Some interesting pointers to understand few misunderstood stuff revolving around Ethanol and all the verticals Praj Industries is into. All of these were answered by Mr. Shishir Joshipura of Praj Industries.
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1. Electric Vehicles vs Biofuels:
👉For Electric vehicles the entire ecosystem needs to be built whereas for biofuels we just need to change the fuel from crude oil to something like Ethanol (blending).
👉For Electric vehicles the entire ecosystem needs to be built whereas for biofuels we just need to change the fuel from crude oil to something like Ethanol (blending).
👉For instance in Assam there is no blending of ethanol but in Maharashtra there is already 10% blending of Ethanol. But, a car user will see no great difference when he changes the fuel.
👉India is an agrarian economy. EVs are more beneficial for non-agrarian economies. That is not the case with India as India majorly uses coal for producing electricity. India do not have an infrastructure to make the electricity available 24*7.
👉In EVs the auto components are reduced to 700 parts from 17000 parts per car in ICE. That would negatively impact the auto ancillary industry and the jobs they create.
2. Are Auto makers (ICE engines) ready for Ethanol (E-20)?
👉Here, Brazil can be a role model. Brazil plans to be completely free from hydrocarbons in the next 10 years.
👉Here, Brazil can be a role model. Brazil plans to be completely free from hydrocarbons in the next 10 years.
👉Currently Brazil has not found any significant change in ICE engines with 20% blending. Also, in Brazil a user has options to fill the type of fuel he chooses (no blend, 20% blend, etc.) depending on the price and the impact on the vehicle.
👉For existing vehicles, there is no significant impact on the end user’s experience. For blending of more than 15% few rubber components in a vehicle have to undergo a change which costs as low as Rs.3000 per car.
👉For Flex Fuel vehicles, which are designed specifically for more blending, a user may need to pay 3-4% more for the car.
👉Also, if the auto makers are given a road map of the blending plan, they will make a more robust engine to suit the requirement of the blending and enhance user experience.
3. Can India really afford to have biofuels with so many people dying hungry?
India is number 2 agricultural producer in the world. We have surplus supply to cover 3 years of draught. So the problem of hunger needs other solutions.
India is number 2 agricultural producer in the world. We have surplus supply to cover 3 years of draught. So the problem of hunger needs other solutions.
4. What after Ethanol 20% blending? What is the future of Praj?
👉Ethanol is like a brick and has many use cases. A brick can be used to make any building structure. Similarly Ethanol is very versatile molecule.
👉Ethanol is like a brick and has many use cases. A brick can be used to make any building structure. Similarly Ethanol is very versatile molecule.
👉It can be used in all the modes of transportation: Air, Water and Land.
Aircrafts are not going to go electric soon. Hence, ethanol can be used here.
Aircrafts are not going to go electric soon. Hence, ethanol can be used here.
👉Biofuels find applications in performance chemicals, specialty chemicals and can replace plastics too.
👉Praj is also into fermentation and zero water discharge where it is striving to reduce the wastage of water.
👉Praj is also into fermentation and zero water discharge where it is striving to reduce the wastage of water.
5. How beneficial can CBG (Compressed Bio Gas) be to the users?
CBG is in a nascent stage. Praj recently commissioned a plant for CBG in Muzafarnagar, Uttar Pradesh and the feedback from the end users is promising as the mileage is much better than the crude fuel.
CBG is in a nascent stage. Praj recently commissioned a plant for CBG in Muzafarnagar, Uttar Pradesh and the feedback from the end users is promising as the mileage is much better than the crude fuel.
6. Sugarcane is a high water consuming crop and using it for ethanol will lead to massive wastage of water. How is praj working here?
👉Earlier with 11 liters of water there was 1 liter of ethanol produced. Praj has efficiently managed to reduce the water footprints from 11 liters to just 2.5 liters.
👉Also, Praj is working on a technology by which it can recover fresh water out from CBG which can be used in Sugarcane fields.
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