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Sunday, June 11, 2006

A SUGAR INDUSTRY PERSPECTIVE & ETHANOL PRODUCTION








A SUGAR INDUSTRY PERSPECTIVE & ETHANOL
PRODUCTION






India is the largest producer of sugar in the world. In terms of
sugarcane production, India and Brazil are almost equally
placed. In Brazil, out of the total cane available for crushing,
45% goes for sugar production and 55% for the production of
ethanol directly from sugarcane juice. This gives the sugar
industry in Brazil an additional flexibility to adjust its sugar
production keeping in view the sugar price in the international
market as nearly 40% of the sugar output is exported.



The annual projected growth rate in the area under sugarcane at
1.5% per annum has doubled during the last five years. This is
because it is considered to be an assured cash crop with good
returns to the farmers vis-a-vis other competing crops.



India is currently passing through a glut situation with closing
stocks at the end of the year of over 100 lakh tons since
1999-2000. Correspondingly, molasses production has also
increased. The table below gives the production of molasses,
alcohol utilization by the alcohol-based chemical industry,
potable sector and the surplus at the end of each year. It is
therefore evident that along with sugarcane production,
phenomenal growth is also taking place in the production of
molasses, the basic raw material for the production of ethanol
from sugarcane. Of course, there are also other agro routes
available to produce ethanol.



According to MPNG, 5% ethanol blends on an all-India basis would
require 500 million liters. The current availability of molasses
and alcohol would be adequate to meet this requirement after
fully meeting the requirement of the chemical industry and
potable sectors.



AVAILABILITY



In the absence of a well knit policy in the past for purchasing
and blending ethanol, not many distilleries have been producing
ethanol. Only three distilleries attached to sugar mills had war
years’ experience, and were able to gear themselves up to supply
ethanol immediately. Now, about 11 factories in Uttar Pradesh
will be adding facilities to produce about 75 million liters of
anhydrous alcohol by end-September; 7 units in Tamil Nadu
(production capacity of 62.5 million liters of anhydrous
alcohol); 8 in Karnataka (anhydrous alcohol production capacity
of 66.5 million liters); and 4 units in Andhra Pradesh (capacity
of over 40 million liters). Similar steps have also be taken up
by the cooperative sector units in Maharashtra, Punjab and UP.
By the end of the year it is estimated that about 300 million
liters capacity would have been created for the production of
anhydrous alcohol.



As capacities are built up, the oil sector should also be able
to generate that much demand for ethanol to guard against any
idling capacity. The Petroleum Ministry may therefore like to
look into this matter and ensure that the oil sector speeds up
the creation of requisite facilities for blending ethanol with
petrol. So far generation of demand for ethanol has been very
low and it takes considerable time for IOC’s units to finalize
purchase of ethanol against offers made by distilleries in
response to their tenders.



In the Indian Sugar Mill Association, this matter was recently
examined and it was concluded that instead of taking up the
scheme on a state-wise basis, it would be appropriate to take it
up in metropolitan and other cities where environmental
pollution is a major concern. The blending should be taken up to
10% and introduced selectively to make a better impact on the
environment, as no changes in the engine or carburetor are
required, and other countries are already carrying this out
successfully.



COST

There is considerable scope for further reduction in the cost of
production of both sugarcane and sugar in India with
liberalization of controls on the sugar industry. Consolidation
of land holdings and corporate farming on the raw material side
and expansion of capacity on the unit size are important
developments and would lead to substantial improvements in
productivity, thereby rendering India a cost-effective producer
of sugar in the world.



The area under sugarcane is presently less than 2% of total
cultivable area in the country and about 3% of the irrigated
area. There is considerable scope for increasing the area under
sugarcane considering the fact that it is more profitable
compared to other crops. The Planning Commission has visualized
a conservative increase in area under sugarcane by 6 lakh
hectares during the 10th Plan period, but considering past
trends, the area under cane is likely to exceed 5 million
hectares (see table).



During the 10th Plan period, the annual incremental growth in
consumption has been estimated at 9 lakh tons per annum. For the
first time the Indian Government has fixed a target of 15 lakh
tons per annum for export for this period. However, the
production target was fixed at 21.3 million tons keeping in view
the large carry forward stocks at the beginning of the period
and to correct the demand-supply distortions presently caused.
These targets are achievable looking at the performance of the
industry in the past with a production of 18.5 million tons
achieved in 2000-01.



CONCLUSION



In conclusion, the sugar industry will not be lacking in meeting
the requirement of ethanol. In a market economy, there would be
a considerable shift from the gur and khandsari sectors which
are inefficient producers with poor quality. In the current
scenario of glut in sugar production, it may be advisable to
divert such additional cane for the production of alcohol after
meeting the sweetener requirement. The additional availability
of alcohol on the assumption that the entire cane is utilized
for the production of sweeteners will be about 200 million
liters over and above that indicated in the table.
Alternatively, if additional cane available is utilized for the
production of alcohol to bring in a balance in the demand and
supply of sugar, the alcohoI production at the end of the 10th
Plan would be around 1,485 million liters.

