1. Executive Summary 1.1. Background Numaligarh Refinery Limited is a BPCL group company, currently operating a 3 MMTPA refinery in Numaligarh in Golaghat district in the state of Assam. Numaligarh Refinery Limited (NRL) and Chempolis have signed a Memorandum of Understanding (MoU) for establishing a bio-refinery in North-East India. Through this partnership, both NRL and Chempolis are targeting at larger production of sustainable bio-fuels in India, which would reduce India’s dependence on imported petroleum. The bio-refineries will be based on Chempolis’ 3rd generation bio-refining technology, which enables selective fractionation of biomass and co-production of multiple products in a sustainable way. Against this background, NRL and Chempolis had engaged PwC to carry out a feasibility study for the project and prepare a Detailed Feasibility Report for the Bio-Refinery Plant including availability of feedstock. The report should be in a format that is acceptable to international financial institutions covering all techno- economic aspects in a detailed manner. Additionally, the study will evaluate project risks and evaluates opportunities, benefits and impacts of scaling up the bio-refining business. The following broad parameters have been identified by Chempolis for conducting the study: • Arrive at a favorable location of the bio-refinery • Provide insights to the availability, price and supply chain aspects of cellulosic feedstocks (especially bamboo and most potential other lignocellulosic biomasses like agricultural residues) in selected provinces in India • Assess demand, sales and prices of bio-refinery products and residue • Undertake assessment of overall economics and impact of the bio-refinery project 1.2. Scope of Work The scope includes preparation of a Detailed Feasibility Report for a bio-refinery plant and feedstock availability study, as per the scope of work described as under. • Availability and price of feedstock • Favorable location of the bio-refinery • Demand, sales and prices of bio-refinery products and residue • Overall economics and impact of the bio-refinery project In addition, the study will evaluate project risks and evaluates opportunities, benefits and impacts of scaling up the bio-refining business. 1.3. Design Parameters The project aims at construction of a biorefinery that produces cellulosic ethanol and platform chemicals from bamboo. The biorefinery will use Chempolis’ formico bio™ technology. The present study surveys two concepts for the implementation of the technology: 1) ‘Basic concept’ that produces platform chemicals from hemicelluloses and 2) ‘Expanded concept’ that produces also ethanol from hemicelluloses. The ‘Expanded concept’ will be an add-on to the ‘Basic concept’ and the project for the expansion may begin once the biorefinery based on ‘Basic concept’ has started operation. The present study focuses on the implementation of the ‘Basic concept’. The primary feedstock is bamboo growing in North-East India. Biorefinery may also use other locally available biomasses such as cereal straws. The biorefinery will consume annually 300,000 tonnes of cellulosic biomasses. The primary products of the biorefinery are cellulosic ethanol and platform chemical (acetic acid, furfural alcohol). Biorefinery will also produce combustible residues (biocoal, lignin, stillages). As per the Basic Concept, the bio-refinery will produce 48,900 MT of ethanol, 11,100 MT of acetic acid, 18,600 MT of furfural alcohol, 160,000 MT of biocoal (to combustion) and 30,000 MT of stillages. The main units of the bio-refinery are: bamboo handling, fractionation of bamboo, washing of cellulose, hydrolysis of cellulose and fermentation of hydrolysate into ethanol, separation of ethanol, evaporation and concentration of spent liquors from fractionation, distillates of filtrates from washing and concentration of stillages for combustion. A detailed description of all the units is present in “Design Basis” section. 1.3.1. Technology Description Chempolis’ formicobio ™ is a technology for the production of cellulosic sugars and further ethanol. The technology has been specially developed for non-food raw materials (e.g. bamboo, bagasse, straws, oil palm biomass, and other agricultural residues), and it is based on selective fractionation of biomass with fully recoverable biosolvent containing formic acid. The formicobio ™ technology avoids the main problems associated with other technologies developed for non- food raw materials and represents a true third-generation (3G) technology for the production of cellulosic sugars and further ethanol. The technology enables co-production of platform chemicals, such as acetic acid and furfural, which are used as raw materials in the production of paints, adhesives, and plastics, and as solvent and raw material for resins. Furfural can also be converted into synthetic diesel or gasoline ingredient by hydrogenation. In addition, combustion of co-produced solid biofuel (biocoal) can generate all the energy needed in biorefinery, with some surplus to be used in other production. Additional details of technology are incorporated in “Project Description” section of this report. 