A trial E10 gasoline pilot project petrol blended with 10 per cent ethanol has been launched initially in Islamabad and Karachi. Ethanol costs Rs20 per litre against the ex-refinery price of Rs29 for petrol.
From consumer’s point of view heating values 1.38 litres of ethanol is equivalent to one litre of petrol. Therefore per unit cost of ethanol per litre was inflated by a 27.5 per cent to arrive at cost for ethanol in terms of equivalent energy released. The government has lowered the price of E10 gasoline by Rs1.50 per litre compared to the prevailing rate of petrol Nevertheless, there is no subsidy on E10 gasoline. The taxes are the same as on petro-gasoline.
The promotion of E10 gasoline is likely to benefit the sugar sector if the benefits are also transferred to farmers who would like to grow more sugar cane for getting better returns. The powerful sugar millers lobby tries to influence government to promote E10 gasoline while more powerful oil marketing companies/ refineries are resisting such a move.
Ethanol is produced from molasses-- a by product of sugar industry. Presently, around 16 distilleries are operating on a 60 per cent capacity to convert an average 1.8 million tons of molasses. Around one tonne of alcohol is produced from five tonnes of molasses.
The country earned around $100.6 million on export of 167,610 tons in 2006 and $11.5 million on export of 22,975 tons in first two months of current year. The average price secured by exporters for different grades of alcohol ranged between $560 - $680 per ton. The value-addition in molasses’ conversion into alcohol has earned 8-10 times more foreign exchange. Oil marketing companies (OMCs) and refineries are resisting blending ethanol with petrol on the grounds that the country has currently surplus petrol. According to the ministry of petroleum and natural resources, 1.3 million tones surplus naphtha/motor gasoline was available for exports during 2005-06.
They have also pointed out that due to the hygroscopic nature of ethanol, it must be blended closest to the retail outlets that required all the OMCs to invest Rs250 million in developing storage and blending facilities. The amount is not significant considering the volume of their business.
Naphtha and ethanol are primarily feedstock in chemical and petrochemical industries. Unfortunately this sector has not developed because the local demand of both products is very small.
Nevertheless, fuel consumption trends suggest focusing on promoting bio-diesel because the country has imported about 4.2 million tonnes of diesel oil at a cost of around $1.7 billion during 2004-05. Diesel dominates over 75 per cent market, with only 38 per cent supplies from the local refineries. Diesel prices influence the economy much more. In addition, diesel vehicles emit much more pollutant than petrol vehicles.
Bio-diesel is the clean burning alternative fuel for diesel engines produced from domestic renewable resource. This fuel is obtained from vegetable oils like soybean, rapeseed or sunflower, through a process of transesterification, which changes properties of oil significantly. Additional chemical process removes glycerin from oil to meet the engine specifications.
The properties of bio-diesel are related to the oil it comes from. Though pure bio-diesel can be used in unmodified diesel engines, blending offers the best commercial potential because of better performance and lower costs up to now. Bio-diesel can be mixed with diesel in proportions up to about 30 per cent and used in a diesel engine without any modifications. For higher proportions of blending and pure bio-diesel, no modification is necessary for tractors but reasonable modifications of the engine are required for conventional cars.
Viscosity and density of bio-diesel is similar to those of diesel. On the other hand, bio-diesel show better lubricity and higher cetane number. Compared to petroleum-based diesel, bio-diesel has a more favourable combustion emission profile, such as low emissions of carbon monoxide, particulate matter and un-burnt hydrocarbons. Carbon dioxide produced by the combustion of bio-diesel is recycled by photosynthesis, thereby minimising the impact of bio-diesel combustion on the environment.
Another advantage of bio-diesel is that it contains much lower levels of sulfur compared to petroleum diesel. The sulfur in petroleum diesel is corrosive to engines and when emitted, leads to the formation of acid rain and forms particulates that can cause health problems when they are inhaled.
Palm oil is certainly one of the most important crop for bio-diesel. However, this production of this crop is deeply related to climatic conditions (rainfall) and the quality of the soil. The vast potential of bio-diesel from oil biomass is under investigation in several countries. List of other crops that can be used as feedstock is given in Table 01.
In Europe, where approximately 34 per cent of cars have diesel engines, bio-diesel is widely available, even for use in passenger cars. One thousand filling stations sell canola oil-based bio-diesel in Germany alone. The cost of the bio-diesel blend is approximately the same as for the conventional diesel.
India is aiming at 20 per cent bio-diesel blending by 2011 and it has identified 100 million acres of land across the country for growing Jatropha. Brazil also launched its national bio-diesel programme in December 2004. Developing countries see bio-fuels as a way to stimulate agricultural development, create jobs, and save foreign exchange.
The cost of seeds represents 60-80 per cent of the total cost of bio-diesel production. Seed production costs vary widely depending on where the crop is grown: quality of soils and seeds, climate, quantity and prices of fertilisers and pesticides, etc., are factors that affect yields and production costs.
The processing technology for producing bio-diesel is presently oil extraction followed by transesterification--, both well-proven processes with limited scope for significant cost reduction. The greatest potential for cost reduction lies in producing, harvesting, and transporting feedstock to processing plants.
The major oilseed crops grown in Pakistan include cottonseed rapeseed/mustard, sunflower and canola etc. During first nine month of 2005-06, local production of edible oil was estimated at 0.809 million tonnes while during the same period 1.269 million tonnes of edible oil was imported and 0.216 million tons edible oil was recovered from imported oilseeds and the prospect of using locally grown oilseed as feedstock for bio-diesel in near future is very remote.
Nevertheless, most promising ingredient for bio-fuels is an ordinary shrub Jatropha locally known as Ratanjot. Jatropha curcus resembles castors. The shrub produces a seed that contains high oil content and can be used to blend with diesel. It does not compete with food crops.
Jatropha does not require much water and can be raised in arid and semi-desert areas. Farmers can get an average yield of over 1,000 kg per hectare under rain-fed conditions. Jatropha is drought-resistant and can be raised even in areas where the annual rainfall is between 300-500 mm.
Higher oil content plants belonging to Brassica family can be grown as dedicated bio-diesel feed stock. Fats and oils that are unsuitable for human consumption can also be converted to bio-diesel. Production cost can be minimised by using restaurant waste oils and rendered animal fats that can also help to resolve the dangerous problem of re-cycling.
When derived from a renewable domestic resource bio-diesel surely reduces reliance on import. To grow and thrive, the industry needs a steady supply of bio-diesel feedstock now and in the future. The country has vast potential to grow feedstock for bio-diesel, especially in the remote areas. Development in this sector will also increases agricultural revenue and creates jobs, especially in the rural areas.
