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ETHANOL PRODUCTION IN BRAZIL Vs POTENTIAL/PROSPECTS IN INDIA

ETHANOL PRODUCTION IN BRAZIL Vs POTENTIAL/PROSPECTS IN INDIA. ETHANOL PRODUCTION IN BRAZIL Vs POTENTIAL / PROSPECTS IN INDIA.

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ETHANOL PRODUCTION IN BRAZIL Vs POTENTIAL/PROSPECTS IN INDIA

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  1. ETHANOL PRODUCTION IN BRAZILVsPOTENTIAL/PROSPECTS IN INDIA

  2. ETHANOL PRODUCTION IN BRAZIL Vs POTENTIAL / PROSPECTS IN INDIA The official delegates from the Distillery representatives, Honorable Minister for major industries Sri Vidhyadhara Rao, Senior level officers of A.P., attended INTERNATIONAL FUEL ETHANOL WORKSHOP/ CONFERENCE held at SPRING FIELD, ILLINOIS. USA, during 24th JUNE and 28th JUNE 2002. Prior to attending the conference, we visited Brazil, who are producing Sugar / Ethanol from Sugar Cane, similar to India. We visited 2 Sugar-Cum-Ethanol plants namely SANTA ELISA and VALE DE ROSARIO, which are located near RIBEIRAO PRETO region.

  3. The sugar cane crushing capacity of the plants is 32,000 tonnes and 26,000 tonnes per day respectively. The Distillation capacity is 11.4 Lakh liters and 8.1 Lakh liters per day respectively. Both the factories are producing ETHANOL directly from cane juice. They have the option to convert the Juice either for Sugar production or for Ethanol production partly and fully.

  4. CHAPTER-I 1. CLIMATE The cane growing zones in Brazil have been blessed with well-distributed Rainfall spread over 7-8 months. This makes it possible for successful cultivation of Sugar cane as 100 % rain fed crop, without supplementing any irrigation, except application of ferti-irrigation by using distillery effluent.The annual rainfall is 1200 mm, which is distributed for almost 8 months from September to March. Besides, the region is also blessed with an excellent distribution of weather parameters like temperature and humidity.

  5. The prevalence of maximum and minimum temperatures at 34 Deg. C. and 21 Deg. C even in summer months (Jan-April) coupled with abundant rains, favour good crop growth and sugar accumulation in cane crop. This helps for high cane quality resulting in better recovery of Sugar and Ethanol.

  6. 2. SOIL TYPES AND TOPOGRAPHY: The soils are red and red loam with texture. 3. SUGARCANE PLANTING SYSTEM: Sugar cane is planted in two seasons, i.e., September to November, January to April. Plant is 20 % and Ratoon percentage is 80. Normally 5 to 6 Ratoons are allowed. Average Cane Yield is 85 tonnesper hector. Average Sugar recovery is 13 TO 14 %.

  7. 4. VINASSE (DIST. EFFLUENT) APPLICATION AS NURTIENT : The soils are red and red loam with texture. In Brazil, almost all the distilleries stillage is called as VINASSE and the same is applied on soils as ferti-irrigation to Sugar cane crop without any pre-treatment. This concept is based on the utilization of the nutritive value of VINASSE to provide the 1ST nutrition to Ratoon crops, especially during the crop harvest season coinciding with dry spells.

  8. 5. DOSAGE AND METHOD OF VINASSE APPLICATION : The Vinasse application is restricted to Ratoon crops only, within 15-20 days of cane harvest which stimulates for quick germination of Ratoons, besidesstrengthening the early growth vigour and establishment of cane crops. The dosage is given below: 1st and 2nd Ratoon 120 Cu.m./ha 3rd Ratoon 100 Cu.m./ha. 4th Ratoon 80 Cu.m./ha.

  9. The application of Vinasse is done very systematically in the cane fields. The factories have erected good network of pipeline and open channels on the contour lines to facilitate gravity flow of Vinasse to the nearer areas. In distant areas the Vinasse is transported by trucks and sprayed in the fields with aspirators. The Vinasse application is done within 30 days of the harvest.

