Study indicates India could become major feedstock supplier for ethanol

A new study commissioned by Novozymes indicates that India has the potential to become a major supplier of feedstock for the production of ethanol.  The study, which was undertaken by Bloomberg New Energy Finance, also finds that the country does not have long-term policies in place to attract the needed private capital to develop this industry.  The study entitled, “Next Generation Ethanol: What’s in it for India?” projects that by 2020, the next-generation ethanol could turn out to be a US$15 billion per year industry.  India, being a major agricultural producer, has the capacity to use some of its rice, wheat, maize and other crops to be converted into fuel.  The development of ethanol fuel in India could lead to up to one million new jobs, lower greenhouse gas emissions and reduce dependence on foreign fuel.   According to the study, next-generation ethanol could drastically reduce gasoline demand in India. For all this to come to fruition, there must be improvements in fuel production technologies, according to the study.  Currently, ethanol in India is produced from sugarcane and molasses as feedstock.  Recommendations from the report are for policy makers to consider two priorities: one to come up with a mandate for next-generation ethanol; and, second to provide financial incentives for farmers to collect waste from fields after the harvests. (May 19, 2011)