quiz01-group2 iese
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INSTITUTE OF ENVIRONMENTAL SCIENCES & ENGINEERING (IESE)
SUBMITTED BY:
GROUP - 2
Waleed Fawad Butt
Muhammad Talal Ali Khan
Abdul Moiz Sohail
Beenish Imtiaz
Seemal Mushtaq
Jamal Shahid Saifi
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Quiz - 1
Course: Energy Resources & Management Page 2 of 8
GROUP 2
Q 1: Sugar cane production in Pakistan (15)
By: Waleed Fawad Butt, Seemal Mushtaq
a. Total Acreage
759000 ha
b. Tonnage Per Acre
AVERAGE production of sugar cane in Pakistan is 22,000 kg / 24.2508 tons per acre which is below the potential.
c. What factors increase sugar content in cane?
To increase sugar content in cane;
Agronomic factors: like preparatory tillage, bed preparation, planting techniques and time, water availability for irrigation, application of fertilizers, management of ration crop, harvesting time, type of cultivars and plant protection measures significantly affect its production. These factors also contribute to the cost of production.
Fertilizers: Soil fertility and productivity significantly affect cane production.
Irrigation: Sugar cane is a perennial crop and water requirements on an average varies from 120-160 centimeters for the spring crop and 200-250 centimeters for the autumn crop depending upon season, the fertility of soil, and the variety of cane. Autumn planting requires a higher quantity of water than spring planting. During the dry period, sufficient water should be applied at relatively short intervals to avoid moisture stress.
Seed Rate: Optimum plant population depends on appropriate seed rate and spacing
Seed Bed Preparation: Since sugar cane is a deep-rooted crop, it requires a well-worked and fully pulverized seed bed
Preparatory Tillage: Preparatory tillage includes initial ploughing with a tractor-mounted mould board plough which is considered essential and should be done extensively
d. Price per ton in Pakistan, India and Bangladesh
Rs 2,200 per ton has been fixed as advance price for sugarcane India
Rs 2,200 per ton has been fixed as advance price for sugarcane supplied to sugar factories
Bangladesh
Sugarcane purchase price fixed at PKR 170 per 40 kg and PKR 4250 per ton - Pakistan
e. Why sugar can price is high in Pakistan?
Due to the political issues, every new upcoming government want to facilitate the sugar can producer by setting the price high neglecting 180 million people of Pakistan and the other factor which they present that the sugar can produced in Sindh have high sucrose value in it so that the industry can derive more content from it and they face high input cost.
REFERENCES
http://www.pakissan.com/english/allabout/crop/sugarcane.shtml
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/03-Nov-
2012/new-sugarcane-price-millers-fear-jump-in-sugar-rate
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Quiz - 1
Course: Energy Resources & Management Page 3 of 8
GROUP 2
Q 2: Why it is important to blend ethanol in gasoline. What are the
environmental issues of blending and in what fraction it is blended in Pakistan and
globally? (25)
By: Jamal Shahid Saifi, Muhammad Talal Ali Khan
IMPORTANCE OF BLENDING
Ethanol is blended in gasoline because of the following reasons;
1. Ethanol is an effective solvent. A potential drawback for old, small engines is that neglected fuel
systems may begin to precipitate old deposits at a greater rate than normal and clog fuel filters
and small passageways. Ethanol blends may accelerate the release of deposits.[1]
2. Water Contamination: Ethanol has hydroscopic qualities in it that attracts and mixes with water.
At higher concentrations, the water will separate from the fuel and pool at the bottom of its
container. This phase separation form of water in fuel can cause rust and possibly damage the
engine. Fuel that is an E10 blend cannot absorb enough moisture out of the air to cause this
phase separation.[1]
3. Ethanol is a volatile, flammable, colorless liquid. It is easily ignited by heat, sparks, or flames, and
burns with a smokeless blue flame that is not always visible in normal light.[2] Pure ethanol has
55F flash point.[3] So, it is commonly blended with gasoline to make it a safer fuel.
