Leverage 1st & 2nd Gen Technologies for 20% EBP in India Atul Mulay Executive Vice President Content • Overview of Praj Industries • Status of Ethanol - India • Alternate Feedstock for fuel ethanol production – India • Praj’s Bolt-On Plant model for 2nd Gen Biofuels. © Praj Industries Ltd www.praj.net 2 Overview of Praj Industries © Praj Industries Ltd www.praj.net Praj Industries Limited • • • • • Established in 1984, Praj Industries Ltd. currently has marquee investors like Vinod Khosla, Tata Capital and Marubeni. The Company is listed on the BSE & NSE Praj is a well known brand in ethanol circles and has immense experience in wide geographies • One of the largest knowledge resource bases • Over 600 references in more than 60 countries The Company has successfully developed and demonstrable scale-up capabilities in some innovative first generation bio-ethanol process technologies The Company has a large existing client base and has experience with multiple feed-stock in various geographies © Praj Industries Ltd Praj, with experience in process engineering, has the capability to provide technology, basic and detailed engineering, key equipment and turnkey plants in ethanol, brewery and waste water segments www.praj.net 4 Praj – Bioethanol Credentials Summary © Praj Industries Ltd www.praj.net 5 Status of Ethanol in India © Praj Industries Ltd www.praj.net India : Rising Import bills of crude oil Crude oil Import Bill in USD Billion 350 300 300 250 200 150 150 78 100 50 5.5 16 1990 2000 0 2010 2014 2020 (est) • Domestic demand for crude oil and import bill for the same ,moved up by 13 times in last 20 years • By 2020, India`s dependency on oil imports is projected to go beyond 90% from 75% at current level Source : Business standards © Praj Industries Ltd Confidential www.praj.net Ethanol demand and Supply with effect of EBP (million liters) 7000 6580 6000 5220 5000 4450 Fuel ethanol demand 4000 3100 3050 3000 2490 2550 2550 Overall ethanol demand 2550 2550 2100 Total ethanol produced 2000 1030 1000 0 5 % EBP 10% EBP 15% EBP 20% EBP • For 5% EBP and present consumption of the ethanol , demand and supply is meeting the targets • For 10% and above EBP there is a shortage of ethanol production and supply ( ~ 4000 million liters) to meet the targets (considered existing level of ethanol production) Considered only , Production of ethanol from the Molasses produced Damaged grain based ethanol production not considered which is ~ 30% of molasses based ethanol production Source : VSI report © Praj Industries Ltd Confidential Concept Note www.praj.net Indian Ethanol market scenario • Salient feature of ethanol production in India • > 85% of ethanol production facilities in country co-located to sugar complex • Molasses based ethanol complex • Small production capacity ~ 45 – 60 KLPD • Operations ~ 150 days/annum • 11 MMT* molasses production in 2013-14 enabled production of 2.6 bln liters alcohol • Molasses availability possess constraint on ethanol production in India • Second generation ethanol alone has potential to achieve 20% and higher ethanol blends with potential to produce more than 3 billion liters EBP & Ethanol demand Ethanol blending programme Ethanol demand (Bln liters) E5 1.03 E10 2.06 E20 4.10 Source: LMC Ethanol market report 2014 © Praj Industries Ltd www.praj.net 9 Cont…. 328 Ethanol complex in India operates for 150-180 days / annum (avg.) Installed capacity of fuel ethanol remains unutilized due to limited molasses/ feedstock availability Government committed toward implementation of E5/E10 and E20 by 2017 Limited molasses availability, increase in demand by industrial/potable sectors possess key challenge in implementing E5/E10 and E20 Oil ministry moves proposal in cabinet to produce bioethanol from non-edible plants i.e. second generation ethanol Second generation ethanol alone has potential to achieve E20 & more Praj developed efficient 2G ligno-cellulose to bio-ethanol technology & tested variety of feedstock from different geographies at its 1 MTPD (dry biomass) pilot plant over last 5 years Praj Innovative “Bolt-On” module enables production of 2G ethanol utilizing existing co-generation, utilities & ethanol unit 10 Biomass potential in India © Praj Industries Ltd www.praj.net Biomass scenario in India - 2013-2014 Produced biomass (MMT/Annum) Used biomass (MMT/Annum) Available Biomass (MMT/Annum) Oil seed crops 59.89 11.98 47.91 Sugarcane crop (Sugarcane Bagasse) 80.15 37.69 42.46 36.85 5.25 31.6 29.74 5.95 23.79 156.44 31.29 125.15 363.07 92.16 270.91 Crops Sugarcane crop (Sugarcane trash) Starch crops (Potatoes & Sweet potatoes) Others (Cereals, Pulses, Fibre and Horticultural crops) Total Biomass (Oil Crops, Sugarcane Crop, Starch Crops, Other crops) Total Biomass (MMT)/Annum Used Biomass (MMT/Annum) Excess Biomass (MMT/Annum) 363 92 271 271 MMT of excess biomass is available in India which can produce 65 bln liters/ annum Ethanol © Praj Industries Ltd *Source: TERI & SAHYOG 2013 report www.praj.net 12 Changing Energy Landscape : India 1 9 33 Nuclear % 8 Solar% Wind% 20 Hydro% Bioenergy% 56 Coal% Oil% 1 8 5 Nuclear % 4 10 2013 Solar% Wind% Hydro% 18 54 Bioenergy% Coal% 7 2 5 Oil% Nuclear % 5 Solar% 13 2020 Hydro% 1% increase of biomass availability will generate 0.7 bln liter of ethanol Nuclear, Solar and Wind can make biomass surplus to produce fuel ethanol. Surplus biomass can meet the demand of ethanol for EBP 10% and EBP20% mandate. Source: India Energy security scenario,2047,planning commission © Praj Industries Ltd Confidential Concept Note Wind% www.praj.net 17 51 Bioenergy% Coal% Oil% 2050 Praj’s Bolt -on model for 2nd Gen ethanol production and It`s advantages © Praj Industries Ltd Confidential www.praj.net PRAJ’S– 2G “Bolt-On” module 2G “Bolt-On” Module Existing ethanol complex Pre-treatment Fermentation Enzymatic Hydrolysis Distillation Hydrolyzed slurry Capacity of pre-treatment & enzymatic hydrolysis sections will be designed to suit existing distillery capacity © Praj Industries Ltd Dehydration Utilities www.praj.net • Avg. ethanol complex operations ~ 150 days / annum • Additional 150-180 days operation using 2G bolt-on model • Results in year round operations of ethanol complex • Fewer unit operations requires lower capex • Substantial increase in ethanol production • Higher asset utilization of existing distillery 15 Bolt-on second generation ethanol plant First generation molasses based plant extended operation Fermentation Molasses Storage Distillation Dehydration COGEN S/LSeparation Material Handling Pre-treatment Enzymatic Hydrolysis Add on Fermentation Ethanol Storage Second generation cellulosic ethanol ‘Bolt-on’ model COGEN Cooling tower Ethanol Storage Common Utilities © Praj Industries Ltd Confidential www.praj.net 16 Advance technology- Multi-Feedstock, Multi Product Bio- Refinery Multi-Feedstock Molasses 1st Gen Multi-Product CO2 Juice Grain Lignocellulosic Next Gen Pharma Rectified grade Spirit Ethanol BIO-REFINERY Bio-Chemicals Bio Fertilizers DDGS MSW Fuel Industrial grade Alcohol Ethanol Bio-Jet Fuel Biogas Lignin cake © Praj Industries Ltd www.praj.net 17 Key Technology Highlights Proprietary EndEnd Process Design • • • • • Multi-feed capability Pre-treatment • Efficient degradation of biomass to sugars • Better biological processing ability Efficient enzymatic hydrolysis Thermally integrated process to achieve low net energy usage Water recycled; achieve zero process liquid discharge • • Technology proven on multiple platforms High yields with different enzyme strains Enzyme Flexibility CoFermentation Intellectual Property © Praj Industries Ltd • Yeast strain for efficient utilization of C5 (pentose ) and C6 (hexose) sugars • Higher yield • Lower reaction time • Higher tolerance to solids • Process patents filed and already granted in India, SA, Kenya; pending approval in other countries www.praj.net 18 Praj’s 2G Ethanol Technology – Bolt On Approach Bolt-On Approach Feedstock Cost VIABILITY Lower Capex Technology Edge Lower Opex Adopting Praj`s 2G ethanol technology and Bolt- on approach will fulfill Nations biofuel demand © Praj Industries Ltd Confidential www.praj.net 19 Summary 2nd Gen BioEthanol will ensure ethanol availability Proprietary 2nd generation bioethanol technology Superior Performance Proven Expertise in developing & deploying bioethanol technologies © Praj Industries Ltd • • • More than 325 ethanol complex operates for less than 6 months/ year in India alone Higher ethanol blend in India cannot be achieved due to lack of molasses/feedstock GOI planning to implement E20 by 2017 creating opportunity of ~4 bln liters for 2G ethanol • Patented in-house technology developed over 6 years with an expenditure of over US$ 15 million Technology proven on agricultural & forest residue • Processing cost of less than a dollar per gallon for corn cobs driven by: • Lower enzyme dose requirement • Higher yields and • Low energy and water footprint • • Praj has demonstrated its expertise in scaling up 1st generation bio-ethanol technology for projects ranging from 5 kilolitres per day to 1.2 million litres per day Expertise in making smaller ethanol complex viable Confidential concept note www.praj.net 20 Thank you
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