Expression of Interest (EOI) for SETTING UP AN INTEGRATED LIGNO-CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S)
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1 INDIAN OIL CORPORATION LIMITED (A GOVERNMENT OF INDIA ENTERPRISE) Invites Expression of Interest (EOI) for SETTING UP AN INTEGRATED LIGNO-CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S) (Ref.: CO/BD/AE/EOI/LCE/Sugar mill) Indian Oil Corporation Limited Alternate Energy & Sustainable Development Group SCOPE Complex, Core-6, 7, Institutional Area, Lodhi Road, New Delhi Page 1 of 22
2 Ref.: CO/BD/AE/EOI/LCE/Sugar mill Date: 08/12/2015 NOTICE INVITING EXPRESSION OF INTEREST (EOI) Setting up an Integrated Ligno-Cellulosic Ethanol Production Facility in Partnership with Sugar mill(s) IndianOil Corporation Limited (IndianOil) is a Government of India Enterprise with Maharatna Status and is also a Global Fortune 500 company. For furthering the vision of becoming a major integrated energy company with strong environment conscience, IndianOil has undertaken various biofuel projects in the country including ethanol blending. Now, IndianOil is planning to explore business opportunities in the area of ligno-cellulosic ethanol production in India through utilization of bagasse available with Sugar mills. In this regard, IndianOil invites all interested Sugar mills (herein after called BIDDER) having requisite experience/infrastructure/finance as enumerated in the EOI document to submit their proposals for providing bagasse as feedstock and setting up an Integrated Ligno-Cellulosic Ethanol Production facility at their premises. The purpose of inviting this EOI is to explore the availability of Bagasse as feedstock and know the willingness of Sugar mills for execution of project on SETTING UP AN INTEGRATED LIGNO-CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S). Interested parties may download the complete EOI document (ref: CO/BD/AE/EOI/LCE/Sugar mill, EOI Id: 2015_IOCL_63615), from the Central Public Procurement Portal of Government of India ( ). All revisions, clarifications, corrigenda, addenda, time extensions etc, to the EOI will be hosted on above websites. BIDDERs should regularly visit this website to keep themselves updated. Page 2 of 22
3 NOTICE INVITING EXPRESSION OF INTEREST (EOI) By INDIAN OIL CORPORATION LIMITED For SETTING UP AN INTEGRATED LIGNO-CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S) 1. INTRODUCTION IndianOil Corporation Limited proposes to set up an Integrated Ligno-Cellulosic Ethanol Production facility in partnership with Sugar mill(s). For this purpose, IndianOil has prepared a conceptual framework for implementation of the said project, which is enclosed with this EOI document. According to the same, Sugar mill, Biomass conversion Technology provider and IndianOil will jointly execute the project on following lines a) Sugar mill interested in setting-up an Integrated Ligno-cellulosic Ethanol unit in its premises has to supply bagasse on sustainable basis as feedstock for ligno-cellulosic ethanol production. b) Biomass to ethanol conversion technology provider or licensor will be responsible for preparation of detail engineering, supply of other raw material, maintaining the product quality and provide corresponding performance guarantee. c) IndianOil to off-take Ligno-cellulosic ethanol and distribution of blended petrol. The capacity of proposed plant will be 55,000-60,000 tonnes of Ligno-cellulosic Ethanol per year with an indicative capital cost of ~Rs 800 Crore. The Debt Equity Ratio envisaged for the proposed project is 70:30. At this stage, the proposed framework is tentative, and will be finalized after discussions with all stakeholders. IndianOil therefore proposes to seek EOI from parties who may be interested to partner in this project. Page 3 of 22
4 2. TECHNICAL CRITERIA S. No. Particulars Qualification Criteria 2.1 No. of minimum operational 3 Sugar mills (operational for the past 3 years period from the date of issue of this EOI) 2.2 Location of offered Sugar mill(s) Anywhere in India, but prefer in the States of Uttar Pradesh, Karnataka and Maharashtra 2.3 Minimum capacity of offered 6000 TCD (Tonnes Crushed per Day) Sugar mill(s) 2.4 Minimum Annual Turnover Rs. 240 Crore (during last 3 financial years) 2.5 Minimum Net Worth Rs. 400 Crore (FY ) 2.6 Supply of bagasse as feedstock Minimum supply per day (@ max. 10% moisture content) 600 Tonnes (excluding commitment to Co-Generation, if any) Minimum supply per annum 2.10 lakh Tonnes (@ max. 10% moisture content) Minimum supply days per year for Bagasse (@ 600 Tonnes per day) 350 days Minimum storage facility 90,000 MT for ~150 days