K V Subramaniam Clean Transport Energy Efficient Biofuels

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Energy Efficient BiofuelsEnergy Efficient BiofuelsK.V. SubramaniamPresident & CEO

2nd EmTech India 2010 ConferenceTechnology Innovation

MIT Technology Review Bengaluru

March 9, 2010

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ContentsContents

1. Biofuels Perspectives

2. Energy Efficiency

3. Beyond Energy Efficiency

4. Reliance Life Sciences Biofuels Initiative

5. Summary

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ProductProduct--Market Market

Biofuels primarily comprise bioethanol, biobutanol and biodiesel for blending with gasoline and diesel.

ProductsBioethanolBiobutanolBiodiesel

MarketsGasolineDiesel

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Raw Materials Raw Materials

Sugar and grain crops are used to make bioethanol, while seed oils, fats and greases are used to make biodiesel.

Bioethanol/BiobutanolSugars

Sugarcane, Sugar beetSweet Sorghum

GrainsCorn, Wheat

BiodieselSeed Oils

JatrophaPongamiaPalm, Rape, SoybeanMadhuka

Fats and greasesAlgaeYeast

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Global Biofuels Opportunity

Global biofuels opportunity is significant, but current market penetration of biofuels is very low.

24%32%% Penetration of biofuel opportunity

Aspect Gasoline Diesel

Global consumption (million MT) 1600 900

% Blending with biofuels* 10% 5%

Biofuels opportunity (million MT) 160 45

Current biofuel consumption (million MT) 51 11

% Penetration of total fuels 3.2% 1.2%

Source : BP, US Energy Information Ad ministration, PFC Energy, US Chamber of Commerce, Reliance Research

* Biofuels (especially biodiesel) blending limit can potentially go up to 100% which would provide upside to the above projections.

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India Biofuels Opportunity

NA13%% Penetration of biofuel opportunity

Aspect Gasoline Diesel

Consumption (million MT) 12 60

% Blending with biofuels* 10% 5%

Biofuels opportunity (million MT) 1.20 6

Current biofuel consumption (million MT) 0.16 negligible

% Penetration of total fuel opportunity 1.3% NA

Source : Frost & Sullivan, Govt. of India Planning Commission, Ethanol India

* Biofuels blending limit can go up to 100% which would provide upside to the above projections.

India biofuels opportunity is also large, but current market penetration is negligible.

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SocioSocio--economic Opportunity economic Opportunity

Biofuels have significant socio-economic benefits, through higher farm incomes and better quality of rural life.

BenefitsBetter energy securityHigher farm incomesBetter quality of rural lifeProductive use of waste land

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Technology Technology

While first generation technologies are commercially used, several second generation technologies are being developed.

First generationSugars/Starch to bioethanol

Hydrolysis and FermentationDownstream separation and purification

Seed oils to biodieselTrans-esterification

Second generationTransformed plants

HybridsTransgenics

Biomass to bioethanol/butanolFermentation, separationGasification, fermentation, membrane separation (Coskata)Plasma gasification and Fischer-Tropsch to jet fuel + power (Solena)

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Technology (2) Technology (2)

Biotechnology has an important role to play in second generation technologies.

BiotechnologyPlant tissue culture

Leaf disc regenerationImmature embryo transformation

Plant metabolic engineeringHigher oil contentLow curcinDrought resistanceSaline soil tolerance

FermentationBiomass to bioethanolBiomass to biobutanolGlycerol value addition

ChemicalRenewable diesel (co-feed seed oil in refinery hydrotreater)

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ContentsContents





5. Summary

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Energy Inputs Energy Inputs

There are several elements of energy inputs in plantation and processing.

PlantationLand preparation SeedManures and fertilizersWeedicidesFungicidesInsecticidesAgricultural operationsPower for irrigationHarvestingThreshing (for grain)Transportation from processing unit

ProcessingElectricalThermalChemicals

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Energy Output Energy Output

Energy in output is primarily in biofuel, by-products and biomass.

ProductsBiofuel

By-productsDe-oiled cakeGlycerol Distillers dry grain with solubles(DDGS)Bagasse

BiomassPruned branchesDry stalkFruit wasteShelled cobs

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Energy Ratios Energy Ratios -- Reliance StudyReliance Study

Best energy ratios are sugarcane under drip for bioethanol and Jatropha under drip for biodiesel.

