Beyond the EU: DORA and NIS 2 Directive's Global Impact
PRAJ FINAL 26th JUNE -1.pdf
1.
2. VALUE EDUCATOR
Bio-Industrial
Products
Bio Plastics
Cellulose Lignin
Refinery Products
Food Ingredients
Agri-Supplements
Bio Prism
Breweries &
Distilleries
Critical Process
Equipment's
Zero Liquid
Discharge
HiPurity
Future Innovations &
Cash flows
Bio-Consumables/
Performance
Enhancers
Fermentation based
Solutions
BIO-ENERGY
Bio-Hydrogen
Bio-Mobility
Bio-Methanol
Renewable
Natural Gas
(CBG)
Land Water Air
Isobutanol
CBG
BIOETHANOL
BIODIESEL
SAF
Praj Industries business with multiple Optionalities
3. Bio-Mobility – Technology Commercialisation
VALUE EDUCATOR
Marine Biofuels
Bio-Hydrogen
SAFs
Bio-Methanol
CBG
Cellulosic Biofuels 2G
Biodiesel
Bioethanol 1G
2003 2008 2013 2020 2030 onwards
Biofuels
Advanced
Biofuels
Future
Biofuels
Transformation from Hydrocarbon to Carbohydrate led economy
5. VALUE EDUCATOR
ACQUISITION OF
RAW MATERIALS
RECYCLING
END-OF-LIFE
TREATMENT
DESIGN
PRODUCTION AND
RE-TRANSFORMATION
TRANSPORTATION
DISTRIBUTION
CONSUMPTION
USE RESUE
AND REPAIR
COLLECTION
WITH
MINIMUM WASTE
REFUSE
RECYCLE
CIRCULAR
ECONOMY
FINAL
DESTINATION
Circular Economy
6. VALUE EDUCATOR
0.01 0.02 0.03 0.05 0.12 0.33 0.85
1.95
3.51
4.85
9.39
19.49
25.23
34.81
0
5
10
15
20
25
30
35
40
1750 1760 1770 1780 1790 1800 1810 1820 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
CO2 Emissions in billion metric tons
CO2 Emissions in billion metric tons
Growth in CO2 Emissions
7. VALUE EDUCATOR
Impacts and
consequences of
CO2 emissions
Rise of global
temperatures
Shrinking
changes of
water supplies
Geographical
changes
Changes of
weather
patterns
Changes in
food supplies
Acid Rain
Increase sea
levels
CO2 impacts on the environment
8. VALUE EDUCATOR
First Mechanical Loom
First Assembly Line
First Programmable
Logic Controller
Cyber-Physical
Systems
Human-Robot
Co-Working
Bio-economy
1800 1900 2000
Years
1784 1870 1969 2011 Future
Industry 1.0
(1784)
- Mechanical Production
- Water and steam power
Industry 2.0
(1870)
- Division of Labor
- Mass Production
- Electrical Energy
Industry 3.0
(1969)
- Electronics
- IT Systems
- Automated
Production
Industry 4.0
(2011)
- IoT
- Robotics and AI
- Big Data
- Cloud Computing
Industry 5.0
(2011)
- Robotics and AI
- Sustainability
- Renewable Resources
- Bionics
Industry Evolution
9. VALUE EDUCATOR
Oil Production vs Imports
3.19 3.27 3.43
3.7 3.78 3.79 4.04 4.28 4.41 4.53
0.67 0.75
0.76
0.76 0.76 0.75
0.74
0.72 0.64
0.68
0
1
2
3
4
5
6
2010 2011 2012 2012 2014 2015 2016 2017 2018 2019
MBPD
Imports & Domestic Oil Production in India
(MBPD)
Oil Imports Oil Production
82.6% 81.3% 81.9% 83.0% 83.3% 83.5% 84.5% 85.6% 87.3% 86.9%
17.4% 18.7% 18.1% 17.0% 16.7% 16.5% 15.5% 14.4% 12.7% 13…
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Percentage of Oil Imports and Production
Import Percentage Production Percentage
10. VALUE EDUCATOR
80.07% 80.20%
72.56%
69.66%
66.82%
63.87%
59.58% 58.87% 58.35%
54.27%
19.93% 19.80%
27.44%
30.34%
33.18%
36.13%
40.42% 41.13% 41.65%
45.73%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Percentage of Gas Production and Imports
Gas Production Gas Imports
Gas Production vs Imports
11. VALUE EDUCATOR
History of Ethanol
3000BC
Earliest known
written record of
alcohol
consumption
1840
Used as lamp fuel
in America
1880
First used in
Auto-Mobile
1930
Brazil invented
Ethanol Blending
into petrol to
reduce foreign
exchange
1940s
Used in tankers during
the Second World War
because of Petrol Crisis
Early 1984
Blended
Bio-ethanol used
in cars and other
vehicles.
13. VALUE EDUCATOR
2003
Pilot 5% EBP in 9
states.
2006
Govt. mandates 5%
blending Pan India.
2008
Govt. mandates 10%
blending Pan India.
2009
Biofuels policy released
target to achieve 20%
blending by 2017.
2012
Mandatory 10%
blending to achieve 5%
national average.
2017
Average Ethanol
blending 4.5%.
2018
Biofuels policy 2018
released allowing
additional feedstock.
2019
Interest subvention
scheme for capacity
augmentation.
2020
Focus on
surplus/damaged grain
to ethanol.
2021
E20 target set for FY
2025
2022
India achieved 10%
blending.
Ethanol Blending Programme
14. VALUE EDUCATOR
• Reduce Import Dependency
• Cleaner Environment
• Infrastructural Investments in Rural
areas & Employment Generation
• Additional Income to Farmers
Benefits of Ethanol Blending Programme
16. VALUE EDUCATOR
Current Status – 10% blending
Prime Minister Narendra Modi
announced on Sunday that India
has achieved the target of 10
per cent ethanol blending in
petrol five months before
deadline. Making the
announcement at a programme
on the Save Soil Movement,
which coincided with the
World Environment Day, Modi cited a number of measures
taken by his government to protect the environment, saying
its efforts have been multi-dimensional despite the country
having a negligible role in climate change.
• The rise in ethanol blending in petrol from 2 percent in
2014 to 10 per cent now has reduced carbon
emission by 27 lakh tonnes and saved Rs 41,000
crore of forex reserve.
• This has also brought Rs 40,000 crore of income to the
farmers.
• The 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 food grains, increasing farmers' incomes,
employment generation, and greater investment
opportunities.
18. VALUE EDUCATOR
Price Methodology of Ethanol under LongTerm Ethanol procurement Policy under Ethanol Blending Programme(EBP)
• The ex-mill price of ethanol derived from damaged food grains unfit for human consumption will be decided by OMCs.
A single ethanol price will be declared for all the varieties of damaged food grains, unfit for human consumption
category.
• The annual ex-mill price of ethanol for an ESY, derived from sugarcane based raw materials viz. C heavy molasses, B
heavy molasses, Sugarcane juice / Sugar / Sugar syrup shall be declared by Government.
• Additionally, GST as applicable and transportation charges as decided by OMCs shall be payable to the ethanol
suppliers.
Ethanol Pricing Methodology
19. VALUE EDUCATOR
Raw Material Ethanol Ex-Mill price in Rs./litre
ESY 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
C heavy molasses 42 39 40.85 43.46 43.75 45.69 46.66
B heavy molasses 0 0 0 52.43 54.27 57.61 59.08
Sugarcane Juice/Sugar syrup/Sugar 0 0 0 59.19 59.48 62.65 63.45
Damaged Food Grains/Others 0 0 0 47.13 50.36 51.55 51.55
Surplus rice issued by FCI 0 0 0 0 0 56.87 56.87
Maize 0 0 0 0 0 51.55 51.55
Historical Ethanol prices in India.
23. VALUE EDUCATOR
684 710
819
975
1175
1430
1500
423
592
707
828
988
1288
1350
261
118 112 147 187
142 150
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Suppply Demand Excess Supply
Capacity Augmentation
• To reach 20% blending the country
requires 1500cr ltrs/yr.
(at 100% capacity utilization)by 2025.
• Current production – 850cr ltrs
(10% blending)
• To reach 1500cr ltr production, the
capacity required will be 1900cr ltrs.
Size of opportunity for Praj Industries is
1000cr ltrs.
24. VALUE EDUCATOR
Policies in different countries
REDII advanced biofuels will have 2.2% contribution of transportation
sector by 2030.
That is the total EU production capacity for all advanced biofuels is
likely to reach 2.75billion litres in 2030.This translates to an
opportunity of setting up 100 2G plants of 200KLPD each
Pro-Álcool was a Brazilian government program to replace oil -powered
cars with alcohol-powered ones.
In 1973, the world experienced the first oil crisis . The price of a barrel of
natural fuel rose significantly, generating a devastating effect on the
world economy, with impacts that left serious consequences.
The RenovaBio program's design was launched in December 2016 by
the Ministry of Mines and Energy (MME).The program was formalized
by the Brazilian congress on December 26, 2017, as the “National
Biofuels Policy” through Bill #13,576. h
25. VALUE EDUCATOR
Country Blending Achieved Mandate
US 10.34% E15 from 1st June 2022
Brazil 53.7% 27%
Thailand 13.1% No Mandate
Mexico 0.4% 5.8%
Peru 7.8% 7.8%
Argentina 11.7% 12%
Columbia As per mandate 6% (10% from Aug 22)
Philippines 8.8% 20%
Uganda 7.2% 20%
Vietnam 5% 10%
India 10% 20%
Canada 6.6% 5%
5670
2835
491.40
325.08 309.96 166.32 147.42 98.28 279.72
0
1000
2000
3000
4000
5000
6000
Production (in Cr. Ltrs) as per 2021
Production (in Cr. Ltrs)
Ethanol production & blending in various countries
26. VALUE EDUCATOR
2 2.3 2
1.4 1.6 1.4 2.3
3.3
1.9
3.9
4.5 5
35.9
40.3
42
48.8
45.5
44.2
51.5 54.1 52.5
0
10
20
30
40
50
60
0
2
4
6
8
10
12
14
16
2012 2013 2014 2015 2016 2017 2018 2019 2020
Thailand China Columbia Argentina Australia Peru
Philippines Canada Japan European Union India Brazil
CHINA
INDIA
BRAZIL
Ethanol blending history of various countries
27. VALUE EDUCATOR
Fermentation Process
Glucose
C6H12O6
Pyruvic Acid
Alcohol
fermentation
Lactic Acid
fermentation
Yeast
Anaerobic bacteria
Saccharomyces
Aspergillus Lactobacillus
Lactic Acid Lactic Acid Ethanol
+ CO2
Ethanol
CO2
Beer Fuel
Grade
Cheese,
Yoghurt
Soy Sauce
Glycosis
Fermentation
28. VALUE EDUCATOR
Juice
Yeast
Hydrated
Anhydrous
Distillation
increases the
alcohol
concentration
Later used in paper
industry,cattle feed
and as feedstock for
2G Ethanol
Removes the
moisture content
A Heavy Molasses
B Heavy Molasses
C Heavy Molasses
Processed
Processed
Ethanol production process - Sugarcane
Process of using a centrifuge, to separate sugar crystals
from molasses and molasses is used for sugar production
29. VALUE EDUCATOR
Fermentation Process Enhancers by Praj Industries
Sugarcane
Molasses
Cassava
Wheat
Grains
Sugar Beet
Praj's BioProducts Division specializes in development of
innovative formulations that add 'EconomicValue' to
Biochemical processes.The expertise comes from
• Vast experience of design and operation of Continuous,
Fed-batch and Batch type fermentation processes
• Comprehensive knowledge of feed- stocks composition
and its effect on fermentation and yeast
Effytone is a bio-nutrient with complete yeast nutrition for
enhancement of fermentation performance.While ensuring
high rate of yeast metabolism,Effytone also provides vital
micro-nutrients which facilitate healthy yeast growth. It
also results in rapid conversion of sugars to alcohol,
ensuring higher yields and minimal bacterial contamination
and by- product formation. Praj offers variants based on
feed stock and application.
