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DR. SANJAY V. PATIL HEAD AND TECHNICAL ADVISER DEPARTMENT OF ALCOHOL TECHNOLOGY VASANTDADA SUGAR INSTITUTE, MANJARI, PUNE (INDIA) Author for correspondence : sv.patil@vsisugar.org.in

Produce enough ethanol to make 10 % and 20 % EBP successful and sustainable (National Biofuels Policy). Continuous growth of liquor industry (10-12 % growth). INCRESING DEMAND FOR ETHANOL IN THE COUNTRY. Though world sugar market will be in deficit (5.2 mln tonnes) in 2015/16 for the first time in six years, stocks will still remain high. Stock % consumption ratio will be still above the critical level of 35 % indicating less chances of improvement in International sugar price. NO SCOPE FOR EXPORT UNLESS IT IS SUBSIDIESED. Even after mandatory export of 4.00 mln tonnes of sugar, ending stocks in India will still remain high. Can we overcome this problem with our conventional route of sugar production? WE REQUIRE FLEXIBLE ALTERNATIVES. Recent price hike offered by the OMCs in India for fuel ethanol. THIS OFFERS AN INTERNAL OPPORTUNITY.

China 8.37 India 3.45 Canada 1.97 Billion Liters Brazil 28.99 USA 55.98 U.S.A. Brazil China India Canada Total World Ethanol production in 2015 was 113.41 Billion liters Global ethanol production to grow by 4 % and consumption to grow by 6 %

Sector 2012-13 (5 % EBP) 2013-14 (5 % EBP) Year 2014-15 (5 % EBP) 2015-16 E (10 % EBP) 2020 E (10 % EBP) Liquor Industry 1100.00 1150.00 1200.00 1250.00 1650.00 Chemical Industry 750.00 750.00 750.00 750.00 Fuel purpose (EBP) 360.00 350.00 800.00 2660.00 Export -- 175.00 200.00 200.00 Total Demand 2210.00 2425.00 2950.00 4860.00 Production from molasses Production from grains 2587.20 2500.00 2550.00 2600.00 ---- ----- 900.00 1000.00 Total Production ----- ----- 3450.00 3600.00 4450.00 (ISO) +10000.00 (20 % EBP)

Final C molasses to be produced in 2015/16: MT. 11.21 mln Maximum Ethanol to be produced from C molasses: 2500-2600 million liters. Molasses based installed capacity : + 5.0 bln lit. (Capacity utilization is about 50 %). Grain based installed capacity : 1.8 bln lit. Total installed capacity: 6.8 bln lit. India may import ethanol (ODS) in 2015/16. Fuel Ethanol price offered by OMCs Rs. 45.0-46.0/lit (From 1 st October 2015 (Ex-factory). Therefore, we require alternate raw materials for ethanol production.

1. Sugar Mill: 5000 TCD 2. Cogeneration: 22 MW 8. Biocomosting with enrichment 3. Distillery: 60 KLPD (30+30) 7. Biogas 4. Fermentation: Fed-batch 6. Evaporation: Integrated + Stand-alone (for RSW) 5. Distillation: Multipressure (30)+ Atmospheric (30)

Sr. No Parameters BH Molasses C Molasses 1 ph 5.16 5.01 2 Brix 85.0 0 88.0 0 3 Total Reducing Sugars 61.33 % 50.08 % 4 Unfermentable Sugars 4.0 % 5.01 % 5 Fermentable Sugars 57.33 % 45.07 6 F/N 2.07 1.05 7 Total microbial count 8.8 10 1 CFU/gram 5.6 10 3 CFU/gram

Sr. No. Particulars BH molasses route C molasses route 1. Distillery capacity, KLPD-RS 100 70 2. Final ethanol concentration in fermented broth, % v/v 12.5 to 13.0 9.0 to 9.5 3. Final residual sugars in fermented broth, % w/v 0.8 to 0.9 1.2 to 1.4 4. Fermentation efficiency, % 90-91 88-89 5. Raw spent wash generation, Lit/Lit of ethanol 7.0 to 7.5 9.3 to 9.5 6. Raw spent wash COD, ppm 85,000 110,000 7. Concentrated spent wash generation (after evaporation), Lit/Lit of ethanol 4.5 6.5 8. Steam consumption, Kg/Lit of ethanol 1.75 2.40 9. Reduction in TRO consumption, Lit/day 75 150