4. Ethanol is an oxygenate. It acts as octane enhancer and will increase the octane numbers from
2.5 to 3.0 at 10% concentration.[4]
ENVIRONMENTAL ISSUES OF BLENDING[5]
1. Since ethanol is an alcohol, it does not produce hydrocarbons when being burned or during
evaporation. Hydrocarbons include BTEX species (Benzene, Toluene, Ethyl Benzene, Xylene) and
VOCs.
2. Ethanol contains oxygen which leads to more complete combustion in the engine and carbon
monoxide (CO) production is reduced. Petroleum fuels contain no oxygen in their molecular
structure. When they are burned, carbon monoxide is readily produced due to incomplete
combustion.
3. Using renewable fuels, such as ethanol, does not increase atmospheric carbon dioxide (CO2)
levels. The carbon dioxide formed during combustion is balanced by that absorbed during the
annual growth of plants used to produce ethanol. All petroleum-based fuels cause increased
atmospheric carbon dioxide levels.
4. Ethanol reduces several components of gasoline, including olefins and aromatics, which impact
NOx emissions.
5. Aldehyde emissions from the combustion of ethanol blends are slightly higher than when
burning gasoline alone. The concentrations are extremely small and are sufficiently reduced by
the vehicles three-way catalytic converter found on all recent cars.
FRACTIONS OF ETHANOL BLENDING
In Pakistan, 5-10% ethanol in blended with 90% gasoline. PSOs E-10 is an example of ethanol-
gasoline blend, which consists of 10 percent ethanol dissolved in normal gasoline.[6]
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Course: Energy Resources & Management Page 4 of 8
GROUP 2
In Pakistan, according to the study, the government has not yet announced any Fuel Ethanol Policy
while in India; the government has made mandatory 5 percent blending.[7]
Globally, ethanol is blended with gasoline in various amounts for use in vehicles.[8]
1. E10: E10 is a low-level blend composed of 10% ethanol and 90% gasoline. It is classified as
substantially similar to gasoline by the US-EPA.
2. E15: E15 is a low-level blend composed of 15% ethanol and 85% gasoline.
3. E85: E85 is a high-level gasoline blend containing 51% to 83% ethanol, depending on geography
or season. E85 can be used in flexible fuel vehicles (FFVs), which have an internal combustion
engine and run on either E85 or gasoline. E85 cannot be legally used in conventional gasoline-
powered vehicles.
BIBLIOGRAPHY
1. Frazier, R. Scott. Ethanol Gasoline Blends and Small Engines. OSU Fact Sheets. [Online] [Cited:
February 11, 2013.] http://pods.dasnr.okstate.edu/docushare/dsweb/Get/Document-6015/BAE-
1746pod.pdf.
2. Renewable Fuels Association. Module 2: Chemical and Physical Characteristics of Ethanol and
Hydrocarbon Fuels. RFA: Renewable Fuels Association. [Online] [Cited: February 11, 2013.]
http://www.ethanolrfa.org/page/-/rfa-association-site/pdf/module2.pdf.
3. Hazards of Transportation and Transfer of Ethanol and Ethanol-Blended Fuels. International
Brotherhood of Teamsters | IBT. [Online] [Cited: February 11, 2013.]
http://www.teamster.org/sites/teamster.org/files/EthanolTransport.pdf.
4. ETHANOL BLENDED GASOLINE FACTS FOR RETAILERS & CONSUMERS. Regulatory Services -
Divisions - Utah Department of Agriculture and Food. [Online] [Cited: February 11, 2013.]
http://ag.utah.gov/divisions/regulatory/documents/E10%20report%20051910.pdf.
5. Rex Weber. Ethanol-Blended Fuels. NREL: Education Programs. [Online] [Cited: February 12,
2013.]
http://www.nrel.gov/education/pdfs/educational_resources/high_school/teachers_guide_ethanol.p
df.
6. Products | Pakistan State Oil. Pakistan State Oil. [Online] April 30, 2012. [Cited: February 12,
2013.] http://www.psopk.com/products_services/e10.php.
7. Waleed, Hamid. Ethanol blended petrol could increase fuel efficiency: PSMA. Daily Times -
Leading News Resource of Pakistan. [Online] March 24, 2005. [Cited: February 12, 2013.]
http://www.dailytimes.com.pk/default.asp?page=story_24-3-2005_pg5_10.