30. VALUE EDUCATOR
1MT of Sugarcane
Only Ethanol Sugar & Ethanol 50% Sugar & 50% Ethanol
1MT of yields
approximately 70ltrs of Ethanol.
1MT * Recovery rate of
sugar from sugarcane (10.86%)
= 1000kgs * 10.86%
= 108.6kgs of Sugar
+
1MT * Percentage of
molasses obtained from sugarcane(4.6%)
= 1000kgs * 4.6% = 46kgs
1MT of molasses produce 300ltrs of Ethanol
So, 46kgs of molasses will produce 13.8ltrs Ethanol
Therefore, 1MT sugarcane will produce 108.6kgs of
sugar and 13.8ltrs of Ethanol.
500kg for Sugar 500kg for Ethanol
108.6kg / 2 = 54.3kgs
Sugar
500kgs sugar will
produce 23kgs
molasses
And 23kgs of
molasses will
produce 6.9ltrs of
Ethanol
1MT or 1000kgs
Sugarcane produces
70ltrs of Ethanol
So, 500kgs of
Sugarcane will produce
70ltrs/2 = 35ltrs
of Ethanol
Therefore, In this case 1MT of sugarcane will
produce 54.3 kgs of sugar and 35ltrs+6.9ltrs =
41.9ltrs of Ethanol.
Sugar & Ethanol production from Sugarcane
31. VALUE EDUCATOR
Dry Grind Ethanol Process Wet Grind Ethanol Process
Average corn yield
per acre = 3225kgs which gives
Ethanol of 2754ltrs
Corn syrup is a
food syrup which is made
from the starch of corn
Corn gluten meal is a
protein-rich feed,
containing about 65%
crude protein, used as
a source of protein,
energy and pigments
for livestock species
including fish.
Corn oil is oil
extracted from
the germ of
corn. Its main
use is in cooking,
where its high
smoke point
makes refined
corn oil a
valuable frying
oil.
Co-product of ethanol
production and used as a
high-protein animal feed.
Ethanol production process - Maize
32.
33. VALUE EDUCATOR
Food vs Fuel Debate
Food vs Fuel
• Increase in population.
• Seasonal crops.
• Increase in crude oil prices.
The Food vs. Fuel debate is a pressing issue in modern society which involves the diversion of farmland or
crops from food resources to the production of biofuels.
34. VALUE EDUCATOR
Production of each kilogram of requires 1600-2000ltrs of
1MT Produces 108kgs or 70Ltrs
& Consumes about 70% of the country’s IrrigationWater
1ltr of produced from Requires about 2860ltrs of
1MT requires about 200000-250000 ltrs of
Water Footprint
35. VALUE EDUCATOR
Challenges of Ethanol blended petrol withWater
Blended Fuel
(Petrol & Ethanol) +
Petrol
Ethanol and
water mixture
Blended Fuel Water
• Ethanol is hydrophilic, as it attracts water. So it absorbs moisture if there’s any in the fuel tanks and
settles down in the bottom as it has a higher density than petrol.This can cause starting problems or
other issues in the vehicle.This can lead to people believing that petrol has been adulterated with water.
• The air inside the fuel tank can condense in cold nights, and the resulting moisture is absorbed by the
ethanol in the fuel.
36. VALUE EDUCATOR
Geographical based challenges :
45.40%
20.33%
9.77%
5.13%
4.04%
15.34%
Sugarcane production State wise 2020
Uttar Pradesh
Maharashtra
Karnataka
Tamil Nadu
Bihar
Others
We can see that almost 75% of the sugarcane produced
in India is from 3 States namely:
• Uttar Pradesh
• Maharashtra
• Karnataka
So, the majority of the sugar factories and Ethanol
production plants need to be set up in these 3 states
only, which is a major limitation of Ethanol production
from Sugarcane.
Geographical challenges of Sugarcane Production
37. VALUE EDUCATOR
To reach 20% blending by 2025 additional 1000cr ltr/yr. will be needed
• 70ltrs ethanol can be produced from 1MT of Sugarcane.
• 80MT of sugarcane is produced in 1 hectare of land.
• 1 hectare = 2.47 acres
Sugarcane production per acre = 80MT / 2.47acres
= 32.38MT
Quantity of sugarcane required to produce 1000cr ltrs of Ethanol
= 1000cr ltrs / 70ltrs = 14.28cr tons
14.28cr tons = 142.8 million tons
So,Area of land required to produce 1000cr ltrs of Ethanol
= 142.8MT / 32.38MT = 4.4M acres (currently 11.36million acres is used to produce
sugarcane)
Case1- Sugarcane Juice Route
Limited availability of Land – Sugarcane Juice Route
38. VALUE EDUCATOR
Let the total sugarcane required to produce 1000cr ltrs of ethanol from the
molasses route be x.
x * 4.5% * 300ltrs = 1000cr ltrs
x = 74cr MT 74cr MT = 740 MMT
So,Area of land required to produce 1000cr ltrs of Ethanol from Molasses route =
740MMT / 32.38MT = 22.8M acres (currently 11.36million acres is used to produce
sugarcane)
In addition to 1000cr ltrs of Ethanol, 8.03cr MT of Sugar can also be produced in the
additional capacity of land.
• 4.5% of Molasses can produced from 1MT of sugarcane.
• 300ltrs of Ethanol can be produced from 1MT of molasses.
• Sugar recovery percentage from sugarcane is 10.86%
• Sugarcane production per acre of land is 32.38MT
Case2- Molasses Route
To reach 20% blending by 2025 additional 1000cr ltr/yr. will be needed
Limited availability of Land – Molasses Route
39. VALUE EDUCATOR
Challenges after E10
Research Results:
• In the vehicle level studies, fuel economy decreased up to
6% (depending on the vehicle type) on an average basis.
The test vehicles passed start ability and drivability tests
at hot and cold conditions with E0 and E20 test fuels.
• No abnormal wear of engine components or deposits or
deterioration of engine oils were observed after the on-
road mileage accumulation trials.
• The cost of E20 compatible vehicles is expected to be
higher in the range of Rs 3000 to Rs 5000 for four-wheelers
and Rs 1000 to Rs 2000 for two-wheelers .
• The cost of flex fuel vehicles (four-wheelers) would be
higher in the range of Rs 17000 to Rs 25000.The two-
wheeled flex fuel vehicles would be costlier in the range of
Rs 5000 to Rs 12000 compared to normal petrol vehicles
Up to 20% can be achieved with E20 compared to normal
gasoline, when the engine is properly tuned.
Currently produced two-wheeler and passenger
vehicles in the country are designed optimally for E5,
with rubber and plastic components compatible with E10
fuel; their engine can be calibrated for E10 for better
performance.
40.
41. VALUE EDUCATOR
History of ethanol fuel in Brazil
The 1973 oil crisis or first oil crisis began in October 1973 when the members of the
Organization of Arab Petroleum Exporting Countries led by Saudi Arabia proclaimed an
oil ban.
The Brazilian government launched the National Alcohol Program to phase out
automobile fuels derived from fossil fuels, such as gasoline, in favour of ethanol
produced from sugar cane.
From1976 the Brazil government made it mandatory to blend anhydrous ethanol with
gasoline, fluctuating between 10% to 22% and requiring just a minor adjustment on
regular gasoline engines.
1973
1975
1976
42. VALUE EDUCATOR
History of ethanol fuel in Brazil
After reaching more than 4 million cars and light trucks running on pure ethanol by the late 1980s representing
one third (33%) of the country's motor vehicle fleet, ethanol production and sales of ethanol-only cars tumbled
due to several factors as given below:
• Gasoline prices fell sharply as a result of the 1980s oil glut. The 1980s oil glut was a serious surplus of crude oil
caused by falling demand following the 1970s energy crisis.
• Shortage of ethanol fuel supply in the local market left thousands of vehicles in line at gas stations or out of fuel
in their garages by late 1980s.
• As sugar prices sharply increased in the
international market by the end of 1988 and
the government did not set the sugar
export quotas, production shifted heavily
towards sugar production causing an
ethanol supply shortage. As supply of
ethanol could not keep pace with the
increasing demand required by the now
significant ethanol-only fleet, the Brazilian
government began importing ethanol in
1991.
1973 oil crisis: Saudi Arabia
oil ban led to increase in
crude oil price
1980 oil glut: Due to the surplus of
crude oil caused by falling demand
led to a sharp fall in crude oil price
43. VALUE EDUCATOR
Ethanol blending in Brazil
1976 Since 1976 the Brazilian government made it mandatory to
blend anhydrous ethanol with gasoline, fluctuating between
10% to 22% and requiring just a minor adjustment on regular
gasoline engines.
1993
In 1993 the mandatory blend was fixed by law at 22%
anhydrous ethanol (E22) by volume in the entire country, but
with leeway to the Executive to set different percentages of
ethanol within pre-established boundaries.
2003 In 2003 these limits were set at a minimum of 20% and a
maximum of 25%.
2007 Since July 1, 2007, the mandatory blend is 25% of anhydrous
ethanol and 75% gasoline or E25 blend.
2011 The lower limit was reduced to 18% in April 2011 due to
recurring ethanol supply shortages and high prices that take
place between harvest seasons.
2015 By mid March 2015 the government temporarily raised the
ethanol blend in regular gasoline from 25% to 27%.
0
0.5
1
1.5
2
2.5
3
3.5
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Diesel Gasoline Ethanol Flex fuel
2003: Flex fuel
cars introduced
1979: Ethanol cars & E-
100 retailing introduced
1989/ 90: Reduction of
subsidies, alcohol
shortage and price hikes
1975: Introduction of
Gasohol, mandatory
gasoline/ethanol blend
44. VALUE EDUCATOR
Flex-fuel vehicles - Brazil
Flexible fuel vehicles (FFVs) have an internal combustion engine and are capable of operating on gasoline and any blend of
gasoline and ethanol
Flexible-fuel technology started being developed only by the end
of the 1990s by Brazilian engineers and in March 2003Volkswagen
do Brazil launched in the market the Gol 1.6 Total Flex, the first
commercial flexible fuel vehicle capable of running on any blend
of gasoline and ethanol.
Brazilian flexible-fuel vehicles are optimized to run on any mix of E20-E25 gasoline and up to 100% hydrous ethanol fuel (E100).
Flex vehicles in Brazil are built-in with a small
gasoline reservoir for cold starting the engine
when temperatures drop below 15 °C (59 °F).
45. VALUE EDUCATOR
In December 2018,Toyota do Brazil announced the development
of the world's first commercial hybrid electric car with flex-fuel
engine capable of running with electricity and ethanol fuel or
gasoline.
Hybrid Flex
Technology in Brazilian Flex vehicles
• The Brazilian flexible fuel car is built with an ethanol-
ready engine and one fuel tank for both fuels.
• It has a small gasoline reservoir for starting the
engine with pure ethanol in cold weather, used in
earlier ethanol-only vehicles
• Brazilian flex engines are being designed with higher
compression ratios, taking advantage of the higher
ethanol blends and maximizing the benefits of the
higher oxygen content of ethanol, resulting in lower
emissions and improving fuel efficiency
Flex-fuel vehicles - Brazil
46. VALUE EDUCATOR
Flex-fuel vehicles (FFVs) scenario in India
The road transport and highways
minister said companies like TVS Motor
and Bajaj Auto have already started
producing flex-fuel engines for their two
and three-wheelers.
"This week, I had a meeting with
managing directors of all big automobile
companies and SIAM representatives.
And they promised me that they will start
manufacturing flex-fuel engines for
vehicles that can run on more than one
fuel," he said.
47. VALUE EDUCATOR
Flex-FuelVehicles - India
TheTVS Apache RTR 200
Fi E100 sports a vibrant
interplay of green graphics
seamlessly woven with the
‘Ethanol’ logo.
RTR 200 Fi E100 can
take a maximum 20 per
cent petrol blended with
80 per cent ethanol, as
100 per cent ethanol is
simply not available
anywhere in the country.
