Wednesday, May 20, 2009

Ethanol blending

1.Specifications: What are the specifications of ethanol for blending with MS? Is there any processing required for normal ethanol to be suitable to blend with MS? What is unit cost of such processing?
2.Industries: What are the sources of ethanol such as sugar, beat, etc?
3.Production: What is ethanol production in India? What is the trend in production and what are growth projections? Is it concentrated or dispersed? Is the industry organized or scattered?
4. Blending: Ethanol can be blended only with MS or other fossil fuels as well? What is the maximum percentage of blending?
5.Impact on MS quality - Does ethanol blending have any positive/negative impact on performance of automotive? Is there any established user preference?
6. Market: How is ethanol disposed otherwise? Exported? Which are consumer industries? What is their demand and growth trend? What is the price affordability of these industries?
7. Requirement: How much ethanol is available for automotive use? What is the MS sales in India and what is the growth rate? At given percentage, what is the total ethanol requirement at national level? Since ethanol is related to agricultural output, is there is cap on how much volume can be made availble? How can this cap be influenced?
8. Impact on imports: How much crude will be saved if ethanol blending achieves full potential? What would be the value or Forex saved at current price? What percent of current account deficit will vanish?
9. Logistics: Where the blending will take place? In refinery? In terminal or depot? In the ethanol factory? At the retail outlet? Is there uneven distribution of ethanol production? Who will carry ethanol from factory to the blending location? How to ensure regular supply?
10: Transaction: Who purchased the ethanol? Refinery? OMC? RO owner? Who will sell? Trader? Factory?
11. Price build-up: Market price or base price, plus processing and QC cost , plus transport cost, plus taxes
12: Economics: At what price (of MS) will it make sense to blend ethannol? At what price will it make sense to sell ethanol to OMC? Is there a critical crude price which determines economies of blending?
13: Projects: Should capacities dedicated for ethanol making come up? What should be typical size? How much should be the total capacity of all such units looking at demand -supply gap and economics? How much investment this means? In how how many years?
13 Regulation:Should there be a law to mandate ethanol blending? Should there be a policy framework for holistic ethanol blending program?

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