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C1I7
ETHANOL FROM SUGAR CANE
AS AN EXTENDER FOR
AUTOMOTIVE FUEL IN AUSTRALIA
Sub mis sio n by CSR Limite d to the Senate Stand ing Comm ittee
on Na tio na l Reso urc es Inquiry into the Replacement
of Petroleum-based Fuels by Al ternat ive
Sources of Energy
Sydney
January 1980
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QUT
Library
ETHANOL FROM SUGAR CANE
AS AN EXTENDER FOR
AUTOMOTIVE FUEL IN AUSTRALIA
Submission by CSR Limited to the Senate Standing Committee
on National Resources Inquiry into the Replacement
of Petroleum-based Fuels by Alternative
Sources of Energy
Sydney
January 1980
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CONTENTS
Page
SUMMARY (i)
1. INTRODUCTION 1
2. ETHANOL: A FUEL EXTENDER WITH ESTABLISHED TECHNOLOGY
Description of ethanol and its uses 2
Production of ethanol 3
Performance of ethanol/petrol blends 5
3. OPTIONS FOR PRODUCTION OF FUEL ETHANOL
"On farm" versus central processing 6
Suitable crops 7
4. SCOPE FOR ETHANOL FROM SUGAR CANE
Long term potential 9
Regional development concept:
an immediate solution 10
5. ISSUES FOR GOVERNMENT AND INDUSTRY 13
APPENDICES
1. Treatment processes for distillery effluent 15
2. Ethanol as a fuel extender 20
3. Energy balance considerations for ethanol
production from sugar cane 26
4. Copy of Press Release concerning Sugar IndustryConsultative Committee on Fuel Alcohol 31
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ETHANOL FROM SUGAR CANE AS AN EXTENDER FOR AUTOMOTIVE FUEL
IN AUSTRALIA
SUMMARY
Ethanol from renewable crop resources is one of
several alternative liquid fuels being suggested to replace orextend Australia's petrol supply. CSR considers there is a
case for the use of ethanol in the 1980's as a supplementary
automotive fuel and this paper identifies the main issues
involved in the introduction of fuel ethanol based on sugar
cane .
CSR is in a unique position to offer an authoritative
view on the question of fuel ethanol. This results from its
diversity of interests which include substantial activities in
the fuel industry (coal, oil shale, petroleum), the
fermentation alcohol industry and the Australian sugar
industry. CSR has been producing ethanol since 1901, and
currently operates three large molasses distilleries which
produce some 90% of the industrial ethanol produced in
Australia. We have also embarked on an extensive research
programme, supported by Federal Government grants, to evaluate
cassava as a starch and energy crop.
Ethanol stands out as the only proven alternative
liquid fuel that could be quickly introduced in significant
quantities.
As an alternative fuel, ethanol is generally
distributed as ethanol/petrol blends, rather than as straight
ethanol. Such blends have been used previously in Australia
and the successful performance of blends in modern motor
vehicles has been demonstrated by large scale use in the U.S.A.
and Brazil.
Various crops could provide the raw material for
fermentation to ethanol but sugar cane is the most attractive
choice for any large-scale fuel ethanol industry in the short
to medium term. The appropriate agricultural practice is well
established in Australia and the distillery technology is
proven and available. The balance of liquid fuel inputs (forfertilisers, tractors, transport, distillery fuel etc.) against
liquid fuel output is very favourable for sugar cane.
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(ii)
Not only is the fermentables yield per hectare high for sugar
cane, but inherent with the harvested cane is solid stalk
material which can be used as boiler fuel to provide all the
energy to run the distillery. Most importantly, the Australiancane sugar industry with its substantial existing
infrastructure can provide a secure base for co-ordinated and
phased development of the new crop resource.
A large fuel ethanol industry based substantially on
sugar cane could conceivably substitute in excess of 10% of the
nation's petrol needs but 10% replacement could require an
investment of up to $3 billion (1979 costs) and the marshalling
of vast resources, as well as restrict production of sugar for
food to its present level. At this stage, such a venture is
not considered practical.
However, development of selected regional sugar cane
to fuel ethanol industries does appear to be a practical
proposition. By the early 1980's such industries, sited in
cane growing areas, could substitute 2-3% of the petrol used
nationally. This could reduce imports of oil by up to 3%. To
achieve the greatest economy the ethanol would not be
distributed uniformly throughout Australia, but rather, would
be distributed as ethanol/petrol blends in regions surrounding
the distilleries.
For example, it is realistic to contemplate several
distilleries in Queensland producing a combined output of
300,000 to 400,000 kilolitres per annum by 1984, that is, about
15% of Queensland's petrol needs. Other distilleries could beestablished in areas not currently used for sugar cane
production, for example the Ord River area which could supply
significant quantities of ethanol to Western Australia and the
Northern Territory. A decision to establish regional
distilleries would not preclude later development to the
national-scale ethanol industry which is currently considered
to be impractical; established regional distilleries could
prove a valuable learning step should circumstances change to
the extent that Australia-wide use of blends is justified.
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(iii)
The benefits to the nation of ethanol blends would be
a reduction in oil imports and thus reduced dependence on
overseas oil suppliers. The regional benefits would be
substantial, especially in terms of development and employment
opportunities.
