As per the government, the blending target of ethanol with petrol has been scaled up to 10% from 5%.

Currently, different units in India are barely meeting the 4% target on blending. This, however, is a significant gain compared to 1-2% that was being achieved in early 2014. Almost all of the 120-odd crore litres of ethanol (for blending with petrol) is gotten from molasses, a waste product from the sugar industry.

Hitting the 5% target only with molasses is quite possible, said Pramod Chaudhari, executive chairman of Pune-based Praj Industries, which is involved in research and development of various processes that converts various raw materials into ethanol.

Chaudhari, however, said due to the vagaries of sugarcane crop the government has to look at other sources of bio-feeds if it has to realise the target of 10%.

“To achieve 10% by 2022, availability of raw materials is required… With molasses, the existing production can be increased to up to 160 crore litres. For more, feed stock other than molasses is being looked into,” Chaudhari, who is also the chairman of the bio-energy committee of industry body CII, said.

Given the dispersed nature of agriculture in the country, the collection and distribution of agri-waste is a big challenge. About 80% of Indian farmers are small and marginal farmers holding less than two hectares of land.

“Collection, aggregation and distribution is a big challenge,” said Chaudhari, adding, “A NREGA like programme can be introduced to enable collection of agri-waste.”

Praj, at its R&D facility in Pune, is working on multi-grain waste products like corn cobs, rice and wheat straw, among others to convert them into ethanol. “The government has realised that producing ethanol from agri-waste will be a little expensive to start with. So they are encouraging the oil and marketing companies to start production in the initial stages,” Chaudhari added.

The target of 10% or even slightly higher ethanol blending with petrol (and later diesel), experts say, nicely dovetails with the government’s aim to introduce a stringent Bharat Stage – VI emission norm by April 1, 2020.

Praj on its part has also set-up a “green fund,” which will provide seed capital, in exchange of stake to entities that are looking to set-up ethanol manufacturing plants based on agri-waste.

Asked why Praj itself does not get into producing ethanol, Chaudhari said, “I am doing my job of optimising processes and doing research.

“The company is looking to finalise at least one contract on agri-waste-based blending plant by the end of the current financial year – which if materialises, Chaudhari said, “It should give us reasonable good benefit so that we can be back (in terms of profitability) to where we were 10 years ago.” In the quarter ended June 30, 2016, the company’ y-o-y net profit halved to Rs 4.11 crore on income of Rs 205 crore.

Fount: http://sugarnews.in/collection-delivery-of-agri-waste-for-ethanol-blending-remains-a-challenge/