3.32

6.74

5.83

4.52

6.77

4.87

7.34

5.29

2.89

8.50

Ratio

81,752

303,672

168,621

97,272

118,682

112,912

132,444

128,528

68,185

182,917

Total

43,752

265,372

130,621

59,272

80,682

74,912

94,444

90,528

51,585

166,317

Byproducts

38,000

38,000

38,000

38,000

38,000

38,000

38,000

38,000

16,600

16,600

Biofuel

Energy Output of Produce (MJ/MT)

TotalProcessingPlantation

24,6249,78114,843Brackish water algae Tetraselmis

Bioethanol

45,03413,20831,825Soybean under flood irrigation

28,9229,19419,728Mustard under flood irrigation

21,5309,05012,480Madhuka under drip irrigation

17,52610,1587,369Calophylum under drip irrigation

23,7199,58213,597Pongamia under drip irrigation

24,2969,78114,515Jatropha rainfed on support irrigation

18,0509,7818,269Jatropha under drip irrigation

Biodiesel

23,5797,24816,331Maize under flood irrigation

21,519

TypeEnergy Input (MJ/MT)

Sugarcane under drip irrigation 16,636 4,882

Source: Reliance Life Sciences Research

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Energy Ratios Energy Ratios -- Reliance StudyReliance Study

Biodiesel crops generally perform better from an energy ratio standpoint.

Biofuels Energy Efficiency Ratios

4.52

3.32

2.89

4.87

7.34

8.5

6.77

5.29

5.83

6.74

0 2 4 6 8 10

Sugarcane under drip

Jatropha under drip

Calophylum under drip

Soybean under flood

Mustard under flood

Jatropha rainfed with support irrigation

Pongamia under drip

Madhuka under drip

Algae brackish

Maize under flood

b


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Productivity AssumptionsProductivity Assumptions

Energy ratio expressed in MJ/MT is dependent on crop productivity and oil content (biodiesel).

Oil Content

(%)

5.71Brackish water algae Tetraselmis

Bioethanol

3.07Soybean under flood irrigation

3.84Mustard under flood irrigation

1913.33Madhuka under drip irrigation

1818.67Calophylum under drip irrigation

208.92Pongamia under drip irrigation

303.00Jatropha rainfed on support irrigation

3010.00Jatropha under drip irrigation

Biodiesel

1.00Maize under flood irrigation

TypeFarm Yield

(MT/Ha)

Sugarcane under drip irrigation 1.00


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Energy Ratios Energy Ratios -- Other StudiesOther Studies

Energy ratios of biodiesel about 3.3 to 8.3 as compared to 1.85 to 8.5 for bioethanol and 0.84 for petroleum diesel.

Variations can be caused by agro-climatic conditions, planting material, cropping system, yields, transport distances, energy sources

8.5Bioethanol from sugarcane

Reliance study with Tetraselmisspp.

Laurent Larden and ArnudHelias of ELSA.Species Chlorella vulgaris

Narbonne,France 2009

3.553.32Biodiesel from brackish algae

Reliance study on corn with flood irrigation

Reliance study on Indian mustard, which yields lower than rapeseed

Reliance study based on drip irigation

RemarksOtherStudies

RelianceWorking

2.89

5.83

6.74

5.3

Folkecenter for renewable Energy, DKEU8.27Biodiesel from

Rape Seed

Agricultural Economic Report 813, USDA USA 20021.85Bioethanol from

corn (dry mill)

Energy Information Administration, USDA0.84Petroleum

diesel

USA, 2009

West Africa 2009

Context Reference

Energy Life Cycle Assessment of Soybean Biodiesel, USDA, Sep 2009

4.56Biodiesel from soybean

TypeEnergy Ratio

Biodiesel from Jatropha 4.7

LCA assessment of biofuels from Jatropha in West Africa, GCB Bioenergy (2009)

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ContentsContents





5. Summary

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Water UsageWater Usage

Water usage varies based on nature of crop and irrigation, but Jatropha and algae (brackish) perform best.

Biofuels Water Usage (CuM/MT of biofuel)

1162

444

2499

1110

736

3077

1226

703

9853

15596

0 5000 10000 15000 20000

Sugarcane under drip

Jatropha under drip

Calophylum under drip

Soybean under flood

Mustard under flood

Jatropha rainfed with support irrigation

Pongamia under drip

Madhuka under drip

Algae brackish

Maize under flood

b


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Land ProductivityLand Productivity

Bioethanol crops perform better from a land productivity point of view.

Source: CERA

Biofuels Crop Productivity (Litres/Ha)

5700

6000

4800

1500

500

1800

3700

3500

2000

0 1000 2000 3000 4000 5000 6000 7000

Soyabeans

Rapeseed

Wheat

Jatropha

Sorghum

Corn

Palm

Sugar Beet

Sugarcane

b

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GHG EmissionsGHG Emissions

Both bioethanol and biodiesel crops perform better from a GHG emissions standpoint.

Source: Union for Promoting Oilseeds and Protein Plants

Greenhouse Gas Emissions (gCO2eq/MJ)

1

14

12

18

23

29

19

14

13

9

2

1

2

1

13

5

1

26

22

19

22

26

49

83.8

0 10 20 30 40 50 60 70 80 90

Biodiesel from w aste

Ethanol from sugar cane

Ethanol from sugar beet

Biodiesel from sunflow er

Ethanol from w heat w ith cogen

Biodiesel from rapeseed

Biodiesel from soybean

Biodiesel from palm oil

Fossil fuel

b

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At current seed prices, biodiesel is not competitive. Bioethanol (sugarcane based) is competitive at US$ 40/bbl.

