Ethanol

Why ethanol - Ethanol production generates capital investment, saves Foreign exchange, brings economic development and job creation in Rural economies.

Ethanol reduces tailpipe carbon monoxide emissions by as much as 30%. Ethanol reduces exhaust VOC emissions by 12%.

Ethanol reduces toxic emissions by 30%. Ethanol reduces particulate emissions, especially fine-particulates that pose a health

threat to children, senior citizens, and those with respiratory ailments. Ethanol reduces carbon dioxide greenhouse gases by over 35% compared to gasoline.

Ethanol impact on Economy the direct employment potential is likely to be at least 50 times that of a

petroleum refinery the ethanol requirement for 10% blend of each of these products would

mean around 6 billion liters (1 billion + 5 billion liters) per year. This in turn, means a requirement of nearly 90 to 100 million tones of additional sugarcane to be converted to ethanol, which is only around 30% of total sugarcane grown in the  country as against 55% used in Brazil for ethanol program. This in turn would provide an additional income per year to the tune of Rs 6500 Cr.(65,000 million) at an average price of Rs. 650 per tone. This would also involve a cultivation of nearly 1.4 million hectares out of the total cultivable area 184 million hectares and involve supporting an estimated 1 crore farmers  (and their families)

A 6 billion liters ethanol production, could save an estimated around US$1 billion in foreign exchange in diesel / petrol equivalent. The value would be much higher if MTBE equivalent is worked out. The value to be attached to enhanced energy  security of the Nation has to be considered

Facts for Policy makers   Ethanol is a renewable energy source with positive energy balance   Ethanol is more environmental friendly than gasoline   Large scale ethanol usage can promote more jobs while considering the loss of jobs in the oil

refineries   Viability of ethanol as a alternate fuel is decided by its cogeneration potential   Government subsidies are required for the promotion of  ethanol as fuel   Sugar based ethanol production are more economical than the corn based ethanol production   Only minimal changes are required to convert both the engine and fuel distribution sides to

accept ethanol as fuel Controlled Ethanol production option from sugarcane and food grains may not affect the sugar and

food grain supply in the consumer markets Cellulosic biomass to ethanol conversion technique can be made cost effective in the near future Flexible fuel vehicles are more appropriate than introducing E100(ethanol only) vehicles Advancements in biotechnology can significantly change the cost economics of fuel ethanol

production Simultaneous Sacharification and Fermentation technique can give higher ethanol yield from the

feedstock Molecular sieve technology is a highly efficient dehydration technology for producing fuel ethanol Ethanol as a fuel for the Fuel cells is more viable (Technically & Economically) compared to other

fuels Agricultural country like India can meet the whole ethanol fuel requirement by means of   sugar and

starch feedstock Countries like India and China which are having a vast area of cultivable land & cheap labor can

gain competitive advantage over other countries in ethanol production

Kyoto protocol

The Kyoto Protocol is an international treaty designed to limit global greenhouse gas emissions. Many Parties to the United Nations Framework Convention on Climate Change (UNFCCC), have signed the Protocol.

The Kyoto Protocol provides for three mechanisms that enable the developed countries to meet the emission limitation and reduction commitments. Under the Clean Development Mechanism (CDM), developed countries would take up Green House Gas reduction activities in developing countries.

Advantages of Kyoto for India

In terms of reduction of carbon emission, the nation can save nearly 5 to 6 million tones of carbon equivalent per year including carbon substitution by bagasse. This can mean additional income from international carbon trading estimated to be to the tune of $ 100 million. More importantly, the program will assist in promoting sustainable development, slowing down  climate change and reducing medi-care bills in thousands of crores.

Subsidies for EU ethanol Europe: A global positive environmental impact

Public concern about health effects due to urban air pollution in the late 1980's and early l990's, has became more significant, pushing European governments into the implementation of drastic legislation (on cars and fuel qualities). Recent years have seen many pressures on vehicle and fuel performance to meet increasingly stringent emissions regulations and improve fuel consumption. The driving force for using biodiesel and ETBE/Ethanol as alternative fuel is a desire to reduce global CO 2. Thus, it is generally claimed that alternative fuels will reduce both regulated (carbon monoxide, total hydrocarbons, nitrogen oxides, particulates) and unregulated exhausts (aromatic compounds, benzene), emissions while reducing drastically sulphur emissions. Although much information have been collected on the environmental impacts of biofuels, a complete assessment of these impacts at European and international levels is still very difficult. Therefore, The European EPEFE programme, set up in 1994, was mainly aimed at establishing common European assessments of positive environmental impacts of liquid biofuels.

