Dr. Ajit Sapre

Reliance Technology Group

15th February, 2015

Reliance Bio-Fuels Strategy

2

Biofuel drivers for RIL

Energy security (India imports 75% crude oil)

Reduce forex outgo

Rural upliftment

Maximum value generation from Indian land mass

No food versus fuel competition

Climate change mitigation

Bio-fuels key to sustainably meet hydrocarbon demand & improve farmers’ livelihood

3

Sustainable development challenge

3,000 10,000 15,000 25,000

En

erg

y d

em

an

d

Industrialization

and personal

mobility take off

Services dominate

growth and basic

households energy

needs are met

Urbanization

Economic growth

requires little

additional energy

GDP/Capita in constant PPP terms

Demand for materials & energy is growing rapidly as developing countries like India enter

their most energy-intensive phase of economic development

India

China

OECD (17% world population)

Leapfrogging

Efficient

Renewable

Technology

Development &

Deployment

(Solar, Wind,

Biomass)

More, Secure and Responsible technology needed for India

Traditional

Non-OECD (83% world population)

Unsustainable

Sustainable

4

Future of liquid hydrocarbons?

Sustainability & energy security two sides of the same coin

Food Heat Light

Clothes House

5

RIL: A significant commitment to renewables R&D, major focus on advanced biotechnology

Two hundred scientists and engineers working in India, trained in the best institutions globally

International collaborations with top notch institutions, leveraging talent of additional two hundred and fifty scientists and engineers

No food vs. fuel competition

Surplus agri-residue (>100 MM MTpa biomass resulting in >25 MM MTpa biofuel)

Jatropha (develop high yield varieties in low rainfall marginal land areas)

Algae (use sea-water and desert land at coastline)

Adopt PM’s triple S mantra: Skill, Scale and Speed for these challenging problems

Algae oil

RIL committed to largest cutting-edge R&D program by any private enterprise to help India

leap-frog

Agri-residue to kerosene Jatropha to bio-diesel Algae to bio-crude

6

Thermochemical route is economically attractive

Thermochemical route can improve overall carbon utilization efficiency to end products

• In the Indian context thermochemical routes may be more attractive than cellulosic

fermentation due to types of non feed/ fodder bio-mass availability

• Business model innovation: distributed production and consumption at village level

Syngas or Catalytic Pyrolysis

7

Catalytic Pyrolysis

Agri-residue conversion to modern energy

Upgrading Product De-Construction Feed Stock

Agri-residues Non-fodder/ food-

stalks, trash and bagasse

Hydrotreatment Gasoline/Diesel/Kerosene

Enzymatic Hydrolysis Fermentation Ethanol

Technology

Biomass to Power 1 KG = 1.7 KW = 1465 KCAL

Biomass to HC Fuel 1 KG = 280 GRAM = 2960 KCAL

Biomass to Ethanol 1 KG = 252 GRAM = 1780 KCAL

Combined Cycle Biomass Power generation

Power

Converting biomass to fungible hydrocarbons like kerosene is more efficient technology

8

Agri-residue conversion to hydrocarbons more valuable than burning

Source: NASA, Hindustan Times Nov 7, 2013

NASA image showing fire hot-spots (red dots)

Excess agri-residues can be converted to kerosene at village level

Burning is a cheap and quick way to clear field but leads to loss of nutrients and pollution

Pollution in Delhi

Images from The Guardian

9

Bio-feedstock aggregation/ supply opportunity

Innovative business models for supply chain, logistics and cost competitiveness

Farm Harvesting Seasonal

Short window Distributed

Bulky

• Farm & Farmer Coordination

• Manual Labor

• Aggregation

Collection Moisture, Grits, Foreign Matter,

Timing

• Transport

• Weeding

• Accounting

• Sizing

Preparation

Loss, Capacity Utilisation,

Synchronize

• Drying

• Stocking

• Planning

• Transporting

Biomass surplus >100 million

tons per annum

Bio-fuels potential >25 million

tons per annum

Collection and processing of

biomass is estimated to create

additional income stream of at

least Rs. 20,000 crore per year

for the rural economy

10

Jatropha crop improvement

Hybridization using world-wide Jatropha germplasm and tissue culture to improve yields

and robustness

Classical Hybrids

Tissue Culture Hybrids

151 lines collected

from 17 states

195 lines collected

from 11 countries

RIL Jatropha Germplasm collection

Hybrids Development Goals

• Virus tolerance

• Year round flowering

• Good Branching pattern

• Variability

• Suitability to different Agro climatic Zones

Primary objective is to Develop high yielding pest

and disease tolerant hybrid for rain fed conditions

Top Selected elites

Mutagen-esis

Random hybrids

Individual collection

lines

Phase - I

Developing robust and reproducible Tissue Culture protocols for the

rapid multiplication of parental lines

Developing Single Sequence Repeat and other markers to facilitate the

Screening efficiencies

Phase - II

Metabolic engineering for lipid expression and photosynthetic efficiency

Heat and salt tolerance constructs F1 cream flower

P1 Jatropha curcas Green flower

P2 Jatropha integerrima Pink flower

X

Both Rain-fed &

Support Irrigation

11

Oil yield improvement in Jatropha

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

YIE

LD

K

G/H

A

YEAR

Improve breeding

advanced

biotechnology, up to 8 Mt/ha/yr

Composites and

hybrids up to 4

MT/ha/yr

Wild type yield

up to 300

kg/ha/yr

Advanced breeding and bio-tech integration can markedly increase Jatropa seeds & oil yield

