Sugar Report PDF
Sugar Report PDF
Sugar Report PDF
Final Report
Prepared for
Shakti Sustainable Energy Foundation
D isclaimer
This report is part of Shakti Sustainable Energy Found ation (SSEF) and The Energy and
Resources Institute‟s (TERI) attem pt to stud y the sugar sector energy consum ption trends
and energy efficiency improvem ent opportunities in the sugar sector in Ind ia. The view s
expressed in this d ocum ent d o not necessarily reflect the view of Shakti Sustainable Energy
Found ation. The organization accepts no liability for the content of this d ocum ent, or for the
consequences of any actions taken on the basis of the inform ation provid ed . While every
care has been taken in com piling this report, TERI and Shakti Sustainable Energy
Found ation accepts no claim for any kind of compensation, if any entry is w rong,
abbreviated , om itted or inserted incorrectly either as to the w ord in g space or position in the
report.
I
Acknow ledgement
The Energy and Resources Institute (TERI) places on record its sincere thanks to the Shakti
Sustainable Energy Found ation for provid ing opportunity to und ertake the stud y on
“Wid ening the coverage of PAT schem e for Sugar sector” w hich w as quite challenging and
very interesting. The conclusions of this stud y are expected to support the Found ation
w hich is active on the areas to strengthen the energy security of Ind ia by aid ing d esign and
im plem entation of policies that support energy efficiency and renew able energy.
TERI is grateful to the mem bers of Sugar associations for provid ing valuable inputs, d ata
and inform ation for successful cond ucting of the stud y. TERI likes to acknow led ge the
Ind ian Sugar Mills Association, The Sugar Technologists‟ A ssociation of Ind ia and N ational
Fed eration of Cooperative Sugar Factories Ltd .
Last but not the least, the interactions and d eliberations w ith various m embers of the
ind ustry associations w ho extend ed their support for verification of d ata related to Sugar
sector d uring the stud y w ere very useful and the entire exercise w as a rew ard ing experience
for TERI.
II
Preface
The ind ustrial sector represents m ore than one third of both global prim ary energy use and
energy-related carbon d ioxid e em issions. In d eveloping countries, the energy supply
consum ed by the ind ustrial sector is frequently in excess of 50% and so can create tension s
betw een econom ic d evelopm ent goals and a constrained energy supply. Particularly,
countries like Ind ia, w ith an em erging and rapid ly expand ing ind ustrial infrastructure, have
an opportunity to increase their com petitiveness by applying energy -efficient best practices
from the outset in its new ind ustrial facilities.
Despite the potential, policym akers frequently overlook the opportunities presented by
ind ustrial energy efficiency to m ake a significant im pact on clim ate change m itigation,
energy security and sustainability. The com m on perception is that achieving energy
efficiency of the ind ustrial sector is too com plex to be ad d ressed through public po licy and ,
further, that ind ustrial facilities w ill achieve energy efficiency directly through com petitive
pressures in the m arketplace. One such initiative und er the N ational Mission on Enhanced
Energy Efficiency (N MEEE) is the Perform Achieve and Trad e (PAT) schem e. This is a
m arket based m echanism having the objective to enhance energy efficiency (target based ) in
Ind ia w ith an option to trad e the ad ditional energy savings in the form of energy saving
certificates.
In the first phase eight ind ustrial subsectors w ere covered und er the PAT schem e. There are
further plans to w id en the coverage by ad ding new ind ustrial subsectors based on the
energy consum ption levels. Shakti Sustainable Energy Found ation (SSEF) and The Energy
and Resources Institute (TERI) intend to assist the Bureau of Energy Efficiency (BEE) in
expand ing the PAT schem e to new sectors in subsequent phases.
As a part of this exercise, the Ind ia country profile of a few selected subsectors along w ith
their energy intensity has been establish ed . It w as d one after interactions w ith relevant
ind ustrial associations / ind ustry head s and compiling d ata from second ary sources. For
this report on the Sugar sector inputs w ere received from the Ind ian Sugar Mills Association
(ISMA), N ational Fed eration of Cooperative Sugar Factories Ltd (N FCSC) and The Sugar
Technologists‟ Association of Ind ia (STAI). Statistics about sugar mills, crushing capacities,
annual country-w id e crushing and average operational d ay d etails w ere collected from the
Sugar Ind ia Yearbook 12. Second ary d ata available in other public sources w ere also
review ed w hile preparing this report.
We believe that this sector m anual w ill act as a guid e for next steps and establish a need to
stud y the energy consum ption th oroughly to set the threshold limit for eligibility for
d esignated consum ers.
