Review of Biofuel Programme

Ministry of Petroleum & Natural Gas

13.6.2019
Agenda

EBP Programme

Bio-Diesel

Compressed Bio Gas

2G Ethanol
EBP Programme
EBP Programme: Blending Status
Figures in Crore Liters

Parameters 2018-19
2014-15 2015-16 2016-17 2017-18
(Sugar Year – Dec to Nov) (Dec-May)

Tendered Qty 128.2 266.5 278.3 313 329

Quantity Allocation 86.5 135.9 80.7 164.1 268.7

Finalized quantity as a %age

67.5% 50.0% 29.0% 52.4% 81.6%
of required quantity

Contract Signed 80.2 130.4 78.7 161.5 241.8

Actual Receipt 67.4 111.4 66.5 150.5 114.1

Blending %age achieved 2.33% 3.51% 2.07% 4.22% 6.20%

EBP Programme : Issues to be tackled

 Ethanol Distillation Capacity Constraint

 Ethanol Storage Capacity

 Implementation of amended provisions of IDR Act, 1951 by UP

pending (approved by 13 states)

 Exploring the possibility of higher blending in Ethanol surplus States

 Allocation is lower against requirement.

 Due to NGT order & mandatory PESO license/Safety compliance LOI

quantity reduced.

 Due to Force Majure situation (e.g. Kumbh Mela in UP & Water

Drought situation in Karnataka & MH) supplies affected in Q1 & Q2.
Bio-diesel
Bio-diesel: Blending Status

Bio-diesel Procured by OMCs for blending

Year
(Crore Litre)

2015-16 1.19

2016-17 3.59

2017-18 4.36

2018-19 8.21

For 2019-20, LOIs are being placed for supply of 16 Crore Litre.
Issues to be tackled

 No administered Price Bio-diesel (for both PSO/ UCO based) by MoP&NG.

 Less availability and dependent on imported feedstock (eg. PSO)
 Due to higher CFPP (Cold Filter Plugging Point), the storage & handling of B-100
during winter is a challenge.
 The prices of Bio-diesel (B-100) are higher than HSD and the double taxation is
affecting the success of the programme.
 Prices of crude oil cannot be linked to Palm Stearin prices (which is basic raw
material for B-100 production in India) and resulting unviable cost economics as
well as leading to supply uncertainties.
 Delay in tender finalisation due to several rounds of negotiations required in view of
higher rates quoted by the suppliers.
 No quantity is offered for Eastern part of country where already Bio diesel blending
was going on
 Suppliers are not able to supply UCO based Bio Diesel allocation of 0.21 Cr litre as
FSSAI refused to provide certificate.
Compressed Bio Gas
SATAT Programme

 Sustainable Alternative Towards Affordable Transportation (SATAT)

launched by Hon’ble Minister P&NG on 1.10.2018

 CBG Potential from waste / biomass : 62 MMTPA

 Target 25% of potential by 2023 : 15 MMTPA

 5000 CBG Plants by 2023

• 7% of total Petroleum Products Consumption (205 MMT)

• 34% of total Natural Gas Consumption (44 MMT)

Status of the SATAT Programme

Parameter Units IOCL HPCL BPCL GAIL IGL Total

No. of CBG plants for which

No. 257 52 79 45 12 445
EOIs received

Total No. of LOIs issued against

No. 235 24 33 16 12 320
approved EOIs

Bank Guarantee submitted

No. 43 0 0 1 0 44
against LOIs issued

Expected CBG production

TMTPA 581 40 41 37 18 716
capacity against LOI issued

Plants for which land has been

Nos 59 7 8 2 10 86
finalized
Enabling policies required

 Financing of CBG Plants

– Priority Sector Lending under Renewable Energy for ease in
financing
– Interest subvention scheme in line with ethanol
– Escrow accounts for providing assurance to banks on repayment
– Considering Plant as collateral for loans
 Feedstock Supply
– Creation of clusters to ensure catchment area for a Plant
– Assurance of steady feedstock supply at a price band
– Purchase of surplus sugarcane with cash payment for CBG
feedstock
Enabling policies required