available within the premises for bagasse 2.7 Minimum spare land available 40 Acres within the premises for the proposed project* 2.8 Willingness to take equity stake 30% or more by the BIDDER** 2.9 Holiday/Blacklisted status The BIDDER must not have been debarred/ blacklisted by any Central/State Govt. department, agency, PSUs/ Institution/ Agencies/ Autonomous organization. The BIDDER shall submit a self-certification by an authorized person to this effect. * The offered land must be situated within the premises of the Sugar mill. The BIDDER should have a clear title of the land and there should not be any pre-existing right in favour of a third party. In case of third party right, the BIDDER shall submit the written permission/noc from third party. The said spare land should be free from all encumbrances. ** The capacity of proposed plant will be 55,000-60,000 tonnes of Ligno-cellulosic Ethanol production per year with an indicative capital cost of ~Rs 800 Crore. Page 4 of 22
5 3. GENERAL 3.1 This document contains 22 pages including the cover page and comprises three sections namely, Notice Inviting EOI, Format for submission of EOI (Cover Letter & Annexure I) and Term of Reference (TOR). 3.2 All revisions, clarifications, corrigenda, addenda, time extensions etc, to the EOI will be hosted only on BIDDERs should regularly visit this website to keep themselves updated. 3.3 The BIDDER shall also furnish complete audited annual financial statements for last three financial years including balance sheets, profit & loss account statement and all other schedules, self-certification of being not under liquidation, court receivership or similar proceeding in support of their fulfilling the eligibility criteria. The same to be provided for all the partners, wherever applicable. 3.4 EOI shall be submitted in hard copy at the address given below. EOI received through Fax / shall not be accepted. 3.5 The EOI must be complete in all respects leaving no scope for ambiguity. It is in the interest of the BIDDER to submit complete and comprehensive proposal leaving no scope for IndianOil to raise any further questionnaire. IndianOil may evaluate the BIDDER on the basis of documents submitted in the first instance in order to adhere with project schedule requirement. 3.6 IndianOil will not be responsible for any cost or expenses incurred by the BIDDER in connection with preparation or delivery of EOI. 3.7 The BIDDER is required to furnish all information and documents as called for in this EOI in English language. Any printed literature furnished regarding this EOI may be in another language, provided that the literature is accompanied by an authentic English translation, in which case, for the purpose of interpretation of the document, the English version will govern. 3.8IndianOil reserves the right to call the BIDDER for presentation at its office located in New Delhi, India and may visit the Sugar mill sites of the BIDDER. The BIDDER shall have no objection whatsoever in this regards and shall facilitate IndianOil to obtain the same. IndianOil will not be responsible for any cost or expenses incurred by the BIDDER for visiting its office at New Delhi, India for presentation. 4 SUBMISSION OF EOI The BIDDER must provide a Cover letter on his official stationery (letter head) along with offer in the prescribed format provided with the EOI document as per FORMAT FOR SUBMISSION OF EOI. The BIDDER is required to drop the sealed envelope super-scribing: Page 5 of 22
6 Expression of Interest ref: CO/BD/AE/EOI/LCE/Sugar mill - SETTING UP AN INTEGRATED LIGNO-CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S). The bid must contain complete EOI along with all the supporting documents duly signed & stamped on each page and shall be submitted in the Tender Box at the following address on or before the due date and time. Dy. General Manager (SD) Indian Oil Corporation Limited, Room No. 533, Core-6, 5 th Floor, SCOPE Complex, 7, Institutional Area, Lodhi Road, New Delhi Phone No: snshukla@indianoil.in The applicant shall mention Company s/institution s name, phone number & name of contact person on the cover of the envelope. 5 LAST DATE/TIME OF SUBMISSION OF EOI 5.1 The EOI should be dropped in the tender box on or before 3.00 pm, 08/01/ EOI submitted at any other place and after above time and date will not be accepted. 6 IMPORTANT NOTE This EOI does not constitute and will not be deemed to constitute any commitment on part of IndianOil to set up the Integrated Ligno-Cellulosic Ethanol Production facilities in India. IndianOil has the sole discretion to qualify or accept the EOI and reject the proposal without assigning any reason whatsoever. Furthermore, this advertisement neither confirms the right nor an expectation on any party to participate in the proposed EOI. Page 6 of 22
