In contrast to the ‘take-make-waste’ linear model, a circular economy approach to economic development is today widely favoured because it benefits businesses, society, and the environment.
Regenerative by design, it aims to gradually decouple growth from the consumption of our planet’s finite resources. This month, we share snippets from Samir Somaiya, CEO of Godavari Biorefineries, who talks about India’s renewables and the circular economy strategies his company is taking to develop the industry.
Biorefining is the process of converting feedstock into value added products such as foods, fuels, electricity, chemicals, pharmaceuticals, fragrance chemistry, bio materials, agrochemicals and more. In a press release with Chemical Engineering World, Somaiya illustrates an example of how Godavari Biorefineries has pivoted toward being a circular and cascading biorefinery that continuously strives to add value:
“A few years ago, we installed an incinerator boiler to recover energy from our waste. Now, we are implementing a process to extract potash from the ash from the incinerator. This potash will then be sold to our farmers.”
Currently, India imports almost all 4 million tonnes of its potash needs, but this could be different in the future. If more companies start producing potash from waste, especially as subsidies for potash-based fertilisers were recently cut amidst an attempt to contain fiscal deficits, India can reduce its import reliance.
Godavari Biorefineries invests heavily in energy efficiency and engineering to convert available surplus bagasse (the fibrous by-product of sugar production from sugarcane stalks) into next generation feedstock. They also produce acetic acid from renewable sources instead of from petroleum feedstock, which substitutes conventional materials without loss of functionality. Mandala’s investment proceeds were used to kickstart and accelerate some of the key products and processes that form part of Godavari’s integrated biorefinery model today.
The next phase of growth in renewable chemicals in India rests on two key factors: renewable chemical prices compared with that of conventional fossil-based chemicals, and the willingness of the end user to pay a price premium for renewable-derived feedstock. There are signs in the skincare sector that show responsibly sourced, traceable, renewable and biodegradable chemicals can command a price premium from the end customer.
Of course, capital outlay for the development of renewables industry does not come cheap, and initiatives like the US’ Bio-Preferred Program and EU carbon markets enjoy the support of governments that sponsor investment in research, heavily capital-intensive pilot plants, and commercialization of renewable processes and technologies. Likewise, India’s Viability Gap Funding (VGF) program subsidises up to 20% of project costs for Greenfield facilities to make 2G ethanol (ethanol from biomass).
Somaiya believes India should take a ‘bolt-on’ approach in both 2G ethanol and biofuel, adding onto existing infrastructure the equipment and technology necessary for production of ethanol and biofuel. This way, funding needs can be drastically reduced. With a strong agriculture base and abundance of biomass, India needs to focus on education and research to harness its dormant potential in renewable energy and chemicals.
Biofuels a possible answer to India’s sugar surplus crisis, renewables growth part of circular economy
Indian sugar millers face a multitude of issues: unsold sugar stocks, cane dues and unpaid interests. With performance feasibility, production capacity, and the consumer market overturned by the raging coronavirus, a bailout package seems to be the only favorable solution to the sugar surplus crisis, Somaiya shared recently in an interview with Chinimandi News.
Taking a longer term view, Somaiya argues that India has long proven itself to be a surplus producer of sugarcane, and suggests ways this surplus can be utilised to meet the country’s burgeoning food and energy needs.
How Godavari Biorefineries leads the Indian sugar industry in building a sustainable bio-fuel economy
-Expanded distillery capacity from 200,000 lpd to 320,000 lpd last season, and to 400,000 lpd this season
-Manufactures ethanol via sugarcane syrup and B Heavy molasses, diverting over 40% of sugar towards ethanol
-Created optionality between sugar and ethanol
-Actively supports government policies on producing 2G ethanol, and Bio-CNG
-Pioneered the use of renewable feedstocks to make chemicals, materials and renewable power with applications in pharmaceuticals, agriculture, flavours and fragrances coatings
-Working on intercropping with farmers to improve their agronomy so that they farm and earn better
Long-term policies recommended for the growth of India’s ethanol industry
To get to production levels in Brazil and the USA, India will need a wide variety of renewable biomass. Apart from pushing for the use of sugarcane juice and B Heavy molasses in ethanol, increasing the ethanol blend rate in petrol will go a long way to help meet India’s energy security needs. Already, the Government has indicated bold targets to move towards a 20% blend rate. In states that already have ethanol surplus, the blend rate can be increased more quickly. Promoting flex fuel cars like Brazil has done is another strategy to further increase adoption rates. Overall, the pace of transformation will rely on how quickly sugar companies can obtain regulatory approvals and financing to build distillation assets and divert their sugar surplus to ethanol.