Use of oxygenates in addition with premium fuels in France Updated tests undertaken in France on catalyst and non-catalyst vehicles revealed interesting positive impacts of using oxygenates fuels (e. g gasoline in addition with added oxygenates such as ETBE produced from sugar beet). Adding ETBE to gasoline leads to a decrease of CO, unburned HC and aromatic compounds such as benzene.

Use of reformulated gasoline in Finland Reformulated gasoline in Finland contains less sulphur and benzene than conventional gasoline. Its lower vapour pressure means lower volatility and less volatile organic compounds into the air than from conventional gasoline. Reformulated gasoline is unleaded and has an oxygen content of around 2%. MTBE and TAME gasoline components provide the oxygen. The emission benefits with reformulated gasoline are significant. Biomass based ethanol or methanol can be utilised as raw material for ETBE / MTBE production when the price will be competitive with natural gas based components.

Use of mixed biodiesel in France The absence of sulphur in FAME gives to this product a real environmental advantage in comparison to diesel fuel. As a matter of consequence, according to several European studies (Austria, Germany, France), the mutagenic power of exhaust gas of pure ester is about 60% below that of diesel fuel. The overall impact of ester on air pollution depends on the incorporation rate.

Toward specification process of biodiesel in Europe Standards are of vital importance for the producer, supplier and user of biodiesel. A standard is a prerequisite for the market introduction and commercialisation of new fuels. As the production of biodiesel in Europe has reached a considerable market position, it is essential to develop a common European standard. The "International Conference on Standardisation and Analysis of Biodiesel" of 1995 showed a high interest in starting the development of a European standardisation process.

National standards have been adopted in member states where the biodiesel use is relevant. The following table shows a comparison of the biodiesel standards and specification in Europe:

In 1997 the European Commission gave a mandate to CEN for the elaboration and adoption of standards for fatty acid methyl ester (FAME) as fuel for diesel engines and space heating at European level: - FAME as sole diesel engine fuel (100%); - FAME as extender to EN590 diesel engine fuel; - FAME as sole fuel or as extender to mineral oils for the production of heat. Standards will be proposed by the end of 2000.

US Ethanol

USA :The US ethanol industry has been supported by clean air legislation, which mandates petrol additives, since 1990. Ethanol's prospects have been boosted by moves to outlaw one of its competitors in the biofuels market, MTBE. The US has enacted legislation that will almost double US ethanol production to 7.5 million gallons in 2012. That was driven by pollution concerns and the need to boost self-sufficiency in fuel supplies.

Price mechanism

Price of MTBE : Global Prices of MTBE fob on Asian ports is above 600USD and is higher in EU.

Ethanol Procurement : Oil companies are buying at Rs21/lt.

With weak Dollar and strong rupee this has brought down value difference, but for a period of 2-3 years difference between MTBE and Indian blending was around Rs.10/lt,meaning Rs.30/lt was appropriate.

EU subsidies Financial incentives and tax system policy

In order to be able to compete with fossil fuels routes, renewable energies routes and possibly liquid biofuels should be financially supported, through a tax relief policy or though direct aid granted to the channel (direct support to farmers, industries; tax relief on green energy. Considering the future development of ETBE and methyl ester in Europe, it would appear that in the short and medium term, tax relief is the most effective way to ensure that biofuels are competitive. This already applies without any problem to other fossil fuel (GPL) and to other forms of energy used in transport (electricity). For tax legislation to be adopted at Community level, the members states will have to be unanimous, and at present this appears to be unlikely. Finally, the current discussion on Agenda 2000 will influence decisions on possible support of non food outlets for agricultural production. Tax relief and other financial incentives in favour of liquid biofuels in Europe are as follows:

Austria Tax relief (95%) adopted for pure biodiesel used as an engine fuel. Belgium Tax relief (100%) adopted for experimental projects using plants with a capacity under 5 000

tons/year, from 1994 to 1996. Finland Tax incentive for reformulated diesel fuel (0,025 ECU/L) and for reformulated gasoline (0,008

ECU/L). France Tax incentive adopted for VOME mixed with diesel (0,35 ECU/L) and for ETBE mixed with gasoline

(0,22 ECU/L). Germany No excise tax for biodiesel substituting standard fuels, either unblended or blended with fossil

diesel in the vehicle tank. Greece No tax relief and no financial incentives. Ireland No tax relief and no financial incentives. Italy Tax relief adopted on a maximum quantity of 125 000 tons of pure biodiesel operating for a limited

time Spain Tax relief on methyl ester used in experimental project and no financial incentives. The Netherlands No financial incentives, but tax relief on bioethanol is requested.