 Approvals

– Inclusion of CBG Plants in ‘White Category’ for Pollution Clearance

– Single window clearance system for all approvals

– Waiver of charges for approvals

 Database creation

– Database on all biomass and waste sources to be mapped in

‘Bhuvan’
Enabling policies required

 Bio-manure & Organic Produce

– To encourage organic farming, mandated co-marketing of 20%

Bio-manure with Chemical Fertilizers

– Inclusion of special category on ‘Fermented Manure from Bio-gas

Plants’ and ‘Fermented Slurry from Bio-gas Plants’ in The Fertilizer
Control Order 1985

– Providing of dedicated area in Mandi (Agricultural produce

market committee-APMC) to market Organic Produce

– Creation of National Certification on Organic Produce

National Bio-Coordination group

 Members
– Ministry of Petroleum & Natural Gas
– Ministry of Agriculture & Farmers' Welfare
– Ministry of Rural Development
– Ministry of Chemicals and Fertilizers
– Ministry of Finance
– Ministry of Animal husbandry, dairy and fisheries
– Ministry of Jal Shakti
– APEDA, NAFED, NABARD
 Mandate
– Meet once in two months
– Create enabling frameworks for CBG propagation
– Inter-departmental Co-ordination
– Create additional feedstock sources
– Propagate Bio-manure through extension activities
– Co-ordination on raw material availability, raw material price, technology availability,
optimum plant design capacity, plant status, plant financing, floor price for CBG
procurement etc
2G Ethanol
2 G Ethanol – HPCL Bathinda (Punjab)

Sr. Parameters Status Remarks, if any

No.
1 Proposed capacity Yes 100 KLPD
2 Proposed feedstock Yes Feedstock agnostic.
Design Feedstock : Rice straw
Check Case : Cotton Stalk

3 Technology Finalized Yes DBT-ICT

4 Land identification Yes 51.65 acres of Gram Panchayat
land identified in Village
Nasibpura, Bathinda.

5 Land allotment Completed Allotment completed for total

51.65 acres of land
6 DFR preparation Completed
7 Environment Granted
Clearance (EC)
2 G Ethanol – HPCL Bathinda (Punjab)

Sr. Parameters Status Remarks, if any

No.

8 Board Completed HPCL Board has accorded approval

Approval for the project, however further
Status financial commitments for the
project can be made only after the
Mandate for Advanced Biofuels
blending is notified by Government.

9 Project In progress LSTK tender has been floated and

implementatio evaluation completed.
n status

10 Project cost Yes Approx. 1421 Crores

2 G Ethanol – HPCL Badaun (UP)
Sr. Parameters Status Remarks, if any
No.
1 Capacity Yes 100 KLPD
2 Feedstock Yes Rice straw / Bagasse
3 Technology Yes Praj Industries. BEDP completed
Finalized
4 Land identification Yes UPSIDC land of 49.42 acres identified at
village Sainjani, Badaun
5 Land allotment In progress 200m approach road is private land, yet to
be acquired by District Magistrate.
6 DFR preparation Completed
7 Environment In progress TOR granted. EIA report under completion.
Clearance (EC)
8 Board Approval No After finalization of LSTK Contractor.
Status
9 Project In progress FEED completed under review. Tender to be
implementation floated
status
10 Project cost No After finalization of LSTK tender
2 G Ethanol – HPCL Supaul/Saharsa (Bihar)
Sr. Parameters Status Remarks, if any
No.
1 Capacity Yes 10 KLPD demonstration plant
2 Feedstock No
3 Technology Finalized Yes In-house technology developed by HPCL R&D
Centre.
4 Land identification No Originally locations Supaul & Saharsa were
biomass deficit. Alternate, Muzaffarpur district
identified
5 Land allotment No
6 DFR preparation In 10 KLPD demonstration plant using HPCL
progress indigenous technology in view of limited
availability of biomass in Bihar (overall).
7 Environment
Clearance (EC)
Activity will be taken up after finalization of land,
8 Board Approval Status completion of DFR and approval from the
9 Project management.
implementation status
10 Project cost
2 G Ethanol – HPCL East/ West Godavari
Sr. Parameters Status Remarks, if any
No.
1 Proposed capacity Yes 100 KLPD
2 Proposed feedstock Yes Rice Straw & Maize
3 Technology Finalized No Technical tender is ready and the same will be floated
after firming up of land
4 Land identification No Initially, APIIC land was identified at Ramasingavaram,
West Godavari District but due to issues related to
infrastructural facilities such as water, power, approach
road etc. (water to the tune of 2000 KL per day is not
available in the offered land), alternate land is being
searched.