III
Table of contents
D ISCLAIMER.............................................................................................................................. I
A CKN OWLED GEMEN T ............................................................................................................ II
PREFACE ................................................................................................................................. III
TABLE OF CON TEN TS ............................................................................................................. IV
LIST OF TABLES ...................................................................................................................... VI
LIST OF FIGURES .................................................................................................................. VII
A BBREVIATION S ................................................................................................................. VIII
EXECUTIVE SUMMARY............................................................................................................. 1
1.0 IN TROD UCTION ....................................................................................................................... 3
1.1 Sector Importance ..................................................................................................... 3
1.2 Prevailing National / International Scenario ........................................................ 3
1.3 International standing of the subsector ................................................................. 4
1.4 Current/ Future Market Scenario ........................................................................... 4
1.5 Past growth and future prospects .......................................................................... 5
1.5.1 Dom estic d em and op p ortu nity ........................................................................6
1.5.2 International trad e op p ortu nity .......................................................................7
1.5.3 Fu tu re p otential, im p acts and investm ents ....................................................7
1.6 Production of sugarcane and white sugar in India .............................................. 8
1.7 Important stakeholders ............................................................................................ 9
1.8 Product categorisation ........................................................................................... 10
1.9 Major players........................................................................................................... 10
1.9.1 State-w ise segregation of su gar m ills ............................................................10
1.9.2 Classification of su gar m ills based on cap acity ...........................................10
1.9.3 Segregation of Su gar Mills based on Co-generation Facility .....................11
1.10 Sugar policy and regulations in India.................................................................. 11
1.11 Support for bagasse co-generation ....................................................................... 12
1.11.1 MN RE su p p ort and initiatives .......................................................................12
2.0 EN ERGY PERFORMAN CE ....................................................................................................... 13
2.1 Energy performance at sectoral level ................................................................... 13
2.2 International comparison ...................................................................................... 14
2.3 Manufacturing process .......................................................................................... 14
2.3.1 Variou s stages in su gar m anu factu ring p rocess ..........................................15
2.3.2 By-p rod u cts ......................................................................................................17
2.3.3 Cogeneration in su gar m ills ...........................................................................17
2.3.4 Distillery in su gar m ills ...................................................................................18
IV
2.4 Technological movements ..................................................................................... 18
2.5 Capacity utilisation................................................................................................. 19
2.6 Major energy consuming areas ............................................................................. 19
2.7 Energy saving potential ......................................................................................... 19
2.7.1 Scop e for im p roving energy efficiency .........................................................19
2.7.2 Scop e for co-generation p otential ..................................................................20
3.0 A N ALYSIS OF EN ERGY CON SUMPTION D ATA .............................................................. 21
3.1 Energy consumption in sugar mills ..................................................................... 21
3.1.1 Electricity consu m p tion in su gar m ills .........................................................21
3.1.2 Steam consu m p tion in su gar m ills ................................................................23
3.2 Plotting plant vs energy consumption................................................................. 23
3.3 Possible energy efficiency measures in sugar industry ..................................... 24
3.3.1 Im p roved reliability and econom ics of steam & p ow er generating
system s w ith film form ing p olyam ines ........................................................24
3.3.2 Direct p rod u ction of w hite su gar in a cane su gar m ill ...............................24
3.3.3 Su garcane w aste conversion into char ..........................................................25
3.3.4 Qu intu p le 3rd effect vap ou r for su gar m elting .............................................25
3.3.5 Cond ensate flashing system ...........................................................................25
3.3.6 Film typ e su lp hu r bu rner ...............................................................................25
3.3.7 Bagasse d rier .....................................................................................................25
3.3.8 Planetary gearbox for crystalliser ..................................................................26
3.3.9 Ad vanced bagasse based co-generation .......................................................26
3.3.10 Mechanical Vap ou r Com p ression (MVR) technology to recover
low -p ressu re w aste steam ..............................................................................26
3.3.11 Mill Drives ........................................................................................................26
3.3.12 Vertical continu ou s vacu u m p an for m assecu ite boiling ...........................26
3.3.13 Low p ressu re extraction (LPE) system .........................................................26
3.3.14 Mem brane filtration for su gar m anu factu ring.............................................27
3.3.15 H igh p ressu re co-generation system .............................................................27
3.4 Conclusions ............................................................................................................. 27
4.0 REFEREN CES .................................................................................................................... 29
5.0 AN N EXURE 1..................................................................................................................... 31
V
List of tables
VI
List of figures
Figure 1.3 : Country-w ise sugar prod uction across the w orld in percentages ...................... 4
Figure 1.5a : Ind ian Sugar Cycle ..................................................................................................... 5
Figure 1.5b : Trend of Sugarcane and Sugar Prod uction in Ind ia ............................................. 6
Figure 1.6 : Year-w ise trend in production of sugarcane and w hite Sugar in India ............. 8
Figure 2.3 : Sugar m anufacturing process ................................................................................. 15
Figure 3.1.2 : Steam consum ption trend over d ecad es ............................................................... 23
Figure 3.4 : Estim ated annual energy consum ption ................................................................ 27
VII
Abbreviations
AC - Alternating Cu rrent
AIDA - All Ind ia Distillers Association
ARTI - Ap p rop riate Ru ral Technology Institu te
BEE - Bu reau of Energy Efficiency
BIS - Bu reau of Ind ian Stand ard s
BOOT - Bu ild , Ow n, Op erate, Transfer
CACP - Com m ission for Agricu ltu ral Costs & Prices
CMIE - Centre for Monitoring Ind ian Econom y Pvt. Ltd .
DC - Direct Cu rrent
DCs - Designated Consu m ers
DEVC - Dou ble Effect Vap ou r Cell
DM - De-Mineralised
DSCL - DCM Shriram Consolid ated Lim ited
ESCerts - Energy Saving Certificates
EU - Eu rop ean Union
FD - Forced Draft
FRP - Fair & Rem u nerative Price
GCV - Gross Calorific Valu e
GDP - Gross Dom estic Prod u ct
GH G - Green H ou se Gas
GoI - Governm ent of Ind ia
HP - H igh Pressu re
ICUMSA International Com m ission for Uniform Method s of Su gar Analysis
ID - Ind u ced Draft
IREDA - Ind ian Renew able Energy Develop m ent Agency
ISEC - Ind ian Su gar Exim Corp oration Ltd
ISMA - Ind ian Su gar Mills Association
kCal - Kilo Calories
kW - Kilo Watt
kWh - Kilo Watt H ou r
LP - Low Pressu re
MSP - Minim u m Su p p ort Price
m TOE - Million Tonnes of Oil Equ ivalent
MW - Mega Watt
N APCC - N ational Action Plan on Clim ate Change
N CDEX - N ational Com m od ity and Derivatives Exchange
N CG - N on Cond ensable Gases
N FCSF - N ational Fed eration of Co-op erative Su gar Factories Ltd
N MEEE - N ational Mission on Enhanced Energy Efficiency
N PC - N ational p rod u ctive Cou ncil
P.A - Per Annu m
PA - Prim ary Air
VIII
PAT - Perform , Achieve and Trad e
PCRA - Petroleu m Conservation Research Association
PDS - Pu blic Distribu tion System
RSCL - Rajshree Su gars & Chem icals Ltd
SA - Second ary Air
SAP - State Ad vised Price
SEC - Sp ecific Energy Consu m p tion
SPM - Su sp end ed Particu late Matter
SSEF - Shakti Su stainable Energy Fou nd ation
STAI - The Su gar Technologists Association of Ind ia
TCD - Tonnes of Cru shing p er Day
TCH - Tonnes of Cru shing p er H ou r
TERI - The Energy and Resou rces Institu te
TOE - Tonnes of Oil Equ ivalent
TPD - Tonne p er Day
TPH - Tonnes Per H ou r
VSD - Variable Sp eed Drive
WTO - World Trad e Organisation
IX
Executive Summary
The Ministry of Pow er and Bureau of Energy Efficiency (BEE) are entrusted w ith the
im plem entation of the National Mission on Enhanced Energy Efficiency (N MEEE) und er the
N ational Action Plan on Clim ate Change (NAPCC). One of the key com ponents of the
m ission is Perform , Achieve and Trad e (PAT) mechanism . This is a m arket based
m echanism to im prove the energy efficiency in large energy intensive industries and
facilities cost-effectively by certifying energy savings that could be trad ed . The PAT
m echanism is d esigned to facilitate the Designated Consum ers (DCs) to achieve their legal
obligations und er the Energy Conservation Act (EC Act) of 2001, w hich w as am end ed in
2010.