8. Alternative Fuels Data Center: Ethanol Blends. Alternative Fuels Data Center. [Online] U.S.
Department of Energy, February 12, 2013. [Cited: February 12, 2013.]
http://www.afdc.energy.gov/fuels/ethanol_blends.html.
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Course: Energy Resources & Management Page 5 of 8
GROUP 2
Q 3: Examples of global environmental laws and regulations for ethanol
production and management (25)
By: Waleed Fawad Butt, Seemal Mushtaq
LEGISLATION AND REGULATION IN CANADA
Canada has well developed institutes legislation for renewable fuels, mandating a requirement of an
average of 5% renewable fuel content.
Ontario has 5 operating ethanol plants, and additional 7 are proposed. Ethanol production facility
does not have a specific set of regulatory requirement for development, but follows the guidelines
set out for industrial uses. The Ontario Ministry of Environment (MoE) set standards to protect
humans and ecosystem.
The two predominant guidelines are;
i. MoE Land Use Compatibility: The Ministry of Environment has developed the D-series of
land use compatibilities guidelines to aid in the structure of development / by considering
the guidelines its application include Zoning bylaw amendments, zoning orders,
development permits, site plans, plans of subdivision and condominium and consents.
ii. MoE Certificate of Approval: It employs regulations; monitors best management practices,
and implements the legislated license requirement for controlling emissions from the
facility. These emissions include air contaminants, dust odor, and sometimes noise.
OKLAHOMA: On Farm Ethanol Production Regulation
In Oklahoma, most environmental program handled at the federal level by environmental protection
agency and delegated to Oklahoma Department of Environmental Quality (DEQ).
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Course: Energy Resources & Management Page 6 of 8
GROUP 2
i. Air permitting: The federal Clean Air Act (CAA) requires air permit for facilities that emit
more than specified amounts of certain air pollutants. These permits are often called title v
permits and facilities required to have such permits are called title v
ii. Water issues: The federal Clean Water Act (CWA) requires a permit for discharge of any
pollutant into a body of water from a discrete point such as (pipe, conduit, ditch or channel)
iii. Waste: The production of biofuels from agriculture materials generates a number of by-
products and co-products, some of which may fit the definition of solid waste under the
Resources Conservation and Recovery Act (RCRA)
iv. Tank Storage: The regulations related to chemical storage tanks in Oklahoma is overseen by
the OKLAHOMA Corporation commission the tank storage of a chemicals is regulated
through two main programs first is related to prevention of oil spillage, contamination, and
countermeasure. The 2nd one is under ground storage tank program
OTHER LEGISLATIONS
Some other global examples of ethanol production laws include;
i. National Environment Policy Act
ii. Pollution Prevention Act
iii. Energy Planning and Community Right to Know Act
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Course: Energy Resources & Management Page 7 of 8
GROUP 2
Q 4: Comparison of Pakistani government policies with international laws (35)
By: Abdul Moiz Sohail, Beenish Imtiaz
BIOFUEL PROMOTION POLICIES
Current Policy: The Policy for Development of Renewable Energy for Power Generation, 2006 (the
ARE Policy 2006) introduced Government of Pakistans (GoP) phased program for the development
and implementation of Alternative and Renewable Energy (ARE) based projects in the country. While
aiming at achieving certain defined medium-term objectives on the one hand and ensuring
continuity on the other, the Policy for Alternative and Renewable Energy, 2011 (the ARE Policy
2011) enumerates the medium-term objectives and provides the roadmap for further realizing the
full potential of ARE in Pakistan.
Ministry of Petroleum and Natural Resources (MinP&NR) ensures availability and security of
sustainable supply of oil and gas for economic development and strategic requirements of Pakistan.
Ministry of Food and Agriculture and Livestock (MinFAL) is mainly responsible for policy formulation,
economic coordination and planning in respect of food grain and agriculture.
