Bio-fuels to Bioenergy Challenges & Opportunities for

ICRAF

Navin SharmaProgramme Manager – Biofuels

ICRAF – New Delhi

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“Its not that we need new ideas, but we need to stop having old ideas– Edwin Land”

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Who Am I?

Over 23 Years of Experience Working with Corporate Sector – Unilever & ITC Ltd :: 10 Patents

ITC : Chief Scientist for Corporate R&D - Genome Sequencing of Casuarina, GM, Metabolomics, - Breaking Geographic & Environmental Boundaries- Several POCs Demonstrated and Technologies in Implementation

Unilever : Principal Scientist:: Global Science Area Leader- Several Translations from Discovery to Deploy (Lipton & Brooke Bond)- C/N Metabolism – Theanine and Flavonoid Biosynthesis, Wounding and Aroma, Cold Infusing Tea

Ph D : From Cambridge in Plant Science

Strength : Focus – Focus – Focus; Weakness : Restless for Results

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Structure of the Presentation

Drivers of Bioenergy

Constraints for implementation

Some success stories

ICRAF Project

Vision, Mission & Road map : RiD Opportunities

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Drivers of Bioenergy

o Attractive Economics

o Climate Change Challenges: Mandates by various Governments

o Energy demand: to grow by 55% from 11.4 billion TOE (2012) 17.7 billion TOE (2030)

o Increased Demand of global oilfrom 82mb/d (2012) 116 mb/d (2030)

Bioeconomy: Revenue PotentialAgricultural

inputsBiomass

ProductionBiomass trading

Biorefining inputs

Biorefining fuels

• Co-firing• Dedicated CHP

15 103089 80

Biorefining chemicals

Downstream chemistry

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Biomass power and heat

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• Seeds• Crop protection• fertilizers

• Energy crops• Sugarcane• Short rotation

forestry

• Biomass aggregation

• Logistics• Trading

• Enzymes• Organisms• Pretreatment

chemicals

• 1st & 2nd generation biofuel production

• Fermentation of bulk chemicals

• Polymerization, dowm-stream reactions

There are significant revenue potentials along the entire biomass value chain. The values given are approximate business potential in US$ billions by 2020

http://www3.weforum.org/docs/WEF_FutureIndustrialBiorefineries_Report_2010.pdf

World Wide Mandates & SubsidiesUnited States

Mandate of 36 billion gallons of biofuels by 2022

Volumetric tax credit: USD 0.51/gal ethanol + USD 1.00/gal biodiesel

Cellulose biofuel producer tax credit: USD 1.01/gal.

Small producer tax credit: USD 0.1/gal

USD 1 billion in support for 2nd generation technology.

* CORN/Lignocellulose

Brazil

30+ year commitment to ‘alcohol program

Annual blending target for ethanol (25%)

Biodiesel target of 5% by 2013

Lower taxes for ethanol (E100) than gasoline.

FFV sales tax of 14% compared to 16% for gasoline-only vehicles

*Sugarcane

European Union

5.75% blending target by 2010 and 10% by 2020

Discussion on target waiver triggered by food crisis, but no change of policy so far.

Country-level subsidies average USD 1.90/gal for ethanol and USD 1.50/gal for biodiesel

Penalty fee in 5 countries for noncompliance with biofuel target.

*Rapeseed/Lignocellulose

China

Plan to substitute 20% of crude imports by 2020.

Target of 1.7 billion gallons of ethanol by 2010.

Investments in feedstock-rich countries.

Commitment to develop non-food based biofuels COFCO (Nat. Food Corp.) with PetroChina and Sinopec – 2nd generation multiple projects.

*Lignocellulose/Various

India

Blending targets in current drafts are 5% by 2012. 10% by 2017, 20% for long term.

Target of 20% biofuels by 2020

Duty-free imports of Jatropha to support biodiesel

Individual states may set additional measures to promote biofuels or restrict transport of molasses over state boundries.

* Various

World wide mandates and subsidies. Current policy status in five major world regions. (*)denotes key feedstockhttp://www3.weforum.org/docs/WEF_FutureIndustrialBiorefineries_Report_2010.pdf

Can biofuels really contribute towards reducing CO2?