1.4. Assessment of Feedstock 1.4.1. Scope The bio-refinery consumes annually 300,000 tonnes (estimated) of cellulosic feedstock (dry basis). The feasibility study will survey the availability of around 450,000 tonnes (estimated) green bamboo and prices of suitable lignocellulosic biomass (primarily bamboo) in the states of Assam, Arunachal Pradesh, Nagaland and Meghalaya. The primary feedstock is bamboo and its parts, secondary various grasses, sugarcane bagasse, elephant grass, and straw (sugar cane tops, leaves and jiggery, bagasse) are also applicable. 1.4.2. Approach The availability and price of bamboo is surveyed by interviewing farmers and key stakeholders based on scientifically but practically prepared questionnaire and stakeholders in Assam and connected states. Farmers’ interviews should represent at least 20% of the total farmers and covering 80% of the total bamboo production is the state. The interviews will cover information such as area under bamboo cultivation, types of species of bamboo and their respective yields, quantity of bamboo being grown naturally, means of bamboo harvesting and transportation , price of bamboo and like. 1.4.3. Potential of Bamboo in India In India, there are 125 indigenous and 11 exotic species of bamboos belonging to 23 genera. As per the FAO report on world forest resources, India is the second richest country of the world after China in terms of bamboo genetic resources. Of India’s total forest area of 67.7 million hectares, bamboo (both natural and planted) occupies around 13.96 million hectares. This represents 16.7 per cent of the total forest area of the country and 3.4 per cent of the total geographical area (329 million hectares) of India. But despite having the largest area under bamboo in the world comprising more than 100 different species, India contributes to only 4 per cent share of the global market. This is mainly attributed to the low productivity of around 0.4 tonnes per hectare which is much lower compared to other countries such as Japan, China and Malaysia which contribute about 80 per cent to the world’s bamboo market. More than 50 per cent of the bamboo species occur in Eastern India, viz. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and West Bengal. In India, 28 per cent of area and 66 percent of growing stock of bamboo is in the NER and 20 percent of area and 12 per cent of growing stock is in Madhya Pradesh and Chhattisgarh. Manipur is the state possessing maximum diversity of species with 53 species, followed by Arunachal Pradesh with 50 species. In India, most of the bamboo is in the forest land which is difficult to access and thus poor pre and post- harvest management practices are required. Even though bamboo is grown in the non-forest land are planted, intensive management is not practiced. It is estimated that only about 15.4% of the total Bamboo resources of India lie on private lands; as a result, 84.6% of the resources are unavailable for utilization in industrial purposes without excessive regulation getting in the way (FAO, 2005). Over 39% of the total area under Bamboo is available in the North East Region, which is also the leader in availability of dense bamboo brakes, in green sound weight and number of green sound culms. 1.4.4. Bamboo availability in North-East North-eastern region of the country is abundant with rich forest resources. The region, which constitutes only 7.98% of the geographical area of the country, accounts for nearly one fourth of its forest cover. The total forest cover in the region is 173,219 km2, which is 66.07% of its geographical area in comparison to the national forest cover of 21.05%. Northeast region of India is very rich in bamboo diversity. Approximately 60% of the total bamboo species reported from India is represented from this region. NER alone shares 66% of India’s bamboo resources. Arunachal Pradesh has the maximum area under bamboo in NER with 16,083 sq. km. followed by Manipur (9,303 sq.km.), Mizoram (9,245 sq. km.), Assam (7,238 sq. km.), Nagaland (4,902 sq. km.), Meghalaya (4,793), Tripura (3,246 sq. km.) and Sikkim (1,181 sq. km.). Total bamboo growing stock in NER is 55.14 million MT, among which Arunachal Pradesh has the maximum growing stock of 14.43 million metric tonne (MMT) followed by Manipur (13.73 MMT), Assam (12.22 m MT), Meghalaya (7.49 m MT) and Nagaland (7.27 m MT). 1.4.4.1. Assam The recorded forest area of Assam is 26,832 km2 accounting for 34.21% of its geographical area. The forest cover in the state is is 35.28% of the geographical area. There are 34 species of Bamboos occurring in the State. The extent of bamboo bearing area in the forests of the state is 7,238 km2. An estimated 7,25,000 MT of bamboo is available in Assam.