Scholarly article on topic 'Biomass & Bio-waste Supply Chain Sustainability for Bio-energy and Bio-fuel Production'

Biomass & Bio-waste Supply Chain Sustainability for Bio-energy and Bio-fuel Production Academic research paper on "Agriculture, forestry, and fisheries"

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Abstract of research paper on Agriculture, forestry, and fisheries, author of scientific article — Sadhan Kumar Ghosh

Abstract The terrestrial biomass feedstock can be generally categorized into two groups. The first group includes corn grain, sugarcane, soy bean, oil seed, etc. The second group of terrestrial biomass feed stocks, the cellulosic biomass, can avoid adverse impacts on food supply, because they are non-starch, non-edible and non-food feedstocks. Cellulosic biomass feed stocks can be obtained from a number of sources, such as agricultural residues, forest residues and energy crops. Currently, most bio-fuels are made from these feed stocks, due to the maturity in technologies and lower unit production cost. However, the use of these feed stocks for bio-fuel production might have implications both in terms of world food prices and production. Agricultural residues are typically plant parts left in the field after harvest (e.g., corn stover), as well as the secondary residues like manure and food processing wastes. Bio-fuel policies play an important role in the development of the energy sector specifically in the developing countries. The profitability of bio energy and bio-fuel production is significantly influenced by policies affecting multiple sectors such as agriculture, research, industry and trade. Identifying relevant policies and quantifying their specific impacts is difficult given the variety of policy instruments (taxes, subsidies, price support, etc) and the way they are applied. While reviewing the literature and the implementation projects, it has been observed that one of the main challenges is to develop an efficient and robust supply chain management system for sustainable bio-energy and bio-fuel production. There are many research activities found on bio-energy and bio-fuel production but the number of implementation as a business case is scant in the developing countries including India. Present study has reviewed the biomass and bio waste supply chain for bio energy and bio fuel production and investigated the cause of the major challenges and issues in India. It also proposed some feasible solutions for the developing countries. It may be concluded that the main challenge lie on the feedstock supply, farmers’ choice for traditional use of biomass, economy of scale, efficiency, export of output energy and the major issue being the government policy. The study will definitely help in implementation of bio-energy production projects and the researchers for further improvement.

Academic research paper on topic "Biomass & Bio-waste Supply Chain Sustainability for Bio-energy and Bio-fuel Production"

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Environmental Sciences

Procedia Environmental Sciences 31 (2016) 31 -39

The Tenth International Conference on Waste Management and Technology (ICWMT)

Biomass & Bio-waste Supply Chain Sustainability for Bio-energy

and Bio-fuel Production

Sadhan Kumar Ghosh*

Department of Mechanical Engineering, Jadavpur University, Kolkata, India and International Society of Waste Management, Air and Water (ISWMAW), India

Abstract

The terrestrial biomass feedstock can be generally categorized into two groups. The first group includes corn grain, sugarcane, soy bean, oil seed, etc. The second group of terrestrial biomass feed stocks, the cellulosic biomass, can avoid adverse impacts on food supply, because they are non-starch, non-edible and non-food feedstocks. Cellulosic biomass feed stocks can be obtained from a number of sources, such as agricultural residues, forest residues and energy crops. Currently, most bio-fuels are made from these feed stocks, due to the maturity in technologies and lower unit production cost. However, the use of these feed stocks for bio-fuel production might have implications both in terms of world food prices and production. Agricultural residues are typically plant parts left in the field after harvest (e.g., corn stover), as well as the secondary residues like manure and food processing wastes. Bio-fuel policies play an important role in the development of the energy sector specifically in the developing countries. The profitability of bio energy and bio-fuel production is significantly influenced by policies affecting multiple sectors such as agriculture, research, industry and trade. Identifying relevant policies and quantifying their specific impacts is difficult given the variety of policy instruments (taxes, subsidies, price support, etc) and the way they are applied. While reviewing the literature and the implementation projects, it has been observed that one of the main challenges is to develop an efficient and robust supply chain management system for sustainable bio-energy and bio-fuel production. There are many research activities found on bio-energy and bio-fuel production but the number of implementation as a business case is scant in the developing countries including India. Present study has reviewed the biomass and bio waste supply chain for bio energy and bio fuel production and investigated the cause of the major challenges and issues in India. It also proposed some feasible solutions for the developing countries. It may be concluded that the main challenge lie on the feedstock supply, farmers' choice for traditional use of biomass, economy of scale, efficiency, export of output energy and the major issue being the government policy. The study will definitely help in implementation of bio-energy production projects and the researchers for further improvement. © 2016 The Authors.PublishedbyElsevierB.V Thisis an open access article under the CC BY-NC-ND license (http://creativecommons.Org/licenses/by-nc-nd/4.0/).