  10. 6.IMPACT OF VINASSE APPLICATION ON SOIL : The factories are maintaining computerized data on Vinasse application in different dates in different types of Soils. There is a significant increase in cane yields due to application of Vinasse. The Scientists of Crop Sugar Institute, which is the premier institute carrying out the research and development activities relating to Sugar and Ethanol production in Brazil have endorsed the facts.

  11. CHAPTER-II 1.   NUMBER OF SUGAR, ETHANOL PLANTS, AND AVERAGE SIZE: In Brazil there are more than 300 distilleries (Alcohol/Ethanol Plants) and more than 225 sugar factories. The Average size of a sugar factory is 20,000 tonnes per day. The Average size of Distillery is 1.7 Million liters of Ethyl Alcohol per day. Most of the distilleries are adopting AZEOTROPIC TECHNOLOGY and only 9 to 10 distilleries have incorporated Molecular sieve technology in their distilleries.

  12. 2.   SUGAR CANE PRICE. SUGAR YIELD (REC %). SUGAR SALE PRICE PER TONNE : The Sugar cane price varies from region to region. Taking RIBEIRO PRETOS area, which represents 41.3 % of total mills from the Center-South Region, the average price for Sugar cane is 15.2 U.S. $ per tonne at mill delivered. There is no subsidy for the agricultural side of the sugar business. The Average Recovery is 14.3 %. The sugar sale price ranges between 182.51 (Aug, 2001) and 205.13 (Jan. 2002) U.S. $ per tonne. Almost all the sugar factories own their land to the extent 40% - 50% of their requirements. The balance cane is drawn from the farmers who are having larger land holding more than 500 Ha.

  13. 3.   RECOVERY OF ETHANOL PER TONNE OF SUGAR CANE : Considering a mill that produces both Sugar and Alcohol, the estimated average production is 45 liters of Alcohol per tonne of cane crushed. On the other hand, a mill which only produces Alcohol (distillery) generates an average of 85 liters of Alcohol per tonne of sugar cane. The distillery attached sugar factories have the option of switching overthe products either to complete sugar or complete alcohol (Ethanol) or partially according to the market demand and price factors.

  14. 4.   ETHANOL BLENDING PROPORTION AND USAGE OF BLENDED FUEL FOR VEHICLES, RATE PER LITRE : There are three types of fuels used in Brazil for Motor Vehicles  Diesel Oil, Gasoline (mixed with 24% of Anhydrous Ethanol) and Alcohol (100 % of Hydrated Ethanol). The vehicle break up is given below

  15. Vehicles running with % Sale price U.S. $ per liter Diesel Oil 54% 0.32 Gasoline (24 % Ethanol Blended) 38% 0.64 Alcohol (E-100) (100 % Hydrated Ethanol) 8% 0.44 The Export price for Ethanol is 225 U.S. $ per 1000 liters. There is no government subsidy for blended fuel. The market is absoultely free.

  16. 5.   FACTORS, WHICH FORCED BRAZIL GOVERNMENT TO IMPLEMENT THE POLICY OF ETHONOL BLENDING: As early as 1931, a federal decree mandated that alcohol to be added to Gasoline to the extent of 5 precent (by volume) and established gudielines for its commercialization. Subsequently, ethanol blended percent was incresed to 20 %. Brazil was importing over 80 % of its oil requirement. In the year, 1973 there was World oil crisis, which made the Brazilian Government to think of an energy conservation policy and to reduce its dependence on outside oil supplies.

  17. In 1975, Brazil launched its National Alcohol Programme PROALCOOL. The main objective of Proalcool Programme was to encourage use of Ethanol as a fuel substitute for Gasoline and to increase ethanol production for industrial uses. As a result of Government’s “Proalcool” Programme fuel alcohol production was increased from Nil to over 15 million cu. m. over a period of 20 years. There was good response from the public for the usage of Ethanol for automobile fuel; Brazil introduced the large-scale production of Alcohol driven cars and light vehicles. In 1985, 96 % of the automobiles sold in Brazil consumed fuel Alcohol.

  18. Considering the benefits derived from the production and use of a fuel that is clean, eco-friendly, renewable and the importance of preserving jobs in rurally located alcohol industries, Government enacted a law in 1998, to the effect that, within 5 years, gasoline powered vehicles owned by the Public sector should replace them with Ethanol fuelled vehicle. After that the mandate was extended to all the vehicles in Brazil.