In the short term, the surplus sugar will have to be exported. India has exported a new high of nearly 6 million tons of sugar this season and sugar millers will need continued government support on export policies.
Kinyume na mfano wa mstari wa "kuchukua-kufanya-matope", mbinu ya uchumi wa mviringo kwa maendeleo ya kiuchumi leo inapendwa sana kwa sababu inasaidia biashara, jamii, na mazingira. Kwa kubuniwa upya, inakusudia kuondoa hatua kwa hatua ukuaji kutoka kwa matumizi ya rasilimali za mwisho za sayari yetu. Samir Somaiya, Mkurugenzi Mtendaji wa Godavari Biorefineries, anaelezea jinsi kampuni yake inavyotumia nishati mbadala na mikakati ya uchumi wa mviringo. Biorefining ni mchakato wa kubadilisha malighafi katika bidhaa zenye thamani iliyoongezwa kama vile chakula, mafuta, umeme, kemikali, dawa, kemia ya harufu, vifaa vya bio, kemikali za kilimo na zaidi. Katika taarifa ya vyombo vya habari na Chemical Engineering World, Somaiya anaelezea mfano wa jinsi Godavari Biorefineries imegeuka kuwa biorefinery ya mviringo na cascading ambayo inaendelea kujitahidi kuongeza thamani: <unk> Miaka michache iliyopita, tuliweka boiler ya incinerator ili kupata nishati kutoka kwa taka zetu. Sasa, tunaanzisha utaratibu wa kuchimba potasi kutoka kwenye majivu ya kutengeneza majivu. "Kama ilivyo kwa potasi, India inahitaji ""kuagiza"" karibu tani milioni 4 za potasi, lakini hii inaweza kuwa tofauti katika siku zijazo." Ikiwa makampuni zaidi yataanza kuzalisha potasi kutoka kwa taka, haswa kwa sababu ruzuku kwa mbolea za potasi zimepunguzwa hivi karibuni katikati ya jaribio la kuzuia upungufu wa kifedha, India inaweza kupunguza utegemezi wake wa uagizaji. Godavari Biorefineries inawekeza sana katika ufanisi wa nishati na uhandisi wa kubadilisha bagasse ya ziada inayopatikana (bidhaa ya nyuzi ya uzalishaji wa sukari kutoka kwa shina la sukari) kuwa nyenzo ya kizazi kijacho. Pia hutengeneza asidi ya asidi kutoka vyanzo vinavyoweza kubadilishwa badala ya kutoka kwa malighafi ya mafuta, ambayo inabadilisha vifaa vya kawaida bila kupoteza utendaji. Mapato ya uwekezaji wa Mandala yalitumiwa kuanzisha na kuharakisha baadhi ya bidhaa muhimu na michakato ambayo ni sehemu ya mfano wa biorefinery ya Godavari leo. "Mwisho wa ukuaji wa kemikali mbadala nchini India unategemea mambo mawili muhimu: bei ya kemikali mbadala ikilinganishwa na ile ya kemikali za kawaida za visukuku, na utayari wa mtumiaji wa mwisho kulipa bei ya premium kwa malighafi inayotokana na mbadala. """ Kuna ishara katika sekta ya huduma ya ngozi ambayo inaonyesha kemikali zinazopatikana kwa uwajibikaji, zinazoweza kufuatiliwa, zinazoweza kurejeshwa na zinazoweza kuharibika zinaweza kuagiza bei ya ziada kutoka kwa mteja wa mwisho. "Hata hivyo, ""malipo ya mtaji kwa ajili ya maendeleo ya sekta ya nishati mbadala si kuja nafuu, na mipango kama vile Marekani Bio-Mpendwa