Peer-review under responsibility of Tsinghua University/ Basel Convention Regional Centre for Asia and the Pacific Keywords : Biomass & Bio-waste feedstock, Supply Chain, Sustainability, Economy of scale

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Corresponding author. Tel.: +91 9830044464. E-mail address: sadhankghosh9@gmail.com

1878-0296 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Peer-review under responsibility of Tsinghua University/ Basel Convention Regional Centre for Asia and the Pacific doi:10.1016/j.proenv.2016.02.005

Introduction

The combustion of petroleum based fossils fuel has become a concern with respect to the global climate change due to increasing rates of carbon emission. Fluctuations and uncertainty in supply and cost of fossil fuels made it unreliable burning source. There is convincing evidence that oil prices may trend higher over the next two decades and this would have a substantial negative macroeconomic impact for India, China and other developing economies. A 50% increase in oil prices between 2010-2030 would significantly reduce economic growth, real consumption and household income. Expansion of biodiesel is one policy response the countries can use to counteract the economic impacts of oil price hikes. Biodiesel intervention can significantly counteract these negative impacts whereas ethanol intervention has a minimum offsetting impact. Combining supply-side energy solutions, like biodiesel development, together with modest energy efficiency improvements and productivity improvements in agriculture will provide impressive results1. These factors associated with many others made all the countries in the globe to think of alternatives to fossil fuels. Bio-energy as sustainable renewable energy option attracts many hopes associated with many challenges. Bio-energy helps in promoting rural and regional development promoting rural diversification by creating jobs and income usually in underdeveloped rural areas2, it promotes regional improvement3 and importantly, it helps in reducing CO2-emissions preserving non-renewable resources to enhance energy security4. The bio-energy and bio-fuels have been taking the gap at a faster rate by providing the supply of green energy replacing the energy from fossil fuels. US and the Brazil are the leaders of producing starch based first generation fuel from food crop sugars using conventional technologies. Energy efficiency of bio-fuels varies strongly according to plant species and feedstock, local climate, and production technique. Bio-ethanol from Brazilian sugar cane yields 8 units bio-energy output from one unit fossil fuel input into the production process based on life cycle assessment. Biodiesel produced from rapeseed in the EU has a ratio of 1:2.5, while bio-ethanol from US corn merely holds an efficiency of 1:1.55,6.

In India, 23% of rice straw residue produced is surplus and is either left in the field as uncollected or to a large extent open-field burnt. About 48% of this residue produced is subjected to open-field burning7 in Thailand, and in the Philippines it is 95%. The GHG emissions contribution through open-field burning of rice straw in India, Thailand, and the Philippines are 0.05%, 0.18%, and 0.56%, and the mitigated GHG emissions when generated electricity is used would be 0.75%, 1.81%, and 4.31%, respectively, when compared to the total country GHG emissions. It is estimated that 97.19, 21.86, and 10.68 Mt of rice straw residue are produced in India, Thailand, and the Philippines, respectively. China contributes to about 30 % of the world's total rice production whereas India contributes to nearly 21%8,9. The other two major rice-producing countries in Asia are Thailand and the Philippines contributing 4% and 2% of the world's rice production respectively. Rice straw is one of the main field based residues produced along with this commodity and its applications vary widely in the region10,11.