48. VALUE EDUCATOR
RC Bhargava, Chairman, MSIL
The country’s largest carmaker Maruti Suzuki India Limited
(MSIL) said it is working on flex-fuel vehicle development
for the future along with focussing bringing a CNG product
for the market.
Flex-FuelVehicles - India
49. VALUE EDUCATOR
0 0 0 0 0
0.7 14.83
38
67.4
111.4
66.5
150.5 145.8
74.12
0
0
0
0
0
32.6
68.14
0
0
0
0
0
9.5
15.08
1.53
2.33
3.51
2.07
4.22
5 5
0
1
2
3
4
5
6
0
20
40
60
80
100
120
140
160
180
200
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20*
Blending
Percentage
Crore
Litres
EBP Programme performance
Sugarcane Juice C Heavy B Heavy Maize Blending
1G Feedstock
(1MT)
Sugarcane
Juice
B Molasses
C Molasses
Damaged Food Grains
Rice Available with
FCI
Maize
Yield (In ltrs)
70
300
225
400
450
380
• Govt had allowed ethanol production from B Molasses,
Sugarcane juice and damaged or surplus grains in 2018
and use of Rice from FCI and maize in 2020.
Use of alternative feedstock (1G)
50. VALUE EDUCATOR
Ethanol Production Projections (Crore Litres)
ESY
For Blending
Blending
(in %)
For other uses Total % of
Grains
used
Grain Sugar Total Grain Sugar Total Grain Sugar Total
2019-20 16 157 173 5 150 100 250 166 257 423 39.25%
2020-21 42 290 332 8.5 150 110 260 192 400 592 32.43%
2021-22 107 330 437 10 160 110 270 267 440 707 37.76%
2022-23 123 425 542 12 170 110 280 293 535 828 35.38%
2023-24 208 490 698 15 180 110 290 388 600 988 39.27%
2024-25 438 550 988 20 190 110 300 628 660 1288 48.75%
2025-26 466 550 1016 20 200 134 334 666 684 1350 49.33%
Size of opportunity – Grains as feedstock
51. VALUE EDUCATOR
Company Name Godavari Biorefineries Limited
Incorporation Date 12 January, 1956
Chairman Mr. Samir Shantilal Somaiya
Industry Agriculture, Chemicals, Food &
Beverages
Listing Status Unlisted
Plant Location Biorefinery - Sameerwadi,
Karnataka (400KLPD).
Chemical plant – Sakarwadi,
Maharashtra (4000 tonnes)
Company News
Godavari Biorefineries Limited
52. VALUE EDUCATOR
Petrol not blended with ethanol will get
expensive from October, pushing private
fuel retailers to sell blended fuel and
help boost ethanol consumption.
“Blending of fuel is a priority of this
Government.To encourage the efforts
for blending of fuel, unblended fuel shall
attract an additional differential excise
duty of Rs 2/ litre from the 1st day of
October 2022,” Finance Minister
Nirmala Sitharaman said in her budget
speech.
Concall Snippet:
Non blended petrol to get expensive
53. VALUE EDUCATOR
India is set to restrict sugar
exports as a precautionary
measure to safeguard its own
food supplies, another act of
protectionism after banning
wheat sales just over a week
ago.
The government is planning to
cap sugar exports at 10 million
tonnes for the marketing year that runs through September,
according to a person familiar with the matter. The aim is
to ensure there are adequate stockpiles before the
next sugar season starts in October, the person said,
asking not to be identified as the information is private.
The move may be announced in the coming days, the person
said. India was the world’s biggest sugar exporter after
Brazil last year, and counts Bangladesh, Indonesia, Malaysia
and Dubai among its top customers.
India took the world by surprise earlier this month when it
curbed exports of wheat after a heatwave destroyed some
crops, causing a jump in benchmark prices. Steps by
governments to ban sales abroad, particularly in Asia, have
ramped up in recent weeks since Russia’s invasion of Ukraine
sparked a further surge in already-soaring global food prices.
India is expected to produce 35 million tonnes this season
and consume 27 million tonnes, according to the Indian
Sugar Mills Association. Including last season’s stockpiles of
about 8.2 million tonnes, it has a surplus of 16 million,
including as much as 10 million for exports.
Restriction on Sugar Exports
54. VALUE EDUCATOR
Sugar Mills
Output
Sugar
1G Distilleries
Output
Sugar
Biorefinery
Output
Sugar, Ethanol, Compressed
Biogas, Bio-fertilizers, Bio-
Bitumen, CO2, Sustainable
Aviation Fuel, Marine Fuel,
Bio-Chemicals etc.
Evolution of Sugar Mills to Biorefineries
55. VALUE EDUCATOR
• Storage of
Cane Juice for
round the year
Operations
PROBLEM
• BIOSYRUP R
(High Brix
Juice
Concentrate)
SOLUTION
Reason for lower shelf life of cane syrup : Higher water content in
the syrup
Solution : Removal of maximum water from the Syrup
BIOSYRUP is inverted cane syrup stored at around 82-85% brix to maximize the shelf life of the syrup.
BIOSYRUPR Technology is an
innovative technology solution
(patent) from Praj Industries Ltd.
that offers storage of sugarcane
syrup round the year without any
degradation of fermentable sugars,
allowing the sugar sector to offer
syrup based ethanol even in
off- season, increasing production
capacity, diverting excess sugar &
maximizing revenue.
BIOSYRUP R – Solution for storage
56. VALUE EDUCATOR
BIOSYRUP R – Advantages & Applications
Round the year operation of Distillery
No external dependency on Feedstocks
Flexibility in operation : Balance between sugar
production and ethanol production
Capacity expansion for existing distillery : Maximizing
production upto 50% with minimum investment
Lowest Spentwash generation at source 2.5-3.0 ltrs/ltr of
alcohol
Off Season production of Ethanol from sugar
complex
Sugar Mills without any distillery can produce
BIOSYRUP for sale
Feedstock during No-Cane situation for the
distilleries operating on Syrup
Advantages Applications
57. Ethanol blending with diesel
VALUE EDUCATOR
petrol
Demand of is 3 times than that of
5% Diesel blending is equal to 20% Petrol blending
Diesel Petrol
Current blending % 0% 10%
Current blending 0ltrs 850cr ltrs
Target 5% possibility 20% by 2025
Capacity requirement 1000cr ltrs more to reach
20% blending (with 80%
capacity utilization)
(considering diesel demand 3-4x of
petrol & blending up to 5%)
Demand 3x & blending 5% = 1125cr ltrs
Demand 4x & blending 5% = 1500cr ltrs
Opportunity size of Ethanol blending with diesel is 1200 to 1500cr ltrs at 5% blending.
59. VALUE EDUCATOR
Parameters Ethanol Methanol
Chemical Formula (C2 H5 OH) (CH3 OH)
Clean Fuel
Blending in Petrol
Blending in Diesel
Feedstock
Sugarcane,Maize, molasses, grains
etc.
Coal
Farmer Benefits
GHG emissions while manufacturing
Availability High Low
Ethanol vs Methanol Economy
60. VALUE EDUCATOR
1st Generation
Sugarcane
Corn
Starch
Sugar Beet
Grains & Cereals etc.
Mature technology.
Familiar feedstock.
Scalable production
capabilities.
Cost competitive to
fossil fuels.
Food vs fuel debate
Feedstock price volatility.
Geographical limitations.
High carbon content as
compared to 2G Biofuels
2nd Generation
AgriculturalWaste
Wooden Chips
Saw dust
Rice &Wheat straw
etc.
Surplus feedstock
supply.
Less controversial.
Less dependence on
geographical location.
High capital cost.
Technological
breakthroughs needed.
3rd Generation
Microalgae
Macroalgae
Only inputs to get
feedstock is CO2 and
water.
Less controversial.
Versatile array of
products possible.
High capital costs
Early research stage
4th Generation
Engineered Crops
Engineered Biomass
Only inputs to get
feedstock is CO2 and
water.
Less controversial.
Less negative
environment impact.
High capital costs
Early research stage
Long processing time.
Slow yields
Feedstock
Pros
Cons
Biofuels Evolution
64. VALUE EDUCATOR
Biomass
1MT
PRAJ 2G
SMART
BIO-REFINERY
CO2 119 Kgs
Bio-CNG 49
KG
Bio-Ethanol &
Bio-Chemicals
220-325 Liters
Power
400Kwh
Value maximization for biomass
Note: 1) Liquid CO2 market price of Rs. 8/kg
2) Bio-CIG price Rs. 45/kg 3) Bioethanol price Rs. 46.50/Liter 4) Power price 4/Kwh
5) Carbohydrate content in biomass assumed at - 55%
6) Biomass price of INR 2000-6000 /MT
Total Revenue potential Rs, 17,000 - 23,000
65. VALUE EDUCATOR
Biomass to EthanolTechnology
“enfinity”– Praj’s 2G Ethanol Technology
Our technology brings infinite possibilities to
the environment and energy challenges
confronting mankind… by making use of
nature’s endless resources.That’s why we
proudly call it
…… enfinity.
66. VALUE EDUCATOR
2009-16
• 1 BDTPD
Pilot Plant
Operations
2016-18
• 12 BDTPD
Industrial
Demo Scale
Cellulosic
Ethanol
Biorefinery
2019-20
• Process
Optimization
andValue
Engineering
2020-21
• 425 BDTPD
Commercial
Scale Cellulosic
Ethanol
Bio-refinery
Technology Development Journey
Biomass to Ethanol – Pilot plant
❖ Operational since- January 2009
Raw material processing capability - .
❑ Corn Cobs + Corn Stover
❑ Sugarcane Bagasse, Cane trash, Pith
❑ Paddy (rice) straw
❑ Wheat straw / cotton stalk
❖ Pilot plant trials validated work done at laboratory & bench
scale
“enfinity” – technology development journey
68. VALUE EDUCATOR
Molasses to
1G Ethanol
Rs.5-6/Liter
Rs.18-26/Liter
Rs.23-32/Liter
Corn cobs to
2G Ethanol
Rice straw to
2G Ethanol
Bagasse to 2G
Ethanol
Rs.10-11/Liter
Rs.6-14/Liter
Rs.16-25/Liter
Rs.22-23/Liter
Rs.6-11/Liter
Rs.28-34/Liter
Rs.16-18/Liter
Rs.14-16/Liter
Rs.30-34/Liter
• Limited operations
~ 180days/year
• Limited feedstock
availability
• Operations ~ 330days/year
• Availability of significant amount of feedstock at low cost
Conversion Cost
Feedstock Cost
Total variable cost of production
Basis of calculations:
1) Molasses Feedstock Cost – Rs.4500-6500/MT
2) Corn Cobs Cost – Rs.2000-4500/MT
3) Rice Straw Cost – Rs.1500-2500/MT
4) Bagasse Cost – Rs.4000-4500/MT
5) Biomass conversion cost based on trials at Praj pilot facility.
“enfinity” – 2G Technology comparison with 1G
Rs.250-300cr
Capex
Rs.800-1000cr
69. VALUE EDUCATOR
1G Feedstock
(1MT)
Sugarcane
B Molasses
C Molasses
Damaged Food Grains
Rice Available with
FCI
Maize
Yield (In ltrs)
70
300
225
400
450
380
Feedstocks 1G vs 2G
2G Feedstock
(1MT)
Rice &Wheat Straw
Yield (In ltrs)
406-416
Sugarcane Bagasse 318-500
Corn Grain 470
Hardwood Sawdust
&Wooden chips
381
ForestThinning's 308
Cotton Stalks 215
vs
70. VALUE EDUCATOR
Praj Industries Ltd to partner with
Indian Oil Corporation Limited (IOCL)
and Bharat Petroleum Corporation
Limited (BPCL) to set up second
generation (2G) bio-ethanol plants in
the country.The company signed
agreements to this effect with IOCL and
BPCL on the side-lines of recently
concluded Petrotech 2016 conference
in New Delhi.
With IOCL, Praj has entered into a binding agreement for cost sharing to set up
one 2G bio-ethanol plant each at Panipat (Haryana) and Dahej (Gujarat).These
plants will have capacity to produce 100 kilo litres of ethanol per day.