Programu na EU Carbon Masoko kufurahia msaada wa serikali kwamba udhamini uwekezaji katika utafiti, sana mtaji-intensive viwanda majaribio, na biashara ya taratibu mbadala na teknolojia." India pia ina mpango wa Viability Gap Funding (VGF) ambao unatoa ruzuku ya hadi 20% ya gharama za mradi kwa vifaa vya Greenfield kutengeneza ethanol ya 2G (ethanol kutoka kwa biomass). Somaiya anaamini India inapaswa kuchukua mbinu ya "bolt-on" katika ethanol ya 2G na biofuel, kuongeza kwenye miundombinu iliyopo vifaa na teknolojia muhimu kwa uzalishaji wa ethanol na biofuel. Kwa njia hii, mahitaji ya ufadhili yanaweza kupunguzwa sana. Pamoja na msingi mkubwa wa kilimo na wingi wa biomass, India inahitaji kuzingatia elimu na utafiti ili kutumia uwezo wake wa kulala katika nishati mbadala na kemikali. Biodiesel inaweza kuwa jibu la uwezekano kwa mgogoro wa ziada ya sukari nchini India, na nishati mbadala inaweza kuwa sehemu ya uchumi wa mzunguko. "Kwa utendaji, uwezo wa uzalishaji na soko la watumiaji lililobadilishwa na coronavirus, mfuko wa msaada unaonekana kuwa suluhisho pekee la faida kwa mgogoro wa ziada ya sukari, ""Somaiya alishiriki hivi karibuni katika mahojiano na Chinamandi News." Somaiya anasema India imekuwa ikitoa sukari kwa muda mrefu na inaonyesha njia ambazo ziada hiyo inaweza kutumika kukidhi mahitaji ya chakula na nishati ya nchi hiyo. Godavari Biorefinery inaongoza sekta ya sukari ya India katika kujenga uchumi wa biofuel endelevu - Kuongeza uwezo wa distillery kutoka 200,000 lpd hadi 320,000 lpd msimu uliopita na kufikia 400,000 lpd msimu huu - Inatengeneza ethanol kupitia syrup ya miwa na molasses nzito, na kugeuza zaidi ya 40% ya sukari kuelekea ethanol - Inaongeza chaguo la muda mrefu kati ya ethanol ya sukari na ethanol - Inasaidia sera za serikali za kuzalisha ethanol ya 2G na bio-CNG - Kuanzisha matumizi ya malighafi za mbadala za chakula na nishati mbadala na matumizi katika dawa, kilimo, ladha na vifuniko vya harufu. "Kulingana na kushinikiza matumizi ya juisi ya miwa na B-heavy molasses katika ethanol, kuongeza kiwango cha mchanganyiko wa ethanol katika petroli itasaidia sana kukidhi mahitaji ya usalama wa nishati ya India. """ Serikali imeweka malengo ya kufikia kiwango cha 20% cha mchanganyiko. Katika majimbo ambayo tayari yana ziada ya ethanol, kiwango cha mchanganyiko kinaweza kuongezeka haraka zaidi. Kukuza magari ya mafuta ya kubadilika kama Brazil imefanya ni mkakati mwingine wa kuongeza viwango vya kupitishwa. Kwa ujumla, kasi ya mabadiliko itategemea jinsi kampuni za sukari zinaweza kupata idhini za udhibiti na ufadhili wa kujenga mali za kutengeneza na kugeuza ziada ya sukari yao kwa ethanol. Katika muda mfupi, sukari ya ziada itapaswa kusafirishwa. India imeuza zaidi ya tani milioni 6 za sukari kwa mwaka huu na watengenezaji wa sukari watahitaji msaada wa serikali kwa sera za usafirishaji.