INTERVIEW: NILAY DAS

Ethanol from Bamboo: Uninterrupted supply of bamboo, not its availability, is the real challenge for NRL’s bio-refinery in Assam

Concerns about global warming and climate change have grown in recent years, owing primarily to hazardous pollution from the transportation sector. Another source of concern is the high cost of importing crude oil from oil-producing countries, as well as volatile geopolitical situations involving uncertainty. Assam's Numaligarh Refinery Limited (NRL) is planning to produce ethanol from locally grown bamboo. Chemical Engineer Nilay Das is working on the design, engineering, and setting-up of the bio-refinery, which will begin production in the coming months. Das has more than 30 years of experience in the Oil and Gas sector in India, UK, Australia, Azerbaijan and Kazakhstan. He is currently associated with NRL as Technical Adviser looking after their Bio-Refinery project. “Apart from direct employment to operate and manage the Bio-Refinery, the local population will be benefited by way of engagement in the sector of bamboo growing, aggregating, or intermediate transporting,” Das tells Pranab Nath in an interview with NEZINE.

Excerpts from the interview:

Pranab Nath: We know that you are actively involved in designing and constructing a bio-refinery in Assam to produce ethanol from bamboo. Tell us first, the scenario of ethanol in petrol in India, why this is important, the current status, and where it is heading.

Nilay Das: Ethanol blending in Petrol or the use of Biofuel has the following advantages over traditional fossil fuel. First, it is a green renewable fuel and nontoxic. Second, it is carbon neutral and produced from locally available bamboo which is produced sustainably. Third, the production of ethanol from bamboo will grow the local economy of northeast India and reduce the import bill of procuring crude oil from oil-producing countries.

Government of India formulated the Ethanol Policy in the year 2014 targeting 5% blending of Ethanol in Petrol. The current policy stands at 10% blending by Nov 2022 (which was achieved 5 months in advance) and 20% by 2030. Now the government has started talking about advancing the target to 2025. By achieving the 10% blending target the country made savings of around Rs.40,000 Crore on foreign exchange in crude oil import bills. The reduction in import bill would be around Rs. 1 Lakh crore when the country meets the target of 20% blending.

The country now has an annual ethanol production capacity of 685 crore liters and that has to go up to 1000 crore liters for 20% blending. In order to meet the ethanol production target, the government is promoting and giving incentives to set up ethanol plants (both 1G and 2G) and also mandated to set up ethanol plants by all Oil Sector PSU.

Pranab Nath: There are many sources of producing ethanol. Why NRL chooses to Bamboo to produce ethanol? Is there any cost advantage of producing from bamboo?

Nilay Das: Till recently most of the ethanol plant was based on biomass such as sugar contained in materials like sugar cane juice, molasses, sugar beet, and starch contained in materials such as corn, cassava, rotten vegetables such as potatoes, damaged food grain etc. The ethanol plant based on the food-based feedstock falls under First Generation (1G) plant.

With the advancement of technology, the use of cellulosic and lignocellulosic biomass which are not suitable for human consumption started making inroads in the production of ethanol. Examples of feedstock are agri-residues like rice and wheat straw, cane trash, corn cobs, bamboo, etc. The plant-based on such kind of non-food grade feedstock is termed as Second Generation (2G) plant.

Numaligarh Refinery Limited as a Joint Venture (JV) partner of Assam Bio-Refinery Private Limited (ABRPL) is setting up the 2G Ethanol Plant at Numaligarh. Bamboo is chosen as the feedstock as its availability is abundant in North East. Based on the survey the amount of bamboo required from the ethanol plant is only 1% of bamboo available in the north eastern states. On top of that, as bamboo is grass, it grows up again to full size in 3 to 4 years of time after cutting it. So easy availability of bamboo was the main reason behind the feedstock selection. It is also worth mentioning that the technology being used in this plant will also give Acetic Acid and Furfural as by-products. This will certainly boost the economics of the plant.

Pranab Nath: How much bamboo will be required – monthly, or yearly for the NRL biorefinery? Is that amount of bamboo available in northeast India?

Nilay Das: 500,000 Tons of Bamboo (300,000 Tons on a Dry Basis) would be required annually for the Bio Refinery to produce 49,000 Ton/annum or 6 Crores litre/annum of Ethanol. As mentioned earlier, the availability of bamboo is not an issue. The main challenge would be to maintain the supply chain right from the field to the plant on a continuous basis. ABRPL is setting up an integrated supply chain management system to ensure a constant supply of bamboo from initial target areas covering a radius of 250km around the plant.

Pranab Nath: Ethanol is going to be produced to save the environment. But will large-scale bamboo cutting not degrade the environment? How to ensure the balance between forest cover and bamboo availability for ethanol production year after year?

Nilay Das: ABRPL is promoting bamboo cultivation by initially supplying bamboo saplings to local farmers. The saplings are being grown by a tissue culture process (as part of NRL’s CSR activities) with engagement with local entrepreneurs. Different agencies of government are also taking steps to promote bamboo cultivation.

As bamboo grows back in a relatively shorter span of time, we can’t technically call bamboo cutting as deforestation. The amount of Carbon Dioxide (CO₂) released by different activities related to the ethanol plant (like transportation of bamboo, the release of CO₂ in fermentation, and with flue gas) is mostly neutralized by Carbon Dioxide Sink provided by bamboo plantation that is required to be grown to meet the demand. In order words, the ethanol plant is going to operate almost in Carbon Neutral mode.

Pranab Nath: What about the employment generation – directly in the refinery and indirectly in farming, supply chain, and other downstream industries?

Nilay Das: Apart from direct employment to operate and manage the Bio-Refinery, the local population will be benefited by way of engagement in the sector of bamboo growing, aggregating, or intermediate transporting, Local Level Entrepreneur (LLE) to chip the bamboo in required size and final transportation to the plant site. The estimated total direct and indirect employment connected to Bio Refinery operation would be close to 3500.

In addition to that, the Bio Refinery would also need other chemicals such as Formic Acid, Enzyme, Ammonia, Acid, Alkali, and other dosing chemicals on a continuous basis. So, there would also be the possibility of getting equipped and associated with supplying those chemicals to the Bio-Refinery. As far as the product is concerned the main product which is Ethanol would be consumed by NRL only. However logistical services would be required for by-products such as Acetic Acid, Furfural, Liquified CO2, Bio Coal Ash, etc. to transport them to other downstream industries.

The challenge of running the bio-refinery efficiently lies mainly with maintaining an uninterrupted supply of bamboo to the plant. All stockholders starting from bamboo cultivator/grower to final transporter along with ABRPL have to play their role as per set procedure and system. ABRPL also have to impart training in necessary areas of the logistical chain (including supply of other chemicals and evacuation of by-products) to the local youths and entrepreneur wherever they have an interface with the system and make them fully aware of the importance of their individual role and its impact on the efficient running of the plant. Local people must be sensitized to the various benefits of the plant, its contribution to the country’s development, and its positive impact on the local economy.

Pranab Nath: What is the approximate estimated value of bamboo supply and the other raw materials in that case?

Nilay Das: Total business volume in rupee value is difficult to estimate as it depends on the market conditions. But a safe estimate will be around Rs.320 Cr to 350 Cr for all the raw material supply including bamboo.

Pranab Nath is a Chemical Engineer with more than 30 years of experience in the renewable energy industry and currently a consultant and trainer.