• This is a progress milestone as per MoU signed earlier this year wherein
IOCL selected Praj as its technology partner for setting up multiple 2G
bio-ethanol plants based on its indigenously developed technology.
• Similarly, BPCL has selected Praj as technology partner for setting up one
2G bio-ethanol plant in Orissa having the capacity of 100 kilo litres of
ethanol per day. Project timelines and capital outlay estimations are under
finalization.
• Second generation bio-ethanol technology uses (agri-residue) as
feedstock. Farming community is expected to be benefited from additional
revenues from agri-waste. Second generation bio-ethanol also helps
reduce dependency on the imported crude oil, thereby saving foreign
exchange.This technology will act as a socio-economic and environmental
enabler.
“We are pleased with the progress of setting up of 2G ethanol
projects by the OMCs. Praj is equally committed to partner
with OMCs in their achievement of completing project targets.
This is in line with Government of India’s vision of increased
contribution of renewables in India’s energy portfolio,” said
Pramod Chaudhari, executive chairman, Praj Industries Ltd.
Praj`s partnership with IOCL & BPCL
74. VALUE EDUCATOR
Biorefinery
Bioethanol
bioEthylene
Bio Jet
fuel(SAF)
EB/
Styrene
EDC/VCM
/PVC
Bio Ethylene
Oxide
Surfactants Personal
health care
products
SAP
(diapers)
Bio Ethylene
Oxide
Bio
Polyethylene(PE)
CV
Polyester
PET
Antifreeze/
Automobile
coolant
Corn/Sugarcane/Molasses
(Gen 1.5)
Biomass(Corn cobs, eucalyptus,
bagasse, wooden chips)
(Gen 2.0)
Starch
Corn Oil
High protein meal/
Animal feed
Bio-diesel/ Advanced
gen 2.0 Biofuels
Petroleum
Feedstock
Iso-
Butanol
Biorefinery
75.
76. VALUE EDUCATOR
Gas production vs Imports
80.07% 80.20%
72.56%
69.66%
66.82%
63.87%
59.58% 58.87% 58.35%
54.27%
19.93% 19.80%
27.44%
30.34%
33.18%
36.13%
40.42% 41.13% 41.65%
45.73%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Percentage of Gas Production and Imports
Gas Production Gas Imports
77. VALUE EDUCATOR
Stubble (parali) burning is a
method of removing paddy crop
residues from the field to sow
wheat from the last week of
September to November. Stubble
burning is a process of setting on
fire the straw stubble, left after the
harvesting of grains, like paddy,
wheat, etc. It is usually required in
areas that use the combined
harvesting method which leaves
crop residue behind.
The process of burning farm residue is one of the major causes of air
pollution in parts of north India, deteriorating the air quality.
Along with vehicular emissions, it affects the Air Quality Index (AQI) in the
national capital and NCR. Stubble burning by farmers in Haryana, western
Uttar Pradesh and Punjab in north India is considered a major cause of air
pollution in Delhi and its adjoining regions.
Stubble Burning
Biogas
Feedstock
Electricity
Chip
Unit
Gas
Grid
Bio
methane
Anaerobic
Digestion
Transport Fuel
Food
Production
Solids &
Liquids
Digestate
into land
Heat
78. VALUE EDUCATOR
• Current gas consumption : 174 mmscd
• Expected to reach up to : 550 mmscd (3x)
The central government has decided to raise the target of the
share of natural gas in the energy mix to 15% by 2030 from the
current around 6.7%, Minister of State for Petroleum and
Natural Gas RameswarTeli said in Parliament.
Minister for Petroleum & Natural Gas and Steel Dharmendra
Pradhan stated today that India has committed to achieve 15%
share of natural gas in the primary energy mix by 2030 for a
more sustainable energy use which will help reduce
environmental pollution, fulfil India's commitment to COP-21.
Greater use of natural gas will reduce dependence on fossil fuel
and consequently reduce import bill and import dependence,
he added.
Pradhan said that the Ministry is pushing for greater adoption
and utilization of cleaner and greener fuel including Hydrogen,
CBG, Ethanol Blended Petrol (EBP) and LNG. India has
launched the E-100 pilot project for production and
distribution of ethanol across the country and is committed to
meeting its target of 20 per cent ethanol blending in petrol by
2025.
India committed to achieve 15% share of Natural Gas
79. VALUE EDUCATOR
• CGD coverage expanded to over 402 districts
across 27 states and UnionTerritories.
• Potential to cover 53% of country’s area and 70%
of country’s population.
• CGD supplies to :
1. Industrial Consumers
2. Commercial Consumers like Hotels etc.
3. CNG toVehicles
4. Domestic PNG
• PNG connections to increase from around .
70.7 Lakhs to over 4 Crores.
• CNG stations to increase from around 2540 to
10000.
• Potential investment of INR 1,20,000 Crores.
Introduction of City Gas Distribution Networks
80. VALUE EDUCATOR
The world's first train to run
on biogas,a renewable energy
source made up of organic
waste from cows, has been
inaugurated in Sweden and can
run for 600 kilometers at a
maximum speed of 130
kilometers an hour.
The biogas used by the train is
produced by decomposing
waste meat from a local
abattoir in an oxygen-free
environment over around 30
days.
The gases formed in this process,mostly methane and carbon
dioxide, are then collected and the methane content boosted
to around 97 %, which is done by removing most of the
carbon dioxide, to allow it to be used as engine fuel. Biogas
production is located atVastervik’s sewage treatment plant,
Lucernaverket.
Svensk Biogas is a 100 % owned subsidiary of TekniskaVerkeni
LinkopingAB (publ).The company’s mission is to promote the
development of biogas regionally by marketing its production
of vehicle fuel gas and bio-fertilizer as well as the process
development and biogas production concepts based on both
farm produce and organic waste as raw materials.
World’s first biogas train
81. VALUE EDUCATOR
IS 16087 : 2016 Standard
S
No. Characteristics Requirement
1 Methane (CH4), minimum % 90.0%
2 Only Carbon Dioxide (CO2), maximum % 4%
3 Carbon Dioxide (CO2) + Nitrogen (N2) + Oxygen (O2), maximum % 10%
4 Oxygen (O2), maximum % 0.5%
5 Total Sulphur (including H2S) mg/m3, maximum % 20mg/m3
6 Moisture mg/m3, maximum % 5mg/m3
• CBG has calorific value and other properties
similar to CNG and hence can be utilized as
green renewable automotive fuel. Thus it can
replace CNG in automotive, industrial and
commercial areas. Ministry of Road Transport
and Highways, Government of India had
permitted usage of bio-compressed natural gas
(bio-CNG/CBG ) for motor vehicles as an
alternate composition of the compressed natural
gas (CNG).
• Compressed Bio Gas (CBG) produced from the
CBG plant will be retailed through the CBG
dispensing unit set-up by the Oil Marketing
Companies within the radius of 25 kms. CBG
supplied under SATAT scheme shall meet IS
16087:2016 specifications of BIS as follows:
Compressed Biogas (CBG)
CO2
CH4 CH4
H₂S
Organic
Waste
Biomass
Contains compounds of Carbon, Hydrogen,
Oxygen, Nitrogen, Sulphur and other
elements.
Anaerobic
Digestion
Purification &
Compression
82. VALUE EDUCATOR
Parameter CNG Composition CBG/ Bio CNG Composition
Methane min. 90% 90%
Ethane 6% NIL
C3 and Higher 3% NIL
C6 & Higher 0.50% NIL
Moisture (max) 5 ppm 5 ppm
Sulphur (max) 20 ppm 16 ppm
Oxygen (max) 0.50% 0.50%
CO2 (max) 3.50% 4.00%
Hydrogen (max) 0.10% ND
CO (max) 0.10% ND
Net CalorificValue (kcal/kg) 10,940 11,200 - 11,500
• As per content, CNG and Bio-CNG are nearly the same except that CNG has some higher alkanes.
• Bio-CNG compares favorably with LPG in terms of the heat value.
• Replacement of CNG by Bio-CNG is possible and compares well in terms of heat value.
• CBG has a better Net CalorificValue as compared to CNG
CBG vs CNG Comparison
84. VALUE EDUCATOR
5,000 Compressed Biogas plants (Investment – 1.7 Lakh Cr.Approx.)
250
1000
5000
2020 2022 2025
Target to set up 5,000 CBG plants
40%
15 million tons of CBG per annum
Current CNG consumption in the country is 44
million tons and the target of 5,000 CBG plants
will produce 15million tons of CBG per annum
which is 40% of the current consumption.
Employment generation
75000
Bio manure production
Million Tonnes
SATAT Scheme
85. VALUE EDUCATOR
SATAT Scheme Overview & Benefits
The SATAT scheme has been established keeping in view the
following objectives:
● Making use of more than 62 million metric tonnes of
waste generated every year
● Reducing dependence on imported fuel
● Creation of more jobs in the alternative fuels industry
● Reduction of carbon emissions and pollutants from burning
of agriculture/organic waste.
Overview
Through the use of Compressed Biogas (CBG),the Sustainable
AlternativeTowards Affordable
Transportation has the following advantages
● Wastes can be responsibly managed,effectively reducing carbon
emissions
● Additional avenues of income for farmers
● Fostering an environment for rural entrepreneurship,economy
and employment
● Providing support to achieving national-level climate change goals
● A safety net against crude oil/natural gas fluctuations
Benefits
86. VALUE EDUCATOR
On 20.05.2022 Indian Oil Corporation Limited revised the procurement price of Compressed Biogas under the SATAT scheme.The
following are the revisions to be implemented:
• The minimum procurement price of CBG will not be lower than Rs.46/kg + applicable taxes for the period up to 31.03.2029.
• The Retail selling price(RSP) of CBG in a market shall be at par with RSP of CNG (as provided by the authorized CGD entity).
• The following slabs for CBG procurement price have been decided, which will be the procurement price of CBG delivered at IndianOil
Retail outlet situated at any distance (up to 75kms one way) as per IS 16087 2016 Specification and compressed at 250 bar
pressure:-
• The upward and downward movement of CNG price will change the slab for a particular market at any point in time and the rates
applicable for CBG procurement will change accordingly.
• The revised procurement price of CBG is being offered considering in view that presently the RSP of CNG is greater than Rs.70/kg in
nearly all markets. If there is any reduction in CNG RSP, there will be a revision in price as agreed by the Oil & Gas Company
Committee.The minimum procurement price on CBG will not be lower than Rs.46/kg + applicable taxes for the period up to
31.03.2029.
Pricing Methodology of CBG
87. Feedstock
Anaerobic Digester Purification
Biogas Compressor
Cascade
Digestate
Fermented
Organic Manure
Digested Biogas
Slurry
Domestic
Customers
Industrial
Customers
CNGVehicle
Customers
Commercial
Customers
VALUE EDUCATOR
Cow dung
Agri
residue
Municipal
Waste
Grass
Industrial
Waste
Biogas production process
88. VALUE EDUCATOR
25.16
23.97
22.07
21.97
16.45
23.69
0 5 10 15 20 25 30
Rice straw
STP
Food waste
Press mud
Distillery
Cattle manure
Bio-CNG cost (All the values are in Rs/kg)
Cost of producing CBG from various sources
Cattle Dung & Chicken Litter
Forest Residue
Agriculture Residue
Press Mud, Spent Wash & Bagasse
Municipal SolidWaste
Prospective energy crops in Barren,Waste & Single Crop Land
41 MMT
22 MMT
18 MMT
14 MMT
03 MMT
23 MMT
120
MMT
Total CBG Potential
CBG sources in India
89. VALUE EDUCATOR
CBG Supply Illustration Delivery Point
Option 1 : Biogas delivered at low
pressure to CGD Pipeline Network
CBG Supply Illustration Delivery Point
Option 2 :CBG Delivery @250 bar pressure for direct
vehicle filling at retail outlets
Combining CBG with CGD Network
90. VALUE EDUCATOR
Sr.
