Abstract
The aim of this report is to provide a clear understanding of the situation in
India regarding renewable feedstocks in the chemical Industry, the factors
leading to their introduction, usage today, and possible future developments.
Renewable feedstocks, as alternatives to petroleum based feedstocks are at a
nascent stage of development in the Indian chemical industry. The national
Government has given an initial focus to the biofuels sector with several
initiatives designed to promote the substitution of a percentage of its
petroleum requirement. These biofuels initiatives have consequences for the
chemical industry which are beginning to be noticed in India.
The main premise that we will develop in this report is that biofuel
development - the most visible area demanding renewable feedstocks for a
country without significant oil reserves - comes first, and chemical industry
developments necessarily follow on once the feedstock infrastructure and the
biofuel sector is established.
This report is broadly divided into three sections.
In Section I we look at the work of the Indian Government in promoting and
initiating the use of renewable feedstocks, which to date relates mainly to
the biofuels sector. We briefly look at the policies and initiatives that
began in earnest in the early 2000' s relating to fuel ethanol and biodiesel,
and continue through to the current political situation.
In Section II we examine the role of academia relating to research and
development into renewable feedstocks. We will see that increasing attention
is being paid by academia to the efficient use of by-products arising from
biofuel production.
In Section III we go on to examine the situation in the Indian chemical
industry, beginning with an examination of the biofuels sector. As India is
one of the largest sugar producing countries in the world, sugarcane/molasses
has emerged as the key feedstock for fuel ethanol development.
We look at the the ethanol producers and examine which are developing
alternative downstream products aside from fuel ethanol.
Diesel is the commonest form of transportation fuel in India with a demand 5
times higher than for petrol. However development of the biodiesel industry
has lagged that of the fuel ethanol industry due to the less established
supply infrastructure for the feedstocks, compared to sugarcane. Jatropha
curcus, the chosen feedstock, has been under intensive development over the
past few years and the volume of planting is slowly beginning to approach
levels whereby it can start to fulfil its promise as a key biodiesel feedstock.
We look at the major biodiesel producers and identify those who are actively
seeking to develop forward integration models for efficient use of by-products.
We also identify several other chemical producers who are increasing activity
in the renewable feedstocks sector.