The ensuing PAT scheme applies to 8 ind ustrial sub-sectors, w hich are Pow er Plant,
Alum inium , Pulp & Paper, Chlor- Alkali, Cement, Iron & Steel, Textile and Fertilizer.
During the first phase of the PAT cycle (3 years starting from 1st April 2012), as per the
recent notification, 478 designated consum ers (DCs) have been id entified. They are obliged
to red uce their energy consum ption by a specific target set by the BEE. The expected energy
savings from this schem e is about 6-8 m illion tonnes of oil equivalent (mMtoe) in this
period . The over achievers w ill earn tradable Energy Saving (ESCerts) w hereas the und er
achievers w ill be liable to com ply through purchase of ESCerts or by paying penalty.
The BEE plans to w id en the coverage of the PAT schem e in phases by ad d ing new ind ustrial
subsectors d epen ding on the energy consum ption. H ow ever, there is a need to stud y the
energy consum ption in detail for the new ind ustrial segm ents to establish the threshold limit
for the eligibility for DCs. Shakti Sustainable Energy Found ation (Shakti or SSEF) operates as
a partner institution of the Clim ate Works Found ation, and has been focusing its efforts on
clean and secured energy future for all in Ind ia. SSEF in consultation w ith TERI is assisting
the BEE in w id ening the net of the PAT schem e by ad d ing new subsect ors in subsequent
phases of the PAT scheme. The four subsectors identified by SSEF to stud y the energy
consum ption in d etail so as to establish the threshold lim it for the eligibility as DCs are
The initial task has been to m ap the id entified four sub sectors in the Indian context and
prepare a broad sectorial report. This subsector overview report on Sugar Ind ustry covers
inform ation on large and m ed ium m anufacturers, num ber of plants existing, prod uction
capacity, technology types and technological d evelopm ent in the last d ecad e, capacity
utilization, energy efficiency levels, estim ated energy saving potential, GH G inventory,
m itigation potential and barriers to im plem ent energy efficiency m easures, and regulatory
and policy issues having a bearing on im proving the efficiency in the sector.
The purpose of the sectorial report is m ainly to und erstand the energy intensity of the
subsector, technology adopted and its energy efficiency levels. It also assesses the potential
for red uction in energy consum ption across the subsector and the gaps in technology. It
1
Wid ening the coverage of PAT Schem e – Su gar Sector
provid es an overall energy scenario about the subsector to all the stakehold ers. This
overview report is prepared based on secondary inform ation available in the public d om ain.
Inform ation and d ata w ere also collected by interacting w ith ind ustrial associations and
ind ustrial experts in this subsector.
The sugar ind ustry is one of the largest energy users am ong ind ustry sector using bagasse
for m eeting both therm al energy and electricity requirem ents. Out of the 527 operating sugar
m ills in Ind ia, about 99 sugar m ills have installed capacities of 5000 TCD and above. These
sugar m ills can be brought und er tw o broad categories viz. (1) sugar m ills w ith steam d riven
m ills and (2) sugar mills w ith electrical m otor d riven m ills. H ence the sugar m ills above
5000TCD capacity m ay be taken up for d etailed stud y in the upcom ing phase. The estim ated
annual energy consum ption of these sugar m ills vary betw een 45,000 toe per year to 90,000
toe per year. A large num ber of these sugar m ills have ad opted cogeneration route to m eet
their overall energy requirem ents. As per the collected inform ation and d iscussions w ith
stakeholders d uring the sectoral w orkshop, there exists a significant energy saving potential
of about 20% in sugar ind ustries. Therefore it is suggested that these 99 large sugar m ills
(w hich operate either separately or as a group) m ay be consid ered as DCs und er the PAT
schem e w ith a threshold lim it of 30,000 toe as the m inim um annual energy consum ption per
m ill.
2
1.0 Introduction
1.1 Sector Importance
The sugar ind ustry is a sector of significant im portance to the national econom y. While
sugar consum ption has been grow ing over the years, the prod uction has been cyclical.
Currently, the sugar industry is regulated across the value chain from prod uction t o end
consum er. Investm ents to generate by-prod ucts are at a nascent stage, and the sector has
struggled to generate a return on invested capital in excess of its cost of capital in m ost
years, prim arily d ue to a high m and ated fixed cane price and a volatile sugar price.
Sugarcane is primarily grow n in nine Ind ian states: And hra Prad esh, Bihar, Gujarat,
H aryana, Karnataka, Maharashtra, Punjab, Uttar Prad esh and Tamil N ad u. More than 50
m illion farm ers and their fam ilies are d epend ent on sugarcane prod uce for their livelihood .
The sugar ind ustry caters to an estim ated 12% of rural population in these nine states
through d irect and ind irect em ploym ent. Effectively, each farm er contributes to the
prod uction of 2.9 m etric tonnes of sugar every year.