Such a flexibility has become very relevant in the current
scenario of economy liberalization and more particularly as a
means to correct the aberrations in sugar production.







































































































Alcohol
Production




(in
million liters)




Alcohol Year




Molasses Prod.




Production of Alcohol




Industrial Use




Potable Use




Other Uses




Surplus Availability







1998-99




7.00




1411.8




534.4




5840




55.2




238.2




1999-00




8.02




1654.0




518.9




622.7




576




455.8




2000-01




8.33




1685.9




529.3




635.1




588




462.7




2001-02




8.77




1775.2




5398




647.8




59.9




527.7




2002-03




9.23




1869.7




550.5




660.7




61.0




597.5




2003-04




9.73




1969.2




578.0




693.7




70.0




627.5




2004-05




10.24




2074.5




606.9




728.3




73.5




665.8




2005-06




10.79




2187.0




619.0




746.5




77.2




742.3




2006-07




11.36




2300.4




631.4




765.2




81.0




822.8






The task force on the sugar industry for the Tenth Five Year
Plan has suggested the evolution of a national policy on
alternative fuels, which would include the use of
ethanol-blended gasoline.



Until such a policy is evolved, sugar factories and distilleries
should be encouraged to produce ethanol from the surplus alcohol
available with them, a report of the task force says. For this,
it suggests providing loans from the Sugar Development Fund at 6
per cent per annum for up to 60 per cent of the project cost.




The ministry of petroleum and natural gas and the oil companies,
in consultation with the department of food and public
distribution, the All-India Distilleries Association and the
apex bodies of the sugar industry, can set a reasonable price
for ethanol produced by distilleries for the purpose of blending
with gasoline.



There is a need to compare ethanol prices with other
oxygenates-cum-octane boosters such as MTBE, and not with
gasoline, the report states. As an oxygenate, ethanol contains
oxygen, which naturally reduces its calorific value but improves
the combustion efficiency and significantly reduces air
pollution.



Considering the environment-friendly characteristics of
ethanol-blended gasoline as an automobile fuel, the pricing of
ethanol needs to be viewed not only in terms of a financial
cost-benefit analysis, but also in terms of an economic
cost-benefit analysis, the report adds.



In Brazil 20-24 per cent of ethanol is blended in gasoline. In
the US, 10 per cent of ethanol, produced mainly from maize, is
blended with gasoline.



There has been a steady increase in the production of alcohol in
India, with the estimated production rising from 887.2 million
litres in 1992-93 to nearly 1,654 million litres in 1999-2000.
Surplus alcohol leads to depressed prices for both alcohol and
molasses.



According to the task force, the projected alcohol production in
the country will increase from 1869.7 million litres in 2002-03
to 2,300.4 million litres in 2006-07. Thus the surplus alcohol
available in the country is expected to go up from 527.7 million
litres in 2002-03 to 822.8 million litres in 2006-07.



Utilization of molasses for the production of ethanol in India
will not only provide value-addition to the byproduct, it can
also ensure better price stability and price realization of
molasses for the sugar mills. This will improve the viability of
the sugar mills, which will in turn benefit cane growers.



With gasoline demand expected to increase from 7.9 million tones
in 2001-02 to 11.6 million tones in 2006-07, the requirement of
ethanol at 5 per cent blending is expected to rise from 465
million liters to 682 million liters.







Source : 10th Five Year Plan.

Thursday, June 01, 2006

Swapn

Thursday, May 25, 2006

ALFA LAVAL INDIA:Sinsurang Distillery(THAILAND )ready for commercial production


Sinsurang Distillery ready for commercial production



Thanks to the exemplary team effort by our commissioning team of Javaji Prasad, Umesh Lakhdive, Jaysingh Parade and CG Londhe and the co operation extended by Alfa Laval Thailand team, for making it possible to hand over a 30 KLPD distillery in Thailand for commercial production. The customer was satisfied as the plant could meet all the guaranteed performance parameters

The customer is Sinsurang Liquor Company at Thailand. The distillery will produce of 30,000 liters of potable alcohol per day from sugar cane molasses. The plant is completely automated Fermentation and Distillation plant. The Distillation is a Multi-Pressure 6 column distillation system to produce fine grade of Extra Neutral alcohol for liquor manufacturing.

Though Alfa Laval India had earlier completed Ethanol dehydration plants in Thailand, this is the first distillery project commissioned on Turnkey basis.

........Source Alfa Laval India

Wednesday, May 17, 2006

WHAT IS FUEL ETHANOL !!

WHAT IS FUEL ETHANOL

Ethanol (ethyl alcohol, grain alcohol, ETOH) is a clear, colorless liquid with a characteristic, agreeable odor. In dilute aqueous solution, it has a somewhat sweet flavor, but in more concentrated solutions it has a burning taste. Ethanol, CH3CH2OH, is an alcohol, a group of chemical compounds whose molecules contain a hydroxyl group, -OH, bonded to a carbon atom. The word alcohol derives from Arabic al-kuhul, which denotes a fine powder of antimony produced by distilling antimony and used as an eye makeup. Alcohol originally referred to any fine powder, but medieval alchemists later applied the term to the refined products of distillation, and this led to the current usage.

