Global Demand by Application
Globally, solvents occupy the lion’s share of the industrial ethanol demand market, at 63 percent, and is expected to grow at a CAGR of 3 percent. Chemical intermediates, which account for 37 percent of the global demand share, is expected to grow at a slightly higher growth rate of 3.5 percent over the next three years
Applications pertaining to CPG & FBT markets have a significant share in the total demand market: Personal care (15 percent), cleaning products (10 percent) and food & beverage (10 percent). Hence, growth in these sectors significantly impact the ethanol demand market.
Solvents: Paints, inks and the coating sector has the major share in demand, consuming 27 percent of industrial ethanol. This is followed by the personal care sector and cleaning products end applications, which accounts for 23 percent and 16 percent of the demand respectively
Chemical intermediates: Acetic acid and acrylates are the major consumers of industrial grade ethanol, accounting for 29 percent and 28 percent respectively, of the total chemical intermediates demand.
Key Players:-
Amines & Plasticizers Ltd.
Ammana Bio Pharma Ltd.
Athani Farmers’ Sugar Factory Ltd.
Baramati Agro Ltd.
Bhuvan Tripura Inds. Ltd.
Dhampur Sugar Mills Ltd.
Dwarikesh Sugar Inds. Ltd.
Empee Sugars & Chemicals Ltd.
Gangamai Industries & Constructions Ltd.
Godavari Biorefineries Ltd.
H P C L Biofuels Ltd.
Hico Products Ltd.
Jeypore Sugar Co. Ltd.
K M Sugar Mills Ltd.
Natural Sugar & Allied Inds. Ltd.
Parrys Sugar Industries Ltd.
Purti Power & Sugar Ltd.
Radico Khaitan Ltd.
Sakthi Sugars Ltd.
Saswad Mali Sugar Factory Ltd.
Shamanur Sugars Ltd.
Shree Renuka Sugars Ltd.
Sri Sarvaraya Sugars Ltd.
X L Energy Ltd.
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