Bio Fuel (Ethanol) / Bio Diesel

Technology
Technology For Production Of Ethanol
The technology for manufacture of ethanol (dehydrated/Anhydrous Alcohol) involves special processing of
alcohol/rectified spirit. There are three commercial routes for the manufacture of dehydrated Ethanol from
rectified spirit/ alcohol. These are as follows
Azeotropic Distillation Technology
Molecular Sieve Technology
Membrane Technology
Azeotropic Distillation Technology
The technology for ethanol production from rectified spirit using azeotropic distillation is well established in India
as a number of plants exist in the country based on this technology. This technology involves a distillation system
employing benzene as the third component has been in use in India since World War II.
The initial capital cost (project cost) for this technology is lower than the molecular sieve technology but the cost
of production is higher because of higher energy consumption and higher consumption of benzene or other
similar third component such as cyclohexane. It is essential to mention here that the third component may cause
air pollution as well as water pollution especially components such as benzene are known to be highly
carcinogenic.
Molecular Sieve Technology
This is the most commercially popular, financially viable and environmentally friendly technology, which has
emerged, in the late 1980s. This is a clean technology in which the water is removed by molecular sieves and
dehydrated alcohol/ethanol is obtained. The dehydration process using this technology can be carried out either
in liquid phase or vapour phase. For smaller plants and for removing less water content liquid phase technology
is adequate and is often used. Smaller plants using this liquid phase have been set up in the past. However, for
larger plants where ethanol is being used for blending with petrol, the globally preferred technology is based on
vapour phase dehydration of ethanol.
In this technology, although, the capital cost is higher than azeotropic distillation, the cost of production is lower.
Another major advantage is that it does not cause any pollution especially water pollution, as is the case with
azeotropic distillation technology, in which case, benzene and other toxic chemicals pose a health hazard.
Membrane technology Membrane technology has not been successful at commercial scale as the cost of
membrane is high and its life is reported to be very short. This leads to high cost of production. However,
technologies using newer type of membranes which will have a relatively longer life, and therefore lower cost of
production, are reported to be under development in developed countries. This technology does not have a
proven track record yet.
Raw Materials/Substrates
Alcohol can be manufactured from a large number of raw materials, which fall into three main categories
Sugar based
Starch based
Cellulose based
Sugar Based
In this category the main crops are sugar cane (sugar cane juice & molasses), sugar beet (beet juice and
molasses), sweet sorghum, Starch Based
All types of grain including wheat, rice, corn (maize), barley, malt, millet etc. are included in this. In addition,
tubers such as potatoes, cassava (tapioca) etc. are also starch based.
Cellulose Based
This category includes agro-waste, agro- residues, bagasse, rice husk, straw, groundnut shells, wood chips,
sawdust, organic municipal waste etc.
Scheme Applicable
Project Financing
S.
No.
Financing
Schemes
Interest
Rate
(%)
p.a.
Maximum
repayment
period
(Years)
Max.
Moratorium(years)
Minimum
promoters
Contribution(%
)
Term
loan
from
IREDA
Remark
IREDA loan
1.
a) Ethanol
production
through
Biomass /
Sugar
juice /
Molasses
12.75 8 2 30
Upto
70%
of
Project
cost
is available
only for
plants of oil
extraction &
trans-
esterification
process.

b) Bio-
Diesel
Production
12.75 8 2 30
Upto
70%
of
Project
cost
IREDA loan
is available
only for
plants of oil
extraction &
trans-
esterification
process.
Sector Specific Statutory Requirement

Clearance from Central / State Excise department. for production of Ethanol.
Project clearance from Pollution control Board.
Industrial Entrepreneur Memorandum (IEM) from Ministry Of Commerce & Industry, Government of India
Incentives Applicable

No duty exemption / subsidy is available at present.
List Of Officers In The Sector

Frequently Asked Questions
Q1. What are Bio-fuels?
Ans. Bio-fuels are renewable liquid fuels derived from biological materials by a number of chemical / biological processes.
Q2. What are the advantages of Bio-fuels?
Renewable in nature
Environment friendly
Reduced dependence on fossil fuels
Increased agricultural economy and rural employment
Q3 Which are the potential Bio-fuels being financed by IREDA?
Ethanol (primarily for blending with petrol)
Bio-diesel for blending with diesel)
Q4 What are the raw materials used for production of Bio-fuels?
Ethanol:
There are three categories of raw-materials used for the production of ethanol: -
1) Sugar based sugar cane, sugar beet, sweet sorghum etc.
2) Starch based all types of grains including wheat, rice, corn, barley, malt etc. and tubers such as potatoes and
cassava etc.
3) Cellulose based agro-waste, agro-residues, bagasse, rice-husk, straw etc.
Bio-diesel:
Edible and non-edible oil and animal fats.
Potential sources of bio-diesel in India can be non-edible oils obtained from plants species such as Jatropha Curcas
(Rattan jot), Pongamia Pinnata (karanj ) etc.
Q5. Has IREDA financed any Bio-fuels projects so far?
Ans. Yes, IREDA has already financed some ethanol projects.