7 FORMAT FOR SUBMISSION OF EOI (to be printed on the official stationery of the BIDDER) To, Dy. General Manager (SD) Indian Oil Corporation Limited, Room No. 533, Core-6, 5 th Floor, SCOPE Complex, 7, Institutional Area, Lodhi Road, New Delhi Dear Sir, Subject: Submission of Expression of Interest for SETTING UP AN INTEGRATED LIGNO-CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S). With reference to your EOI inviting notice Ref. No: CO/BD/AE/EOI/LCE/Sugar mill dated./2015 after examining, Term of Reference (TOR), technical criteria and other details mentioned in the EOI document for SETTING UP AN INTEGRATED LIGNO-CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S), I/We hereby offer to submit Expression of Interest in partnering the said project. 1. All the schedules and documents necessary in this connection are enclosed hereto. All the documents/ photocopies of the documents have been self-attested by me/us and the IndianOil is free to reject our candidature if any of the documents/photocopies of the documents is/are found to be false or forged. 2. I/we, hereby also declare(s) that my/our organisation/firm is not debarred/ blacklisted by any Central/State Govt. department, agency, PSUs/ Institution/ Agencies/ Autonomous organization. 3. The information sought from me as per the EOI notice is enclosed in Annexure-I. Yours Faithfully, (Authorised Signatory) Designation: Date: Place: Page 7 of 22
8 Annexure I Name of the Project 1.0 General Information Name of the BIDDER / Firm submitting EOI Nature or legal status of the Firm Name and address of associated companies to be involved in the project with relationship and role, if any. Details of Registration document of the Firm (provide details & enclose copy) Registered Address of Firm SETTING UP AN INTEGRATED LIGNO- CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S) Contact Person Designation and address of Contact person Turnover & Net worth of the Firm during last three financial years (Please enclose copy of audited annual reports) In case firm is a subsidiary, indicate the role of parent company Year Turn Over (Rs Crore) Net Worth (Rs Crore) Has applicant or constituent partner have ever been debarred or blacklisted? If so, please give details. Page 8 of 22
9 2.0 Technical Information of Sugar mill & availability of Bagasse (if BIDDER has more than 3 Sugar mills to be offered for the said project, the below mentioned information pertaining to each unit should be furnished separately) Particular Sugar mill Sugar mill 2 Sugar mill 3 1 Annual Capacity (TCD) Location Date of Commissioning All Statutory clearances available (Yes/No) Safety measure adopted (Yes/No) Total mill area (in acre) Spare area available for setting-up integrated Ligno-Cellulosic Ethanol Production facilities (in acre) Average working days of Sugar mill per year Avg. Annual Sugar Production (Tonne) Details of Distillery Unit, if available - 1. Capacity (KL per day) 2. Average working days per year 3. Avg. Annual Alcohol Production (KL per annum) 4. Type of product (e.g. potable, fuel ethanol etc.) Annual availability of Bagasse (Tonne) Page 9 of 22
10 Existing use of Bagasse: 1. Used in boiler (in Tonne/annum) Or (percentage of total bagasse generated) 2. Used in Co-generation Plant (in Tonne/annum) Or (percentage of total bagasse generated annually) 3. Other use, including Sold to other parties (in Tonne/annum) Or (percentage of total bagasse generated annually) 4. Surplus bagasse (Tonne/annum or percentage of total bagasse generated annually) Details of Co-generation Plant, if available 1. Capacity (MW) 2. Average working days per annum 3. Annual power generated (kwh) 4. Internal Consumption (kwh) 5. Surplus Power supply to Grid (kwh) 6. Power selling price (Rs/unit) 7. Furnish the details on long term commitment for Cogeneration/Power supply, if any Page 10 of 22
11 3.0 Willingness to partner in the proposed project Willingness to provide min. 40 Acre spare land in existing premises of Sugar mill for: Setting-up ligno-cellulosic ethanol production unit, Expansion/commissioning of distillery unit (if required) Yes / No Other support infrastructures Willingness to supply a minimum of 600 MT/ day of dry bagasse (with a maximum of 10% moisture content) for 350 days of an year (please furnish the month wise assured availability of bagasse in format attached as Annexure-I(A)) Yes / No if no, then please mention for how many days 600 MT/day supply of bagasse will be ensured per year (please furnish the month wise assured availability of bagasse in format attached as Annexure-I(B))... days Please mention whether or not moisture content testing equipment for bagasse is available within premises? Yes / No Quantity of surplus biomass such as cane trash, crop residues etc. available in the vicinity of sugar mill Quantity :... MT per year An adequate storage facility is available for the said quantity of bagasse. Yes / No Willingness to invest equity in the...% Page 11 of 22