5 Land allotment
6 DFR preparation
7 Environment Clearance Activity will be taken up after finalization of land,
(EC) technology, completion of DFR and approval from the
No
8 Board Approval Status management.

9 Project implementation
status
10 Project cost
2 G Ethanol –Panipat (Haryana)

Sr. Parameters Status Remarks, if any

No
.
1 Proposed capacity 100 kl/day
2 Proposed feedstock Paddy straw
3 Technology Finalized Yes Praj Industries Limited
4 Land identification Yes
5 Land allotment Completed
6 DFR preparation Completed
7 Environment Clearance Pending Public Hearing held on –
(EC) 27.3.2019
8 Board Approval Status Accorded 11.1.2019
9 Project implementation Under Tender under process: Site
status process enabling, LLIs, etc.
10 Project cost Rs 909 Crore
2 G Ethanol – Dahej (Gujarat)

Sr. Parameters Status Remarks, if any

No
.

1 Proposed capacity 100 kl/day

2 Proposed feedstock Cotton stalk
3 Land identification Yes GIDC Dahej (Bharuch)
4 Land allotment Completed 47 acre land in posession
5 Technology Finalized No • DFR prepared based on Praj
technology – unviable project cost
• Project kept on hold till demo runs
based on cotton feedstock.
• Both, indigenous technology
providers i.e. Praj and DBT-ICT have
not been able to conduct Demo
run so far
2 G Ethanol – Gorakhpur ( Uttar Pradesh)

Sr. Parameters Status Remarks, if any

No
.
1 Proposed capacity 100 kl/day
2 Proposed feedstock Rice straw / Preliminary survey
Baggase

3 Land identification Yes Govt. of UP advised land

at UPSUGARFED's closed
Chini Mill in Dhuripar,
Gorakhpur

4 Land allotment land leasing In-principle approval

under process provided by Govt. of UP

5 Technology Finalized Yet to be decided

6 DFR preparation No After finalization of

project land
2 G Ethanol MRPL – Davangere, Karnataka

Sl Parameters Status Remarks, if any

1 Proposed capacity 60 KLPD Based on the Biomass assessment

2 Proposed feedstock Corn Cob Boiler feed- Cotton stalk.

3 Technology Finalized Yes Praj Industries

4 Land identification Completed Harihara, Davangere dist, Karnataka

5 Land allotment Allotted by KIADB 47.65 Acres. Encumbrance issue in around

10 acres of the land, issue taken up with
KIADB

6 DFR preparation Completed EIL with +/- 15% cost based on preliminary
feedback from Licensor.

7 Environment Clearance (EC) In Progress Public hearing has been re scheduled to

9.7.2019

8 Board Approval Status Board has approved Rs 60 Cr for land acquisition and Rs 25 Cr
towards initial expenditure including License fee and BEDP fee .
Commitment of Rs. 38 Cr has been made as on date.

9 Project implementation Preparation of BEDP in progress by the Licensor, M/s Praj

status Industries.(BEDP consultant is M/s Technip)