Transport Fuels % saving in GHG versus fossil fuel reference

Source: Sheffield Hallam Univ. (2003) & Low CVP

(2004)

Source: E4tech (May 2006)

Diesel (ultra low sulphur)

Biodiesel (from oil seed rape)

53% 38 -57%

Biodiesel from recycled vegetable oil

85% -

Second generation diesel

- 94%

Petrol (ultra low sulphur)

Ethanol from wheat grains

49-67% 7-77%

Ethanol from sugar beet

54% 32-64%

Ethanol from wheat straw

85%

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Value Chains not exploited Over reliance on few crops Diversity or monoculture

Agroforestry o Selection of Appropriate Specieso Quality planting materialo Short rotation cropso Remunerative to small farmers

Availability (seasonal, quality, consistency)

Supply and demand effects on costs- Competing users in agriculture- Competing users in forestry- Competing users in other sectors

The issue is not technical research alone, but coordinated research & demonstration along the value chain.

Feedstock costs represent from 50-75% of the cost of producing biodiesel

Constraints for Translation

School children taking out a jatha to mark International Biodiesel Day in Hassan.

Hassan to get country’s first bio fuel bunk

Karnataka is all set to open the country’s first bio-fuel distribution bunk of Bharat Petroleum Corporation Ltd in Hassan. Speaking at an event organised by the State Biofuel Development Board on Thursday, its Executive Chairman Y.B. Ramakrishna said, “We have several biofuel-related projects going on. We already have a Green Fuel Park at Madenur village, which produces about 300 litres of biofuel and Bharat Petroleum will open a green fuel outlet within the next three months in Hasan”.

Jul 06, 2012 | DC | Bengaluru

Biofuel Park –Overview (Hassan, Karnataka)(on Farm pond contours & Bunds)

Source: Prof. Balakrishna Gowda, .Project Coordinator, Biofuel Park,UAS, Bangalore, India

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SUCCESSFUL EXAMPLE IN INDIA : KARNATAKA

Inclusion of multiple & locally adapted species Pongamia (Pongamia pinnata)

Madhuka ( Madhuka latifolia), Neem (Azadirachta indica) Simarouba (Simarouba glauca), Jatropha (Jatropha curcus) Amoora (Amoora rohiyuka) & Surahonne (Calophyllum inophyllum L)

Smart farming system e.g. bund planting

Area covered – 17,558 acres

No of seedlings – 1.5 millions

LEARNING FROM OTHER INDUSTRIES: PAPER

Trigger – The Paper Business Forest Conservation Act Use of Marginal Land The Requirements:

o Use of Marginal lando Compressing Harvesting Cycle from 7

years to 4 yearso Improving Survival Rate to 90 % in harsh

conditionso Increased Resistance to Diseaseo Customized Extension Serviceso a willing buyer at remunerative rates,

reducing farmer’s riskWorld Business and Development Award 2012 at the Rio+20 United Nations

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IFAD – ICRAF Programme

Develop Market ready Products to

o Improve cash income to poor including womeno Improve Food Securityo Increase Access to affordable energy

Covers all aspects of Bioenergy from Biofuels to Bioelectricity…..

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R&D

• Identification of COEs• Focus on first

generation technologies

• R&D Focus: increasing plant yield, best agronomic practices, field testing

• Selected technologies to meet pillars of – food security, environment, Land use and ownership

Local Energy Provisions to enhance food

security

• Develop seven pilot projects to enhance food security through provision of local energy

• Community selection based on remote and ecologically fragile villages with no access to electricity, large concentration of poor, villages with marginal lands – saline soils or water limiting conditions.

