Sugarcane-based bio-energy generation under consideration

The government is considering a proposal to develop sugarcane-based bio-energy generation, including blended fuel for vehicles. The proposal was broached at a meeting on sugarcane based bio-energy production held in Islamabad last month under the co-chairmanship of Secretary, Planning & Development Division and Member, Food & Agriculture.
In the last meeting it was indicated that distillery-spent wash and bagasse could be used for electricity generation, while ethanol, derived from molasses, could be blended with gasoline.
According to details of the meeting available here on Tuesday, Member, Food & Agriculture in his presentation highlighted the need for exploring renewable sources of energy, and indicated that there were 80 sugar mills in the country and 9 distilleries, of which eight produce fuel ethanol.
Pakistan had a record production of sugarcane in 2007-08, ie, 63.9 million tons. Sugar production was 4.4 million tons, while molasses production was 2.25 million tons and about 40 percent of it was exported. Sugarcane yield and recovery rates were lower in Pakistan relative to other major producing countries. There was a need for value addition to sugar by-products, formulation of policy on blending of ethanol with gasoline, and integrated energy management through rationalisation of prices of petrol, diesel and CNG.
It was suggested that since bagasse availability was seasonal in nature, possibility of using cotton sticks as raw material should be examined. Secretary, Planning & Development asked the representative of Pakistan Sugar Mills Association (PSMA) to indicate their requirements and specify issues which need to be resolved to proceed further with bio-energy generation.
Executive Vice-President of Shahkargang sugar mills gave a presentation on "Sugarcane - renewable source of energy," which covered production, prices and existing uses of molasses and ethanol for bio-fuel/electricity generation in different countries of the world. He indicated that Shahkargang sugar mills was using distillery-spent wash to generate electricity. There was a big potential for electricity generation which needs to be exploited, he said.
He said that a typical sugar mill with distillery could produce 6-8 MW electricity by using distillery-spent wash and 20 MW by using bagasse. It was felt that up-to 2240 MW of electricity could be generated by using sugarcane by-products, ie, distillery-spent wash and bagasse.
Representative of Al-Moiz Industry pointed out that their sugar mill at Layyah has installed a plant for generation of electricity from bagasse, but contrary to approved policy of Alternate Energy Development Board (AEDB) that electricity tariff will be 10 percent less than for furnace oil units, they were having difficulty in getting approval from NEPRA for an up-front electricity tariff.
He also informed that WAPDA is purchasing electricity at 19 cents per unit from IPPs, while they are ready to sell electricity at 11 cents per unit, but WAPDA was not purchasing. It was pointed out at the meeting that the excise & taxation laws were outdated, ie, as old as 1928 and needed changes to facilitate3 new use of ethanol as bio-fuel.
It was further mentioned that existing law does not allow blending of fuel, therefore, amendments in the law are needed. Sugarcane Commissioner, Ministry of Food & Agriculture (MINFAL) said that a draft proposal to pay sugarcane farmers on the basis of sucrose content had been prepared involving two mills from Punjab and NWFP each.
Secretary, Planning & Development Division and Dr K.A.Malik, former member Food & Agriculture were of the view that it should be for all mills. Secretary asked the Sugarcane Commissioner to provide such document to the Planning Commission. Chairman, PSMA was asked to come up with a set of recommendations taking into account various alternatives available for electricity generation. After detailed discussions, following decisions were taken.
-- Ministry of Petroleum and Natural Resources to initiate action for changes in the existing laws to allow blending of ethanol with gasoline.
-- Planning Commission would convene a meeting to resolve the issue of approval of up-front tariff for electricity generated by sugar mills. Representatives of NEPRA, PEPCO and other stakeholders would attend such meeting.
-- Awais Qureshi of M/s. Shahkargang sugar mills would supply information regarding cost of production of anhydrous alcohol, and;
-- Feasibility study by HDIP on blending of ethanol with gasoline got to be updated. Economics of electricity generation from ethanol spent wash, bagasse, cotton sticks and other bio-mass will be worked out by the energy wing of Planning Commission by engaging professionals from the market.