The sugar ind ustry is a green ind ustry and is largely self-sufficient in energy need s through
use of bagasse for generating electricity and steam. In fact, the sugar ind ustry generates
surplus exportable energy through cogeneration and contributes in red ucing the en ergy
d eficit that Ind ia is currently facing. The sugar ind ustry is also the prim ary source of raw
m aterial for the alcohol ind ustry in India. The annual econom ic contribution of the sugar
ind ustry to the exchequer through ind irect taxes am ounts to m ore tha n IN R 2800 Crores.
The sugarcane price accounts for approxim ately 70% of the ex-m ill sugar price. H ow ever,
fund am ental changes in the consum er profile and the d em onstrated ability of the sector to
continuously ensure availability of sugar for d omestic consum ption has d iluted the need for
sugar to be consid ered as an essential com m od ity. Accord ing to a recently cond ucted nation -
w id e survey, nearly 75% of the total non -levy sugar is consum ed by ind ustrial, sm all
business and high income household segm ents.
The Indian sugar ind ustry also has a significant stand ing in the global sugar space. Like in
Brazil and Thailand , the sugar sector is highly regulated in India too. Since 1993, the
regulatory environm ent has consid erably eased , but sugar still continues to be listed as an
essential com m odity und er the Essential Com m od ity Act. There are regulations across the
entire value chain, w hich includ es land d em arcation, sugarcane price, sugarcane
procurem ent, sugar prod uction and sale of sugar by m ills in d om estic and international
m arkets.
3
Wid ening the coverage of PAT Schem e – Su gar Sector
Ind ia‟s sugar sector competes w ith Brazil‟s as the largest in the w orld , and is the second
largest agriculture-based ind ustry in Ind ia, after textiles. A m ajority of its prod uction is
d estined for d om estic markets. The num ber of sugar factories in operation in Ind ia d uring
the crushing season 2010-11 w as 527 and the total sugar prod uction w as 24.39 m illion
tonnes. Based on cane crushing, m ill size ranges from 1250 to m ore than 10,000 Tonnes
Crushed per Day (TCD). The average crushing capacity of the sugar mills in Ind ia is 3,650
TCD.
Approxim ately 40% of Ind ia‟s sugar sector is ow ned and run by farm ers through co -
operatives, a situation that is unique to the country, w hile private sugar m ills in Ind ia are the
second largest prod ucers. The co-operative system generally suffers from poor coord ination
and is therefore less efficient than the plantation system m ost com m on in other sugar
prod ucing countries such as Brazil.
Source: http://www.vsisugar.com/india/statistics/international_sugar.htm
Figure 1.3: Cou ntry-w ise su gar p rod u ction across the w orld in p ercentages
4
1.0 Introd u ction
early 2000 sugar consumption has grow n at a good rate, notably in Asia (+4.9% p.a.), the
Mid d le-East (+4.6% p.a.) and Africa (+4.1% p.a.). The w orld population com prising 7 billion
people, of w hich 4.0 billion are concentrated in Asia, consum es about 165 m illion tonnes of
sugar. The 10 largest sugar consum ing nations consum e roughly tw o-third s of the total
w orld ‟s sugar. White sugar consum ption in d eveloped countries can be consid ered as
saturated m arkets (flat/ low population grow th and m aturity of food m arkets), w hereas
d eveloping countries are considered as grow ing m arkets, particularly in Asia, and , to a
lesser extent in Mid d le-East and Africa.
5
Wid ening the coverage of PAT Schem e – Su gar Sector
The num ber of sugar factories in operation in India from 2006-07 to 2010-11 is given in Table
1.5.
6
1.0 Introd u ction
The target m arkets are estim ated to im port 10 m illion m etric tonnes of sugar by 2017. In d ia
w ould be able to leverage this opportunity through prod uctivity im provem ents and
alignm ent of cane and sugar prices in the d om estic m arket. Ind ia's com petitiveness can also
be increased by enhancing export infrastructure. Since the current cost structu re of the
Ind ian ind ustry is uncom petitive for exports, in case of a large sugar surplus, the
governm ent could consid er using WTO com pliant subsidies to enable exports w hile creating
stability in the d om estic m arket. The ind ustry could also explore w ays of collectively sharing
losses d ue to exports, if any, since exports w ill lead to low er availability of stocks in the
d om estic m arket, thus benefiting both m ills and farm ers through higher sugar realization.
(Source KPMG Analysis)
7
Wid ening the coverage of PAT Schem e – Su gar Sector
Figure 1.6: Year-w ise trend in p rod u ction of su garcane and w hite Su gar in Ind ia
The d etails of sugarcane crushing, sugar prod uction, percentage recovery of sugar from
cane, m olasses prod uction and m olasses recovery percentage from cane for the seasons in
2010-11 is given in Table 1.6.1.
Table 1.6.1: Cane crushing, sugar and m olasses prod uction statistics
S.N o Particulars Crushing season
2010-2011
1 N u m ber of su gar factories in op eration 527
2 Average actu al cru shing cap acity (m illion TCD) 1.92
3 Average cru shing p eriod (Days) 136
4 Annu al Cru shing Cap acity (m illion tonnes) 261.6
5 Annu al Su garcane Cru shed (m illion tonnes) 239.8
6 Cap acity Utilization (%) 92
7 Su gar Prod u ced (m illion tonnes) 24.4
8 Recovery % from Cane 10.17
9 Yield of su garcane (tonnes p er hectare) 70.1
10 Molasses p rod u ction (m illion tonnes) 10.74
11 Molasses recovery from cane (%) 4.57
Source: Sugar India Y ear Book – 2012
8
1.0 Introd u ction
The sugar prod uction & consum ption trends from 1999-2000 to 2010-2011 is given in Table 1.6.2.