12 project. (The indicative cost of the proposed project is approx. Rs 800/- Crores)...Rs Crore (BIDDER to indicate approximate figure for the same e.g. 30%) Authorized Signatory Designation Stamp Date Telephone/ of authorized signatory Note: The BIDDER must submit all relevant documentary evidence with reference to above. Page 12 of 22
13 Monthly Availability of Bagasse (with a maximum of 10% moisture content) Annexure I (A) No. of Sugar mills Quantity ( in Tonnes) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total Avg. Moisture (%) Avg. Fibre (%) Sugar mill I Sugar mill 2 Sugar mill 3 Authorized Signatory Designation Stamp Date Page 13 of 22
14 Monthly Availability of Bagasse (with a maximum of 10% moisture content) Annexure I (B) No. of Sugar mills Sugar mill 1 Quantity ( in Tonnes) Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total Avg. Moisture (%) Avg. Fibre (%) Sugar mill 2 Sugar mill 3 Authorized Signatory Designation Stamp Date Page 14 of 22
15 TERMS OF REFERENCE (ToR) FOR SETTING UP AN INTEGRATED LIGNO-CELLULOSIC ETHANOL PRODUCTION FACILITY IN PARTNERSHIP WITH SUGAR MILL(S) BACKGROUND At present, the estimated production of ethanol in the country is in the range of TKL which is primarily used for potable alcohol, chemical industries and ethanol blending. India s ethanol production is mainly based on sugarcane molasses, which is limited. Any improvement in ethanol production is directly proportional to increase in sugarcane production. However, considering available infrastructure & irrigation resources, it is very difficult to increase sugar cane production. The Oil Marketing Companies (OMCs) have been directed to sell Ethanol Blended Petrol with percentage of ethanol up to 10% and achieve a mandatory target of 5% overall Ethanol blending. So far, the ethanol availability is restricted to fulfill the blending of about 2-3% only. To meet indicative target of 20% ethanol blending by 2017 (as per National Policy on Biofuels, 2009), the required quantity of ethanol is estimated to be approximately 5500 TKL 8.38%) Fig. in TKL Particulars Petrol Sale Projection (8.38 % CAGR) Ethanol Requirement (@ 5% blending) (@ 10% blending) (@ 20% blending) Further, the Ministry of Petroleum & Natural Gas (MoP&NG) through its communication ref. no. P-32017/1/2014-CC (Part-I) dated has revised mechanism for procurement of ethanol by OMCs. Now, the delivered price of ethanol has been fixed in the range of Rs per litre. Govt. of India has also emphasized on achieving energy security of the country with a target of reducing import dependence by 10% by the year To meet the additional demand of ethanol, the other options for ethanol production needs to be explored. Ligno-cellulosic biomass based ethanol production has been developed and adopted as one of the alternative options in few countries. Page 15 of 22
16 Considering above mentioned developments, there is a potential market in the country for ligno-cellulosic ethanol subject to commercial scale production. In Indian context, surplus crop residues, energy crop plantation etc. are the potential feedstock for ligno-cellulosic ethanol production. However, there are issues pertaining to these feedstocks. The major issues are tabulated below: Feedstock Options Surplus Agricultural Residues Energy crops under wasteland conditions Forest residues Wood waste Existing Issues Surplus residue burnt in the fields No mechanized aggregation High transportation cost Price sensitivity issues in long run Limited availability of large scale wasteland Small and scattered wasteland, leading to higher logistic and transportation costs Uncertain biomass yield of existing energy crops Required supplemental irrigation and other agri-inputs Plant Mortality, high gestation period etc. Legal and environmental issues No structured aggregation mechanism Commercial scale availability is uncertain In an era where there is a need for comprehensive development, the sugar industry is one of the industries that have successfully contributed to the rural economy. However, the business model of sugar mill is highly sensitive, due to market dynamics and cyclicality of sugarcane production in the country which is leading to un-consistence cane price for sugarcane farmers. There is no commercial scale ligno-cellulosic ethanol production plant in the country. However, biomass to ethanol conversion technology has been developed by various organisations and commercial-scale plants on the same are operational globally. Considering existing issues pertaining to various feedstocks, the bagasse available at Sugar mills seems to be the promising near term feedstock for ligno-cellulosic ethanol production. As feedstock is one of the key factors for the success of this project, the role of Sugar mills is far most important. Page 16 of 22