The total installed costs of biomass power generation technologies vary significantly by technology and country. The total installed costs of stoker boilers was between USD 1 880 and USD 4 260/kW in 2010, while those of circulating fluidised bed boilers were between USD 2 170 and USD 4 500/kW. Anaerobic digester power systems had capital costs between USD 2 570 and USD 6 100/kW. In India and China there are several types of technology developed at low cost. The quality and the sustainability of that technology should be assessed before the decisions are made. Indigenous developed technology should always be preferred for small sized plants for achieving business model. Gasification technologies, including fixed bed and fluidised bed solutions, had total installed capital costs of between USD 2 140 and USD 5 700/kW. Co-firing biomass at low-levels in existing thermal plants typically requires additional investments of USD 400 to USD 600/kW. Using landfill gas for power generation has capital costs of between USD 1920 and USD 2 440/kW12. The cost of CHP plants is significantly higher than for the electricity-only configuration. Operations and maintenance (O&M) costs can make a significant contribution to the levelised cost of electricity (LCOE) and typically account for between 9% and 20% of the LCOE for biomass power plants. It can be lower than this in the case co-firing and greater for plants with extensive fuel preparation, handling and conversion needs. Fixed O&M costs range from 2% of installed costs per year to 7% for most biomass technologies, with variable O&M costs of around USD 0.005/kWh. Secure, long-term supplies of low-cost, sustainably sourced feed stocks are critical to the economics of biomass power plants13. Feedstock costs can be zero for wastes which would otherwise have disposal costs or that are produced onsite at an industrial installation (e.g. black liquor at pulp and paper mills or bagasse at sugar mills). Feedstock costs may be modest where agricultural

residues can be collected and transported over short distances. However, feedstock costs can be high where significant transport distances are involved due to the low energy density of biomass (e.g. the trade in wood chips and pellets).

It has been observed in recent years that the production of bio-diesel, biogas and ethanol are the most attractive components among the energy produced from biomass and bio wastes. The adverse sustainability balance of certain forms of bio-energy from a whole lifecycle perspective has also been observed in recent years in the field implementation which have become a popular subject of interest for the researchers and on the public stage. If the agricultural climate conditions are advantageous, the environmental life-cycle balance of bio-diesel and ethanol is much more favorable than those of fossil fuels14, if the correct feedstock is used, whereas, the balance of environmental impacts of current liquid fuels from biomass is ambiguous in a review of studies comparing bio-ethanol systems to conventional fuels on a life-cycle basis15. Biomass availability in India is estimated at upwards of 915 million metric tons (MMT) which covers both agricultural (657 MMT/year) and 'forestry & wasteland' residues (260 MMT/year). The combined power potential from both resources is estimated at 33,292 MWe (agro: 18,730 MWe and forest and wasteland: 14,562 MWe)16,17. The selection of correct feedstock is very important for the bio-energy production, e.g., making biodiesel from soybean can be worse than fossil fuel. The efficiency and the sustainability of bio-energy production from the biomass has a bearing on its supply chain. Researchers, implementers and the governments are concern with the supply chain uncertainty of the biomass and bio wastes for the production of bio-fuels and bio energy. What are the causes of this supply chain uncertainty? What are the possible solutions? This paper has reviewed present situation focusing on India and developed the frame work for sustainable supply chain for bio-energy production.