  19. In 1999-2000, total sugar cane production in Brazil was 315 million tonnes. Total area under sugar cane cultivation is 4.8 million hectares. Almost two third of the sugar cane is used for production of Ethanol in Brazil. The main sugar cane / alcohol producing region are SAO-PAULO, PANANA, MINAS GERAIS, ALAGAOS MATO GROSSO DOSVL and PERNAMBUCO. The entire Alcohol is marketed through six large distribution companies.

  20. The Sugar and Alcohol Inter Ministerial Council (CIMA) under the Ministry of Agriculture and supply is responsible for policy formulation in the Sugar-Alcohol Industry. The Sugar and Alcohol department (DAA) in the Ministry of Agriculture and supply is responsible for implementing, supervising and evaluating Sugar-Alcohol Policy. The DAA also elaborates annual plans to guarantee the domestic supply of sugar and alcohol, and monitors their implementation.

  21. CHAPTER-III After Brazil visit, we went to Spring Field, Illinois, USA on 24th June, 2002 to attend the International Fuel Ethanol Workshop which started at 8.30 AM on Tuesday, 25.06.2002 and the following topics were discussed: * Ethanol Production Process and common operational issues. * Options for financing an Ethanol Plant.* Points to consider when building an Ethanol Plant.* Start up requirement - concept construction, product marketing, Ethanol, distillery dried grains, Carbon dioxide.

  22. In USA the production of Ethanol is from Corn (MAIZE), which is grown in larger area. 1. Ethanol also known as ‘Ethyl Alcohol’ or ‘neutral spirits’ is clear, colour less, flammable, oxygenated hydrocarbon that has a boiling point of 78.5 Deg. C in an hydrous state. When combined with water it forms a binary azeotrope and has a boiling point of 78.15 Deg. C. Ethanol is produced through fermentation of sugars or converted starch found in such common grains as corn, wheat, Milo, and barley. The primary source of starch used in USA for the production of Ethanol is CORN, which contains 60% - 70 % starch.

  23. There are two types of process (1) Dry milling (2) Wet milling. Dry milling generally describes a process where the dry grain is processed to remove or separate the grain into components such as germ and bran. The capital investment for the wet mill process will be almost double the cost of dry mill process.

  24. 2. Industry norms of performance, utility, power, water, steam etc. When compared to Wet mill process, operation of Dry mill process is simple, cost effective. The industry norms of performance yellow corn are as below: It is measured as Bushel, by weighment 56 lbs = 25.45 Kgs 70%, Starch, by weight 32 lbs = 14.54 Kgs DDGS 18 lbs = 8.18 Kgs

  25. Ethanol yield per bushel 56 lbs (25.45 Kgs) = 2.6 Gal = 9.8 Ltr. For 1 Ton of Corn (70% Starch content) gives yield of = 385 Ltrs. Steam consumption = 47-50 lbs / Bushel For 1 Ton of Corn = 892 Kgs of steam consumption

  26. Electric power consumption =0.9 - 1.1/KWH/= 1Gallon = 3.8 Ltrs Water requirement = 10-15 gal/Bushel of corn = 25.45 Kg. 3. Capital cost, operating cost, corn price, Ethanol price, and profitability There are three types of owners of the Ethanol Plants, namely

  27. Sector Capacity million gallons per annum Cooperative Sector.  20-30 (76,000 KL per annum) Limited liability com-pany (LLC)  30-60 (2,28,000 KL per annum) Corporate Sector Above 60 (>2,28,000 KL per annum)

  28. The project cost for the medium size plant of 40 million gallons per annum (1,52,000 KL per annum) is 60 to 80 million U.S. Dollars. The Corn price varies Region to Region and according to market availability. The corn price is ranging between 1.6 and 2.2 U.S. $ per Bushel (25.45 Kgs.) The Ethanol plants are run for 350 days in a year. The average cost of production / profitability based on a 20 million gallon per annum for 350 days of operation is given below:

  29. PER GALLON INCOME - U.S $PER GALLON EXPENDITURE -U.S $ After Brazil visit, we went to Spring Field, Illinois, USA on 24th June, 2002 to attend the International Fuel Ethanol Workshop which started at 8.30 AM on Tuesday, 25.06.2002 and the following topics were discussed: Gross Profit 0.21 per gallon x 20 million = 4.2 Mill U.S. $ gross profit, for an investment of 30 million U.S. dollars.