17 OBJECTIVES IndianOil is sourcing ethanol for its blending with petrol for more than a decade. In order to strengthen ethanol blending programme, it is proposed to set up an integrated ligno-cellulosic ethanol production facility in partnership with Sugar mill(s) in India. The major objectives envisaged for the proposed project are as follows: Reduce import dependency and enhance national energy security by leveraging upon locally available bio-resources for production of lignocellulosic ethanol Providing balancing tool to Sugar mills for cyclicality management through creation of additional revenue stream Boost rural prosperity through consistence additional income to sugarcane farmers Addressing climate change issue by enhanced use of ethanol blended petrol METHODOLOGY / STRATEGY A. Existing Business Model of Sugar mill The revenue pattern of a typical integrated Sugar mill in India is encapsulated as below: Production Process Products Revenue Pattern Juice Levy Sugar & Free Sugar 89% Bagasse Surplus power supply to grid 2% Cane Production Milling Molasses Potable liquor Fuel Ethanol Rectified Spirit 9% Press mud Bio-fertilizer Fig 1: Exiting Business Model and Revenue Pattern of Integrated Sugar Mill Page 17 of 22
18 B. Proposed Project The existing business model of typical integrated Sugar mill has four revenue generation streams (as reflected in the Fig.1). Out of which, the sugar production is the major revenue contributor to the tune of 89%. However, profitability of this revenue stream is highly sensitive due to cyclicality issues of cane production. In the proposed project, an additional revenue stream is envisaged through ligno-cellulosic production from Bagasse. Presently, bagasse is used in boiler, co-generation unit (produce power for internal consumption & power supply to grid), sell of surplus bagasse etc. It is understood that during the process of ligno-cellulosic ethanol production, lignin remains as a solid particle to the tune of 18-20% of total biomass. This lignin can be used to produce sufficient power to meet internal requirement of Sugar mill. At present, the power purchase price offered by State Government agencies are in the range of Rs. 3-6 per unit. On other hand, the delivered price of ethanol has been fixed in the range of Rs per litre. There are several technologies available for biomass to cellulosic ethanol conversion. However, these technologies need to proven on commercial scale in India. At this stage, it is envisaged that revenue generation from lignocellulosic ethanol will be 2-3 times greater than surplus power supply to grid. Production Process Products Juice Levy Sugar & Free Sugar Power production for internal consumption by lignin Bagasse Ligno-cellulosic Ethanol Cane Production Milling Molasses Potable liquor Fuel Ethanol Rectified Spirit Press mud Bio-fertilizer Fig 2: Business Model of the proposed Integrated Ligno-cellulosic Ethanol facility at Sugar Mill Page 18 of 22
19 C. Implementation Strategy Preliminary, it is envisaged that the project shall be implemented through formation of Joint Venture Company. The strategic partners of joint venture are: Sugar mill(s) Technology Providers & licensors IndianOil It is proposed that integrated ligno-cellulosic ethanol production facilities shall be established in the premises of existing sugar mill. Various indigenous and global technologies are available for biomass to cellulosic ethanol conversion such as Acid hydrolysis, Enzyme Hydrolysis, Supercritical Hydrolysis etc. We have already interacted with various technology providers and licensors. In order to identify the potential technology provider as strategic partner for joint venture, a separated EOI will be floated shortly. D. Role & Responsibilities of Key Stakeholders In proposed project, there are four major stakeholders described below: IndianOil Sugar Mill Integrated Ligno-cellulosic Sugar Mill Technology Provider Government Fig 3: Major Stakeholders of the proposed project Page 19 of 22