Targets: Presently, the GoP has set the following targets for the ARE sector:
At least 5% of total commercial energy supplies through alternative and renewable energy by 2030
COMPARISON & CRITICAL ANALYSIS OF LOCAL & INTERNATIONAL POLICIES
1. Import Substitution: The private sector communicated certain policy proposals to the
government. These included a ceiling on molasses exports and a subsidy on bioethanol
production to compensate for the fluctuation in molasses prices. To date however, there has
been no visible government response. A number of concessions and exploration licenses have
been accorded to various multinational entities under a domestic policy to explore indigenous
reserves of fossil fuels rather than focusing on bioethanol production.
2. Export Promotion: As long as current policy on fuel ethanol is dictated by the oil sector, import
substitution will be a slow process. The immediate prospects lie in export promotion. As
indicated, Pakistan presently exports over 160,000 tons of industrial alcohol and bioethanol,
earning a little over USD 100 million in foreign exchange, which is well below potential earnings
mainly due to high central excise duty and sales tax on alcohol. This needs to be removed to
increase price competitiveness both abroad and domestically.
3. Tariff Preferences: Until recently, Pakistan was the second largest industrial alcohol exporter to
the EU after Brazil, under the General System of Preferences (GSP), under a no tax regime. In
May 2005, the Commission of Industrial Ethanol Producers of the EU (CIEP) accused Pakistan and
Guatemala (the largest duty free exporters for the period 2002-2004) of dumping ethyl alcohol
in the EU market, causing material harm to domestic producers. EU granted tariff preferences to
12 countries which also included Pakistan. Subsequently, following a complaint lodged by India,
a World Trade Organization (WTO) panel concluded that by granting tariff preferences to 12
countries, the EU was violating WTO preferential treatment obligations. The EU consequently
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Course: Energy Resources & Management Page 8 of 8
GROUP 2
removed Pakistan from the GSP. Currently there is no unique customs classification for
bioethanol.
Industrialists even made an offer to share the costs of hiring strong defense lawyers, but the
government took no action. The local distilleries have consequently begun to suffer losses and
some have ceased operations.
4. Technical, Environmental and Social Standards: Environmental and social standards are now
part of the global trading regime. The EU, a major market of Pakistani industrial alcohol exports
till 2006, has imposed domestic, fuel quality limits on the use of bioethanol and biodiesel. A
maximum of five per cent blending is allowed, thus limiting the biofuel market. In addition, the
EUs Biomass Action Plan is contemplating certification to ensure that biofuel imported is
produced from crops grown in an environmentally sustainable manner. Individual EU members
such as the Netherlands and UK are already developing certification schemes.
The varying standards requirements across the north present additional compliance problems
for a technically and institutionally unprepared south. Pakistan, in principal has supported
standards in the global trading regime. But, concurrently, as a member of the southern block, it
has repeatedly opposed any measures that may allow the north to use these standards.
5. Institutional Uncertainty: Biofuels and bioethanol continue to remain unresolved issues in the
World Trade Organization (WTO), complicating its trade facilitation. The WTO classifies
bioethanol as an agricultural product, making no distinction between its use as fuel and for other
purposes. There are questions being raised on bioethanol regarding its environmental
soundness, trade and export subsidies.
According to the International Food and Agricultural Trade Policy Council, which released the
report on WTO rules on fuels like fuel ethanol, developing countries are wildly producing
biofuels. The WTO, the World Customs Organization and national governments must work
together to make sure that the future biofuel trade runs smoothly.
Conclusion: Pakistan stands to gain from increased bioethanol trade. Within Pakistan, agricultural
subsidies have been withdrawn for virtually all crops, largely due to lack of resources and IMF/World
Bank led structural adjustment of the economy that has been undertaken since the 1990s. Overall
agricultural production in Pakistan is taxed. Sugarcane production, which is the only crop relevant to
the bioethanol industry, is not subsidized. In fact, a major worry is the gradual shift of farmers away
from sugarcane to more economically lucrative crops.
REFERENCES
Biofuels, Trade & Sustainable Development: The Case of Pakistan - International Institute for
Environment & Development http://pubs.iied.org/
Ethanol International Overview of Production & Policies
http://www.agric.wa.gov.au/objtwr/imported_assets/content/sust/biofuel/worldethproduction