Ethanol produced in regional distilleries from sugar
cane would cost about 40c/litre ex distillery (1979 costs).
Therefore, assuming the current rate of motor spirit excise is
applied to the blend, the retail price of a 15% blend would be
about 3C/litre more than the current price of petrol. If
recent experiences of price increases for crude oil continue,
the current differential of 3C/litre could be significantly
reduced and may disappear altogether over the next 2 to 3
years. That is about the lead time needed to establish a
substantial fuel ethanol industry based upon sugar cane.
Five main issues need to be addressed in order to
assemble a plan for rational, phased development and
implementation of the industry:
1. The need for an automotive fuel extender. A
definitive government assessment is required
regarding the need for fuel extenders,
particularly through the 1980's when a fuel
ethanol industry could have special relevance.
2. Assurance of a distribution and market
arrangement with petrol suppliers to make use ofall fuel ethanol produced and to assure
reasonably remunerative prices for bulk ethanol
over the commercial life of the investment.
3. Appropriate structural arrangements for the fuel
ethanol industry, including those to assure
continuity of sugar cane supply.
4. Environmental acceptability of the new industry.
5. Definitive testing of the performance of vehicles
using ethanol/petrol blends under local
conditions.
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(iv)
A sugar industry consultative committee chaired by the
Chairman of the Queensland Sugar Board and representing all the
industry associations, has been formed to study and report on
all aspects of alcohol production from sugar cane (Refer
Appendix 4) . CSR is participating in the work of this
committee.
The involvement of State and Federal Governments in
addressing these issues is both desirable and necessary for the
introduction of appropriate legislation- Some Queensland
legislation covering the addition of ethanol to petrol already
exists and was operative during the period 1929-1956 when
ethanol blends with petrol were supplied to North Queensland.
Existing Federal and State legislation relating to the crystal
sugar industry will need careful consideration also.
Probably the most important legislative aspect relates
to the question of concessions for ethanol/petrol blends
relative to straight petrol, for example removal or relaxation
of motor spirit excise for blends. A positive statement of
government policy in this area would enable prospective
participants in a fuel ethanol industry to assess its
feasibility and possibly move towards its commercialisation.
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1.
1. INTRODUCTION
Although well endowed with energy resources when
compared to other nations, Australia is not self-sufficient in
liquid fuels. Liquid fuels are vital for a healthy economy,
fueling road, rail, sea and air transport. Ethanol is one of
the alternative liquid fuels which have been suggested to
reduce Australia's dependence on imported petroleum. Ethanol
has considerable attraction since it offers a renewable energy
resource produced in Australia from Australian grown crops.
Ethanol is being used to fuel motor vehicles in other
countries and has been used before in Australia. Brazil is
well advanced on a National Alcohol Programme which is based on
sugar cane and aims at 20% replacement of petrol by 1982, using
various ethanol/petrol blends. The U.S.A. has a fledgling
"gasohol" programme supported by government subsidy to
establish ethanol/petrol blends.
This paper first presents some facts about ethanol and
its use as motor vehicle fuel. It then examines thefeasibility of a fuel ethanol industry in Australia, and the
vital issues involved in establishing such an industry.
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2.
2. ETHANOL: A FUEL EXTENDER WITH ESTABLISHED TECHNOLOGY
Description of ethanol and its uses
Ethanol, also known as ethyl alcohol and commonly
referred to simply as alcohol, is one of a large group of
organic materials with the generic name of alcohol.
Another common member of the alcohol family is
methanol, also known as methyl alcohol (formerly called wood
alcohol). Methanol and ethanol are often spoken of together asalcohol extenders for petrol. However, methanol should not be
confused with ethanol since methanol not only performs
differently in petrol blends, but as an extender it would
probably be derived from non-renewable resources such as coal
or natural gas. Ethanol, on the other hand, would be made from
renewable crop resources such as sugar cane or grain.
Ethanol is probably best known as a constituent of
alcoholic beverages. Pure ethanol is a clear, colourless
liquid which is soluble in water at all concentrations; the
normal commercial product contains 4 to 5% water. Most people
in the community would be familiar with ethanol as methylated
spirits, which is commercial grade ethanol rendered undrinkable
by the addition of a small quantity of denaturants. Anhydrous
(dry) ethanol is available for special purposes.
Ethanol is widely used as a chemical in its own right
and as a basic building block for other important organic
chemicals. Ethanol and chemicals derived from it are used in
the production of a large variety of industrial and consumer
products such as drugs, cosmetics, aerosols, polishes and
cleaning products, lacquers, and printing inks.
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3.
Production of Ethanol
Ethanol can be produced by fermentation of sugars by
yeast or synthetically from hydrocarbon-based chemicals.
Fermentation remains the preferred process, completely
dominating the production of potable spirit for beverages and
accounting for some 70% of the 10 million (approx.) kilolitresof ethanol produced in the world annually for industrial
purposes.
As the era of cheap oil and gas closes, the economics
of fermentation versus synthetic ethanol is swinging further
away from synthetics.