Knowledge Sharing, Capacity Building, Policy

studies & advocacy

• Results to be shared through yearly workshops with all stakeholders and people involved

• Advise on development of suitable renewable energy policy

• Demonstrate with publication and other media successful implementation

The Project : Covering various aspects of value chain

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R&D

• Identification of COEs: Crops and or Agroforestry system

• Improve productivity of selected biofuel crops

• Cropping intensity trial for higher capacity utilization with multiple feedstock and develop efficient value chains

• Seeds / planting material supply to growers

• Models for rural electricity with pongamia or other agri source

• Reduction in GHG

Local Energy Provisions to enhance food security

• Community organisation and capacity building: Selection of local NGOs, mobilisation of village communities, formation of community organisations, assessment of needs, enhancement of community capacity, training and technical support

• Investment in infrastructure and equipment: validation of energy system, establishment of nurseries and demonstration plots, land identification, processing plants, water harvesting systems,

Knowledge Sharing, Capacity Building, Policy

studies & advocacy

• One workshop per year along with COEs, annual reports and technical reports from COEs

• Policy studies with FAO• Creation of ad hoc space

on the web site, posting reports on IFAD, ICRAF and FAO websites

The Project Outputs

ActivitiesOutput

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2016Q2 2013 Q3 2013

Q4, 2013

2014 2015Q12013

R&D defined, COEs contracted, NGOs selected, village communities mobilised,

Second mission & reports, village community mobilisation completed, capacity built, O&M training completed, processing plant procurred, installed, annual evaluation, annual progress report

Crop & agroforestry system demonstrated at 2000ha , commercial feasibility of biofuel and bioenergy demonstrated at pilot scale, value chains creatred, policy documents prepared

First mission and report, R&D defined and activities commenced, NGOs selected, village communities mobilised, Need assessed, Capacity built, annual evaluation, workshoip and related proceedings

Creation of secretariat &

SC

Third mission & reports, constitution of community organisation completed, establishment of water harvesting structures, crop & agroforestry system for location specific developed and large trials initiated, workshop and related proceedings, annual progress report

Bidding process concluded.First selection of proposals by the secreatariatFinal selection of proposals by SCIFAD projects to be linked identified

Milestones and Output

RiD VISION

Be the focal point and champion of all efforts With in & Outside ICRAF on Bio-fuels covering full value chain.

Develop Bioenergy as a Platform with in ICRAF & link up with various SDs

Establish ICRAF as the Global Leader in the area of Bioenergy and build capability in short rotation perennials

Create adjacencies on short rotation perennials in other important areas

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Mission

“Identify at least one (multiple use) crop with potential to produce commercial scale bioenergy, develop full value chain and demonstrate the POC in bio-fuel in an area of 2000Ha meeting the triple bottom line criteria by 2017.”

Develop, design and deploy next generation bioenergy crops and / or the agroforestry system that are sustainable, competitive to currently used crops especially cereals through promotion of research, development and demonstration.

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Guiding Principle

o POC: Responsible to demonstrate the POC in minimum 2000ha

o COE: Develop and establish COEs in the areas of entire value chain

o Global Bench Marking: with the best in the similar area (ITC, Suzano, CSIRO – Australia, CSIR – South Africa , GOOGLE)

o Triple Bottom Line: Socially inclusive, Economical and Sustainable

o Strategic and fits well with the mandate of ICRAF: involve various CRPs Specifically from South Asia & SD3 – Genetic Resources

o Involve Private partners: Create a business model

o Our long term right to win

Only ICRAF can!!

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Identification of crops, R&D to enhance productivity and short rotation time

Development of agroforestry systems, value chain creations, demonstrations by pilot scale production

Large scale trials to establish the economics, development of skills and competencies to produce pernnials in short duration (3-4 years)Development of business models

2013 2014 -2015 2016 & beyond

Future Opportunities in Timber and Oil security

RiD Road Map

RiD: Opportunity for ICRAF

Higher yield increase output

Short Rotation , Coppicing

Native & Diverse Crops

Availability of Quality Planting

Stock

Other Value Added Products

Water Use Efficient CropsSwing Potential

Food Security

Agroforestry Systems

Value Creations

Adaption

R&DPriorities

Target: A non cereal based species that can produce between 1000 – 3000 litres of Biofuel per ha per annum

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ITC R&D CENTRE HYDERABAD

Deliverable: To reduce the development time of Euca nursery from 6 to 3-4 months

Impact:

Survival rate + 20% Effective for hard to root clones also Proprietary techniques

Before After

Coppicing

Rooting

Hardening

Open Nursery

60 days

35-40 days

10 days

60-75 days

30 days

20-25 days

10 days

50-55 days

Contributions

Mini Cuttings from Hedge

plants

New Medium &Rooting mixtures

Cycle time 165-185 110-120

Quality of Planting MaterialAvailability of Quality Planting

Stock

Rotation of 3.5 yrs is possible in Euca where CAI & MAI meet at

this age.