Table 1.6.2: Sugar prod uction and consum ption statistics in Ind ia
Year Sugar Production (Million tonnes) Sugar Consumption (Million tonnes)
1999-00 18.2 15.5
2000-01 18.5 16.2
2001-02 18.5 16.8
2002-03 20.1 18.4
2003-04 13.5 17.3
2004-05 12.7 18.5
2005-06 19.3 18.9
2006-07 28.4 20.2
2007-08 26.4 22.0
2008-09 14.5 23.0
2009-10 18.9 21.0
2010-11 24.4 20.7
Source: Sugar India Y ear Book – 2012
Ind ia is the 3rd largest exporter of sugar after Brazil and Thailand . The sugar im port and
export trend s from 1999-2000 to 2010-2011 is given in Table 1.6.3.
9
Wid ening the coverage of PAT Schem e – Su gar Sector
10
1.0 Introd u ction
classified based on capacity is given in Table 1.9.2. The country w id e average crushing
capacity in 2010-11 w as 3650 TCD and the average crushing d uration w as 136 d ays.
Table 1.9.3: Sugar m ills w ith and w ithout co-generation facility in various states
Sl.N o State/ Location Mills in operation Mills w ith co-generation
1 Pu njab 16 5
2 H aryana 14 2
3 Rajasthan 1 1
4 Uttar Prad esh (East) 42 11
5 Uttar Prad esh (Central) 83 15
6 Uttar Prad esh (West) 34 6
7 Uttarakhand 10 1
8 Mad hya Prad esh 13 0
9 Chhattisgarh 3 1
10 Gu jarat 19 0
11 Maharashtra (Sou th) 167 34
12 Bihar 10 3
13 Orissa 5 1
14 West Bengal 1 0
15 And hra Prad esh 37 21
16 Karnataka 59 30
17 Tam il N ad u 44 19
18 Pond icherry 2 0
19 Goa 1 0
Total 527 144
(Source: Sugar India Y ear Book-2012)
11
Wid ening the coverage of PAT Schem e – Su gar Sector
Other policies related to Ind ian sugar ind ustry includ e (i) cane sugar area and bond ing, (ii)
sugarcane pricing, (iii) levy sugar obligation and (iv) regulated release of free sale (non -levy)
sugar).
The existing capacity of bagasse based cogeneration is 711 MW. The estimated co -generation
potential in Ind ian Sugar Mills is around 6000M W (Source: Industrial Cogeneration India,
V ol.X IX , October, 2010). Over the last d ecad e, bagasse co-generation faced a d ynam ic and
varied set of substantial inform ation , technical, regulatory and financial barriers. Each of the
program m es d esigned to support bagasse co-generation had a role to play in supporting the
711 MW of bagasse co-generation currently installed . H ow ever none of these program m es
w ould have been successful on its ow n. The promotional policies of the Ministry of N ew
and Renew able Energy (MN RE) includ ing capital and interest subsid ies, and a variety of tax
benefits and guid elines to the states to im plem ent the preferential tariffs mad e bagasse co-
generation cost-effective for im plem entation in Ind ia. Various m ultilateral lines of credit
w ere offered through IREDA to som e of the m ills w ho w ere unable to access cred it through
other institutions. H ow ever, till date support program m es have d one little to ad d ress the
unique financial barriers facing the cooperative mills d ue to institutional structure of these
m ills.
12
2.0 Energy Performance
Sugar m ills are energy intensive and are notified as energy intensive ind ustries as per „The
Energy Conservation Act, 2001‟. Energy consumption in sugar m ills d epend s on various
factors such as (1) capacity, (2) steam generation param eters, (3) age of installed equipm ent
and (4) type of equipm ent used . The specific electricity consum ption per tonne of sugar
prod uction varies from 200~500 kWh / tonne of Sugar Prod uced (Source: CMIE Database)
based on the year of prod uction. The average cane crushing in Ind ian m ills in 2010-11 w as
3650 TCD. The average energy consum ption in an Ind ian sugar m ill is about 26~ 40 kWh /
tonne of cane (Source: TERI Energy A udit reports). The total pow er requirem ent in a stand ard
sugar m ill of 3400 TCD crushing capacity is about 4.0 MW. The steam consum ption varies
from 30% to 50% of steam per tonne of cane based on capacity, evaporator vapour bleed ing
arrangem ent and age of equipm ent used .
The cane to bagasse ratio is around 30% in the Indian Sugar m ills and the GCV of bagasse
w ith 50% m oisture is around 2200kCal/ kg. This is equivalent to 0.22 toe/ tonne of bagasse.
Consid ering 239.8 m illion tonnes of cane d uring 2010-11, the bagasse generation is about
71.94 m illion tonnes and the total energy availability is 15.83 toe. Based on the national
average of 136 d ays of cane crushing in 2010-11, sugar m ills w ith a crushing capacity of
3400TCD and above w ill fall und er the category of energy intensive ind ustries. The input
energy (bagasse) available in each of these sugar m ills is 30,000 m etric tonnes of oil
equivalent and above. The number of sugar m ills state-w ise having a crushing capacity of
3400TCD and above is given in Table 2.1. The d etails of the 230 sugar m ills are given in
annexure 1.
Table 2.1: N um ber of sugar m ills state-w ise w ith 3400TCD and above
State N umber of sugar mills
Pu njab 7
H aryana 3
Uttar Prad esh 91
Uttarakhand 6
Gu jarat 8
Maharashtra 42
Bihar 6
And hra 18
Prad esh
Karnataka 28
Tam il N ad u 21
Total 230
13
Wid ening the coverage of PAT Schem e – Su gar Sector
The size of the sugar m ills in Ind ia is sm all by international stand ard s. The average m illing
capacity at d ifferent countries is given in Table 2.2.
The sugar m ills in Southeast Asia use low pressure cycle for co-generation plants and m ost
of the mills are inefficient. In som e of the sugar m ills, up to 40 kWh electricity is consum ed
and up to 600 kg of steam is consum ed for m illing every tonne of sugar ca ne. As low as 30
kWh of electricity is prod uced from the bagasse generated from m illing one tonne of sugar
cane. Som e of the sugar m ills are even installed w ith „used ‟ co-generation equipm ent. There
is a huge potential in existing sugar mills to red uce th e steam and electricity requirem ent for
m illing process. In the new co-generation plant, it is possible to prod uce electricity up to
110-125 kWh for every tonne of sugar cane milled .