In Australia, the availability of molasses, a
by-product from the sugar cane industry, has enabled
fermentation ethanol to remain competitive against synthetic
ethanol in meeting local industrial demand even when oil was
relatively cheap. Australia has four molasses distilleries
making industrial alcohol with a total capacity of almost
100,000 kilolitres per annum (equivalent in volume to 0.7% of
Australia's petrol consumption). CSR operates three of these
distilleries; the largest is near Mackay and produces about
50,000 kilolitres per annum.
These established molasses distilleries convert to
ethanol just over half of the 650,000 tonnes of molasses
produced annually by the Australian sugar industry. The
remainder of the molasses is used locally for stockfeed or
exported. Any significant expansion in ethanol production for
fuel could not rely solely upon molasses, the availability of
which is strictly linked to tonnage of cane sugar produced. An
abundant crop source is needed.
Ethanol can be made by fermentation of sugars obtained
from crops containing sugars, starch, or cellulose (plant fibre
or wood). If starch or cellulose are to be used, they must
first be converted to sugars by hydrolysis. Commercial scale
starch hydrolysis processes are available, but processes for
converting cellulose to sugars are yet to demonstrate
commercial feasibility.
The more suitable crops for ethanol production are
those quick-growing crops yielding high levels of sugars or
starch. Such crops are sugar cane, sugar beet, cereal grains,
cassava and sweet sorghum.
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4.
The processing scheme is similar for all these crops.
The crop must be harvested and transported to a factory where
the sugars or starch are extracted. The sugars (from
hydrolysis in the case of starch) are diluted if necessary to
about a 20% solution in water and yeasts are added which
convert the sugars into ethanol. When the fermentable sugarshave been consumed, the broth is heated and fed to a
distillation unit where the ethanol and some water evaporate,
leaving a large volume of liquid waste for disposal.
The initial distillation step cannot separate from the
ethanol all the water which evaporates with it from the broth.
The wet ethanol product from this first distillation step is
called rectified spirit and contains about 5% water. A further
distillation step of azeotropic distillation, involving another
liquid (such as cyclohexane), produces the dry ethanol required
for making stable ethanol/petrol blends most suited to the
existing distribution and usage patterns for petrol.
Recent research has led to various proposals for
improvements in the technology of fermentation and
distillation, notably for a continuous fermentation process.
If these proposals can be developed to full-scale commercialoperation, there are prospects for some savings in the capital
and operating costs of distillery plant. However, it is
important that such developments be viewed not as radical
changes in technology, but as the on-going improvements one
would normally expect with an established industry. At this
stage there are no valid technical reasons for delaying the
introduction of a fuel ethanol industry.
All distilleries, no matter what crop is being
processed, have a significant commercial problem in disposing
of the large volumes of liquid waste in an environmentally
acceptable manner. Technical solutions are available and a
discussion of effluent treatment procedures, with particular
reference to ethanol production from sugar cane, is included in
Appendix 1.
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5.
Performance of ethanol/petrol blends
Blending is the most sensible means for utilising
ethanol to extend the available petrol supplies. Blends of say
10% to 15% anhydrous (dry) ethanol* in petrol would enable
conventional petrol engines to be used and would cause minimum
disruption to the established petrol distribution network.
As recently as the mid 1950's, many Australian cars
were operating on ethanol/petrol blends containing up to 20%
ethanol supplied from the CSR (ANPA) distillery near Mackay.
For nearly thirty years (1929-1956) petrol companies
co-operated under Queensland State legislation** to blend and
distribute this fuel in North Queensland. Of course since then
engines have become more sophisticated and emission controls
have imposed their particular requirements on engine design.However, reports now coming in from Brazil and the U.S.A. give
great confidence that when using a 10% to 15% ethanol/petrol
blend, motor vehicle performance and emission levels will be
comparable with conventional petrol-fueled operation. In
Australia, various groups have expressed the view that ethanol
petrol blends would be suitable for use in modern Australian
motor vehicles; Ampol Petroleum Ltd. have announced their
participation in a venture to test new technology for the
manufacture of fuel ethanol from grain.
Notwithstanding the justifiable confidence in
ethanol/petrol blends, there are several technical issues which
require consideration before widespread use of such blends.
Therefore, limited field testing of ethanol blends under
current Australian conditions is required. Such testing would
allow the benefits of ethanol/petrol blends to be maximised for
local conditions. The issues requiring particular
consideration are the octane rating of blends, motor vehicleperformance (including fuel consumption), exhaust emissions,
and compatability of fuel system components with blends. There
appears to be considerable scope for energy and cost savings
within oil refineries if the petrol used for blending is
manufactured with a view to fully utilise the octane boosting
properties of ethanol. These issues are elaborated in Appendix
2.
*The use of certain additives in ethanol/petrol blends may
improve fuel stability, and could at some future time obviate
the need for anhydrous ethanol in such blends.
**The Motor Spirit Vendors Acts, 1933-34
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6.
3. OPTIONS FOR PRODUCTION OF FUEL ETHANOL
"On-farm" versus central processing
Fuel ethanol could be produced on a small scale
"on-farm" or on a larger scale at a centrally located
distillery.