  30. Ethanol -1.15 1. Corn @ 2/- per Bushel(25.45 • Kgs) - 0.71 2. Denaturant - 0.04 • DDGS -0.24 3. Enzymes - 0.05 4. Chemicals - 0.03 • Co2 -0.01 5. Natural Gas - 0.15 6. Electricity - 0.05 7. Water treatment. - 0.02 8. Maintenance - 0.05 9. Labour - 0.06 ----- 10. Miscellaneous - 0.03 • Total -1.40 1.19 • Less: Expenditure - 1.19

  31. ETHNOL CONSUMPTION, PRODUCTION, GROWTH PLAN. In the year of 1979, the Ethanol production in USA was 200 million gallons. Consequent to the Federal Government support and encouragement to the Ethanol producers by way of Excise duty exemption / tax credit etc. the production reached to the level of 1.90 Billion gallon in the year of 2000. The prevailing tax incentive is 0.054 USD per gallon of ethanol.

  32. Currently there are 56 Ethanol production facilities in United States, with several under construction. Total direct employment is more than 4,000 full time employees. The number of indirect jobs created to the ethanol industry is more than hundreds of thousands. Keeping in view of 10 % annual demand growth, the ethanol demand in the year of 2015 is estimated to be 4,500 millions of gallons.

  33. We visited 2 Ethanol plants in ILLINOIS, U.S.A. 1. WILLIAMS BIO-ENERGY & BIO-PRODUCTS 2. ARCHER DANIELS MIDLAND COMPANY WILLIAMS BIO-ENERGY & BIO-PRODUCTS produces 100 million gallons of Ethanol per year. The plant is run for more than 350 days per year. Apart from Ethanol, they produce DDG (ANIMAL FEED), yeast, Co2 gas, Co-generation and Power. Total employees: 260 Nos.

  34. ARCHER DANIELS MIDLAND COMPANY This is the world largest Ethanol plant that produces 960 million gallons of Ethanol per year. They produce verities of co-products. Edible Oil, DDGS, COCOA, Animal Feed. They have employed more than 22,000 employees. They are having plants throughout the world.

  35. ETHANOL PRODUCTION - POTENTIAL IN INDIA. Ethanol is an alternative to MTBE(Methyl Tertiary Butyl Ether), which causes environmental damages.

  36. Advantages of Ethanol are (1) It is eco-friendly (2) a domestically produced fuel (3) results in savings in Foreign Exchange (4) is renewable energy. India has got enormous potential to produce the Ethanol to cater to the demand of Automobile Vehicles.

  37. India being one of the largest sugar cane / sugar producing country in the World, is capable of producing Ethanol to the meet the demand. There are more than 400 sugar factories in India, which are mostly located in rural areas. All the sugar factories are passing through severe financial crisis, owing to un-remunerative realization of end product, i.e., Sugar. If adequate support and incentive are given to the sugar factories for Ethanol production, almost all thesugar factories will partially divert their cane / cane juice for Ethanol production like Brazil.

  38. When the sugar factories commence to produce Ethanol, the economic viability of all the factories will substantially improves, thereby also improving the rural economy. Neither chemical industry nor the potable (I.M.F.L.) unit needs to have any apprehension about the non-availability of Alcohol to meet their requirements. In view of the bumper sugar production, which is not very remunerative for the sugar factories, they will be able to divert part of the cane juice for Ethanol production, as is being done in Brazil, thereby the demand of all the sectors can be met.

  39. After realizing the importance and urgency of usage of alternate fuel, the Union Government have announced blending of 5% Ethanol with Petrol.

  40. This is a welcome step for which we should appreciate the Government and more particularly the Hon’ble Minister for Petroleum Mr. Ram Naik. The Government should make it as NATIONAL POLICY like in Brazil and Uniform Pricing Policy should be announced. Tax relief and production incentive to be extended for Ethanol production like other countries (Brazil / USA / Canada).

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