Early Harvest – How to Make Decisions

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Based on informed decisions arrived out of scientific concepts

Short Rotation, Coppicing

Top-grafting and is used to transform existing low-quality fruit trees, by

pruning them and then grafting them with commercial varieties

Model depicting major known long-distance florigenic signals, together with their main regulators in the leaf and their main targets and co-regulators in the shoot apex.

22Used in Cocoa – extend it to other fruit crops

Short Rotation, Coppicing

Teak - one of the most valued timber wood Heart wood is the economically important part

Takes 30-40 years to yield good value timberRequires deep fertile soil and >1000 mm rainfall

Plantation Teak – possibility of producing quality Teak in shorter rotations with good planting material and intensive management practices

Ex: Malaysia’s Biotech Company, Sabah group.

Challenges

1. To make it feasible to produce timber quality Teak in marginal lands

2. To reduce the rotation from 30-40 years to 15-10 years

Problems to be solved

GM TechnologyGenes for the transition into hard wood from sap wood

Approaches

Genes identificationTissue Culture protocolsGM technology

Reducing the Harvest Time for Economically Valuable Trees

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Short Rotation, Coppicing

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Short Rotation, Coppicing

A. Harvested during February to April

Three months after harvesting : Sprouts wilting due to moisture stress during summer

Four months after harvesting : Sprouts not recovering in spite adequate soil moisture in July

B. Harvested during April to May

Two months after harvesting : Heavy sprouting due to adequate soil moisture in July

June : Sprout initiation, in spite of severe water stress

Coppicing a way to replanting

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Short Rotation, Coppicing

Plant Architecture and Crop to Suit Agroforestry

-4

-2

0

2

4

6

8

10

12

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0 200 400 600 800 1000 1200 1400 1600

PPFD (em-2s-1)

Ph

oto

. R

ate

Y=-1E-05x2+0.0211-4.378R2=0.970

800

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Agroforestry Systems

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Imparting Resistance to Biotic & Abiotic ResistanceSilica in Plants

Silica uptakeSilica imparts water stress tolerance in Eucalyptus0 mM 0.5 mM

Si

Disease resistance

nutrient deficiency

Drought tolerance

Pest tolerance

• Increased stem strength and rigidity• better leaf orientation for light interception - enhances

photosynthesis and growth rates. • Increased tolerance to high salinity• redistributing nutrients more evenly within the plant. • resist penetration of fungal diseases - particularly mildews. • improves wilting resistance.

Enhance silica uptake and mobilisation in plants Identify transporters and modulate their activity

Relevance

Water Use Efficient CropsSwing Potential

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Focus India

Bioenergy Platform – 12th Plan

ICAR – Initial Capital 11 M $

Possibility of 2 M $ for ICRAF

Initial Dialogue with Dr MM Pandey, DDG (Engineering) ICAR

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Summary & Conclusion

o Opportunity to establish ICRAF a leader in the area of biofuel and later in other areas covering full value chain

o Project is still in defining phase - to be defined with proper output and milestones by March 2013

Fits Well with All SDs

Fits Well with CRPs

ICRAF’s Vision

Future Adjacencies

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It is estimated that the demand for timber is likely to grow from 58 million cubic metres in 2005 to 153 million cubic meters in 2020. The supply of wood is projected to increase from 29 million cubic meters in 2000 to 60 million cubic meters in 2020. The productivity of timber in India is only 0.7 cu. m/ha/year whereas the world average is 2.1 cu.m/ha/year.