The larger scale central distillery offers a far more
significant contribution to the nation's liquid fuel
requirements, with the assurance of dependable supplies of
ethanol at the required quality.
In certain circumstances a farmer may consider that
"on-farm" fuel ethanol production for his own use is
economically attractive, particularly if resources such as
unused land, his own labour, or capital are assigned a low cost
in his calculations. However, apart from the fact that
operation of farm-scale stills is currently illegal in
Australia (except for those stills specially licensed for
experimental purposes), a number of important factors would
appear to rule out "on-farm" production of a significant
quantity of ethanol. These include the substantial capital
outlay (major items such as primary extraction equipment arerequired as well as the still); the reliability of farm-scale
equipment (yet to be established); the labour requirements
(still operation is time-consuming, and demands some skills not
normally required in farming); the product quality
(particularly with respect to variability); the water content
(which may necessitate the use of emulsions or engine
modifications); and safety and storage considerations.
Furthermore, it would require a large administrative
effort for governments to control health and revenue collection
matters attendant with widespread use of "on-farm" stills.
The above list is not exhaustive but supports the view
that the small potential contribution from "on-farm" production
is outweighed by the inherent problems.
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7.
Suitable Crops
Australia has the potential to grow most of the crops
which have been suggested for fuel ethanol, such as sugar cane,
sugar beet, cereal grains, cassava, and sweet sorghum.
However, only sugar cane and cereal grains are currentlyproduced here in significant quantities and have an established
agricultural practice with substantial alternative outlets for
the crop. This is not to say that cassava, sugar beet, sweet
sorghum, or other crops might not eventually make valuable
contributions as raw materials for fuel ethanol.
Cassava is claimed to be quite drought resistant and
capable of reasonable yields in a range of climatic and soil
conditions not suitable for sugar cane. CSR and FielderGillespie Limited jointly conduct the only farm-scale cassava
research in Australia. Both companies have NERDDC grants to
seek out the most appropriate agricultural practices and plant
strains for local conditions.
Sugar beet is not currently grown commercially in
Australia. However, it may have some application for ethanol
production in certain regions (CSR is currently involved in a
feasibility study of ethanol production from sugar beet in New
Zealand) .
Sweet sorghum has not been widely grown in Australia.
There have been some recent improvements in the strains of
sorghum available as a result of breeding programmes in the
U.S.A., and it is possible that sweet sorghum may have a place
as a supplementary source of fermentables for a distillery
operating predominantly on another crop.
The U.S.A. "gasohol" programme is based on corn, but
there is little potential for growing significant quantities of
corn in Australia.
Australia's farmers will need confidence that large
scale commitment to a crop for fuel ethanol will not prove a
speculative venture. Likewise, the success of the large
commitments required by processors and distributors ought notto hinge upon the vagaries of an experimental crop.
Accordingly, the obvious choices for mainstay crops are sugar
cane and wheat.
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8.
CSR estimates that fuel ethanol will be produced more
cheaply from sugar cane than from wheat if realistic returns
are assumed for large quantities of wheat by-products
(particularly gluten). In the event of large scale production
of ethanol from wheat, the current gluten market would be
oversupplied and prices would fall accordingly.
An important consideration in the selection of a
suitable crop is the energy balance associated with the
production of ethanol. The production and processing of any
crop to ethanol consumes energy for the manufacture and
operation of farm and factory plant and for supplies such as
fertilisers. Sugar cane is inherently favourable as a source
of ethanol because the cane stalk fibre (bagasse) remaining
after extraction of juice can be burnt to provide energy for
the distillery. The energy balance for ethanol production from
sugar cane is further discussed in Appendix 3, where it is
estimated that in the liquid fuel energy balance there is a net
gain of four units for each unit of liquid fuel energy input.
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9.
4. SCOPE FOR ETHANOL FROM SUGAR CANE
Long term potential
Australia currently consumes about 15 million
kilolitres of petrol per year. The Department of National
Development has forecast a rise to about 17 million kilolitres
per year by 1984-5. Although there is not necessarily a strict
one-to-one relationship between ethanol and the volume of
petrol it replaces, a 10% replacement of petrol nationwide
would require about 1.7 million kilolitres of ethanol per year
or 17 times the current total domestic production. (For
perspective, Brazil's National Alcohol Programme based upon
sugar cane aims at 5 million kilolitres of ethanol per year by
1982) .
In Australia there are now about 300,000 hectares of
land dedicated ("assigned") to sugar cane. A 10% replacement
of petrol would require an allocation of a further 300,000
hectares of equivalent productivity*.
The availability of readily accessible land for
expansion of cane production falls short of this amount.
Suitable unassigned land in reasonable proximity to existing
sugar mills is estimated very roughly at 200,000 hectares. It
is not possible at this time to estimate what proportion of
this land could be available for ethanol production. This
would depend on many factors, not least of which are the
relative returns from production of cane for sugar and for
alcohol, and for alternate uses of this land.
Additional new cane areas in Queensland and Western
Australia could produce additional cane equivalent to something
over 6% replacement of petrol. These new areas include:
The Ord River area (existing dam)
The Burdekin River area (assuming a new dam built)
*The yield from sugar cane is relatively high; based on averageQueensland yields, about 7.5 kilolitres of ethanol areobtainable from each hectare of cane harvested.