No. Name of plant Location
CBG
production
capacity Feedstock used
1 Indian Potash Limited Rohanakalan, Muzzafarnagar, Uttar
Pradesh
9 TPD Press Mud
2 HPCL Badaun, Uttar Pradesh 14.3 TPD Rice Straw
3 Leafiniti Bioenergy Private Limited MaigurVillage, Bagalkot, Karnataka 10 TPD Press mud
4 Sreenath Mhaskoba Sugar Factory Pune NA Spent Wash
CBG plants under commissioning by Praj Industries
91.
92.
93. VALUE EDUCATOR
Regulations on Marine Fuel
More than 80% of all goods are transported via international shipping routes.
The sector consumes more than 330 Mt of fuel a year and accounts for 2-3%
of the global CO2, 4-9% of SOx, and 10-15% of NOx emissions. Serious
negative effects on terrestrial and aquatic life, including human health are
associated with these emissions.
The shipping sector is dominated by the merchant shipping with large
tankers, container, and bulk cargo ships responsible for more than 70% of
maritime GHG emissions.
Compared to road transport and aviation, the shipping sector
uses much less refined or processed fuel types. Heavy fuel oil
(HFO) is the main fuel used by oceangoing deep sea vessels.
More refined fuels are marine diesel oil (MDO) and Marine
gas Oil (MGO)
Being international in its operation and
organization, the maritime sector is
regulated by the International Maritime
Organization (IMO) under the UN.
94. 2008 2030 2050 By 2100
CO2
EMISSIONS
IMO Pathway Business as usual
40% Carbon intensity
reduction
70% Carbon intensity
reduction
Zero emissions ASAP
within this century
VALUE EDUCATOR
Regulations on Marine Fuel
• Reducing the average carbon intensity by at least a 40% by
2030 and 70% in 2050 (compared to 2008 levels).
In 2018,the IMO adopted a strategy for the reduction of GHG emissions including specific reference to the Paris Agreement
temperature goals.
2008 2030 2050 By 2100
Emission pathway in line with IMO's GHG strategy
Business as usual emissions
2008 as
base
year
Intensity:
40%
reduction
Total: 50%
reduction
Intensity: 70%
Zero
emissions
as soon as
possible
within this
century
Emission
Gap
IMO strategy for major reduction in GHG emissions from shipping
• Reducing the total GHG emissions from international shipping by
at least 50% by 2050 (compared to 2008 levels)
IMO strategy for major reduction in CO2 emissions from shipping
95. VALUE EDUCATOR
Regulations on Marine Fuel
Emission Control Areas (ECAs) have been set up in
coastal waters in Europe, North America, and Asia.
Within these areas only 0.1% low-sulphur fuels are
allowed, and from 2020 ships sailing in non-ECA areas
will need to use less than 0.5% sulphur in their fuel.
If low sulphur fuels are not used, scrubbers needs
to be installed in order to remove the SOx
emissions.
The IMO has put forward strict regulation of the
fuel sulphur levels.
Outside ECA established to limit Sox
and particulate matter emissions
Inside an ECA established to limit Sox
and particulate matter emissions
4.50 wt. % prior to January 1st 2012 1.50 wt. % prior to July 1st 2010
3.50 wt. % on and after January 1st 2012 1.0 wt. % on and after July 1st 2010
0.50 wt. % on and after January 1st 2020 0.10 wt. % on and after January 1st 2015
Sulphur limits on fuel oil outside and inside ECAs showing the dates
as they came into force
IMO MARPOL AnnexVI
Sulphur limits timeline
96. VALUE EDUCATOR
Solution for the regulation
• Using Marine Gas Oil (MGO)
consisting of exclusively distillate
oil.
• Using desulphurized fuel oil -Very
Low Sulphur Fuel Oil (VLSFO).
• Using LNG requiring a retrofit of
the vessels engine and fuel system
• Installing exhaust gas cleaning
systems (scrubbers) allowing the
continued operation on High
Sulphur Fuel Oil (HSFO)
To comply with the 0.5 wt. % sulphur
regulations outside ECAs, ships have turned
to four options:
97. VALUE EDUCATOR
Challenges with the regulation
Switching to MGO (Marine gas oil) entails a significant increase in fuel cost, as these fuels are
more expensive than HSFO. (High Sulphur Fuel Oil)
• The increased use ofVLSFO (Very Low Sulphur Fuel Oil) requires
refineries to adapt their crude oil refining processes to increase fuel
desulphurization.
• The investment required for expanding or implementing more
desulphurization units largely depends on the price gap between
VLSFO and HSFO (High Sulphur Fuel Oil). Current oil refineries do
not have the production capacity to produce enough low-sulphur
fuels to cover the large market for heavy fuel oil
98. VALUE EDUCATOR
Challenges with the regulation
Another solution to reduced sulphur emissions is to use liquefied natural gas (LNG)
as fuel, but this requires a refitting of the engines. LNG must be stored at cryogenic
temperatures, which require extensive retrofits to existing infrastructure just as
pressurized fuel storage needs to be installed on board.With usage of LNG only
limited emission reductions can be achieved (~15%), and problems with methane
leakage can negate the benefits. It is argued that LNG vessels may not offer any
GHG emission benefits over the long-term, particularly if methane slips cannot be
controlled.
Scrubber installation is not a practical or economical solution for all vessels since scrubber installation requires a large volume
and additional maintenance, an investment between US$ 2-10 million as well as 2-3% increase in fuel consumption.
This provide a real opportunity for biofuels to be able to compete with the fossil alternatives
as they can greatly reduce GHG emissions as well as reducing SOx emissions, as they contain
little to no sulphur.
99. VALUE EDUCATOR
Advantages of Biofuels & Future Developments
• Feedstocks contain very little sulphur
• 2nd generation lignocellulosic feedstocks potentially available in
large quantities
• Drop-in fuels compatible with existing infrastructure
• Compliant with environmental emission regulations
• Potential synergy between multifuel engines and bioethanol
Benefits of biofuels
Future Developments
• Develop feedstocks and technologies for commercial biofuel
production
• Achieve sufficient biofuel production volumes for deep sea shipping
• Obtain long-term test data on diesel engines running on biofuels
• Update international fuel standards to take biofuels into account
100. VALUE EDUCATOR
Types of Biofuels
• SVO - Straight vegetable oils
• HVO - HydrotreatedVegetable Oil (also known
as hydrotreated esters and fatty acids (HEFA))
• Bio-Diesel – FAME – Fatty Acid Methyl Ester
• Bioethanol
• Butanol
101. VALUE EDUCATOR
Types of Biofuels
SVO is obtained by extraction of oil from plant component typically seeds. It can be used directly
into engines but long term usage of them can reduce the lifespan of engines.
Straight Vegetable Oil (SVO)
Hydrotreated vegetable oils (HVO)
• Another diesel fuel alternative made from oil crops is HydrotreatedVegetable Oil
(HVO), where vegetable or animal oils are hydrotreated with hydrogen, and usually
in the presence of a catalyst, and then cracked to produce a diesel like fuel.This
fuel is often referred to as green diesel or renewable diesel.
Hydrotreated with hydrogen (H2), and
in the presence of a catalyst
Vegetable or Animal Oil
Cracking
HVO
• HVO can be used as a direct replacement for diesel as a drop in fuel, and is more
stable then FAME biodiesel, due to low oxygen content.
• It is already being produced commercially by companies like Neste, and has been
tested in marine diesel engines.
102. VALUE EDUCATOR
Types of Biofuels
Bioethanol
• Due to the physical properties of ethanol, it is not suitable for use in compression ignition (diesel) engines.Using
these fuels for deep sea shipping container ships would require the installation of multi fuel engines.
• A second technical challenge of using ethanol is its low flash point of 14oC, as compared to marine fuel oil of 60oC.
Low flashpoints fuels (with flash point below 50oC) are potential fire hazards and are thus not compatible with the
Safety of Life at Sea (SOLAS) regulation without a double barrier design.Thus, fuel tanks would require modification
for ethanol to be used as a primary fuel.
• Thirdly, methanol has a much lower energy density than either diesel or gasoline, and therefore would require more
frequent refuelling,or larger onboard storage tank.
While ethanol can both be produced from renewable sources (including lignocellulosic biomass), and can be scaled up to
produce large amounts of fuel given current technology, there are a few key barriers to their wide use as marine:
103. VALUE EDUCATOR
Why Biodiesel?
Biodiesel is safe to handle, store and transport as it is less combustible as compared to petroleum diesel.
Currently India is dependent on importing 83% of
petroleum products and targets reducing crude oil
import by 10% by FY2022. Of the total petroleum
products consumed, diesel amounts for 39.5% with
demand increasing by 5-6%.
Biodiesel produces 703 grams
of Co2 per litre as compared
to 3,266 gm per litre produced
by petroleum diesel.
Biofuel policy in June 2018
mandates up to 5% blending
of biodiesel by FY2030.
Mandate by Food Safety and
Standards Authority of India
(FSSAI) to dispose used cooking
oil and convert it into biodiesel.
104. VALUE EDUCATOR
Size of opportunity in Biodiesel
TOTAL BIODIESEL OPPORTUNITY
The global biodiesel market size was valued at USD 32.09 billion in
2021 and is expected to grow at CAGR of 10.0% from 2022 to 2030.
The growing demand for environmentally
friendly fuels that ensure complete combustion
and can reduce Greenhouse Gas (GHG)
emissions is a major factor driving the market.
In 2021, the fuel application segment
dominated the global market and
accounted for the largest share of
more than 77.7% of the overall
revenue.The automotive fuel
segment dominated the demand for
the product in 2021.
Government aid like subsidies and imposing mandates
indicates continued growth of the market. Recently
the Indian government reduced the GST rate on
biodiesel from 12% to 5%.
5% of biodiesel blending proposed by 2030 in
EBP
105. VALUE EDUCATOR
Types of Biofuels
• Biodiesel is an alternative fuel that comes from 100%
renewable resources such as vegetable oil, soybean oil,
animal fat or tallow.
• As a renewable and domestic source of energy,
biodiesel can help reduce the dependency on
petroleum imports.
• Biodiesel is not a petroleum product, but can be
mixed with petroleum diesel to produce a biodiesel
blend that can be used in a variety of vehicles.
• Biodiesel fuel, can be used in it’s unaltered form in
unmodified diesel engines, making it one of the easiest
alternative fuels to use.
106. VALUE EDUCATOR
Types of Biofuels
Bio-Diesel – FAME – Fatty Acid Methyl Ester
• SVO is trans-esterified into Fatty Acid Methyl Esters (FAME), more commonly referred
to as biodiesel.Additional to SVO’s, FAME can also be produced from used cooking oils
and animal fats
• This biodiesel is more suitable for use in marine engines, and can be used to replace
Marine Diesel Oil (MDO) or Marine Gas Oil (MGO).
• While theoretically it is possible to run marine diesel engines on 100% biodiesel, this
requires some engine adjustments and certification by the engine manufacturer. More
commonly it is found sold as a blend with fossil diesel, with labels such as B5 and B20
• The availability of plant oil feedstocks and their inherent sustainability issues make
biodiesel unlikely to meet a majority of shipping fuel needs. Oil based crops such as
rapeseed, soy, and sunflower are not productive enough to produce enough oil to
replace fossil diesel, and biodiesel needs face competition from food uses, and as diesel
replacement in other transport sectors with higher value fuels such as aviation.
Straight Vegetable Oil
(SVO)
Trans-esterification
Biodiesel (FAME)
107. VALUE EDUCATOR
Biodiesel Production by Praj
Praj offers enzymatic technology for
the production of biodiesel
Key Features
• Single step esterification and de-esterification
using enzymes.
• Eliminates the use of hazardous material like
sodium methoxide.
• Reduced energy consumption due to low
temperature operations.