20 The role and responsibility of various stakeholders envisaged in the project are furnished in Table 1 as below: Table 1: Key roles and responsibilities of various stakeholders Stakeholder Sugar Mill Technology Providers Licensor IndianOil Government & Key roles and responsibilities Provide land in the existing promises of Sugar mill for establishment of ligno-cellulosic ethanol facilities Long-term contract for supply of bagasse and other biomass such as surplus crop residues, cane trash etc. available in the command area, as feedstock Equity participation in the project Project execution including basic design package, detail engineering, supply of other raw material, installation, operations etc. Maintaining the product quality on sustainable basis and provide corresponding performance guarantee Equity participation in the project Ligno-cellulosic ethanol off-take and distribution of blended petrol Equity participation in the project Provide financial and other support E. Project funding The Debt Equity Ratio envisaged for the proposed project is 70:30. IndianOil will be the major equity partner with equity stake up to 50%. The remaining equity contribution will be shared between Sugar mill and technology provider. Further, Ministry of New and Renewable Energy (MNRE), Govt. of India, has decided to set up 5 pilot plants for the production of ligno-cellulosic Ethanol by providing viability gap funding (VGF) from National Clean Energy Fund (NCEF). All efforts will be made to capture this opportunity. The materialization of the same will reduce the debt requirement of the project. Page 20 of 22
21 PROJECT BENEFITS Commercial Opportunity There are several cost effective measures available for the proposed project. Some of the advantages are: Vast experience of systematic aggregation of sugarcane by Sugar mill resulting to ensured supply of bagasse No additional transportation cost on account of bagasse aggregation No feedstock price sensitivity issues in long run Optimum utilization of existing Sugar mills infrastructure Round the year operations and additional revenue stream for Sugar mill Capex requirement limited to biomass conversion unit & distillery expansion Transportation of Ligno-cellulosic through existing route The Sugar mills already have necessary capabilities and infrastructure for execution of the proposed project. The revenue stream from integrated ligno-cellulosic production can provide better return as compare to power generation and will support to Sugar mills for addressing cyclicality issues. As mentioned, the commercial scale cellulosic ethanol plants are yet to be established in the country. Therefore, the proposed project can act as launching platform for technology providers & licensors to demonstrate the commercial scale viability of their technologies. The positive results of the proposed project will openup the potential market to replicate the endeavour with various Sugar mills in the country. The IndianOil is largest marketing company of petroleum products. Hence, our ethanol requirement for blending with petrol is also high. The additional supply of ligno-cellulosic ethanol from the proposed project will be helpful to meet our ethanol requirement. Resultant to these advantages, a commercially viable business proposition could be envisaged for all stakeholders. Economic & Social Benefits It is envisaged that the benefits of revenue generation from ligno-cellulosic ethanol by Sugar mills will also be penetrated to sugarcane farmers in the form of consistence and higher cane price. The sugar cane tops and trashes may also used as feedstock. This will also provide some additional income to cane farmers. Apart from that additional jobs creation is also anticipated through setting-up of these types of projects. Hence, the proposed project could significantly contribute to socio-economic development of rural India. Page 21 of 22
22 Environmental Benefits In combination, the proposed project will lower the Carbon emission level, which is one of the most significant environmental issues, while creating additional rural income and reducing India's dependence on imported fuel. In line with available information, it is estimated that bagasse available with Sugar mill to the tune of a minimum of 600 MT/ day of dry bagasse (with a maximum of 10% moisture content) for 350 days of an year can produce ~55,000 MT of ligno-cellulosic ethanol annually through available conversion technologies and blending of this ligno-cellulosic ethanol with petrol will be result into reduction of ~66,000 MT of CO 2 e emissions (considering Emission Factor (wt/wt) : Petrol (3.094) & Ethanol (1.884)). *************** Page 22 of 22
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