2.0 Biomass material, Bio-wastes, the conversion pathways and the outputs

Bio-energy is renewable energy made available from materials derived from biological sources. Biomass is defined as living or recently dead organisms and any by-products of those organisms, plant or animal. Biomass is any organic material which has stored sunlight in the form of chemical energy. The term is generally understood to exclude coal, oil, and other fossilized remnants of organisms, as well as soils. In this strict sense, biomass encompasses all living things. In the context of biomass energy, however, the term refers to those crops, residues, and other biological materials that can be used as a substitute for fossil fuels in the production of energy and other products. Living biomass takes in carbon as it grows and releases this carbon when used for energy, resulting in a carbon-neutral cycle that does not increase the atmospheric concentration of greenhouse gases. As a fuel, it may include wood, wood waste, straw, manure, sugarcane, and many other by products from a variety of agricultural processes. Bagasse, rice husk, rice straw, cotton stalk, coconut shells, soy husk, de-oiled cakes, coffee waste, jute wastes, peanut shells, and sawdust are used a raw material for power generation. The crop residues from non-fodder crops, e.g., cotton, oilseeds, chilies and bamboo residues may also be considered as good alternatives for biomass power production. Bio-wastes (e.g. agricultural wastes, municipal solid wastes, sludge, waste water and food wastes) are currently seen as low-valued materials, are beginning to be recognized as resources for the production of a variety of eco-friendly and sustainable products, with second-generation liquid bio-fuels being the leading ones. Agricultural wastes, for instance, contain high levels of cellulose, hemicelluloses, starch, proteins, as well as lipids. As such, they constitute inexpensive candidates for the biotechnological production of liquid bio-fuels (e.g. bioethanol, biodiesel, dimethyl ether and dimethyl furan) without competing directly with the ever-growing need for world food supply. As bio-wastes are generated in large scales, in the range of billions of kilograms per year, thus largely available and rather inexpensive, these materials are seriously considered to be potential sources for the production of bio-fuels. Much more consideration is also given to replacement products that stem from microbial metabolism18.

2.1 Biomass Feed stocks

Every region has its own locally generated biomass feed stocks from agriculture, forest, and urban sources. A wide variety of biomass feed stocks are available and biomass can be produced anywhere that plants or animals can live. Furthermore, most feed stocks can be made into liquid fuels, heat, electric power, and/or biobased products19. This makes biomass a flexible and widespread resource that can be adapted locally to meet local

needs and objectives. Some of the most common (and/or most promising) biomass feed stocks are, a) Grains and starch crops - sugar cane, corn, wheat, sugar beets, industrial sweet potatoes, etc., b) Agricultural residues - Corn stover, wheat straw, rice straw, orchard prunings, etc., c) Food waste - waste produce, food processing waste, etc., d) Forestry materials - Logging residues, forest thinning, etc., e) Animal by products - Tallow, fish oil, manure, etc., f) Energy crops -Switchgrass, miscanthus, hybrid poplar, willow, algae, etc. And g) Urban and suburban wastes - municipal solid wastes (MSW), lawn wastes, wastewater treatment sludge, urban wood wastes, disaster debris, trap grease, yellow grease, waste cooking oil, etc.

Table 1. Biomass Feedstock used for Bio-energy production

Types of Bio-energy Feed stocks used All Widely Used

Biodiesel Oil/Seed Oil feedstock-Rapeseed, soybean, field pennycress, jatropha, Madhucaindica, mustard, flax, Rapeseed

sunflower, corn, cotton seed, peanut, palm, coconut, hemp oils; Waste vegetable oil (WVO) and

Animal fats- Tallow, lard, yellow grease, chicken fat, by-products of Omega-3 fatty acid production from soybean

fish oil; Algae; Oil from halophytes like salicorniabigelovii.

Bioethanol Corn, wheat, cassava, barley, potatoes, sugar cane, sorghum, sugar beet, whey, barley, bagasse, Corn, Sugar

lignocellulosic and cellulosic biomass, switchgrass, giant miscanthus, etc. Cane

Biogas All biomass including industrial and agricultural wastes, lignocellulosic waste, crops and crop residues,

microalgae, etc.

Bio- Cellulosic and lignocellulosic biomass (crop residues, short rotation woody crops), animal wastes,

hydrogen municipal solid wastes, agricultural wastes, sawdust, aquatic plants, herbaceous species like switch grass,

waste paper, corn, etc.

It has been observed that single product can be obtained from different feedstock with varied effectiveness. Biomass fuel has a wide source where, the resources are scattered. Biofuel policies play an important role in the development of the energy sector. The profitability of biofuel production is significantly influenced by policies affecting multiple sectors such as agriculture, research, industry and trade. Identifying relevant policies and quantifying their specific impacts is difficult given the variety of policy instruments (taxes, subsidies, price support, etc) and the way they are applied20,21. Figure 1. shows Brief description of the identified biomass and the Modern concept of Conversion routes to bio-fuel products.