ETBE Life Cycle analysis of ETBE from sugar beet Ethanol

Life Cycle Analysis has been used to estimate the consumption of primary energy related to all steps in the production of ETBE, MTBE and ethanol. The method dissociates renewable and fossil energies. The energy balance, for which only non renewable energy is taken into account, has been established as the ratio of biofuel energy produced divided by total fossil primary energy used. This ratio has been estimated for several products using the Life Cycle Analysis Method. Results have been calculated as follows:

Gasoline - 0 74-0.84 MTBE (from fossil fuel) - 0.73 ETBE (from sugar beet ethanol)- 0.93 Ethanol (from sugar beet) - 1.18, where ethanol is obtained 50% from green juice, 50% from GS2 (Green syrup after the second cycle).

As indicated the energy balance for ETBE is slightly below 1, as the synthesis of ETBE requires the consumption of isobutylene, of fossil origin. However, Ethanol and ETBE are the products having the best energy balances.

Calorific value and its implications

Unfortunately, ethanol has a comparatively low calorific value* of only 28.6 MJ/kg compared to 43.5 MJ/kg of petrol which means that it requires an additional 35% more ethanol to release the same amount of energy as petrol.

This fact is clearly revealed by comparing the stoichiometric air/fuel requirement of petrol (14.73:1) to that of ethanol (9.0:1).

However, this disparity is not born out in test results. In general, the fuel economy of an engine using a 10% ethanol/petrol blend is usually only 3% to 4% lower than the same engine using 100% petrol as a fuel.

Effects of ethanol on fuel parameters

The octane number is a measure of the resistance to the abnormal combustion phenomenon known as 'knock'. As previously stated, ethanol in petrol is known to enhance the octane number or rating of fuel, and is recognised worldwide as a proven octane enhancer.

The octane performance of a fuel is measured under two different operating conditions that provide the 'research' and 'motor' octane numbers (RON and MON) of the fuel. RON relates to low speed (lugging) operation, and MON relates to high engine speed operation.

The octane requirement of a particular engine type results from a number of design factors such as compression ratio and the design of the combustion chamber. Engines and petrol octane numbers are complementary; engines are designed to operate effectively on commercial fuel of specified octane numbers and fuel suppliers must ensure petrol octane meets these market needs.25

The difference between the RON and MON is called the 'sensitivity'. Petrol manufacturers try to maintain this at about 8 to 10 units to prevent high speed knock and possible engine damage. The sensitivity of E10 is about 14 units, although this may vary somewhat depending on the composition of the base petrol.

The oxygen content required for combustion in a motor vehicle running on non-oxygenated fuel is sourced from the air. The oxygen content of a fuel has an effect on the Air-to-Fuel (A/F) ratio. The A/F ratio required for complete combustion (the stoichiometric balance) is 14.6:1, that is 14.6 kilograms of air to one kilogram of non-oxygenated fuel.

Ethanol blended fuels have an increased oxygen content (ethanol at 10% equates to an oxygen content of 3.5%), which will alter the A/F ratio at which the engine is operating.

Volatility refers to a fuel's ability to change from liquid to vapour. It is characterised by three measurements - vapour pressure, flexible volatility index and distillation curve.

Volatility is commonly measured by RVP (Reid Vapour Pressure), which is the fuel's vapour pressure at 37.8 degrees Celsius. This is a measure of the fuel's more volatile components which vaporise first, known as 'front end volatility'. RVP is largely governed by the fuel's butane content, which has an RVP of around 350 kPa

Although ethanol itself has an RVP less than that of petrol, its addition to petrol markedly increases the RVP of the blend, which can lead to increased evaporative emissions. It is generally accepted that the peak RVP of ethanol blends occurs at around 5-10% ethanol concentration, and is about 6.5% above the RVP of neat petrol. At 20% ethanol concentration, the RVP is approximately 5% above that of neat petrol

Recent life-cycle analysis work has revealed that about 4% more fuel is required in an E10 blend to achieve the same MJ/L.52 On an energy content basis, it is estimated that for E20 fuel consumption will increase by about 7%

Biofuel Trade Demand for biofuels set to rise As both developed and developing

countries attempt to carve out a place for themselves in the emerging biofuels market, both supply and demand of these alternative fuels are expected to rise dramatically. World production of ethanol increased from less than 20 billion litres in 2000 to over 40 billion litres in 2005. This represents around 3 per cent of global petrol use. Production of biofuels is forecasted to almost double again by 2010.

Opportunities and the role of international trade This budding market presents many opportunities for developing countries where biofuels may be produced most easily and cheaply, although different countries will enjoy different opportunities and biofuels may not be the most appropriate option for all of them. International trade in biofuels and feedstocks may provide win-win solutions.For several importing countries it is a necessary precondition for meeting the domestic blending targets

For exporting countries, especially small- and medium-sized developing countries, export markets are necessary to augment local demand while initiating their industries.