• Reduces wastewater generation
• Reduces salt content in glycerine
108. VALUE EDUCATOR
Lignin based marine biofuels
Parameters Praj`s Lignin based marine
fuel
HFO standard specs Marine Gas Oil (Ultra low
sulfur fuel)
HHV (MJ/kg) 35-40 38-42 38-42
pH 5.0-6.0 - -
Specific gravity 0.91-0.95 0.9-1.1 0.9 max
Sulfur 0.03-0.04% 3.5% <0.1%
Viscosity (Cp) <50 200-400 (after heating) <50
“enfinity” Lignin Thermal Solvolysis Marine Fuel
One step marine bio-fuel process
Ultra low sulfur complying with industry standards
109. VALUE EDUCATOR
Comparison of Biofuels
Types of Biofuels Pathway Feedstock Feedstock
Availability
Usage
SVO - Straight vegetable
oils
Extraction of oil from
plant seeds
Oil Crops Low Can be used directly into engines but long term usage of them can
reduce the lifespan of engines.
HVO - Hydrotreated
Vegetable Oil (also known
as hydrotreated esters and
fatty acids (HEFA))
Hydrotreating Waste Fats & Oils Low HVO would be more commercially beneficial to the aviation sector as
a high quality fuel to compensate for the feedstock and upgrading
costs. more stable then FAME biodiesel, due to low oxygen content. It
is already being produced commercially by companies like Neste, and
has been tested in marine diesel engines.
Biodiesel- FAME (Fatty
Acid Methyl Ester)
Transesterification Fats and oils Low Can be used in Blends.
Fischer-Tropsch (FT)
Diesel
Gasification then FT
synthesis
Lignocellulosic
biomass
High FT diesel can be used as a drop-in fuel mitigating significant emissions
and has 100% compatibility with current engines (ICCT, 2020).This
technology is still in development, so there are limited practical
instances in which this fuel has been used.
DME (Dimethyl Ether) Gasification then fuel
synthesis
Lignocellulosic
biomass
High DME is commonly used to replace propane in liquefied petroleum gas
(LPG), so current LPG shipping infrastructure can be used for DME
Methanol Gasification then fuel
synthesis
Lignocellulosic
biomass
High Renewable e-methanol is of particular interest in the shipping sector.
The key constraint on the production of renewable e-methanol is the
availability and cost of a CO2 supply not sourced from fossil fuels.
110. VALUE EDUCATOR
Cost comparison of advanced biofuels
• Biofuel costs are highly reliant on the feedstock
used, its availability and the eventual size of the
biofuel plant.
• In contrast to the renewable liquid fuel options,
DME appears to be cost competitive, ranging
from USD 50.40/MWh to USD 75.60/MWh.
• However, current DME production is
predominantly dependent on NG and coal.
• Therefore, while DME costs are low, they are
environmentally unsuitable, and there is a
significant lack of costing data for 100%
renewable DME.
250
200
150
100
50
0
Fossil-based
methanol
Bio-methanol FAME HVO Fossil-based
DME
FT
Diesel
VLSFO market price (2019) LNG market price (2019)
USD/MWh
111. VALUE EDUCATOR
Challenges with Biofuels
• The volumes of biofuels required to supply the shipping sector are large.
• The current renewable diesel type fuels are mainly produced from plant
based oils or products thereof e.g. used cooking oil (UCO), and the
potential supply of sustainable renewable diesel with the current
technology is an estimated 10-20 Mt.
• Another issue is that the plant oil based fuels are the main fuel type
currently used at a significant scale for bio jet fuels, leading to competition
for feedstocks between the shipping and aviation sectors.
• Bioethanol can be sustainably produced from waste and lignocellulosic
feedstocks, with much higher supply potential, capable of replacing all fossil
fuels in the shipping sector, but bioethanol is not compatible with current
marine diesels, and cannot be used as a drop-in fuel.
• However, the development in engine technology has seen the introduction
of multifuel engines.These engines can use oil, gas, as well as alcohols (e.g.
methanol or ethanol) in a diesel cycle.Therefore, the use of ethanol may
grow significantly in the medium to long term as ships with new engines
are introduced.
112. VALUE EDUCATOR
Renewable Gaseous Fuels
• The growth of LNG usage as fuel has increased over recent years due to its
wide availability.
• However, global decarbonisation goals require enormous reductions in CO2
emissions, and integrating LBG and other renewable gaseous fuels into
shipping is necessary to mitigate mass GHG production
• These fuels are synthesised by upgrading biogas into biomethane and then
either cooling or compressing to achieve LBG and CBG.
The main forms of renewable gaseous fuels that can be used as ship fuels are compressed biogas (CBG), liquefied biogas
(LBG) and synthetic methane from methanation
• Biogas is primarily produced through anaerobic digestion, which uses waste
and biomass from agriculture and livestock.Thereafter, this biogas can be
purified, liquefied and used as a blend with LNG, reducing life cycle emissions
from the fuel.
113. Fuel produced from biogas through various methods
VALUE EDUCATOR
Biogas
Biomethane
Syngas
Upgrading
Gasification Fuel synthesis
FT Fuels
FT synthesis
Fuel synthesis
Methanol
Dehydration
DME
Fuel synthesis
Hydrogen
CO Shift
CO Shift
Electricity
Combustion
CBG LBG
Decompressing
Compressing
Cooling
114. VALUE EDUCATOR
Methanol
• Due to the physical properties of methanol, it is not suitable for use in compression ignition (diesel) engines.
Using these fuels for deep sea shipping container ships would require the installation of multi fuel engines, or
engines tailored for running solely on methanol.
• A second technical challenge of using methanol is its low flash points of 12oC, as compared to marine fuel oil
of 60oC. Low flashpoints fuels (with flash point below 50oC) are potential fire hazards and are thus not
compatible with the Safety of Life at Sea (SOLAS) regulation without a double barrier design.Thus, fuel tanks
would require modification for methanol to be used as a primary fuel.
• Thirdly, methanol has a much lower energy density than either diesel or gasoline, and therefore would require
more frequent refuelling, or larger onboard storage tank.
Challenges of Methanol
Methanol, widely known as an alternative fuel for shipping, has seen rising interest
in recent years. This alcohol has one of the lowest carbon and highest H2 contents
compared to other fuels. Furthermore,methanol reduces emissions of sulphur
oxide (SOx), and NOx by up to 60% in comparison to Heavy Fuel Oil.
115. VALUE EDUCATOR
Methanol Production
Biomass Gasification Syngas Bio-methanol
Renewable
electricity
Electrolysis H2
Green
Hydrogen
Bio-e-methanol
E-methanol
CO2
Renewable
CO2
Non-
Renewable
CH3OH
Green Methanol
CH3OH
Blue Methanol
Coal Gasification Syngas
Natural
Gas
Reforming Syngas
H2
Blue Hydrogen
Carbon, capture &
storage (CCS)
CO2
Non-
Renewable
CH3OH
Grey Methanol
CH3OH
Brown Methanol
Renewable
Non-renewable
116. VALUE EDUCATOR
Methanol Cost Projections
• While green e-methanol is significantly more
expensive than the fossil fuel options,the cost of
green e-methanol is expected to fall progressively,
eventually achieving a 2050 cost of between USD
107/MWh and USD 145/MWh.
• The eventual feasibility of deploying e-methanol as
a shipping fuel at a large scale is reliant on the
development of cheaper production technology
for bio-methanol and e-methanol.
• One of the challenges, particularly with e-
methanol,is the need for an external carbon
source.
• Therefore, compared to other e-fuel options, e.g.
e-ammonia, the future competitiveness of e-
methanol depends on the costs of carbon capture
and removal technologies.
117. VALUE EDUCATOR
Hydrogen
• As a potential option for alternative fuel for the shipping sector in line with IMO’s
emission reduction goals, hydrogen (H2) is one of the most viable fuels in the long
term. H2 can be used in two forms, either in Fuel Cells or in Internal Combustion
Engines.
• Currently, H2 FCs are being used across the transport industry, especially in public
transport such as buses. For example, in London,Transport for London has begun
operating H2-fuelled double decker buses
• H2 FCs and engines have not yet been scaled up for merchant vessels and are still
currently in the development stage, but they were successfully tested for maritime
use in 2016
• Due to the early design phase for H2 FCs, current applications can be considered
for smaller vessels, such as ferries or passenger ships.Applications have not been
scaled for larger merchant vessels.
• H2 used in an ICE is less mature than FC technology with no established practical
examples and is currently in testing levels.
• Blending H2 is possible, but the costs of implementing the storage for fuel make it
unfeasible for use as a blend
118. VALUE EDUCATOR
Hydrogen Colour Spectrum
Green
Hydrogen
Green hydrogen is produced through the
process of electrolysis using clean electricity
from surplus renewable energy sources, such as
solar or wind power
Blue
Hydrogen
Blue hydrogen is produced mainly from natural
gas which produces CO2 which is captured
through carbon,capture & storage (CCS).This
is called blue Hydrogen
Grey
Hydrogen
Grey hydrogen is created from natural gas, or
methane, using steam methane reformation but
without capturing the greenhouse gases made
in the process.
Black/Brown
Hydrogen
When black coal or lignite (brown coal) in the
hydrogen-making process it is called
black/brown hydrogen
Pink
Hydrogen
Pink hydrogen is generated through
electrolysis powered by nuclear energy.
Turquoise
Hydrogen
Turquoise hydrogen is made using a
process called methane pyrolysis to
produce hydrogen and solid carbon.
Yellow
Hydrogen
Yellow hydrogen is a relatively new
phrase for hydrogen made through
electrolysis using solar power.
White
Hydrogen
White hydrogen is a naturally-occurring
hydrogen found in underground deposits
and created through fracking.
119. VALUE EDUCATOR
Hydrogen Production Methods
Fossil-based H2 Fossil-based H2 + CCUS
Split NG into H₂ and CO₂ or Produce from
coal via partial oxidation combined with
carbon monoxide water-gas shift reaction
CO₂ emitted to
the atmosphere
Electricity-driven pyrolysis
CO₂ stored or reused
Use electricity-driven
pyrolysis to split methane
Renewable H2
Split water into H2 by
hydrolysis powered by
renewable energy sources
Solid carbon is produced,
not CO₂
No CO₂ emitted
• Globally, H2 is mainly produced through reforming NG, which produces high quantities of CO2.This method is known as
steam methane reforming, which produces grey H2.To mitigate the emissions from this process, carbon capture, utilisation and
storage (CCUS) is employed to extract CO2 before it can enter the atmosphere.
• When the CO2 is captured, it is called blue H2.
• Green H2 produced from renewable energy through the process of electrolysis is the only viable option as an alternative
shipping fuel, as it produces net-zero life cycle emissions.
• Avoiding the use of grey H2 is essential because it is not in line with sustainability goals, it uses non-renewable resources and it
is not carbon neutral.
120. VALUE EDUCATOR
Green H2 cost projections
The International Renewable EnergyAgency (IRENA) analysis shows that green H2 production costs will fall progressively.
Indeed, the lowest cost range for green H2 could become more competitive than LNG andVLSFO by 2030.
Despite the future competitive costs, green H2 as a fuel has a lower energy density in comparison to other alternatives,
such as ammonia.
Furthermore, harnessing H2 as a shipping
fuel requires cryogenic onboard storage
and would therefore require additional
investment and thorough attention from a
safety perspective.
121. VALUE EDUCATOR
Ammonia
• Recent studies have shown that ammonia produced through electrolysis sourced by renewable energy
will be highly beneficial in the efforts to achieve deep decarbonisation of the shipping sector.
• However, vessel engines operating on renewable energy ammonia still require small amounts of a pilot
fuel to combust, so it is important that the pilot fuel also be carbon zero.
• Ammonia has various advantages compared to other alternative fuels.These include an existing logistical
infrastructure with no need for cryogenic storage. In addition, ammonia is more energy dense in liquid
form than other green fuels.
Generation 1 Ammonia Generation 2 Ammonia Generation 3 Ammonia
The current and future technology of ammonia fuel exists in three generations
Generation 1 ammonia production refers
to the use of carbon, capture & storage
(CCS) to lower the overall carbon
emissions to net zero. This is commonly
referred to as “blue ammonia” as it still
uses NG, and is therefore considered a
transitional generation to establish supply
and demand for ammonia fuel
Generation 2 ammonia refers to using
renewable energy to supply green H2
for the Haber-Bosch process, and thus
it does not result in any carbon
emissions throughout its life cycle.This
is the current ideal source of ammonia
fuel for the shipping industry
Generation 3 ammonia technology
is currently under research. It does
not use the Haber-Bosch process,
but rather uses the method of
electroreduction of nitrogen into
ammonia.