In the 1960‟s, efficient bagasse co-generation w as pioneered in Mauritius and H aw aii. The
im plem entation of higher pressure (60 bar and higher) and higher tem perature (450 d eg C
and higher) boilers, and correspond ing turbines allow ed the m ore efficient burning of
bagasse w ith exp ort of electricity to the grid . There w as a phenom enal grow th in sugar co-
generation in Ind ia for the past 15 years. Ind ia started im plem enting the 67 bar cycle 15
years ago. Based on the experience gained and lessons learnt from the operation of those
plants, several 87 bar cogeneration systems w ere installed few years before. N ow , the
ind ustry is m oving tow ard s very high pressure system s of up to 110 bar. Few such system s
are alread y in operation and there are m ore than 25 projects und er various stages of
im plem entation. Several d evelopm ents are also taking place on the processing sid e. Due to
several innovative energy efficiency m easures, technology options and improved house
keepings, the steam consum ption has com e d ow n to as low as 350 to 360 kg of steam per
tonne of cane milled .
Sugar occurs in greatest quantities in sugarcane, from w hich it is extracted . The natural
sugar stored in the sugarcane is separated from the plant material through a process
schem atically represented in Figure 2.3.
14
Energy Perform ance
Steam and electricity generation using bagasse as the fuel, m ostly through backpressure
turbines, form s an im portant part of any sugar factory.
15
Wid ening the coverage of PAT Schem e – Su gar Sector
1. Juice Extraction
The juice extraction plant consists of cane handling, cane preparation and m illing sections.
a) Cane handling
Cane, brought to the m ill, is m echanically unloaded by a grab type attachm ent. A truck
tippler is som etim es provid ed to unload cane, facilitating load ing of sugar cane to cane
carrier.
b) Cane preparation
The sugarcane is levelled in the leveller before it is fed to the cutter. The cutter shred s the
cane to sm aller sizes and prepares it for the fibrizer w here the cane is converted to a pulp -
like m ass.
Juice extraction from the prepared cane is d one by tw o types of processes. About 95~97% o f
the sugar factories follow m illing process and 3~5% of the sugar factories follow d iffusion
process.
c) M illing
The prepared cane is passed through a m illing tand em com posed of four to six three-roller
m ills. The juice is extracted from the cane by squ eezing und er high pressure in these rollers.
Extraction is m axim ised by leaching the d isintegrated exposed cane w ith w eak juice and
m ake-up w ater in a counter current system . The fibrous m atter or bagasse', w hich is left after
m illing, is used as a fuel for steam generation.
d) Diffusion
Diffusion process is based on a system atic counter current w ashing of the cane or bagasse by
m eans of im bibition w ater. Water is ad d ed at the d ischarge end of the conveyor and
percolates through the bed of bagasse and the perforated slats of the conveyor. The w ater
d issolves the sugar in the bagasse and the thin juice thus form ed is collected in a hopper.
This juice is m oved forw ard one stage by pum ping and the process is repeated until the juice
reaches maxim um concentration at the feed end of the diffuser. The diffuser m ay be
cond itioned either for single-flow or for parallel-flow s juice circulation.
2. Juice clarification
The purification of juice involves (a) juice heating (b) sulphitation (c) clarification and (d )
filtration.
The m ixed juice from the m ills is heated in raw juice heater(s). The heated juice is treated
w ith chem icals to precipitate various d issolved impurities in the m ixed juice. The
precipitated im purities are separated to obtain clear sparkling juice in clarifiers. The clear
juice is again heated to obtain a tem perature of about 105 0C.
3. Evaporation
The juice is concentrated from 15 Brix to around 60 Brix in a m ultiple-effect evaporator. The
vapours are bled from the evaporators for juice heating in various heat exchangers and for
boiling of m assecuite (a m ixture of m olten liquid and crystals) in vacuum pans. This is the
m ajor steam consum ing section of the plant.
16
Energy Perform ance
4. Crystallisation
Crystallisation is an im portant unit operation, w hich in sugar ind ustry is know n as Pan
boiling. A m ajor part of the crystallization process is d one in m ost of the sugar m ills in batch
type vacuum pans. The m assecuite is then transferred to crystallizers w here the process is
com pleted by cooling the m ass und er stirred condition.
5. Centrifuging
The m assecuite from the vacuum pans is sent to the centrifuges, w here the sugar crystals are
separated from the m olasses. These centrifugal machines can be batch type or continuous
type. There are separate centrifugal m achines for `A' type, `B' type and `C' type m assecuites.
The m olasses separated out from this section is a useful by -prod uct, w hich is an excellent
raw m aterial for d istilleries.
i. Bagasse
Bagasse is an im portant by-prod uct of sugar. It is used as a m ajor substitute raw m aterial in
the paper and pulp ind ustry, replacing w ood and bam boo th us red ucing deforestation.
Presently, alm ost all the sugar m ills utilize this bagasse as an in -house fuel in boilers for
steam generation. A num ber of m ills are now planning to utilise bagasse efficiently in high -
pressure boilers for co-generating electricity for export to the grid / neighbouring units.
ii. M olasses
Molasses, the other im portant by-prod uct, is a storehouse of organic chemicals. Ind ustrial
alcohol is prod uced from m olasses, w hich in turn can be used to m anufacture chem icals like
ethyl benzene, lactic acid, tartaric acid , citric acid , d iethyl phthalate, etc. Ind ustrial alcohol
can be used as a fuel extend er as a substitute to the scarce petroleum products.
17
Wid ening the coverage of PAT Schem e – Su gar Sector
been ad opting co-generation right from the beginning. H ow ever, the co-generation has been
restricted to generating pow er and steam only to m eet the operational requirem ents of the
plant. Only in recent years, w ith an increasing pow er d em and and shortage, com m ercial co-
generation has becom e attractive, both from the state utility and the sugar m ill point of view .