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10.
The Fitzroy River and Wide Bay/Burnett areas
(irrigation needed)
The Cooktown area {as yet undeveloped)
It is therefore possible, solely from the viewpoint of
land area, that ethanol from sugar cane could supply 10% to 15%
of Australia's petrol demand. The practicality of acquiring or
developing such an area of suitable cane lands for ethanol
production is quite another matter.
Regional development concept: an immediate solution
The scale of a cane ethanol industry to replace 10% of
Australia's petrol needs is very large. It would be equivalent
to duplicating the existing cane sugar industry which has grown
to its present size over more than a century.
Given present circumstances, it is not practical in
Australia to mount a crash programme to produce sufficient
ethanol to replace 10% of petrol within about 5 years. The
disruptive influences would be enormous, not least in terms of
maintaining a viable sugar industry in the interim. The direct
investment would be in the order of $3 billion {1979 costs) ,
that is, on the same scale as large resource projects such as
the North West Shelf development in W.A. Although the initial
infrastructure costs could be minimised by expanding existing
sugar cane areas, these costs would rapidly escalate as new
agricultural areas are opened up to move beyond about 3% petrol
replacement level.
It might be practical to aim for a gradual build up of
ethanol production to a 10% replacement level over say 10 to 15
years. However, commitment to even a gradual development of
such a large industry cannot be recommended at the present
time, as there is some doubt regarding the long-term need for
such a large commitment of community resources. In the longer
term it is possible that other competitive fuel extenders may
emerge, such as liquid fuels from coal and shale. In addition,
some other crop, for example cassava, may ultimately prove a
cheaper source for ethanol than sugar cane.
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11.
Two main arguments are therefore advanced against the
establishment of a fuel ethanol industry to replace say, 10-15%
of Australia's petrol needs, namely, the need to marshall vast
resources and the possible emergence of other competitive fuel
extenders.
However, the possibility of a fuel ethanol industry on
a manageable scale should not be ruled out. There are some
real benefits to be derived from the fact that lead times for
ethanol production are less than those commonly encountered in
the fuel and chemical process industries. A significant fuel
ethanol industry (say 2-3% of Australia's petrol needs) could
be established within a few years.
An economic unit size for a sugar cane distillery is
considered to be in the range 50,000 to 100,000 kilolitres
ethanol per annum. This size would enable individual cane
growing areas to develop a significant local industry which
could supply ethanol to supplement fuel supplies in the
surrounding region and in other parts of the state in which the
distillery is located. For example, it is realistic to
contemplate that several distilleries with a combined output of300,000 to 400,000 kilolitres per annum could be operating
within the existing Australian sugar cane areas by 1984-5.
These would provide enough ethanol to supply Queensland with a
15% ethanol/petrol blend, equivalent to replacing 2% to 3% of
petrol used nationally. The first of these new distilleries
could be operating by 1982-83.
Distillery units could be established on a regional
basis away from existing cane industries but this would require
more extensive development of infrastructure. However
construction of such a unit, for example in the Ord River area,
could contribute significantly to the development of that area
as well as provide supplementary fuel for Western Australia and
Northern Territory.
On the basis of a regional development concept as
outlined above, the cost of bulk anhydrous ethanol ex sugarcane distillery would be about 40C per litre (1979 costs).
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12.
About 60% of this amount is attributable to the cost of the
sugar cane to the distiller assuming that the cane for ethanol
is priced at the same level as cane for raw sugar produced in
the 1979 season.
At 40C per litre, ethanol would be slightly less than
twice the current price for petrol ex the refinery (excluding
excise). For the most appropriate distribution arrangement
where a 15% blend of ethanol in petrol is made available, and
assuming the current rate of motor spirit excise is applied,
the retail price of the blend would be about 3c per litre more
than for straight petrol. If. recent experiences of price
increases for crude oil continue, the differential of 3C/litre
could be eliminated or significantly reduced within the 2 to 3
year lead time needed to establish any substantial fuel ethanol
industry.
The benefits offered by the regional development
concept are substantial. In addition to the general benefits
to be derived from any automotive fuel extender - namely
reduced imports and reduced dependence on overseas suppliers -
fuel ethanol from sugar cane offers a renewable fuel resourcewith proven technology. Development of a regional ethanol
industry would strengthen and broaden the base of the local
economy and expand employment prospects in the region.
The 2-3% target could be achieved with a relatively
small investment while at the same time preserving a wide range
of options for future development. In the event that more
competitive fuel extenders are developed commercially, an
ethanol from cane industry on this scale could divert its
production to other markets (for example, as a feedstock for
the chemical industries). This flexibility would allow a
managed phase-out of fuel ethanol production with appropriate
arrangements for amortisation of plant. Alternatively, a fuel
ethanol industry of the suggested size could expand to the
scale required to replace 10-15% of Australia's petrol needs,
which is currently considered impractical, but which may be
necessary in a severe liquid fuels shortage.
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13.
