Economics of Biofuel Production: A Case of Sorghum and Pearl Millet in India.

Abstract

Reduction of fossil fuels at an alarming rate has attracted increasing attention to blending biofuels worldwide. India's energy demand is expected to grow at an annual rate of 4-5 times over the next couple of decades. With self-sufficiency levels in crude oil becoming a distant dream, there is growing interest to look out for alternative fuels and the biofuels are an important option for policy makers in India. In this context, this paper reviews the experiences in India in the last two decades with respect to biofuel cultivation and its impact on land use, environment, and the livelihoods of rural communities. The objective of this paper is to assess the economics of biofuel production using Sorghum and Pearl millet feedstocks in India using a Life Cycle Analysis (LCA) approach. Baseline study was conducted during the year 2013 in the Madhya Pradesh state of India covering five districts and 333 sample farmers to understand the farmers perception about the various issues related to the production of biofuels using Indian staple food crops Sorghum and Pearl millet. Empirical data from the multi-locational trials conducted during the years 2014-2015 and 2015-2016 in farmers' fields was used to conduct the LCA analysis. Sorghum and Pearl millet feedstocks which are rain-fed crops are considered for bioethanol production with different pretreatment methods. Net Energy Ratio (NER), Net Energy Balance (NEB), Net Carbon Balance (NCB), and % Carbon reduction were some of the key parameters used for analysis and the results are evaluated based on the environmental impacts through the Life Cycle Assessment at 5% blending. Findings reveal that, dilute alkali pretreatment process is most energy intensive due to consumption of alkali consumption. Whereas dilute acid pretreatment has higher conversion efficiency than the other pretreatment processes which is due to higher glucan and xylan conversion efficiencies.The study concludes that Sorghum feedstock is more energy intensive than Pearl millet feedstock due to higher water requirement and yield. Biofuels, either conventional or advanced, should not been couraged without a comprehensive outlook on the overall impact that will ultimately have on the society, environment, or on the countries' energy security. Efforts should be made toward encouragement of research and development in the field as well as in formulating a comprehensive and effective biofuel policy for India.