2.2 Biomass Energy

The energy stored in biomass can be released to produce renewable electricity or heat. Biopower is generated through combustion or gasification of dry biomass or biogas (methane) captured through controlled anaerobic digestion. Co-firing of biomass and fossil fuels (usually coal) is a low-cost means of reducing greenhouse gas emissions, improving cost-effectiveness, and reducing air pollutants in existing power plants. Thermal energy (heating and cooling) is often produced at the scale of the individual building, through direct combustion of wood pellets, wood chips, and other sources of dry biomass. Combined heat and power (CHP) operations often represent the most efficient use of biomass (utilizing around 80 percent of potential energy). These facilities capture the waste heat and/or steam from biopower production and pipe it to nearby buildings to provide heat or to chillers for cooling.

2.3 Bio-fuels

A number of transportation fuels can be produced from biomass, helping to alleviate demand for petroleum products and improve the greenhouse gas emissions profile of the transportation sector. Ethanol from corn and sugarcane, and biodiesel from soy, rapeseed, and oil palm dominate the current market for bio-fuels, but a number of companies are moving forward aggressively to develop and market a number of advanced second-generation biofuels made from non-food bio waste feed stocks, such as municipal waste, algae, perennial grasses, and wood chips. These fuels include cellulosic ethanol, bio-butanol, methanol and a number of synthetic gasoline/diesel equivalents. Until we are able to produce a significant amount of electric vehicles that run on renewably-produced electricity, bio-fuels remain the only widely available source of clean, renewable transportation energy.

3.0 World Trend in bio-fuels and bio-energy production

There is an increasing trend in the popularity of bio-fuels and bio energy production worldwide. Ethanol Production

in the world has increased to nearly double from 13,123 Million Gallons in 2007 to 24,570 24,570 in 2014. World Fuel Ethanol Production by Country or Region has been given in Million Gallons in Table 2. The World's Fuel: Ethanol Production in thousand barrel per day country wise has also been displayed in the table 3. The rate at which the USA and the Europe have increased their production are far ahead of other countries and region. India started the bio fuel movement long back.

Feedstock1

Oil crops (rape, sunflower, etc), waste oils, animal fats

Conversion routes2

Sugar and starch crops

Lignocellulosic biomass (wood, straw, energy crop, MSW etc.)

Bodegradable MSW. sewage sludge, manure, wet wastes (farm and food wastes), macro-algae

Photosynthete micro-organisms, e.g. microatgae and baaena

Heat and/or Power

Liquid fuels

Syndiesel / Renewable diesel Methanol. DME

■ Other fuels and fuel additwes

Gaseous fuels

Bk>methane

Hydrogen

' Parts of each feedstock, e.g. crop residues, could also be used In outer routes 1 Each route also gives co-products

1 Biomass upgrading includes any one of the densification processes (pelletisation. pyrolysis. torrefaction. etc.) ' AD - Anaerobic Digestion

Source: UK Bio-energy Strategy

Figure 1: Modern concept of Conversion Pathways from biomass to bio-fuel products.

In the year 2000, it produced 2.9 thousand barrel per day whereas China contributed to zero. From the year 2005, China accelerated the movement by producing 20.79 thousand barrel per day with a value of 43.23598 in the year 2012. India could not keep pace and produced only 5.25587 thousand barrel per day in the year 2012.

Table 2. World Fuel Ethanol Production by Country or Region (Million Gallons)