The sugar m ills d erive ad d itional revenue by selling pow er to the grid , w hile the state is able
to m arginally red uce the 'd em and -supply' gap, w ith red uced investments.
18
Energy Perform ance
19
Wid ening the coverage of PAT Schem e – Su gar Sector
or upgrad ing their process equipm ent. The period ic expansion of the plant and installation
of new equipm ent as per the plant expansion has led to increased use of many num bers of
sm all capacity equipm ent w hich can be replaced w ith m inim um num ber of higher capacity
equipm ent to im prove energy efficiency and reduce m aintenance cost. By incorporating the
latest energy efficient process equipment mentioned in section 3.4 (technological
m ovem ents) around 20% of electrical energy consum ption and 25% steam consum ption can
be red uced in the sugar m ills.
20
3.0 Analysis of energy consumption data
Table 3.1.1: Electricity consum ption and Specific Energy Consum ption (Electrical) of sugar m ills
S.N o Plant Capacity, Electricity Estimated SEC
TCD Consumption, (Electrical),
Million kWh* kWh/MT of cane#
Year 2010 2011 2012 2010 2011 2012
1 And hra Su gars Lim ited 16,000 287 331 337 32 33 38
2 Bannari Am m an Su gars Ltd . 19,000 51 90 101 28 28 28
3 Ganp ati Su gar Ind s. Ltd . 5,000 28 9 61 26 24 24
4 Gayatri Su gars Ltd . 7,000 8 43 41 36 70 74
5 God avari Biorefineries Ltd . 12,000 118 206 N .A. 16 26 N .A.
6 Ind ian Su crose Ltd . 5,000 24 10 17 37 34 N .A.
7 Jeyp ore Su gar Co. Ltd . 8,500 16 22 12 25 24 23
8 J K Su gar Ltd . [Merged ] 5,000 18 16 22 35 38 35
9 Kakatiya Cem ent Su gar & Ind s. Ltd . 3,200 32 35 35 56 4 31
10 K C P Su gar & Ind s. Corp n. Ltd . 11,500 31 42 45 50 42 47
11 Mysore Pap er Mills Ltd . 2,500 170 171 172 43 43 31
12 N ahar Ind u strial Enterp rises Ltd . 2,500 272 288 384 52 40 49
13 N ava Bharat Ventu res Ltd . 4,000 9 311 394 32 26 27
14 Parrys Su gar Ind u stries Ltd . 12,500 20 49 109 35 89 76
15 Rai Bahad u r N arain Singh Su gar Mills 8,400 579 68 75 37 38 37
Ltd .
16 S B E C Su gar Ltd . 8,000 22 25 26 28 30 32
17 Sir Shad i Lal Enterp rises Ltd . 11,250 36 42 38 32 29 29
21
Wid ening the coverage of PAT Schem e – Su gar Sector
The specific pow er consum ption of sugar mills is also evaluated based on pow er
consum ption and tonnes of cane. The typical specific energy consum ption w ill be in the
range of about 26~32kWh/ tonne of cane. The break-up of section w ise specific p ow er
consum p tion is given below :
Milling tand em includ ing cane hand ling – 10~12 kWh/ tonne of cane
Clarification, Boiling, curing & sugar handling – 7~8 kWh/ tonne of cane
Pow er plant includ ing ESP – 7~8kWh/ tonne of cane
Factory lighting & other utilities – 2 kWh/ tonne of cane
With the im plem entation of the latest energy efficient technologies the specific pow er
consum ption can be brought d ow n to 22kWh/ tonne of cane.
(Source: A ll India seminar on latest energy efficient technologies in Indian sugar industry – organised by STA I)
22
Analysis of Energy Consu m p tion Data
The trend of steam consum ption share on cane over the past in Ind ian sugar m ills is given in
Figure 3.1.2.
60%
50%
40%
cane
30%
20%
10%
0%
1900 1930 1950 1975 1995 2000 2005 2008 Future
Year
The specific steam consum ption d ata of ind ivid ual sugar m ills is not published in public
d om ain. Based on the energy aud its carried out by TERI in various sugar m ills across Ind ia,
the range of steam consum ption in sugar m ills w hose installed capacity lies betw een 3000
TCD and 5000 TCD is varying from as low as 28% on cane to as high as 45% on cane
d epend ing upon the type of juice extraction process and subsequent vapour bleed ing
arrangem ent.
23
Wid ening the coverage of PAT Schem e – Su gar Sector
Table 3.2: Energy consum ption of sugar m ills aud ited by TERI
N ame of the sugar mill Technology Crushing Specific energy Steam Co-
Capacity consumption consumption generation
(TCD ) (kWh/tonne of (% of cane) Capacity
cane) (MW)
EID Parry, H aliyal Diffu ser 4,800 26-27 40-41% 24.2
Mad hu con Su gar & Mills 3,200 25-26 45% 24.2
p ow er Ind u stries Ltd ,
And hra Prad esh
N avabharat Ventu res Ltd , Mills 3,500 22-23 28-30% 9.0
Su gar Division, And hra
Prad esh
EID Parry, Sankili, Mills 4,000 22-23 31-33% 16.0
And hra Prad esh
Rajshree Su gars, Mills 5,000 32-33 39-40% 22.0
Villu p u ram , Tam il N ad u
Rajshree Su gars, Theni, Mills 3,000 38-40 44-45% 12.0
Tam il N ad u
EID Parry, Bagalkot Mills 4,500 23-25 36-37 15.5
3.3.1 Im proved reliability and econom ics of steam & pow er generating
systems w ith film form ing polyam ines
Corrosion and scaling in boilers and turbines continue to cause heat insulating d eposits in
boilers resulting in failures, loss of efficiency, frequent cleaning and increased cost of
operations. A “film barrier approach" has been gaining increasing acceptance. It utilizes the
film form ing properties of aliphatic am ines on d ivalent w et m etal surfaces provid ing m uch
superior protection to the m etal surfaces in boilers and turbines against corrosion scaling
and carryover.
