Bioeconomy    From Sustenance to Value Creation    Forests are more than just wood!1    Navin Sharma, Chief Scientist – Ag...
"All views expressed herein are my personal    views and in no way, expressed or implied,    are that of or necessarily re...
Bioeconomy: Revenue Potential  Agricultural         Biomass                     Biomass                 Biorefining       ...
World Wide Mandates & Subsidies United States                   Brazil                       European                     ...
Mandates by India                                                          &                                              ...
Sustainable plantations as a solution for India                                          19.4%	  of	  land	               ...
Challenges     Feedstock costs represent from 50-75% of the cost of producing biodiesel     v  Diversity or monoculture  ...
SUCCESSFUL EXAMPLE IN INDIA : KARNATAKA                                                                                 v...
LEARNING FROM OTHER INDUSTRIES: PAPER§  Trigger – The Paper Business   §  Forest Conservation Act   §  Use of Marginal ...
The Bioeconomy : Future…                                                                     Intellectual Property      Va...
Extractives as source of high value chemicals                               E. globulus extractives                       ...
Where does that leave us?     v Compete globally; Include Locally     v Support Large Farmers; Protect Small Farmers    ...
THANK YOU
Upcoming SlideShare
Loading in …5
×

Tree diversityday2012 sharma.pptx

565 views

Published on

Presentation on Tree Diversity Day, 11 October 2012, at the 11th CBD Conference of Parties in Hyderabad, India

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
565
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Tree diversityday2012 sharma.pptx

