"Oil and coal passe": India searching for sugarcane land overseas
Quicknote energy transition
We are used to reading story after story about the world's major powers 'hunting down' oil and gas exploration licences in all the corners of the globe. But for India, oilfields and coal mines are passe. Now that the world is moving towards a green energy future, tropical land is the new gold, and India has understood the message. That is why the country is poised to make a go at acquiring sugarcane acreages overseas in search of energy security.
The idea is to put in place an assured supply of ethanol, a byproduct of the sugar industry that is mixed with petrol to produce 'swadeshi fuel' or 'gasohol'. Progressive use of this fuel will reduce the country's oil bill by reducing dependance on imported crude. Prime Minister Manmohan Singh is expected to flag the issue of Indian state-owned oil firms acquiring sugarcane fields in Brazil during his visit later this month. Brazil is the largest sugarcane producer in the world and global leader in gasohol usage.
It allows foreign ownership of sugarcane acreages which are rain-fed and require little irrigation. The sugarcane farms are highly mechanised and have integrated sugar mills. India and Brazil have held a round of talks on the issue. Brasilia indicated it does not have problem — as of now — with Indian oil firms acquiring sugarcane acregaes, either on their own or in joint venture with Brazilian state firms.
Several European firms have acquired acreages and taken up ethanol manufacturing for captive use in home country, which might prompt rethink on foreign ownership. According to a government working paper, existing tieups between Indian oil firms and Brazil's national hydrocarbons entity Petrobras can be expanded for canalising ethanol from captive acreages in that country.
Flagship overseas explorer ONGC Videsh, GAIL and refiner-marketer BPCL have MoUs with Petrobras. Efforts to promote gasohol, started by then oil minister Ram Naik during the NDA rule, has been doddering due to short supply of ethanol.
The oil ministry is running pilot projects in nine sugarcane growing states of blending 5% ethanol in petrol. The plan is to make it mandatory in all states and then move up to 10% blending. The department of chemicals and fertilisers has opposed mandatory blending of petrol, saying domestic production of ethanol is not even meeting demand from chemicals industry and alcohol manufacturers. Any diversion for petrol blending will aggravate the woes of the chemicals industry [entry ends here].
ethanol :: bioenergy :: biofuels :: energy :: sustainability :: India :: Brazil :: sugarcane :: land ::
We are used to reading story after story about the world's major powers 'hunting down' oil and gas exploration licences in all the corners of the globe. But for India, oilfields and coal mines are passe. Now that the world is moving towards a green energy future, tropical land is the new gold, and India has understood the message. That is why the country is poised to make a go at acquiring sugarcane acreages overseas in search of energy security.
The idea is to put in place an assured supply of ethanol, a byproduct of the sugar industry that is mixed with petrol to produce 'swadeshi fuel' or 'gasohol'. Progressive use of this fuel will reduce the country's oil bill by reducing dependance on imported crude. Prime Minister Manmohan Singh is expected to flag the issue of Indian state-owned oil firms acquiring sugarcane fields in Brazil during his visit later this month. Brazil is the largest sugarcane producer in the world and global leader in gasohol usage.
It allows foreign ownership of sugarcane acreages which are rain-fed and require little irrigation. The sugarcane farms are highly mechanised and have integrated sugar mills. India and Brazil have held a round of talks on the issue. Brasilia indicated it does not have problem — as of now — with Indian oil firms acquiring sugarcane acregaes, either on their own or in joint venture with Brazilian state firms.
Several European firms have acquired acreages and taken up ethanol manufacturing for captive use in home country, which might prompt rethink on foreign ownership. According to a government working paper, existing tieups between Indian oil firms and Brazil's national hydrocarbons entity Petrobras can be expanded for canalising ethanol from captive acreages in that country.
Flagship overseas explorer ONGC Videsh, GAIL and refiner-marketer BPCL have MoUs with Petrobras. Efforts to promote gasohol, started by then oil minister Ram Naik during the NDA rule, has been doddering due to short supply of ethanol.
The oil ministry is running pilot projects in nine sugarcane growing states of blending 5% ethanol in petrol. The plan is to make it mandatory in all states and then move up to 10% blending. The department of chemicals and fertilisers has opposed mandatory blending of petrol, saying domestic production of ethanol is not even meeting demand from chemicals industry and alcohol manufacturers. Any diversion for petrol blending will aggravate the woes of the chemicals industry [entry ends here].
ethanol :: bioenergy :: biofuels :: energy :: sustainability :: India :: Brazil :: sugarcane :: land ::
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