Maximizing Fuel Ethanol Opportunities Through Advanced Technologies PETROFED-May 2016 Mahesh Kulkarni, Sr

Maximizing Fuel Ethanol Opportunities through Advanced Technologies PETROFED-May 2016 Mahesh Kulkarni, Sr. GM-Technology & Engineering Praj Industries Ltd., Pune © Praj Industries Ltd www.praj.net Who We Are

Technology Backed References Across Solutions Five Continents

A Knowledge Based A Global Indian Company Company

End-to-end A Customer Solution Provider Centric Company Expertise and Experience in Process and Integration Customized Solutions Engineering

A Socially Responsible Corporate Citizen

Strong Focus on Sustainable Development

1 Praj Matrix Engineering 2

Over 1000 employees of which  80,000 sq ft of Labs, Pilot  Plants, and Offices 85% are engineers. Capability to design to  115 technologists -  30 PhDs, 80 Masters. international standards Follow global engineering  9 Technology Centers of  Excellence - Biology, standards Chemistry, Engineering  Skid engineering  1 TPD Cellulosic Ethanol  Adequate knowledge of latest pilot plant design & simulation software such as P4D, PDMS, Chemcad ,Aspen & HTRI  Technical Audit  3 manufacturing units  Trouble shooting connected highways & ports having total manufacturing  Spares Supply capacity of 13500 T/yr  Supply of Equipment  ASME “U” & “H” certified  Plant/ Equipment Life  Can supply equipment with Extension Services “CE” certification  Preventive Maintenance  ISO 9001:2008 Quality  Recommissioning management system

4 Customer Care Manufacturing 3 © Praj Industries Ltd www.praj.net 3 Preface

A by-product of sugar factory, is chiefly used as feedstock for alcohol production Molasses Commonly used in most tropical countries & sugar economies

Need for Sugar prices coming under pressure, affecting the Balancing profitability of sugar mills Sugar & Ethanol Ethanol is increasingly becoming a value adding Production co-product rather than a by-product Balancing sugar & ethanol production using Key Success alternate sugary feedstock Parameters Exploring cellulosic /biomass based feedstock as alternative for ethanol production © Praj Industries Ltd www.praj.net -4- Challenges to Ethanol Industry

•Feedstock availability •Increase in feedstock price •Increase in energy and water cost •Stringent EPA norms for waste water management •Reduced margin and profitability in overall business •Food Vs Fuel initiative by NGO’s for grains to ethanol •Policy Uncertainty

. Climate variation . Water Scarcity . Wide variation in yield . Seasonal availability . Sugar cane juice or syrup cannot be stored for round the year plant operation

Bagasse Bagasse Cane 1st mill 2nd / 3rd /4th /5th mill 2G Sugars Primary Juice Mixed Secondary Juice Juice Muddy RVF Juice Clarification Filtrate Juice Press Mud Evaporation Condensate Syrup Crystallization

1st/2nd / 3rd /4th Centrifuge Sugar

B- Molasses C- Molasses

F:N Ratio 11 9 Volatile Caramel Acidity 12 10 8 FERMENTATION 7 1 Butyric PROCESS Acid 2 FAN 6 Total Viable 4 Sludge Count 3 5 Content

OPEX/Cost Stack is an important pillar of the Sustainability.

Raw Material forms 70 to 80% of the operating cost

Energy another 20 to 30% of the operating cost

Molasses and or Sugar Water Balance? rich streams?

Sugar and Ethanol Production - Integrated Approach

Sugar and or Ethanol? Energy Balance?

Sugar -110 kg (@11%w/w) 1 MT of Cane Ethanol (70 Liter) 110 =1.5 decides profitability 70 Scenario (FY-15-16),

Revenue from Sugar=110x 20= 2220 Revenue from ethanol=70 x 48=3360 Ethanol (ratio 2.4) is profitable over sugar production!

• Availability of Funds-Low Rate of Interest on Debt Government • Subsidy-Raw material, Ethanol Policies

• Choice of Feedstock & its Composition Feedstock • Consistent Availability of Feedstock in the Vicinity Supply Chain • Centralized Handling & Distribution System Logistics

• Scale of Operation-Small, Medium, Large Plant • Technology Selection-Thermochemical or Biochemical, CAPEX and OPEX Capacity & • Land, Infrastructure, Labour Cost Technology

• Cost of Steam, Electricity, Water , Ethanol Price Product & • Cost of Chemicals or bio chemical's Co-product Need Government policies/contribution to make

Ethanol Maximization

Yield Maximization Separation and Bio-processes Concentration (Yeast and Processes Reduction in Energy/ Enzymes ) Carbon footprint (GHG reduction) Sugary feedstock and Agri Reduction in water residues footprint

Co-product Maximization Process Optimization and Integration BioRefinary

Advanced Yeast • High VA tolerant-2500-3500 ppm in mash • High Ethanol Titer-10-13%v/v • Low glyceol production • High ethanol Generation rate • Increase in Yield by 1%

•Increase shelf life of feedstock during storage

•Consistency in production and quality of end product

• Sustained efficiency and yield of product

• Increase Yeast Productivity and vitality © Praj Industries Ltd www.praj.net 20 HBRTF-High Brix Ready to Ferment Technology