122. VALUE EDUCATOR
Ammonia Production
Renewable Power
Nitrogen
production
Electrolyser
Hydrogen Nitrogen
Haber Bosch
Process
Green Ammonia
Air
Water
Renewable e-ammonia production process via Haber-Bosch process
• Currently, ammonia is produced through the use of NG,
producing large quantities GHG emissions throughout its
life cycle.Therefore, employing renewables is the only
viable option for producing carbon-free ammonia.
• Ammonia is created through the Haber-Bosch process,
which uses H2, and is further used as a feedstock for
agricultural products, mainly fertiliser.
• The technology for creating ammonia through the use of
the Haber-Bosch process is well established
• Future planning has begun to scale-up ammonia
production to supply the transport sector with fuel.
However, with high demand for ammonia, scaling-up faces
difficulties.
• Ammonia becomes liquid at a more ambient temperature
than H2 fuel and therefore is easier to store and transport.
• Production of ammonia through the use of NG with CCS
can provide reduced emissions. However, this is not as
effective in mitigation as producing ammonia through
renewable energy input
123. • Production costs are expected to decrease as
the demand for more renewable gaseous fuels
increases and renewable gaseous fuels are
subjected to highly localised costings due to
infrastructure,land and feedstock availability.
• Biomethane produced from industrial waste and
from manure has a low-cost range that reaches
belowVery Low Sulphur Fuel Oil (VLSFO)
market price, but its utilisation in the shipping
sector may be challenged due scalability
challenges.
• Methane produced from methanation is another
alternative that may help to tackle scalability
issues, but methanation is in the research and
development (R&D) phase
VALUE EDUCATOR
Cost comparison of renewable gaseous fuel
250
200
150
100
50
0
Industrial waste
biomethane
Manure
biomethane
Energy crops
biomethane
Biomethane Methanation
based methane
VLSFO market price (2019) LNG market price (2019)
USD/MWh
300
124. VALUE EDUCATOR
Comparison of renewable gaseous fuel
FuelType Energy
Density
(GJ/m3)
Temperatur
e
(oC)
Advantages Challenges Cost
Biomethane 23 25 Biomethane produced from
industrial waste and from
manure has a low-cost range
that reaches belowVLSFO
market price.
Utilisation of biomethane
in the shipping sector may
be challenged due
scalability challenges
Biomethane from energy
crops: USD 68.18/MWh to
USD 176.36/MWh
Manure Biomethane:USD
36.36/MWh to USD
148.18/MWh
Biomethane from industrial
waste: USD 25.45/MWh to
USD 148.18/MWh
Fossil based
Methanol
15.8 20 • Currently used in a
multitude of sectors and
can be implemented within
the shipping sector with
relative ease.
• Using e-methanol and bio-
methanol is 100%
renewable.
• Difficulties in acquiring
sustainable and cost-
effective carbon
sources.
• Green methanol has
high production costs.
USD 18.09/MWh to USD
45.23/MWh
Bio Methanol 15.8 20 USD 57.89/MWh to USD
139.30/MWh
E Methanol 15.8 20 USD 144.72/MWh to USD
289.45/MWh
125. VALUE EDUCATOR
Comparison of renewable gaseous fuel
Fuel
Type
Energy Density
(GJ/m3)
Temperature
(oC)
Advantages Challenges Cost
Hydrogen Liquid H2 : 8.5
Compressed H2 : 7.5
Liquid H2 : -253
Compressed H2 : 20
• Employing green H2
would lead to nearly zero
carbon emissions.
• A main option as an
energy carrier in fuel cells.
• Multiple applications
across sectors, which can
increase the rate of
research.
• H2 production and
storage is costly,
requiring cryogenic
storage.
• Still an immature
technology in the
shipping sector but has
high potential as an
alternative fuel.
• USD 66/MWh to
USD 85/MWh if
electricity prices
equate to USD
20/MWh.
• USD 135/MWh to
USD 154/MWh if
electricity prices
equate to USD
65/MWh.
Ammonia 12.7 -34 to 20 • Ammonia has existing
production and transport
infrastructure due to the
agricultural industry.
• Green ammonia is carbon
neutral and has one of
the highest efficiencies
when compared to
alternative fuels.
• Global demand for
ammonia across
multiple sectors can
cause scalability issues.
• Ammonia has a high
production cost and is
highly toxic, requiring
special storage and
safety measures.
Nitrogen based
Ammonia- USD
21.29/MWh to USD
65.81/MWh
renewable e-ammonia -
USD 143/MWh to USD
219/MWh
126.
127. Aviation Industry
VALUE EDUCATOR
• More than 1.5 billion people will enter the world’s middle
class in the next decade, including hundreds of millions of
people in developing countries.29 Air travel will subsequently
follow a similar trajectory: by 2050, analysts expect global
demand for jet fuel to reach 530 million tons per year, up
from 330 million today, with the share of passenger miles
travelled in emerging markets rising from 32% to 45%.
• Air travel is growing faster in India than almost anywhere
else: the country is predicted to move from the world’s
eighth-largest user of aviation fuel in March 2019 to the
third-largest by 2050.
• Since fossil jet fuel is abundant and relatively inexpensive,
shifting to SAF will require the support of government,
industry and consumers, particularly as growth in the Indian
aviation market accelerates.
128. Aviation Industry
VALUE EDUCATOR
292.9
230.3
138.8
232.2
29.3
76.9
37.9
37.7
440.4
418.1
371.6
337.5
179.3
134.5
117.8
70.1
0 100 200 300 400 500
North America
Asia Pacific
China
Europe
India
Middle East
Africa
Latin America
Carbon emission from aviation by region
(in million metric tons CO2 equivalent)
2020 2019
Sustainable aviation fuel (SAF) will be crucial in reaching net-zero emissions targets by 2050.
• While the aviation industry contributes less than 1% of India’s total
emissions today, aviation is among the fastest-growing sectors of
the economy.
• Carbon dioxide (Co2) emissions by Indian scheduled domestic
flights rose to 12,307,000 tonnes during 2018 from 6,135,000
tonnes in 2012.
• India is on track to become the world’s third-largest aviation
market by 2024, up from eighth place today due to which Aviation’s
share of total emissions in India may increase significantly.
• Aviation produces about 3% of total CO2 and 12%3 of transport
emissions globally. Recent research indicates, however, that its total
impact on climate warming could be two to four times larger due
to additional non-CO2 pollutants.
129. Aviation Industry
VALUE EDUCATOR
In 2009, the aviation industry committed through the Air Transport Action
Group (ATAG) to a reduction pathway to 50% of 2005 emissions by 2050.
In 2016, for example, the International Civil Aviation Organization (ICAO)
agreed through member states on the Carbon Offsetting and Reduction
Scheme for International Aviation (CORSIA) framework, which includes a
commitment to carbon-neutral growth after 2019, through a global carbon
offset programme for international aviation.
The European Commission, for example, is considering a SAF blending
mandate in all member countries by 2025 as part of the “European Green
Deal
Early in 2021, Boeing announced its intention to deliver aircraft that can fly
on 100% SAF by 2030.
Options to reduce emissions :
1. Fleet Renewal 2. Fuel Efficiency improvement
3. Renewable electricity sources, such as battery electric and green
hydrogen-powered commercial aircraft (May not come before 2030) and may
not able to cover flights above 1,500 kilometres range + Charging time
Sustainable aviation fuel (SAF) will be crucial in reaching net-zero emissions
targets by 2050.
130. VALUE EDUCATOR
SAF Benefits
Approx.
2.8billion
GDP
impact
Guaranteed additional income to
farmers.
By selling agricultural residues to
raise incomes by 10-15%
Cleaner skies with less open-air
burning
Reducing air pollution and
associated health risks
120,000+ new green jobs
Across production plants and
collection systems, related
supply chains and induced
effects
Enhanced energy security
Domestic feedstock would
substitute fossil jet fuel and
create export
opportunity(yielding $210
million reserves for 10% blend
of SAF
Catalyst for efficient waste
management
Also reducing landfilling
significantly by supporting
demand for better segregated
waste
• SAF can in theory be up to 100% less
carbon-intensive over its life cycle
when compared to conventional fuel.
• All aircraft and airports today can
handle the current maximum
certified blend of 50% SAF.
• Around the world,more than 300,000
flights have already been powered by
SAF.
133. SAF India Developments
VALUE EDUCATOR
• Spice Jet operated India’s first domestic biofuel test flight on a 25% blend of SAF in 2018.
• Praj`s technology is now ready for commercialization.In a noteworthy development, SAF samples have received
certification as fit for use in aircrafts from Indian Air Force.
134. Challenges with Battery & Hydrogen Technology
VALUE EDUCATOR
Turboprop
Blended-Wing Body
Turbofan
<100
Passengers
<200
Passengers
Hydrogen
Hybrid
Turboprop
Engines (x2)
Hydrogen
Hybrid
Turbofan
Engines (x2)
1,000+ nm
Range
2,000+ nm
Range
Liquid Hydrogen
Storage &
Distribution
System
Liquid Hydrogen
Storage &
Distribution
System
• Since battery weight doesn’t burn off the
way fuel does, the aircraft would need to
carry the full load for the entire flight,
requiring additional energy, which is a
particular burden for longer flights.
• Liquefied hydrogen requires four times the
volume of kerosene, reducing space for
customers or cargo.
• Airports would need new refuelling
infrastructure,including fuel trucks that can
store liquefied hydrogen.Refuelling could
take longer, potentially lowering gate and
aircraft use.
• Smaller hydrogen-powered aircraft that use
direct hydrogen combustion or hydrogen
fuel cells could become feasible in the next
10–15 years, such as Airbus’ ZEROe concept
plane, which is expected to launch by 2035.
• With current battery technology, a plane would need more than 50 kilograms of battery weight to replace a kilo of
kerosene
INTRODUCINGAIRBUS ZEROe
135. VALUE EDUCATOR
Adv. of SAF over electric batteries and Hydrogen fuels
• Even after hydrogen-powered or electric planes become available for short-haul flights,SAF will continue to be the best option to
significantly reduce CO2 emissions for long-range flights for decades to come.
• Given that more than 70% of aviation CO2 emissions in 2018 resulted from mid and long-range flights,moving to SAF is vital to
reducing the industry’s emissions.
• These challenges leave SAF as the most feasible option to decarbonize air travel, at least for the next 15–20 years in short- and
medium-haul operations and likely much longer for long-haul journeys.
• No investments in delivery or fuelling infrastructure is needed.
Comparison vs fossil
kerosene
Climate Impact
Aircraft design
Aircraft operations
Aircraft infrastructure
Battery-electric H2 fuel cell H2 turbine
Sustainable
aviation fuel
100% reduction 75% - 90% reduction 50% - 75%reduction 30% - 60%reduction
Low battery density limits
ranges to 500km – 1,000km
Feasible only for commuter
to short-range segments
Feasible for all segments
except for flights > 10,000km
Only minor changes
Same turnaround times for
swappable batteries
1-2x longer refueling times
for up to short range
2-3x longer refueling times
for medium and long range
Same turnaround times
Fast-charging or battery
exchange system required
LH2 distribution and shortage required Existing infrastructure
can be used
Major Advantages
Major Challenges
136. VALUE EDUCATOR
Techniques to manufacture SAF
HEFA Alcohol-to-jet
Agri residues
Gasification/FT Power-to-liquid
Feedstock Waste and residue lipids
purposely grown for
energy plants.
Agriculture and Forestry
residues purposely grown
cellulosic energy crops.