5. ISSUES FOR GOVERNMENT AND INDUSTRY
Selective regional development of sugar cane
distilleries and their supporting crop areas appears realisticfrom both commercial and social aspects.
There are however, five main issues which must be
resolved promptly to allow timely and co-ordinated development:
1. The need for an automotive fuel extender. The
widely-publicised view of a liquid fuels crisis in
Australia needs to be quantified. A definitive Government
assessment is required regarding Australia's need for fuel
extenders particularly through the 1980's when a fuel
ethanol industry would have special relevance.
2. Assurance of a distribution and market arrangement with
reasonably remunerative prices for bulk ethanol:
- given the present cost differential between
ethanol and petrol and the possibility that acheaper alternative may eventuate, commitment by
farmers and processors/distillers of extra
resources dedicated to ethanol production will
depend upon an assurance of reasonable prices for
cane and for ethanol over the commercial life of
the investment.
An important aspect to this assurance would be
some statement as to the intentions of Federal
and State Governments as regards concessions for
ethanol/petrol blends relative to straight
petrol, such as relaxation of excise on
ethanol/petrol blends.
3. Appropriate structural arrangements for the fuel ethanol
industry:
- there need to be arrangements for assuring
adequate and reliable supply of raw material to
the distillery.
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14.
- the structural arrangements for an ethanol
industry within the existing cane growing areas
need to be compatible with those of the existing
sugar industry. A sugar industry Consultative
Committee chaired by the Chairman of the
Queensland Sugar Board and representing all the
industry associations has been formed to study
and report on all aspects of alcohol production
from sugar cane (Refer Appendix 4 ) . CSR is
involved in the work of this committee.
Environmental acceptability of the industry:
production of significant quantities of ethanol
would require an expansion of cane areas and
additional cane crushing facilities as well as
the building of distilleries. With respect to
additional cane and crushing capacity, the
environmental impact would be well understood as
it is an expansion of an existing rural industry.
the environmental impact of treatment anddisposal of distillery effluent would need
careful consideration. NERDDC has granted funds
to various groups, including CSR, to conduct
development work.
The establishment of performance data on vehicles using
ethanol/petrol blends under local conditions:
ethanol/petrol blends should be evaluated as
fuels in a range of motor vehicles operating
under Australian conditions with a view to
optimising factors which affect their use. Full
co-operation of the Australian automotive and oil
refining and distribution industries would be
desirable.
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15.
APPENDIX 1
TREATMENT PROCESSES FOR DISTILLERY EFFLUENT
Ethanol production by fermentation characteristically
yields as a by-product a large volume of liquid effluent with a
high pollution potential. This appendix briefly describes the
nature of distillery effluent and the processes available for
treatment, concentrating particularly on effluents from cane
juice and molasses distilleries.
Effluent treatment is a major consideration. The
various processes differ significantly in their degree of
technological sophistication and in their relative capital and
operating costs. It is not anticipated that any one process
would be appropriate for all distilleries; rather, the effluent
treatment process most appropriate to a particular distillery
would be determined principally by such factors as raw
material, availability of energy, location and operating period
for the distillery, and demands of the surrounding environment.
Composition of Effluent
Distillery effluent, also known as dunder or stillage,
contains the non-fermentable residues from the raw material as
well as yeast and other chemical by-products of the
fermentation process. The quantity and composition of
effluents from typical molasses and cane juice distilleries of
capacity approximately 160 kl ethanol per day (50,000 kl p.a.)
are shown in Table 1.1.
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The effluent is characterised by:
high volume in relation to the volume of ethanol
produced;
high organic solids content, which reflects in a
high biological oxygen demand (BOD) in the
effluent.
significant levels of inorganic material which
has potential fertiliser value, being
particularly high in potassium.
a relatively high level of plant colorants, many
of which are not significantly bio-degradable.
Effluent from molasses distilleries contains much
higher contents of organic, inorganic, and colouring matters
than does effluent from cane juice distilleries. These high
levels of impurity cause particular difficulties in the
treatment of effluent from molasses distilleries.
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17.
Effluent Disposal Methods
There are several alternative methods that are
feasible for effluent treatment. The more conventional methods
that are currently available are as follows:
concentration for use as stockfeed
land disposal
anaerobic digestion
ocean disposal
incineration
Concentration for Use as Stockfeed
This disposal method is used widely in Europe where
there is a heavy demand for winter feeding. The effluent is
concentrated by evaporation and blended with fibrous plant
residues .
For Australian conditions, there are some technical
problems in the preparation and storage of such feeds and, in
any event, the economics of intensive feeding of cattle in
Australia would severely limit the market for such a product.
Land Disposal
Irrigation of effluent on to sugar cane farms is
widely practised in Brazil as a means for disposal of liquid
wastes and for returning fertilisers to the fields. In
Australia it is not expected that such disposal will be
generally practical because of the cost of transportation of
effluent to the cane fields, difficulty of disposal during
periods of wet weather and the possible need to restrict
fertiliser application to certain times of the year.
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18.