Sr. No. Particulars BH molasses Final molasses route route 1. Crushing capacity, TCD 5300 5000 2. Recovery, % 10.72 12.08 3. Net exportable power due to electricity saving in sugar mill operation, units/day 4. Steam consumption in sugar mill operation, MT/day 5. ICUMSA colour of sugar, IU units 3,68,400 3,60,000 2064 2160 130 145

( Rs. in Lac) Sr. No. Particulars BH Molasses C Molasses Route Route 1 No. of days 48 51 2 Total Crushing, MT 251851 251851 3 Recovery % Cane, % 10.72 12.08 4 Sugar Production, Qtl 269984.3 304236.0 5 BH Molasses % Cane, % 5.85 3.60 6 BH Molasses Production, MT 14733.3 9066.6 7 Ethanol Recovery, Lit/MT 323 252 8 Ethanol Production, Lit 4758851 2284792 9 Receipt From Ethanol (RS) @ Rs. 45/Lit 2141.48 1028.16 10 Receipt From Sugar @ Rs. 28/Kg 7559.60 8518.60 11 Total Receipt, Rs. 9701.04 9546.76 12 Ethanol Conversion cost, Rs. 6.5-7.5/L 225.4 132. 1 13 Sugar Conversion cost @ Rs.600/Qtl. 1619.9 1825.4 14 Total Conversion cost, Rs. 1845.3 1957.6 15 Total Receipt, Rs. 9701.04 9546.76 16 Net Income, Rs. 7771.81 7549.99 17 Net Profit (Net Income BH FM), Rs. + 221.82

( Rs. in Lac) Sr. No. Particulars BH Molasses Route C Molasses Route 1 No. of days 48 51 2 Total Crushing, MT 251851 251851 3 Recovery % Cane, % 10.72 12.08 4 Sugar Production, Qtl 269984.3 304236.0 5 BH Molasses % Cane, % 5.85 3.60 6 BH Molasses Production, MT 14733.3 9066.6 7 Ethanol Recovery, Lit/MT 323 252 8 Ethanol Production, Lit 4758851 2284792 9 Receipt From Ethanol @ Rs.45 /Lit 2141.48 1028.16 10 Receipt From Sugar @ Rs. 32/Kg 8629.50 9735.60 11 Total Receipt, Rs. 10780.98 10763.71 12 Ethanol Conversion cost, Rs. 6.5-7.5/L 225.4 132.1 13 Sugar Conversion cost @ Rs.600/Qtl. 1619.9 1825.4 14 Total Conversion cost, Rs. 1845.3 1957.6 15 Total Receipt, Rs. 10780.98 10763.71 16 Net Income, Rs. 8851.75 8766.93 17 Net Profit (Net Income BH FM), Rs. + 84.82

( Rs. in Lac) Sr. No. Particulars BH Molasses Route C Molasses Route 1 No. of days 48 51 2 Total Crushing, MT 251851 251851 3 Recovery % Cane, % 10.72 12.08 4 Sugar Production, Qtl 269984.3 304236.0 5 BH Molasses % Cane, % 5.85 3.60 6 BH Molasses Production, MT 14733.3 9066.6 7 Ethanol Recovery, Lit/MT 323 252 8 Ethanol Production, Lit 4758851 2284792 9 Receipt From Ethanol @ Rs.45/Lit 2141.48 1028.16 10 Receipt From Sugar @ Rs. 35/Kg 9449.40 10648.30 11 Total Receipt, Rs. 11590.93 11676.42 12 Ethanol Conversion cost, Rs. 6.5-7.5/L 309.33 171.36 13 Sugar Conversion cost @ Rs.600/Qtl. 1619.91 1825.42 14 Total Conversion cost, Rs. 1929.23 1996.78 15 Total Receipt, Rs. 11590.93 11676.42 16 Net Income, Rs. 9661.70 9679.64 17 Net Profit (Net Income BH FM), Rs. -17.94