Country/ Region 2007 2008 2009 2010 2011 2012 2013 2014

USA 6,521 9,309 10,938 13,298 13,948 13,300 13,300 14,300

Brazil 5,019 6,472 6,578 6,922 5,573 5,577 6,267 6,190

Europe 570 734 1,040 1,209 1,168 1,179 1,371 1,445

China 486 502 542 542 555 555 696 635

Canada 211 238 291 357 462 449 523 510

Rest of World 315 389 914 985 698 752 1,272 1,490

WORLD 13,123 17,644 20,303 23,311 22,404 21,812 23,429 24,570

4.0 Constraints & solutions in biomass and bio-waste supply chain for bio fuels and bio-energy production

Supply chain management plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption considering supply side management, demand side management and the operations management. After the analysis of the present situation, major areas of constraints, sub - constraints and possible solution for biomass and bio-waste supply chain for bio-fuels and bio-energy production have been presented in table 4. When evaluating bio-energy production, a system perspective has to be taken encompassing the components biomass resources, supply systems, conversion technologies, and energy services. In terms of activities, harvesting, refining and transporting of biomass are key issues, which must be facilitated by supply chain and operations management as well as the adoption of

most adequate technologies22,23,24. Figure 2 shows a typical graphical representation of a waste biomass supply chain and Figure 3 proposes a sustainable model of biomass production based on Tripple Bottom line approach.

Table 3. World's Fuel : Ethanol Production in thousand barrel per day country wise

Country 2000 2005 2010 2011 2012

North America 109.24 259.09 891.744 938.9192 908.258

Canada 3.7 4.4 24 30 32.7

United States 105.54 254.69 867.444 908.6192 875.558

Central & South America 185.0267 284.6781 502.9115 415.903 428.94

Brazil 183.8867 276.4051 486.0114 392 402.5

Paraguay 0.04 0.6 2.2 2.2 2.3

Europe 2 14.76 71.601 72.801 68.462

France 2 2.5 18 17.4 17

Germany 0 2.8 13 13.3 13.37

Hungary 0 0.1 3.2 3 1.52

Poland 0 2 3.5 2.9 3.6

Spain 0 5 8 8 7.9

Sweden 0 1.4 3.5 3.4 2.7

United Kingdom 0 0 5 5 4.3

Asia & Oceania 2.9 26 52.68438 61.85163 63.5578

Australia 0 0.4 4.7389 5.49712 5.25869

China 0 20.7 36.67046 38.85897 43.23598

India 2.9 3.7 0.86162 6.28981 5.25587

Japan 0 0 0.86162 0.43081 0.43081

Thailand 0 1.2 7.77179 8.37493 8.11644

Other countries

World 299.3667 585.0281 1521.011 1490.515 1470.09

Source: EIA's International Energy Statistics: Bio-fUels Production.

(http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=79&pid=80&aid=1&cid=regions&syid=2000&eyid=2012&unit=TBPD Table 4. Supply Chain constraints and the solution.

Major constraints

Sub-Constructs

Proposed solution for sustainability

Behavioural & Social

Economical

Environmental Operational

Biomass Burning25,26,

Biomass used as the feed to cattle,

Poor Awareness of the farmers and the stakeholders,

Bio-fuel and bio-energy policy27,

Food Security,

Transportation cost, Government support, Demand side network28, Administratively determined price

Land use pattern change, Food and Water security Continuous feedstock supply29, Pre-treatment30, Technology adoption,

Scale of operation and operational efficiency, Demand side network

Intensive training of stakeholders, Strengthening R&D, Community participation, Implantable government policy by & regular monitoring,

Alternative livestock feed.

Effective decision support system (DSS), Robust supply Chain,

Implantable government policy, Tax and subsidy structure, Tariff structure.

Implantable government policy with regular

monitoring.

Robust supply Chain,

Effective R&D,

Technology incubation centres for providing best technology as sustainable business model, Proper distribution channel_

5.0. Salient features of India's Bio fuel Policy

India's bio-fuel policy will strengthen India's energy security by encouraging use of renewable energy resources to supplement motor transport fuels. An indicative 20% target for blending of bio-fuel for both biodiesel and bioethanol is proposed by end of 12th Five-Year Plan (fiscal 2012/13 through fiscal 2016/17). Minimum Support Price (MSP) mechanism for inedible oilseeds to provide fair price to oilseed growers but subject to periodic revision. The Cabinet Decisions that Ethanol produced from other non-food feedstock's besides molasses like cellulosic and lingo- cellulosic materials and including petrochemical route, may be allowed to be procured subject to meeting the relevant Bureau of Indian Standards (BIS) standards. On January 16, 2015, the Indian Union Cabinet decided to suitably amend the national bio-fuel policy for facilitating consumers of diesel in procuring bio-diesel directly from private bio-diesel manufacturers, their authorized dealers and joint ventures (JVs) of OMCs authorized by the Ministry of Petroleum and Natural Gas (Mo PNG), GoI.