12

Jatropha hybrids developed at RIL and other global hybrid developers are being evaluated in RIL farms

Yield levels in excess of 4 tons per hectare achieved at hectare scale with support irrigation. Top hybrid yields

of 7 tons per hectare achieved on R&D farms

Jatropha could be scaled up to few lakh hectares in the near future

Multi level testing and demonstrations planned before going for large scale adoption by the growers

Intercrop Jatropha could improve farmers’ income and provide price stability

Jatropha commercial cultivation scale-up

Jatropha crop will provide income to farmers and create renewable biodiesel industry

Cultivation scale-up stages

Data collection & Analysis

Field survey

Selection of clusters

Selection of villages

Selection of farmers

1. Hybrid Development

2. Multi Location Trials

3. Field Demonstrations

4. Commercial Planting

5. Seed proc. & Biodiesel Prodn.

Jatropha hybrids grown by farmers in large scale on their

farms and seeds supplied for biodiesel production

Cluster dynamics

Jatropha Seeds procurement from farmers

Minimum cultivation cluster: 100,000 ha in 100 km radius around the bio-diesel plant

Seed Crushing and Oil Extraction Plant

Oil Refining Plant

Biodiesel Plant Seed cake to Power plant

400,000 MT seeds, 30% oil content

110,000 TPA biodiesel Renewable Power – 245,000 MWH/ yr

RIL Biodiesel Demo Plant

7,000 TPA

13

18

48

102

127

202

635

10,000

140,000

Transitioning to low areal productivity resources

Pumpjack

Algae farm

Jatropha

Corn

Algae are efficient convertor of sunlight to hydrocarbons

Requirement:

Large area to support current demand

Fragmented energy distribution

infrastructure

14

Enabling bio-technology platforms drive

continuous improvement

Gene

Discovery Transform-

ation

Gene

Optimization

Trait

Development Trait

Integration

Pond/Field testing

Lipid Biotic stress Abiotic Stress Yield

En

ab

ling

Te

ch

no

log

ies

Automated Screening Metabolomics

Transformation Automation

Protein Production

Greenhouse/pond

Automation

Systems Biology

Genomics Protein Science

Protein Optimization

Advanced bio-technology tools can improve algae yield, robustness, stress tolerance and

other desirable traits

15

Cultivation / growth in ponds or photo-bioreactors

Different algae to hydrocarbons options being evaluated at RIL R&D

Testing of alternate overall integrated production platforms in RIL R&D facilities will allow

meeting commercial targets for capex & opex

Improved understanding of fundamentals of photosynthesis is allowing

unique breakthrough technology development

16

RIL vision: competitive renewable liquid hydrocarbons in India

To pool expertise in modern biotechnology and RIL’s expertise in value engineering, project

execution, operations and technology, to create an enterprise to develop competitive renewable

technology and deploy it on a mega scale

Typical crude oilfield production

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

25 20 15 10 5 1 30 Conventional oilfield life Years

Inevitable

production

decline

Sustainable Bio-crude from algae cultivation could be an attractive alternative to fossil fuels

Conventional petroleum oilfields eventually decline

0%

20%

40%

60%

80%

100%

120%

30 25 20 15 10 5 1

Algae oilfield life Years

Algae oilfield production

Pe

rce

nt

of

pe

ak

pro

du

cti

on

Steady

production

ad infinitum

Algae oilfields production increases through its life

Pe

rce

nt

of

pe

ak

pro

du

cti

on

17

India is a diversified nation

Industry needs to deliver “affordable excellence”

18

Government of India efforts to accelerate

development

Technical community & business have a historic opportunity to leapfrog India

Government support could accelerate developing cutting-edge renewable technology

Digital India

Defect Free Clean Technology

Make In India

Zero Defect, Zero Effect

Swachh Bharat

Digital India

GDP Growth

Rate = 8.5 % +

Create 150 Million

New Jobs by 2018

2025

GDP : US $ 2 Trillion GDP : US $ 4.5 Trillion

GDP

Distribution

Industry

25.8%

Services

56.9%

Agriculture

17.4%

2014

Skill development / capability building

is an integral part of the Govt. of India

Nation Development Plan

19

Raw material

Flexibility

CAPEX

Efficiency OPEX

Efficiency

Fossil Renewable

Labor

Talent

Indianization

Unique RIL Capital

Project Execution

Innovation = Creativity X Execution

Inclusive Innovations

to meet needs of Aspiring

Resource Poor Indians

Collective Mandate:

Science for Solution,

Technology for Transformation, &

Innovation for Impact

I Would Prize Every Invention of Science Made for the Benefit of All – Mahatma Gandhi

Government policy,

support & drive for

“Invent in India”

20

Back ups

21

crude price volatility

Sensitivity with Crude Price