Monday, March 19, 2001
fesub.gif (4328 bytes)
Full Story
fe.gif (834 bytes)
India's first e-business paper
flnews.gif (5153 bytes)
Search FE
-
Download
BSE Quotes
NSE Quotes
-
 

`Scarcity of molasses likely to prevent use of ethanol as fuel' 

 
Ashok Kadakai, presently the chairman of Ashok Organic has experience of nearly three decades in the chemical industry, especially in the Alco-based industry. He is also president of the All India Alcohol-based Industries Development Association (AABIDA). According to him, the project initiated by the government for making ethanol as fuel is not at all viable in India, since it will be a high cost substitutue as compared to the other fuel.

Instead of research on fuel addititves, the requirement is to develop an alternate fuel and new engine technology, that is keeping the world engaged.

Mr Ashok Kadakai spoke to Vijay Trivedi of The Financial Express on various related aspects of the alcohol based industry and the feasibility of the alcohol's use as fuel. Excerpts:

On the state of the country's sugarcane cultivation in the last decadeAs per our study, the overall sugarcane's acreage has increased only marginally by about 1.26 per cent, over the last decade. Also, in major cane producing states like Uttar Pradesh, it has gone up by a paltry 1.4 per cent.The alcohol production has been worked out on the basis of around 90 per cent molasses utilization for distillation use and taking recovery of 225 ltrs/tonne of molasses. Thus there has been a small improvement in the overall availability of cane over the last decade.

On the availability of surplus alcohol from major cane producing states The surplus alcohol exported from Uttar Pradesh and Maharashtra is too erratic and inadequate to meet the fuel demand of these states alone. It is also increasingly used as potable alcohol, which is a major revenue earner for the states. This will further exhaust any surplus availability that is currently available. The maximum overseas export of alcohol has been around 1,000 lakh ltrs and availability, otherwise has been too erratic for any sustained exports.

On value-addition using alcohol as a fuel additive
As such there is no value addition. For instance, as one litre of alcohol is equivalent to 1.5 litre of petrol. Further, alcohol has a lower energy content of 26.68 milli joule (mj)/kg, which compared to gasoline's 42-44 mj/kg. Thus, alcohol is around 40 per cent less energy efficient than gasoline. However, even improved volumetric efficiency of the engine due to 16.5 per cent increase in the heat of vaporization of the alcohol blended fuel, alcohol still remains around 22.5 per cent less energy efficient compared to gasoline. But there is value-addition when using alcohol in chemicals. It ranges from a minimum of 2.5 times in acetic acid to a maximum around six times in certain ethoxylates. In India, there are many more chemicals being produced via the alcohol route and cumulative alcohol requirement works out to about 7,000 lakhs ltrs (around 700 million ltrs) equivalent to about 50 per cent of the potential alcohol production. On whether India can afford a fuel-alcohol programme like Brazil and USABecause of high population in India, the overall per capita land available is 3.28 square mts, compared to 34 sq mts in USA and 50 sq mt in Brazil.

This restricts the cane growing, thereby restricting the overall availability for ethanol and ethanol-based fuel programme. Further, USA's and Brazil's ethanol-fuel programme is supported heavily with subsidies, which is not so in India.

Undoubtedly, Brazil was the first country to introduce ethanol mixture for cars, has realized that the subsidies going out is too burdensome and unviable to support the gasohol programme and the same could be true for India experimenting with anhydrous.

Now, even USA supports its alcohol progamme through an agricultural subsidy of around 5 cts/pound and only in regions where agricultural produce, like corn, does not have any use in food.

On the conventional oxygenates used globally for fuel Oxygenated gasoline is conventional gasoline (Petrol/Diesel), to which oxygenates have been added to imporve combustion efficiency, thereby reducing polluting emissions. Many oxygenates serve as excellent octane- enhancers, whicha improve the fuel's anti-knocking property.

In the international world, Methyl Tertiary Butyle Ether (MTBE) and Tertiary Amyle Methyl Ether (TAME) are emerging as the most popular oxygenates in the world.

In India, BPCL and Reliance have already put up MTBE and TAME plant. MTBE and TAME are emerging as better oxygenates than the rest, as ETBE is more expensive to manufacture than MTBE. The high oxygen content in MTBE leads to a much better post combusion air quality than others. The higher octane number in MTBE makes it a widely used oxygenate in countries abroad, where octane rating of 91 Gasoline and above are in demand. With induction of new Gasoline engines pioneered by Maruti, the optimum octane requirements of such Indian cars are 91 and above, MTBE blending would help raise the present octane rating from 87 to 91. Even The European Fuel Oxygenate Manufacturers (EFOM) have conducted a scientific study, which demonstrates that MTBE does not pose any serious concern for human health and environment and also suggests that remedial measures are available to prevent any groundwater contamination by gasolione containing MTBE. Hence, with the future need of Gasoline, that have lower vapour pressure TAME, with alow vapour pressure of 23 PSI and relatively high oxygen content, is expected to become an equally important gasoline oxygenate.

Further, use of MTBE as oxygenate is on the rise in Asia and Western Europe and any slack in demand in the US, will be taken up by these two regions and the worldwide MTBE demand as fuel oxygenate will continue to grow. Aware that the world's oil will begin to dwindle in the 21st century, Ford, General Motors and other motor manufacturers over the last few decades have spent over billions of dollars experimenting with cars and trucks powered by gas, batteries and hydrogen fuel cells.

On whether alcohol is a safe oxygenate
Yes, but not in the Indian conditions, as besides driveability problems it leads to formation of aldehyde toxins in the air called Peroxy acyl Nitrates (PAN). Aldehydes react with other chemicals in urban atmosphere to set off chemical reactions leading to PAN, which can last for many days in the atmosphere, especially longer in winters. Here, ethanol leads to problems of vapour lock in engines, particularly in extreme summer months affecting the driveability.

The ex-refinery gasoline cost in India, works out to Rs 11.50/ltr and there would be an implicit element of subsidy in any Alco-fuel programme costing above Rs 11.50 per litre.

On whether alcohol inputs in gasolene will help reduce pollution
No, the government has already addressed the issue by gradually phasing out old vehicales. Improving the gasoline quality through catalytic reforming / desulphurization; by controlling the movement and use of adulterants in gasoline and promoting the use of CNG the green fuel for public or private transport.

On whether ethanol will be cheaper than petrol
No. Though petrol costs around Rs 31 per litre to the consumer, its basic price ex-refinery is Rs 10-11 per litre and the rest is taxes paid to the Central and state government. Countries like Brazil and USA, which use ethanol as fuel, provide hefty subsidies not only for ethanol-blended petrol but also concessional tax on sale of vehicles, using such blends at least in promotional stages for few years. Further technically, anydrous ethanol will need moisture free storage, transportation and blending facilities, establishment of test laboratories for quality control and an extended continuous training to drivers and depot staff. Under Indian current situation, this cost may not be borne by distilleries and may add to the cost of subsidisation.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

- Lead Stories | Corporate | Infrastructure | Commodities | Economy/Finance | BSE Today | NSE/ Markets | Strategy | Convergence | After Hours top.gif (150 bytes)Top
flame.jpg (1068 bytes) © Copyright 2001: Indian Express Newspaper(Bombay) Ltd. All rights reserved throughout the world.
This entire edition is compiled in Mumbai by The Indian Express Online Media Limited, a division of
The Indian Express Group of Newspapers. Managed by The Indian Express Online Media Limited and hosted by CerfNet.