Ethanol melts at -114.1°C, boils at 78.5°C, and has a density of 0.789 g/mL at 20°C. Its low freezing point has made it useful as the fluid in thermometers for temperatures below -40°C, the freezing point of mercury, and for other low-temperature purposes, such as for antifreeze in automobile radiators.

Ethanol has been made since ancient times by the fermentation of sugars. All beverage ethanol and more than half of industrial ethanol is still made by this process. Simple sugars are the raw material. Zymase, an enzyme from yeast, changes the simple sugars into ethanol and carbon dioxide. The fermentation reaction, represented by the simple equation C6H12O6 2 CH3CH2OH + 2 CO2 is actually very complex, and impure cultures of yeast produce varying amounts of other substances, including glycerine and various organic acids. In the production of beverages, such as whiskey and brandy, the impurities supply the flavor. Starches from potatoes, corn, wheat, and other plants can also be used in the production of ethanol by fermentation. However, the starches must first be broken down into simple sugars. An enzyme released by germinating barley, diastase, converts starches into sugars. Thus, the germination of barley, called malting, is the first step in brewing beer from starchy plants, such as corn and wheat.

ETHANOL AS A FUEL
Ethanol is used as an automotive fuel by itself and can be mixed with gasoline to form what has been called "gasohol" FUEL ETHANOL- the most common blends contain 10% ethanol and 85% ethanol mixed with gasoline. Over 1 billion gallons of ethanol are blended with gasoline every year in the United States. Because the ethanol molecule contains oxygen, it allows the engine to more completely combust the fuel, resulting in fewer emissions. Since ethanol is produced from plants that harness the power of the sun, ethanol is also considered a renewable fuel. Therefore, ethanol has many advantages as an automotive fuel.


Most industrial ethanol is denatured to prevent its use as a beverage. Denatured ethanol contains small amounts, 1 or 2 percent each, of several different unpleasant or poisonous substances. The removal of all these substances would involve a series of treatments more expensive than the federal excise tax on alcoholic beverages (currently about $20 per gallon). These denaturants render ethanol unfit for some industrial uses. In such industries undenatured ethanol is used under close federal supervision.

Tuesday, May 16, 2006

It’s Time To Celebrate For Ethanol Manufacturers !!

It’s Time To Celebrate For Ethanol Manufacturers

After a long wait, the change in Petroleum Ministry chair has brought a good news to celebrate for ethanol manufacturers in India. It is said that the center would shortly issue a notification making ethanol blending mandatory from October 2006. The new norms would apply to both public sector as well as private sector players. Initially a 5% blend would be allowed and implemented successfully & this would be increased to 10% by October 2007.

We believe, only resolution would not solve the objective, but a close micro-level monitoring & closing of all escape routes for not blending ethanol by oil corporations should be checked. A tax incentive to the program at this stage would definitely “make the oil corporations blend ethanol out of goodwill”.

Secondly it is seen that price disputes between ethanol suppliers and oil corporations remain the core problem area. Meetings are being conducted between ISMA (Indian Sugar Mill Association) and Ethanol Manufacturers Association officials to derive certain formula for price fixing. As current prices of ethanol offered by oil corporations is Rs. 18.75 is very less as the process of Special Denaturant Spirit (94.68% alcohol) is fetching a price around Rs. 21.00 to 21.50 (May 2006) itself. Hence the sugar factories are more happy to sell 94.68 % alcohol (SDS) than to convert it to ethanol and sell it at a lower price.

The ethanol manufacturers should come out with a parameter and memorandum to establish and assure an uninterrupted supply (lot work to do).

At the current situation the Northern part of India has stated blending not in full fledged. But Maharashtra, Goa, Gujarat & the southern states of Andhra Pradesh, Tamil Nadu are yet to restart full fledge. Only one manufacturer XL Telecom ltd (Ethanol Division) has courageously come forward to supply at the rate of Rs. 18.75.
On the other hand India has a lot potential for flexible fuel vehicles. As it is shows that by 2010 it is estimated that India will have 36 times more cars than it did in 1990. (Watch out China! USA?).

While some news has emerged of Indian companies in Private sector to develop ethanol in large scale plants from non-molasses routes in rural parts of India.

Reliance Industries Limited is planning to set up an ethanol extraction plant at Kurkumbh. Farmers should celebrate as then can afford to give a sound rate to their sugarcane. The ethanol manufacturers should not worry as ethanol they proposed to produce will be consumed for their mono-ethylene glycol unit itself & will not be using for petrol blending. (Get in touch with Business Brains for exact statistics of future demand and supply.)

To conclude , it’s bright future for ethanol & the black period is over. Only request to the government is to be fixed with the resolution of making ethanol mandatory & monitor the successful running of the ethanol programme.

* Brief from Asia’s highest rated web portal on ethanol www.ethanolindia.net

Monday, May 08, 2006

Marathi Songs

Can anybody give good marathi songs? - esp. halki-phulki...