24
Analysis of Energy Consu m p tion Data
w ithout the need for interm ed iate raw sugar crystallization and the process is thereby
econom ical.
25
Wid ening the coverage of PAT Schem e – Su gar Sector
26
Analysis of Energy Consu m p tion Data
m od ules (16 rollers) w ere used d uring the trial runs. H yd raulic pressure of 110 bar is used .
Due to perforations in the rollers, the extracted juice is quickly d rained out. Re-absorption of
juice is negligible. The system is d riven by electric m otors and operation is autom atically
controlled.
3.4 Conclusions
The sugar ind ustry is one of the largest energy users am ong ind ustry sector using bagasse
for m eeting both therm al energy and electricity requirem ents. Out of the 527 operating sugar
m ills in Ind ia, about 99 sugar m ills have an installed capacity of 5000 TCD and above. These
sugar m ills can be brought und er tw o broad categories viz. (1) sugar m ills w ith steam d riven
m ills and (2) sugar mills w ith electrical m otor d riven m ills. The sugar m ills above 5000TCD
capacity may be taken up for d etailed stud y in the first phase. The estim ated annual energy
consum ption of these sugar m ills vary betw een 45,000 toe per year to 90,000 toe per year.
The estim ation of annual energy consum ption w as based on sugar recovery and average
crushing period of sugar m ills in Ind ia. A large num ber of these units have ad opted
cogeneration route to m eet their overall energy requirem ents. As per the collected
inform ation and discussions w ith stakehold ers d uring the sectoral w orkshop, there exists a
significant energy saving potential of about 20% in sugar ind ustries. Therefore it is
suggested that these 99 sugar m ills (w hich operate either separately or as a group) m ay be
consid ered as DCs und er the PAT scheme w ith a threshold limit of 30,000 toe as m inim um
annual energy consum ption per plant (figure 3.4).
27
4.0 References
1. Barbara H aya, Malini Ranganathan and Sujit Kirpekar, 2009. “Barriers to sugar m ill co -
generation in Ind ia: Insights into the structure of post-2012 clim ate financing
instrum ents” Clim ate and Developm ent, USA.
2. Central Electricity Authority, 2011. “CO2 Baseline Database for the Indian Pow er
Sector”. N ew Delhi, India.
3. Confed eration of Ind ian Ind ustry, 2008. “Build ing a Low - Carbon Econom y” Gurgaon,
Ind ia
4. De Sm et, 2010. “Sugar Cane Diffusion”. De Sm et S.A. Engineers & Contractors,
Belgium .
5. Departm ent of Food and Public Distribution, 2012. “Annual Report 2011–20012”, N ew
Delhi, India.
6. Gangakhed Sugar & Energy Lim ited . “Technological up -grad ation”.
[http:/ / w w w .gangakhed icpp.com / ?link=techupgrad n, accessed pn 11 Decem ber
2012]
7. Ind ian Sugar Manufacturers Association (ISMA)
[http:/ / w w w .ind iansugar.com / Statics.aspx]
8. Ind ian Renew able Energy Agency Limited (IREDA). “Energy Efficiency and
Conservation (includ ing DSM) – Technology”.
[http:/ / w w w .ired a.gov.in/ hom epage1.asp?parent_category=2&sub_category=26&cat
egory=138, accessed on 10 Decem ber 2012]
9. IREDA - Confed eration of Indian Ind ustry. “Investors Manual For Energy Efficiency”
Chennai, India
10. KPMG – “The Indian Sugar Ind ustry Sector Roadm ap 2017”, June 2007, Ind ia.
[http:/ / w w w .in.kpm g.com / pd f/ Ind ian_Sugar_Ind ustry.pd f]
11. Kulkarni D.P. “Cane Sugar Manufacture in India”. The Sugar Technologists'
Association of Ind ia, N ew Delhi, Ind ia.
12. Ministry of N ew and Renew able Energy, 2012. “Annual Report 2011–2012”, N ew
Delhi, India.
13. Ministry of N ew and Renew able Energy, 2012. “Biom ass Pow er and Co-generation
Program m e”. [http:/ / mnre.gov.in/ schem es/ grid -connected / biom ass-pow ercogen/ ,
accessed on 6 Decem ber 2012]
14. N atu S.C, 2005. “Bagasse Based Co-generation, Ind ia Marching Ahead”. MITCON
Consultancy Services Ltd ., Pune, India
15. Petroleum Conservation Research Association. “Developm ents in Sugar Technology”,
Chapter-13. PCRA
16. Rajshree Sugars. “Sugar Process”.
[http:/ / w w w .rajshreesugars.com / im ages/ stories/ rajshree/ Sugar_Process.pd f,
accessed 4 on Decem ber 2012]
17. Rangarajan C, Chairm an, Econom ic Advisory Cou ncil to the PM, 2012. “Report of the
Com m ittee on the Regulation of Sugar Sector in Ind ia: The Way Forw ard ”. N ew Delhi,
Ind ia.
18. Singh N .P, 2010. “Ind ustrial Co-generation Ind ia” Vol XIX. Ministry of N ew and
Renew able Energy (MN RE), N ew Delhi, India.
19. Sugar Ind ia, 2012. “Year book 2012”, Pulse of Ind ian Sugar Ind ustry.
20. Sucd en.com “http:/ / w w w .sucd en.com / statistics/ 4_w orld -sugar-consumption”
29
Wid ening the coverage of PAT Schem e – Su gar Sector
30
5.0 Annexure 1
State Wise Sugar Plant Information
31
Wid ening the coverage of PAT Schem e – Su gar Sector
32
Annexu res
33
Wid ening the coverage of PAT Schem e – Su gar Sector
34
Annexu res
35
Wid ening the coverage of PAT Schem e – Su gar Sector
36
Annexu res
37
Wid ening the coverage of PAT Schem e – Su gar Sector
38