Feature:  Scientifically designed Feedstock biocatalytic pretreatment technology for High Test Molasses (HTM) production  Integrated with Sugar factory Advantage:  Concentration of treated sugarcane juice upto 80 Brix without sugar crystallization  HTM enables to produce higher ethanol concentration in fermented mash- upto 15% v/v with Fermentation efficiency 90- 91%  Effluent generation with HTM 2.5-3.0 liter/liter of ethanol  Hygienic process design eliminates risk of contamination Benefits:  Suitable for short sugarcane cycle  Opportunity to operate sugar factory round the year depending on sugar economics  Modernization opportunity to expand fermentation plant capacity by 15-20%

© Praj Industries Ltd www.praj.net 21 CombiFerm™- Best of Both Feature:  Scientifically Designed Fermentation Technology  Extra-productive, New Yeast strain XP+  Advantage of Continuous and Synchronous fermentation  Suitable for Sugarcane , Sweet Sorghum , Sugar beet based feedstock and their combination  Compact footprint and reduced Steelwork Advantage:  Suitable for feedstock with high VA and lower F:N ratio  Feedstock specific, higher ethanol concentration in fermented mash upto 15% v/v  Compliance to reduce, recycle and reuse of effluent streams  Reduced risk of contamination  Reduction in CIP usage by 30-35%  Fermentation efficiency upto 91% Benefits:  Increase in profitability due to higher yield  Excellent congener profile for beverage alcohol  Modernization opportunity to expand batch fermentation

Multi-product

Steamless

0.8 kg/lit Evaporative Distillation

2.1 Kg/lit

3.2 Kg/Lit MVR based Distillation

5.4 Kg/Lit

Feature:  Thermal Energy similar to Split Distillation RS  Suitable for molasses & Grain based distillery to produce RS , ENA, AA  Ethanol titer in mash 8-15% v/v  Integrated with evaporation

EcoSmart™ Advantage: Evaporative Distillation  Lower steam consumption as against evaporation integrated distillation ENA  Reduction in water foot print AA  Suitable for retrofitting  Increase in plant capacity by 30-40%  Lower CAPEX against split mash column

Benefits:  Increase in profitability due to reduced water and energy consumption  Modernization opportunity to expand plant capacity by 25-30% © Praj Industries Ltd www.praj.net ECOMOL™ Dehydration Technology

Energy Efficient Ecovap Evaporators are designed as rugged, Heavy Duty Industrial Plants

Only Industrial CO 2 Rectified Molasses-C AlcoholSpirit

Molasses-C + Juice/ Syrup Beverage Grade Alcohol Only Juice Fuel Only Ethanol Syrup Vinasse Management

Pharma Molasses-B Perfumery Grade Grade Alcohol + Syrup Alcohol © Praj Industries Ltd www.praj.net -27- References: Fuel Ethanol from multi-feedstock

• Vaidyanath SSK, Parali (30 KLPD Distillery) • Ingenio InCauca S.A., Columbia (300 KLPD) • Ingenio Povidencia S.A., Columbia (250 KLPD) • Ingenio Mayaguez S.A., Columbia (250 KLPD) • Ingenio Manuelita S.A., Columbia (250 KLPD) • Ingenio Risaralda S.A., Columbia (100 KLPD) • Ingenio Reopila S.A., Columbia (400 KLPD) • Maple Ethanol, Peru (400 KLDP) • Ingenio Magdalena S.A., Guatemala (300 KLPD) • Nicaragua Sugar Estate Limited (300 KLPD) • British Sugar, UK (206 KLPD, sugar beet syrup) • Anklam, Germany (150 KLPD, sugar beet syrup) • Konya Seeker, Turkey (280 KLPD, sugarbeet Molasses-B) © Praj Industries Ltd www.praj.net 28 What is for you?

To Maximize fuel ethanol production PRAJ is offering ,

• Increase in Yield 2.0-2.5 % with Advanced Yield Yeast, Hygienic plant design and Fermentation Performance Enhancer

Energy & • 25-30% Reduction through Process Water Optimization & Integration

Capacity • 25-30% increase in Ethanol Plant capacity through Advanced Technology like Enhancement CombiFerm™ and EcoSmart™ ED to achieve (Scale Up) mandate of 2660 million litter

Russia

Canada United Kingdom Hungary Switzerland Czech Spain Romania GermanyRepublic United Poland Japan States Belgium Italy Bulgaria Turkey Nepal Mexic Algeria Saudi o Arabia Pakistan Vietnam Bhutan Egypt India United Arab Emirates Thailand Trinidad & Tobago Philippines Guatemal Jamaic Dominican Republic Sierra Leone Ethiopia Cambodia a EI a Barbados Costa Sri Salvador Kenya RicaPanam Nicaragu Venezuel Nigeria Lanka a a a Guyan Tanzania Papua New Guinea Colombi a Malawi Indonesia a Peru Mozambique Brazil Bolivia Zimbabwe Swaziland

Australia South Argentina Africa

Praj a global leader in ethanol with over

700 references in more than 70 countries

Over 3 Decades in Sustainable Technology and Engineering Solutions!