Cost Competitiveness

0.53700.5770

1.10BTL Biodiesel

0.48600.5060

0.60800.6480

Bioethanol, $/lit High/low 2009RM cost, $/kgRaw Material

Biodiesel, $/litHigh/low 2009

RM Cost, $/litHigh/low 2009

Raw Material

0.540Molasses0.930**Jatropha

0.4200.099Sugar Beet0.782/0.5850.710/0.498Palm

0.415/0.331Sugar Cane (Brazil)0.837/0.7250.764/0.628Soybean

0.545/0.4750.1588Corn0.917/0.7560.848/0.665Rape seed

Conventional0.43

0.34

Diesel*, $/lit

0.583

50

40

Crude, $/ bbl

Biodiesel

Conventional

Animal fat

0.3950

0.3240

Gasoline*, $/litCrude, $/ bbl

Bioethanol

* Ex Factory gate price; ** Jatropha seeds - Rs.12/kg

Cost Competitiveness Cost Competitiveness

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ContentsContents





5. Summary

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Reliance Life Sciences Initiative Reliance Life Sciences Initiative

Reliance Life Sciences is building a research-led, diverse and integrated biotechnology business.

Bio-pharmaceuticals

ClinicalResearchServices

Biofuels MolecularMedicine

Biopolymers

IndustrialBiotechnology

Biochemicals

Plant TissueCulture

PlantBiotechnology

Plant MetabolicEngineering

Plant Products

EmbryonicStem Cells

RegenerativeMedicine

HematopoieticStem Cells

Cord BloodRepository

Skin andTissue Engg.

MolecularDiagnostics

Genetics

Agronomy

Plant TissueCulture

Plant MetabolicEngineering

Trans-Esterification

FarmAdvocacy

Pre-clinicalStudies

BA/BEStudies

Phase 1Studies

Phase 2/3/4Studies

Data Mgmt.& Biostatistics

Biosimilars

FusionProteins

MonoclonalAntibodies

siRNAMolecules

PlasmaProteins

Pharmaceuticals

API

Formulations

DrugDiscovery

Enzymology

PredictiveDiagnostics

QTc Studies

NovelTherapeutics

OcularStem Cells

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Reliance Business ModelReliance Business Model

The biofuels initiative of Reliance is unique in its architecture and content.

Biodiesel

Jatropha SeedsJatrophaFarming

Tissue CulturedPlants

Elite PlantsCharacterisation

And Sourcing

Hybrid PlantsDevelopment

Transgenic Plants Development

Fermentation

Transesterification

Corn/ Sugar Beet Biobutanol

Oil

Sugar Cane

Enzyme directedconversion

Sugar/ StarchSolution

Bioethanol

Banana stemCorn stover,

Bagasse

Yeast

Algae

Molasses

Seed Cake

Extraction

By Product

GlycerolBy Product

Fermentation

Fermentation

Sugar

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Reliance Business Design PrinciplesReliance Business Design Principles

Business design is based on biodiesel non-edible crops on cultivable wasteland owned by marginal farmers.

PhilosophyEnergy securityRural transformation opportunity

Focus areaBiodiesel

CropsNon-edible seedsNon-compete with alcohol

AgronomyWork with marginal farmersFocus on rain-fed areasNo RIL land ownership

TechnologyFor higher farm yieldsFor higher oil content Pursue competing technologies

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Components (1) Components (1)

Agronomy and farm advocacy components focus on farm produce and productivity of biofuels.

Agronomy R&D (Kakinada, Nagothane, Gandhar)Plantation (Jatropha, Simarouba, Pongamia)Jatropha cultivation with intercropsJatropha composites and hybrid development

Farm AdvocacyNizamabad, Khammam and Adilabad in Andhra Pradesh Nanded, Parbhani and Hingoli in MaharashtraMandla, Seoni, Chhindwara, Dewas and Shajapur project in MPBilaspur and Bastar in ChhatisgarhJunagadh and Vyara in Gujarat

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Components (2) Components (2)

Plant and industrial biotechnology components focus on technology to address yields, costs and value addition.

Plant Metabolic EngineeringHigh expression of oils in JatrophaAlgal cultures

Plant Tissue CultureTransesterification

Pilot plant at KakinadaIndustrial Biotechnology

Glycerol to 1,3 propane diol1,3 PD to polymerYeast oil to biodieselBioethanol/Biobutanol

EnzymologyLow-cost enzymesProduction of bioethanol and biobutanol

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ContentsContents





5. Summary

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SummarySummary

Jatropha-based biodiesel and sugarcane-based bioethanol are the most promising energy-efficient biofuels.

Biofuels represent a significant opportunity globally In India biofuels can contribute significantly to rural transformationJatropha-based biodiesel and sugarcane-based bioethanol rate very high on energy ratiosJatropha-based biodiesel and brackish algae-based biodiesel rate very high on water useSugarcane-based bioethanol rates very high on land productivityWaste oil-based biodiesel and sugarcane-based bioethanol rate very high on GHG emissions

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Thank You