An alternative to disposal of effluent onto cane farms
is intensive irrigation of effluent onto a small area. This
method is used at the Sarina distillery near Mackay, whichhandles approximately one-third of the molasses produced by the
Australian sugar industry. The area required at Sarina for
intensive irrigation is relatively small (about 600 ha) in
comparison to the area of cane land from which the molasses
impurities are produced (about 100,000 ha ).
In practice this method of intensive irrigation has,
at times, been found inadequate at Sarina, for three principal
reasons:
uncontrollable discharge of partially treated
effluent in periods of heavy rainfall may
temporarily discolour and reduce the dissolved
oxygen content of surrounding waterways;
nutrient build up on the irrigated area provides
conditions favourable for fly breeding in periods
of warm showery weather;
the high concentration of inorganic matter in the
effluent, together with an extremely high
application rate and low soil porosity
temporarily destroys the pasture. (The pasture
recovers rapidly once application is
discontinued.)
These problems are unlikely to be as severe for cane
juice distilleries and, depending upon plant size, land
availability, and soil condition, it is possible that a
manageable land disposal system for cane distillery effluent
could operate satisfactorily.
Anaerobic Digestion
The process of anaerobic digestion can be employed to
convert the organic solids in distillery effluent into a
"biogas" containing methane and carbon dioxide. This gas is
suitable for use as a fuel, and may supply a significant
proportion of the distillery's energy requirements.
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19.
Anaerobic digestion may occur within two temperature
ranges that favour development of specific bacteria, i.e.
mesophilic (35-40C) and thermophilic (50-60C). The
activity of the thermophilic bacteria is approximately twice
that of the mesophilic bacteria, offering potential for reduced
investment for thermophilic installations. However these
systems require closer control of operating conditions and are
more sensitive to change than the mesophilic systems.
The residual effluent from anaerobic digestion
contains inorganic solids, colour and a small amount of organic
solids present in the original effluent. Some form of
irrigation or other disposal system is needed for this effluent.
Ocean Disposal
It is feasible for distillery effluent to be piped
some distance out to sea, where the depth and flow of water is
sufficient to ensure adequate dispersion of the effluent.
This method, while it would not be available to all
distilleries, could also be used in conjunction with anaerobic
digestion to dispose of the digested effluent.
Incineration
The distillery effluent can be used as a liquid fuel
for steam raising if the organic solids are first concentrated
to a sufficient level (about 60%). The steam so produced may
be used for concentrating the effluent and for the distillation
process .
The principal advantage of this process is that it
destroys colorants and permits recovery of inorganic materials
for re-use as fertiliser. The principle limitation of
incineration is the high initial capital cost of evaporation
and combustion equipment.
Recent work has indicated that incineration processes
installed in molasses distilleries may be able to generate allthe steam required in the factory. The energy balance for
incineration of effluent from cane juice distilleries will be
less favourable than for molasses distilleries, but this may be
unimportant as bagasse may be used as distillery fuel.
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20.
APPENDIX 2
ETHANOL AS A FUEL EXTENDER
This appendix covers technical aspects concerning the
use of ethanol, as a straight fuel and as a blend with
conventional fuel, in spark ignition and diesel engines. It
appears that ethanol/petrol blends would have an immediate
application as an automotive fuel, but the use of significant
quantities of ethanol as a straight fuel or as a blend with
diesel will require further development of engines and fuels.
The uncertainties in the use of ethanol/petrol blendsas automotive fuels relate more to optimising the use of
ethanol/petrol blends than to the development of satisfactory
methods for utilising the blend. Trials of limited scope and
duration are necessary to determine the optimum conditions for
use of ethanol/petrol blends in Australia.
Ethanol/Petrol Blends in Automobiles
A number of factors relating to the distribution anduse of ethanol/petrol blends, and to the performance of cars
using such blends, warrant consideration. For the purpose of
this Appendix, a blend is defined as containing 10-15% ethanol
in petrol.
Fuel Stability.
Water is virtually immiscible with petrol;
ethanol/petrol blends containing more than about 0.3% water
separate into two phases, or layers, which can cause cars to
stall. The problems of phase separation are most severe in
colder climates, such as in U.S.A., where extremely low winter
temperatures reduce the solubility of water in petrol.
However, even in such climates, the use of anhydrous (dry)
ethanol in the blend, together with proper maintenance of
transport and storage tanks, has obviated significant problems
with phase separation. Freedom from significant difficulties
would be expected in the warmer Australian climate.
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Over time, it may be possible to relax the requirement
for anhydrous ethanol, and to introduce the normal commercial
product (95% ethanol) as the ethanol component of the blend.
However, this will be possible only if additives now being
developed and evaluated prove successful in modifying the
solubility characteristics of water in ethanol/petrol blends.
Vehicle Performance
For most cars, performance with ethanol/petrol blends
should be indistinguishable from that with a petrol of the same
octane number.
U.S. experience (1) suggests that a small number of
existing cars may experience surging, hesitation, and/or
stalling with ethanol/petrol blends, due to a variety of causes:
- the leaning effect of the ethanol in the blend
(can be overcome by tuning the engine);
the effect of blends on some plastic fuel system
components, such as gaskets, pump diaphragms,etc., (it is logical to expect that new cars
would include compatible materials);
the effect of dislodging of deposits in the fuel
system which may clog the fuel filter and/or
carburettor (this problem occurs specifically in
older cars, and even then only for the first 1-3
tankfuls of blended fuel).