10 Project cost Estimated cost Rs 1372 Cr

2 G Ethanol BPCL- Bargarh, Odisha

Sr. Parameters Status Remarks, if any

No.
1 Proposed capacity 100 kLPD
2 Proposed feedstock Rice straw
3 Technology Finalized Yes M/s. Praj Industries
4 Land identification Yes Baulsingha village, Bhatli Tehsil, Bargarh,
Odisha
5 Land allotment Received Plot of 58.44 Acres allotted by IDCO,
Odisha on 11.06.2018.
6 DFR preparation Completed
7 Environment Clearance (EC) Received
8 Board Approval Status Received The approval is subject to 2G
Ethanol Blending mandate.
9 Project implementation In progress 1) Site enabling & Site grading
status works under progress.
2) LSTK tender to be awarded by
early September, 2019
3) Completion by Dec., 21.
10 Project Cost - Rs. 1714 crore
2 G Ethanol BPCL- Bina, Madhya Pradesh
Sr. Parameters Status Remarks, if any
No.
1 Proposed capacity 100 kLPD
2 Proposed feedstock Soya stalk, wheat
straw
3 Technology Finalized Yes M/s. DBT-ICT
4 Land identification Yes Bharat Oman Refineries Ltd (BORL),
Bina, Madhya Pradesh
5 Land allotment Yes
6 DFR preparation Completed
7 Board Approval Status Received Approval received for activities
required for project cost finalization
8 Project Under progress 1) PMC Tender – under evaluation.
Implementation Status 2) Trial Runs order placed - ICT
3) Licensor tender is under technical
finalization.
9 Environment Under progress Letter sent to MoEF on 01.10.2018 &
Clearance 18.01.2019 for public hearing waiver.
Reply is awaited.
2 G Ethanol BPCL- Bhandara, Maharashtra

Sr. Parameters Status Remarks, if any

No.
1 Proposed capacity 100 kLPD

2 Proposed feedstock Rice straw

3 Technology Finalized No
4 Land identification Yes Bhandara Dist, Maharashtra
5 Land allotment Under progress
6 DFR Preparation N/A
7 Environment No
Clearance
8 Project Under progress Land at a concessional rate from MIDC
Implementation Status at Bhandara . Request has been made
to Chief Minister, Maharashtra Reply
awaited.
Inputs on 2 G Ethanol Programme
Sr. Location Issues & Bottlenecks on implementation and Way forward
No.
1 HPCL Bathinda • The Head of DBT-ICT Centre for Energy Biosciences
(Punjab) has been changed and the core team members
working on 2G Project at ICT have also been
moved out. Thus, the Licensor’s officials who were
possessing the knowledge of BEDP & proprietary
equipment are no longer associated with the
Project. This has raised serious concerns about
availability of necessary support from Licensor
during project execution.
• Even after placing order in Aug’18, trial runs of ICT
technology is delayed due to non readiness of the
demonstration plant and change of Management
of DBT-ICT Center for biosciences, Mumbai.
• The L1 offer received for supply of biomass is on a
higher side hence, alternate biomass supply chain
models are required to be explored.
• The mechanical completion of the project is
expected to be achieved in 18 months from the
date of LSTK order.
2 G Ethanol : Issues & Bottlenecks

Sr. Location Issues & Bottlenecks on implementation

No.
1 Harihara, Davangere 1) NPV of the project is Negative .
district , Karnataka 2) Water to the project is allotted at a
distance of 50 km form Project site. MRPL
has written to the Karnataka Neeravari
Nigam Ltd (GOK) for allocation of Water
near to the Project site.
3)Encumbrance issue in around 10 acres
of the land, issue taken up with KIADB.
2 HPCL Badaun (UP) Proper accessibility to the proposed site,
i.e. approach road is required to be
constructed, for which discussion is under
progress with the district authorities
3 HPCL East/ West Suitable piece of land is being located
Godavari (AP) which is having approach and sufficient
water.
2 G Ethanol : Issues & Bottlenecks

Sr. Location Issues & Bottlenecks on implementation

No.
1 Panipat (Haryana) Delay in Environmental Clearance
2 Dahej (Gujarat) • Cotton stalk identified as major
feedstock.
• Praj and DBT-ICT have not been able
to conduct Demo run based on
cotton stalk.
3 Gorakpur (Uttar Pradesh) • Land leasing under process.
Areas for Support for BPCL

 Immediate release of 2G Ethanol Blending mandate.

 Directions from MOPNG to State Govt. for water and power supply
approval from individual dept. (water resource dept. and Odisha
power supply dept.).

 Directions to Centre for High Technology (CHT) for VGF approval in

time bound manner. (For Bargarh, VGF proposal submitted to CHT on
26.04.2019. Approval awaited.)

 MSP of Biomass for sustainability of Bio refinery.

Thank You