Information flow to the upper levels of supply chain

Grains & starch crops, Agricultural residues, Forestry materials

Demand Side Management

Energy crops, Food waste, Animal by-products, Urban and suburban wastes

Products' flow to the lower levels of supply chain

Logistics flows

Figure. 2. Typical graphical representation of a waste biomass supply chain

The price of biodiesel will now be market determined. If necessary, GoI proposes to consid er creating a National Bio-fuel Fund for providing financial incentives, including subsidies and gra nts, for new and second generation feed stocks, advanced technologies and conversion process es, and production units based on new and second generation feedstock.

Figure 3. Sustainable Model of Biomass production based on Tripple Bottom line approach

Thrust for innovation, (multi-institutional, indigenous and time bound) research and development on bio-fuel feedstock (utilization of indigenous biomass feedstock included) production including second generation bio-fuels. Bring bio-fuels under the ambit of "Declared Goods" by the Gol so as to ensure their unrestricted interstate and intrastate movement. Except for a concessional excise duty of 16 percent on bioethanol, no other central taxes and duties are proposed to be levied on biodiesel and bioethanol. Bio-fuel technologies and projects would be allowed 100 percent foreign equity through automatic approval to attract foreign direct investment (FDI), provided the bio-fuel is for domestic use only, and not for export. Plantations of inedible oil bearing plants would not be open for FDI participation. Setting up of National Bio-fuel Steering Committee (NBSC) under Prime Minister to provi de policy guidelines. The National Bio-fuel Policy proposes to set up a National Bio-fuel Coordination Committee (NBCC) he aded by the Prime Minister. Various state governments will work closely with respective research institutio ns, forestry department, universities etc. for development and promotion of bio-fuel program in respective states. Several states have drafted policies and set up institutions for promoting bio-fuel.

6.0 Conclusion

The Indian bio-fuel industry, both private and public sector, claim to be successful in developing and customizing technology for converting ligno-cellulosic materials in form of wood biomass, agricultural (corn cob, bagasse, stalk of forage crops) waste and forest waste. Trials are underway to process municipal solid waste, micro-algae and photosynthetic organisms into advanced bio-fuels. However, given the technological challenges, commercial production and economic viability remains to be demonstrated. Providing economically, environmentally and socially sustainable bio-energy requires an optimization of the structure and functioning of the supply chain/network, adjusted to the specific conditions of the respective production system (climate and topology, feedstock, technologies, final application). A sustainable and robust supply chain leading to a business model is the only solution for effective results addressing the constraints of the stakeholdrer's rationally. India also pursue strategic international partnerships to carry out its bio-fuel and bio-energy policies and promote domestic bio-fuels / bio-energy industries. Priority areas for such collaboration will include technology transfer, joint research and technology development, field studies, pilot scale plants and demonstration projects. Government of India has been taking initiatives for making the bio-fuel and bio-energy more popular. In recent future the initiative will definitely see implementable business cases in both rural and urban India. The proposed National Biogas mission for setting up 10 million biogas plants during next 5 years up to 2020-21 may bring light to the dream of utilising biomass and bio-wastes making a robust supply chain for a business model. Moreover, Swacchh Bharat Avijan can make many waste management initiatives happen in the country.

7.0 Acknowledgement : The authors acknowledge the support by, a) DST - Royal Society funded India - UK scientific seminar on "Sustainable energy recovery from waste biomass (SERB)" at Jadavpur University in February 2015, b) UGC - UKIER thematic Partnership project on "Municipal Solid Waste (MSW) to Energy - DSS for supply Chain design and planning" at Jadavpur University, India and Aston University, UK, and c) the International Society of Waste Management, Air and Water (ISWMAW), India.

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