Demand-supply matrix of bio-refinery

 Bangladesh and Sri Lanka showing keenness to import ethanol is good news for bamboo growers and entrepreneurs in Assam and neighbouring states. As the first bio-refinery of the region set up by Numaligarh Refinery Limited (NRL) in a joint venture with the Assam Bio-Refinery Private Limited will be using bamboo feedstock for ethanol production, the export demand will add to the sustainability of the production of bamboo on a commercial scale in the region. The bio-refinery will require estimated 5 lakh tonnes of bamboo annually to produce six crore litres of ethanol every year. This has opened huge opportunities for traditional bamboo growers to supply bamboo to the bio-refinery, but the price offered to them will be a crucial factor to motivate them to grow it on a commercial scale. The growers will supply bamboo to local entrepreneurs who will be required to cut those to make it required-sized chips for supply to the bio-refinery. The domestic demand for ethanol is also growing with the country achieving the target of 10% ethanol blending with petrol in June 2022 much ahead of the target set in November 2022. The Central government has advanced the target of 20% ethanol blending with petrol to 2025 from a previous goal of achieving it by 2030 which has fuelled demand for ethanol in the country. Official data show that procurement of ethanol by public sector Oil Marketing Companies has significantly increased from 38 crore litres in 2014-15 to 452 crore litres in 2021-22. "The roadmap for Ethanol Blending in India 2020-2025" prepared by the NITI Aayog and the Ministry of Petroleum and Natural Gas highlights that 20% ethanol blending will save the country Rs 30,000 crore annually by cutting down crude oil import bill. The report estimates that the country will need to produce 1016 crore litres of ethanol considering the projected growth of vehicles on roads to achieve the goal of 20% blending by 2025. Designing the vehicles optimally for 20% blending will be a key determinant for achieving the goal. The roadmap points out that currently produced two-wheelers and passenger vehicles in the country are designed optimally for 5% ethanol blending and with rubber and plastic components compatible with 10% blending their engines can be calibrated for 10% blending. The cost of vehicles compatible with 20% bending is expected to be higher in the range of Rs 3000 to Rs 5000 for four-wheelers and Rs 1000 to Rs 2000 for two-wheelers, adds the report which indicates that cost is not going to pose hurdles in the market sentiment. According to the Society of Indian Automobile Manufacturers, vehicles produced in the country since 2008 are compatible with 10% ethanol blending and fuel-efficient complaints with 5% blending. The use of bamboo for the production of bio-ethanol in Assam has brought the restructured National Bamboo Mission (NBM) that was launched in 2018- 19 as a Centrally Sponsored Scheme into the spotlight for ethanol production at the bio-refinery. The NBM seeks to increase the area under bamboo plantation in non-government and private lands and focuses on the development of a complete value chain of the bamboo sector by strong links between growers and industry, and propagating quality bamboo production through the supplying of planting material, plantation, and value addition through processing, creation of facilities for collection, aggregation, processing, marketing by micro, small and medium enterprises. India State of Forest Report 2021 states that north-eastern states and West Bengal account for more than 50 % of total bamboo resources in the country. Bamboo-bearing areas in Assam increased by an area of 134 sq. km in over two years between 2019 and 2021. For the bio-refinery under construction, the availability of the required quantity of bamboo within commercially viable distance and an assured supply of bamboo chips by local entrepreneurs will be key determinants of sustainable operation. While the importance of bio-fuel as clean and green fuel for the decarbonizing transport sector is important for the country, commercial aspects of growers and local entrepreneurs getting sustainable livelihoods from the operation of the bio-refinery is critical to ensure an uninterrupted supply of feedstock. Convergence objectives of the bamboo mission and the bio-refinery can facilitate a stronger and more viable bond between the growers, local entrepreneurs, and the industry. The establishment of hi-tech bamboo nurseries under the restructured NBM, big and small, in the region has led to improvement in the availability of quality planting material for the expansion of bamboo plantations. Successful operation of the bio-refinery will demonstrate the huge potential of bamboo in creating new livelihood opportunities apart from traditional livelihoods of making bamboo products. Lessons need to be learnt from the reasons behind the closure of paper mills which were also dependent on bamboo as feedstock but failed despite the abundance of raw materials. The bio-refinery managing demand and supply side constraints with pragmatic and timely intervention backed by sound scientific research, financial management, and smooth market linkage will be vital for its long-term sustainability in ethanol production.