  1. 1. Bioeconomy From Sustenance to Value Creation Forests are more than just wood!1 Navin Sharma, Chief Scientist – Agriscience, ITC R&D Centre, ITC Ltd, India
  2. 2. "All views expressed herein are my personal views and in no way, expressed or implied, are that of or necessarily represent the positions of ITC Limited, my current employer."2
  3. 3. Bioeconomy: Revenue Potential Agricultural Biomass Biomass Biorefining Biorefining inputs Production trading inputs fuels 15 89 30 10 80• Seeds • Energy crops • Biomass • Enzymes • 1st & 2nd• Crop protection • Sugarcane aggregation • Organisms generation biofuel• fertilizers • Short rotation • Logistics • Pretreatment production forestry • Trading chemicals Biorefining Downstream chemicals chemistry 6 • Fermentation of • Polymerization, bulk chemicals dowm-stream reactions Biomass power and heat 65 There are significant revenue potentials along the entire biomass value chain. The values given are approximate business potential in US$ billions by 2020 • Co-firing • Dedicated CHP http://www3.weforum.org/docs/WEF_FutureIndustrialBiorefineries_Report_2010.pdf
  4. 4. World Wide Mandates & Subsidies United States Brazil European China India UnionMandate of 36 billion 30+ year commitment 5.75% blending target Plan to substitute Blending targets ingallons of biofuels by to ‘alcohol program by 2010 and 10% by 20% of crude imports current drafts are 5%2022 2020 by 2020. by 2012. 10% by 2017, 20% for long term.Volumetric tax credit: Discussion on target Target of 1.7 billionUSD 0.51/gal ethanol Annual blending Target of 20% biofuels target for ethanol waiver triggered by gallons of ethanol by+ USD 1.00/gal 2010. by 2020 (25%) food crisis, but nobiodiesel change of policy so far. Duty-free imports of Investments inCellulose biofuel feedstock-rich Jatropha to supportproducer tax credit: Biodiesel target of 5% countries. biodiesel Country-levelUSD 1.01/gal. by 2013 subsidies average USD 1.90/gal for Individual states may ethanol and USD Commitment toSmall producer tax Lower taxes for develop non-food set additional 1.50/gal for biodiesel measures to promotecredit: USD 0.1/gal ethanol (E100) than based biofuels COFCO gasoline. (Nat. Food Corp.) with biofuels or restrict Penalty fee in 5 PetroChina and transport of molassesUSD 1 billion in over state boundries. countries for Sinopec – 2ndsupport for 2nd FFV sales tax of 14% noncompliance with generation multiplegeneration compared to 16% for biofuel target. projects.technology. gasoline-only vehicles *Rapeseed/ *Lignocellulose/ * Various* CORN/ *Sugarcane Lignocellulose VariousLignocelluloseWorld wide mandates and subsidies. Current policy status in five major world regions. (*)denotes key feedstock http://www3.weforum.org/docs/WEF_FutureIndustrialBiorefineries_Report_2010.pdf
  5. 5. Mandates by India & Status o  Blending targets in current drafts are 5% by 2012. 10% by 2017, 20% for long term. Target of 20% biofuels by 2020 o  The intermediate target of 5% have not been achieved and the present target stands at 5%. o  The shortfall in bioethanol blending is mainly attributed to the issues of availability due to limited production from molasses and competing demands and pricing, whereas in case of biodiesel it is the lack of availability of basic raw material i.e. vegetable oil. Over reliance on Molasses and JatrophaShortage of Raw Material is the Main Reason – How to Build Year Round Supply of Raw Material?5 Source: MNRE report on Biofuels, ethanol, biofuels incentives, biofuels subsidy, biodiesel, ethanol
  6. 6. Sustainable plantations as a solution for India 19.4%  of  land   Natural  Forests   68  million  ha  under   Biodiversity   4  global  biodiversity   Forest  Cover   hotspot   34%  of  biomass   Soil   returned  to  soil   restoraGon   AfforestaGon   64  million  ha   of  degraded  land   available   Gained  3M  ha  between   1990-­‐  2010   Avoided  340  million  Tonnes   Deforest-­‐CO2  sequestraGon:   Desert  Target  to  enhance   aGon   control   RestoraGon  of  degraded,  50-­‐60  million  T  CO2   sequestraGon  by   salinized  and  semi-­‐arid  land   2020   Food Agro-­‐ No  planGng  in   Security forestry   Water   Riparian  zones   High value revenue pracGces   Security   and   options watersheds     6 India’s forests and REDD+: Ministry of Environment and Forests GOVERNMENT OF INDIA Adapted from: Hirsch Stanley, CEO Futuragene
  7. 7. Challenges Feedstock costs represent from 50-75% of the cost of producing biodiesel v  Diversity or monoculture v  Agroforestry o  Selection of Appropriate Species o  Quality planting material o  Short rotation crops o  Remunerative to small farmers v  Availability (seasonal, quality, consistency) v  Supply and demand effects on costs - Competing users in agriculture - Competing users in forestry - Competing users in other sectors o  From the total wasteland availability of 64 million hectares, only 17 million hectares is suitable for energy crops o  Meeting 5% blending target additional 4.1 million hectares of appropriate species need to be brought under cultivation7
  8. 8. SUCCESSFUL EXAMPLE IN INDIA : KARNATAKA v  Inclusion of multiple & locally adapted species Pongamia (Pongamia pinnata) Madhuka ( Madhuka latifolia), Neem (Azadirachta indica) Simarouba (Simarouba glauca), Jatropha (Jatropha curcus) Amoora (Amoora rohiyuka) & Surahonne (Calophyllum inophyllum L) School children taking out a jatha to mark International Biodiesel Day in Hassan. v  Smart farming system e.g. bund planting v  Area covered – 17,558 acres v  No of seedlings – 1.5 millions Hassan to get country’s first bio fuel bunk Jul 06, 2012 | DC | Bengaluru Karnataka is all set to open the country’s first bio-fuel distribution bunk of Bharat Petroleum Corporation Ltd in Hassan. Speaking at an event organised by the State Biofuel Development Board on Thursday, its Executive Chairman Biofuel Park –Overview (Hassan, Karnataka) Y.B. Ramakrishna said, “We have several biofuel-related projects going on. (on Farm pond contours & Bunds) We already have a Green Fuel Park at Madenur village, which produces about 300 litres of biofuel and Bharat Petroleum will open a green fuel outlet within the next three months in Hasan”.8 Source: Prof. Balakrishna Gowda, .Project Coordinator, Biofuel Park,UAS, Bangalore, India
  9. 9. LEARNING FROM OTHER INDUSTRIES: PAPER§  Trigger – The Paper Business §  Forest Conservation Act §  Use of Marginal Land §  The Requirements: §  Use of Marginal land §  Compressing Harvesting Cycle from 7 years to 4 years §  Improving Survival Rate to 90 % in harsh conditions §  Increased Resistance to Disease §  Customized Extension Services §  a willing buyer at remunerative rates, reducing farmer’s risk
  10. 10. The Bioeconomy : Future… Intellectual Property Value Antiaging, antidiabetic Cosmetics & Drugs Bio-polymers Biomaterials Various Protective Biochemicals Agents Next Generation Biofuels for transport Biodiesel Chips, Pellets, Bioenergy Bio-oil, Bio-gas Pulp Paper & Paper Board Volume Create Value Ladder10
  11. 11. Extractives as source of high value chemicals E. globulus extractives Lipophilic bark extractives : Outer bark is particularly interesting ~12 g/kg ~4.0 g/kgCourtesy Simon Potter, CSIRO COOH COOH HO HO Ursolic acid Oleanolic acid COOH COOH HO O HO β-Sitosterol Betulinic acid Betulonic acid o  Promising pharmacological and nutraceutical applications o  High commercial value From Armando Silvestre, Universidade de Aveiro
  12. 12. Where does that leave us? v Compete globally; Include Locally v Support Large Farmers; Protect Small Farmers v Step up Productivity; Conserve Nature v Create Realistic Value Chains Risks are here today; Institutions still evolving12
  13. 13. THANK YOU

×