( Rs. in Lac) Sr. No. Particulars BH Molasses Route C Molasses Route 1 Savings from gunny bag @ Rs. 50/bag 34252 X 50 17.1 2 Additional Electricity (Co-gen) Revenue, Rs. 350 X 24 X 5.69 X 48 22.9 3 Saving in Molasses transport cost Rs. 9836.4 X 500 49.2 4 Addition Revenue from Bolder grain, Rs. 269984 X 20% X 40 21.6 5 Savings due to Extra Crushing, Rs. 3 day seasonal labour x 2 lac 6.0 6 Steam saving, Rs. 4 ton X 24 X 48 days 46.1 7 Saving in Interest Burden, Rs. 34252 X 99 33.9 8 Total Income from Indirect Benefits, Rs. 196.8

Sr. No. Particulars At Rs. 2800/Qtl At Rs. 3000/Qtl At Rs. 3200/Qtl At Rs. 3400/Qtl At Rs. 3500/Qtl 1 2 3 4 Income from Direct benefits, Rs. Lac Income from Indirect benefits, Rs. Lac Total Income, Rs. Lac Net Profit/MT Crushing, Rs. 221.8 153.3 84.8 16.3-17.9 196.8 196.8 196.8 196.8 196.8 418.6 350.1 281.6 213.1 178.9 166.2 139.0 111.8 84.6 71.0

Switch over from (C) final molasses to BH molasses is fast. Increase in distillery capacity (70 KLPD 100KLPD) Production of BH molasses will reduce steam consumption in sugar mill and distillery that will results in bagasse saving. Sugar colour and size can be improved. Increased export of power from cogeneration unit. Saving in gunny bags because of reduced sugar production. Reduction in interest burden on sugar stock with sugar mill. Reduction in transport cost of purchased molasses. Saving in working days of sugar mill because of additional crushing capacity. Reduction in per liter effluent treatment cost in distillery.

1. SJ or WCJ cannot be stored as it is perishable. 2. Requires additional investment for pretreatment. 3. Generally, all SJ or WCJ can t be used in typical Indian distilleries (small capacities) attached to sugar mills. 4. Therefore, we will have to adopt partial SJ or WCJ route (depending on the capacity of the attached distillery). 5. Spent wash characteristics will change (Lower COD/BOD) and therefore may not suit to the existing ETP of the distilleries. 6. Partial SJ becomes the next choice after BH molasses route.

Particulars Recovery (%) Sugar Production Reduction (%) Ethanol Production Increase (Times) Advantages/ Drawbacks Conventional 11.49 --- --- BH Total SJ Partial SJ 10.14 6.97 10.41 11.0-20.0 1.72-2.21 No investment 40.0 3.37 Additional investment 09.3 1.59 Additional investment WCJ -- -- 6.84 No sugar

100% Ethanol Sugar Brazil- Sugar vs. Ethanol in % of the cane crop 90% 80% 70% 60% 50% 40% 30% F.O. Licht s 2015,Vol 13,No.13/04.03.2015 20% 10% 0%

Blend % vol 30 Brazil Ethanol Blends 27 25 25 23 22 22 22 24 22 24 22 24 25 25 23 25 25 25 20 18 20 20 20 20 18 20 20 20 20 20 15 10 11 10 11 10 12 15 13 5 5 0 Date

Variable (5 to 25 %) but mandatory Ethanol blending ratio and Fixed Price Fixed FRP for Sugarcane Sugar price

CONCLUSIONS 1. B-Heavy molasses route can fulfill the increasing ethanol demand of the country. It is also necessary to reduce the increasing sugar stocks. 2. B-Heavy molasses route will be the next choice after conventional route as switch over is fast with better sugar quality (bolder grain) and no capital investment. 3. There can be variation from case to case depending on configuration of sugar mill, distillery and cogeneration units. 4. Indian sugar mills need to develop flexible approach to shift from sugar to ethanol or vice-versa as per the market demand. 5. Ethanol is sold against spot payment whereas sugar sale is dependent on market conditions and invites interest burden during storage. 6. Success of Ethanol Blending Programme (EBP) is now a key factor for survival of sugar industry in the country. 7. Molasses ethanol can preferably go for fuel and industrial use and grain ethanol can preferably go for potable purpose.