Municipal solid waste Hydrogen H2
Maturity of
technology
Mature Praj tied up with GEVO
for Iso-butanol to Bio Jet
fuel
Commercial pilot In development
Feedstock
Availability
Low High Under
development
Cost of
production
Medium
Alcohol-to-jet
Sugar stream
Sugar syrup, molasses
Commercial pilot
High
Low
Medium Medium
High High
Capex Low
Low High High High
137. VALUE EDUCATOR
47 59 65 70 75 78 79
168
305
342
376
404 425 441
2020 2025 2030 2035 2040 2045 2050
Cargo Passenger
215
364
407
446
479
503
520
Demand drop
compared to
2019 projection
0.7 1.1 1.3 1.4 1.5 1.6 1.7
Equivalent global
CO2 emissions
assuming 100%
fossil jet(billions of
tons)
SAF Current Status & Aviation Energy Demand
>315,000
Commercial flights
have used a blend of
SAF
8
Conversion process
certified for use in
aviation
13
Airports regularly
distributing blended
SAF
CURRENT PRODUCTION
• Average of 0.29 MLPY (2013-2015) to 6.45
MLPY (2016-2018)
• In 2019 Neste produced 125 million litres
• Announced SAF capacity for Neste by 2023 – 2
BLPY
Global aviation energy demand projection (billion of litres of jet fuel per year)
138. Capex and total cost of production per ton of SAF
VALUE EDUCATOR
1850
3500
9000
18645
19577
0 5000 10000 15000 20000
HEFA-UCO
AtJ-sugar stream
AtJ-agri residue
GAS-FT - agri residue
GAS-FT - MSW
778
430
285
285
339
770
1563
1515
1361
0 500 1000 1500 2000
1117
1200
1848
1800
1631
Capex ($/t) Total cost per ton of SAF ($/t)
Capex Bio feedstock cost Other Costs
139. Feedstock Availability of SAF
VALUE EDUCATOR
Advanced
biofeedstock
and waste
Recycled
carbon
Sugar streams
Waste and
residue lipids
Agricultural
residue
Municipal solid
waste
Other industrial
waste gases
Preliminary
Feedstock category
Practical feedstock availability
(million of tons per year)
SAF equivalent
(million of tons per year)
Fossil-based feedstock may be considered for
bridging until sustainable alternatives become
available,CO2 from industrial-scale biomass may
also be available as an alternative
3-5
2-5
66
90
1-1.5
2
8(if via GAS-FT)
4(if via AtJ)
12
19-24
Million of tons
140. Challenges with SAF - Cost
VALUE EDUCATOR
2020 2030 2040 2050
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
Global SAF production cost for selected feedstocks Indicative
SAF
production
cost
Dollars
per
ton
HEFA Gasification/FT Alcohol-to-jet Power-to-liquid Jet fuel price
141. VALUE EDUCATOR
• Praj is in partnership with GEVO Inc, USA has developed a process
for production of Isobutanol - a basic building block for SAF
(Sustainable Aviation Fuel) - from sugary streams and agricultural
residue.
• Gevo and Praj will provide technology, plant equipment, and
Engineering Procurement & Construction (EPC) services to
customers to produce renewable Isobutanol that will be
aggregated and transferred to various refineries.
GEVO – Praj IndustriesTie-Up (Isobutanol to SAF)
142. GEVO – Praj IndustriesTie-Up (Isobutanol to SAF)
VALUE EDUCATOR
143.
144. Bio-Prism
VALUE EDUCATOR
• Praj has embarked on a path to unveil a basket of technologies for
production of Renewable Chemicals & Materials (RCM) its Bio-
Prism portfolio.
• Produced from bio-based feedstock, RCM has the potential to
replace most chemicals and materials currently sourced using fossil
resources.
• Praj’s Bio-Prism portfolio comprises technologies for producing a
variety of bio-industrial products, including bio plastics as a priority,
along with cellulose-lignin refinery products and specialty products.
• These products have applications in industry sectors such as
automotive, packaging, furnishing, construction, agriculture and food.
The Bio-Prism portfolio reinforces Praj’s leadership as an innovative technology
solutions provider for sustainability and conservation of the environment.
146. Renewable, Chemicals & Materials (RCM) Industry
VALUE EDUCATOR
$65 billion
$200 billion
2020 2030
CAGR
12%
The RCM industry worldwide is estimated to have reached US $ 65 billion and over a decade, is
likely to cross around US $200 billion at a CAGR of 11-12%. The Asian market is presently pegged
at around US $ 25 billion.
The chemical industry
worldwide was estimated
at US $ 25 trillion annually
in 2020.
Renewable chemicals have a
potential to replace a majority
of chemicals that are currently
sourced using fossil resources.
147. VALUE EDUCATOR
FEEDSTOCKS
Ethanol
Waste Oils
Saccharose
Natural
Rubber
Starch
Plant Oil
Lignocellulose
Glucose
Fructose
Isobutanol
Hemicellulose
Lysine
Naphtha
Ethanol
FEEDSTOCKS
INTERMEDIATES
Methyl
methacrylate
Ethylene
Propylene
Vinyl Chloride
PVC
PMMA
EPDM
PP
PE
Natural
Rubber
Building
blocks for
UPR
Unsaturated
Polymer
Resins
Building
blocks for
Polyurethanes
Polyurethane
Cellulose
Acetate
Lignin based
polymer
Furfural
Furfuryl
Alcohol
PFA
NOPs
Glycerol
MPG
ECH
Fatty Acids
Epoxy Resins
PA
PHA
APC
Castor Oil
Sebacic Acid
11-AA
DDDA
Caprolactame
HMDA
DNS
Sorbitol
Isosorbide
Lactic Acid
Lactide
PLA
Itaconic Acid
3HP
Acrylic Acid
Adipic Acid
ABS
Superabsorbent
Polymer
PBAT
PBS(x)
Succinic Acid
Starch containing
Polymer
1,4-Butanediol
THF
PBT
SBR
Tere
Acid
1,3- Propanediol
PTT
PTF
PET
PDME
Levulinic Acid
2,5- FDCA
PEF
MEG
Plastics
Building Blocks
From Feedstocks to Range of Bio-plastics
148. VALUE EDUCATOR
BioPrism- Renewable chemicals & materials
Lignin
• Lignin has a number of industrial uses as a binder for
particleboard and similar laminated or composite wood
products, as a soil conditioner, as a filler or an active
ingredient of phenolic resins, and as an adhesive
for linoleum.
• Vanillin (synthetic vanilla) and dimethyl sulfoxide are also
made from lignin.
149. VALUE EDUCATOR
A snippet from Q3FY22 Concall
Rice bran wax is the vegetable wax extracted from
the bran oil of rice.
Rice bran wax is edible and can serve as a substitute
for carnauba wax in most applications due to its relatively
high melting point. It is used in paper coatings, textiles,
explosives,fruit & vegetable coatings, confectionery,
pharmaceuticals,candles,molded novelties, Electric
insulation,textile and leather sizing,waterproofing,carbon
paper, typewriter ribbons,printing inks, lubricants,crayons,
adhesives,chewing gums and cosmetics.
Rice bran wax
150. VALUE EDUCATOR
Polylactic AcidValue Chain
Corn, Cassava,
Sugarcane
Fermentation Lactic Acid
Monomer
Production
Lactide
Monomer
Praj will assemble the segments of technology backed up by
its expertise in process development, optimization, design
scale-up and will further integrate lactic acid as a source
material into making Bioplastic, called as Polylactic Acid (PLA).
Polymer
Production
Polylactic Acid
(PLA)
Bioplastic
Bioplastics are used in disposable items like packaging,
containers, straws, bags and bottles, and in non-disposable
carpet, plastic piping, phone casings, 3D printing, car
insulation and medical implants.
152. VALUE EDUCATOR
Plastics – Per capita global consumption
INDIA`S PLASTIC CONSUMPTION IS A TENTH
OF US`S
109
US
65
Europe
38
China
32
Brazil
11
India
Per Capita Plastic Consumption
In 2014-15 (in Kg)
Global Average - 28
153. VALUE EDUCATOR
Size of opportunity in Polylactic Acid
TOTAL POLYLACTIC OPPORTUNITY
The global PLA market size is projected to grow from USD 1.0 billion
in 2021 to USD 1.9 billion by 2026, at a CAGR of 12.2% between 2021
and 2026.
The market is attributed to the
rising demand from the packaging
industry in emerging economies
such as India and China.
The market in Asia Pacific is
expected to witness high growth
due to the increasing applications
of PLA in packaging industry.
Growth Driver
Improving consumer awareness regarding
sustainable plastic solutions and
increasing efforts to eliminate the use of
non-biodegradable conventional plastics
contribute to the market growth of PLA.
Traditionally used petroleum-based plastics take decades to break down
or degrade and lay in landfills for a long period. PLA breaks down faster
when they are discarded and are absorbed back into the natural system.
154. VALUE EDUCATOR
Value Added Products
Praj has developed three value added products from the lignin generated from our 2G ethanol
process
2. Bio Bitumen
These technologies have been developed at laboratory/pilot scale and are ready for demonstration.
1. Lignosulphonate
3. Bio-oil
Praj developed lignosulphonate technology from the lignin generated from the
2G enfinity plant.This can be bolted on the 2G plant to improve overall
viability of 2G ethanol plants.
Praj has achieved another breakthrough for producing “Bio-bitumen” based
on lignin, an eco-friendly renewable material for road construction.
Praj has also developed bio oil from the lignin generated from our 2G
ethanol process which will be used as a Marine Fuel.
155. VALUE EDUCATOR
Lignosulphonate
Solution of sulphite
and bisulphite ions
Wood
Cellulose Lignin
Sulphur dioxide (SO2)
Lignosulphonate
Lignosulfonates is obtained from sulphite pulping process as
shown below:
Applications of Lignosulphonate:
• Lignosulfonate is also used as a dispersing agent in
materials, such as in the production of brick,
cement etc
• Another application is as a starting material in the
production of chemically modified lignosulfonate,
which is used in oil well drilling fluids and
dispersion of pigments.
• Lignosulfonate is also the most common set
retarder for oil well cementing
156. VALUE EDUCATOR
Size of opportunity in Lignosulphonate
TOTAL LIGNOSULPHONATE OPPORTUNITY
Global Lignosulfonates Market is expected to Reach US$ 1 Bn By 2031
Extensive Use of
Calcium
Lignosulfonate as
Water Reducing
Admixture for
Cement
Manufacturers in the lignosulfonates market are
boosting their output capacities for calcium
lignosulfonate, which is used as a water reducing
admixture for cement, ceramic body reinforcing
agent, and pesticide suspension concentrates.
Major providers of lignosulfonates, such as Nippon Paper Industries Co. Ltd.,
Sappi Limited, and Rayonier Advanced Materials Inc. are focusing on research
& development, merger, joint venture, collaboration, and product innovation
strategies
Calcium Lignosulfonate
Rise in demand for
lignosulfonates in animal feed
binders, concrete additives, and
various other end-use
industries is expected to drive
the Lignosulfonates Market
157. VALUE EDUCATOR
Bio-bitumen
• Bio-bitumen based on lignin is an eco-friendly renewable
material for road construction.
• Lignin is one of the co-products resulting from the 2G
ethanol plants, paper making and also from CBG plants.
• Bitumen is a black viscous mixture of hydrocarbons
produced by fractionation of crude oil and has wide
applications in road construction and roofing as binder.
A snippet from Q3FY22 Concall
• Praj has developed a proprietary process (under patenting) to
convert the crude lignin into Bio-bitumen which has potential
to replace this fossil based bitumen.
• The Netherlands-based Circular Biobased Delta (CBBD), one
of Europe’s premier consortia to promote bioeconomy, has
approved Praj’s Bio-bitumen samples that will now be tested
for scale up in Asphalt on a Dutch test strip on the road.
159. VALUE EDUCATOR
Pharma grade ethanol
Hand
sanitizers
Injections and
syringe
Syrups,
antibiotics, etc
Disinfectant for medical/laboratory
instruments & equipment
Pharmaceutical applications
Pharma grade ethanol is high purity alcohol with stringent specifications. It is
used in a variety of manufacturing processes in the pharmaceutical industry.
160. Praj’s Technology to generate various grades of alcohol
VALUE EDUCATOR
Given Praj’s experience and expertise, the company can provide innovative technologies to offer flexibility to produce multiple
grades of pure alcohol from a single plant.