These problems should disappear with time as use of
ethanol blends becomes more widespread, and the car fleet is
replaced with new cars manufactured to operate on
ethanol/petrol blends.
(1) "Gasohol - a Technical Memorandum", Congress of the UnitedStates, Office of Technology Assessment, Washington D.C.,September, 1979.
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22.
Octane Number
An important advantage of an ethanol/petrol blend is
that its octane number is higher than the original petrol towhich the ethanol was added. The exact increase in octane
number depends on the octane number and composition of the
petrol, and has not been measured under Australian conditions
where petrol is leaded and is made largely from Bass Strait
crude oil. In U.S.A. where ethanol is blended into unleaded
petrol the increase is 3-4 octane numbers.(1)
Raising the octane rating of motor fuels would enable
car manufacturers to increase the efficiency of car engines,
but this is unlikely to occur unless blends are available
throughout Australia. Alternatively, the octane rating of the
petrol component of the blend can be reduced to exactly
compensate for the octane boosting properties of the ethanol.
If this is done, there are potential energy savings at the
refinery of 0.6-1.0 MJ/1 of oil refined(1) (under U.S.
conditions). If these energy savings are attributed solely to
the ethanol, a saving of 0.27-0.45 1 of petrol can be achieved
for each litre of ethanol used. in Australia some reduction in
the lead content of blended petrol is another option.
Fuel Consumption
To a considerable extent fuel consumption depends on
the energy content of the fuel. The net calorific value of
ethanol and petrol are 21.2 and 32.6 MJ/1, respectively. On
mixing, 0.9 1 of petrol plus 0.1 1 of ethanol results in 1.002
1 of the blend. The combined effect of the lower calorific
value of ethanol and the volume expansion result in 3.7% less
energy per litre of blend, compared with straight petrol. If
all other factors were equal, this would result in 3.7%
increase in fuel consumption.
However, ethanol/petrol blends are claimed to have the
effect of "leaning" the fuel mixture (i.e. move the air-fuel
mixture to an effective value that contains less fuel and more
air) which increases the thermal efficiency (km/MJ) in most
motor vehicle engines. If this is so, the increase in fuel
consumption for blends would be less than the 3.7% predicted on
the basis of calorific value.
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23.
Detailed comparisons of fuel consumption with
ethanol/petrol blends and conventional petrol have not been
carried out in Australia. Some comparisons have been carried
out in U.S.A., but the detailed results do not appear to havebeen published. A recent authoritative U.S. report (1)
concluded that, based on laboratory and road test comparisons,
fuel consumption with blends would be no more than 4% higher
than and may be equal to straight petrol.
Vehicle Emissions
The effects of ethanol/petrol blends on vehicle
emissions are dependent on whether an engine is tuned to run
fuel rich or lean, and whether or not it has a carburettor with
a mixture feedback control.
On balance it appears that for conventional engines
ethanol/petrol blends will have little net effect on pollutant
emissions.
If no carburettor modifications are made, the use of
blends is expected to have the following effects on most of
today's cars (1)
increased evaporative emissions from fuel tanks
(although the new emissions are not particularly
reactive, and should not contribute significantly
to photochemical smog.)
decreased emissions of carbon monoxide (due to"leaning" effect).
increased emissions of aldehydes (which are
reactive, and might aggravate smog problems).
Increased NOx emissions with decreased emissions
of exhaust hydrocarbons, or decreased NOx with
increased hydrocarbons (depending on the state of
engine tune).
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24.
The effect of blends on exhaust emissions from cars
which are adjusted to maintain optimal air/fuel ratios will be
considerably less than the case where no carburettor
modifications are made.
In Australia, ethanol in blends may permit a reduction
in the lead content of the fuel, with consequent improvements
in lead emissions.
Straight Ethanol as a Fuel
Pure ethanol can be used as fuel in a spark ignition
engine. Its prime advantage is its high octane number,
allowing use of higher compression ratio engines to give
greater thermal efficiency. Also, water is completely miscible
in ethanol, so there is no concern about storage stability.
However it has a lower energy content per litre than petrol, so
a larger fuel tank would be required, and significant changes
would be required in the carburettion system.
Conventional diesel engines cannot be run directly on
pure ethanol because of its unsuitable ignition quality. it is
possible to modify the engine to be spark ignited. It is also
possible to modify the fuel ignition characteristics by adding
ignition enhancers, such as amyl nitrate or cyclohexanol
nitrate, although the amount required makes their use(2)
uneconomical '
In summary, both the spark ignition and diesel engines
have been developed for use with conventional fuels. Straightethanol is not a suitable fuel for such engines and so has
little relevance for widescale use in existing vehicles in
Australia.
In the longer term, engines may be developed to run on
straight ethanol, and such engines may find limited application
in selected vehicle fleets, in the same way as some taxi fleets
now use LPG. The limited availability of ethanol in Australia
would prevent this use becoming widespread.
(2) "The Report of the Alcohol Fuels Policy Review". U.S.Department of Energy. June 1979.
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25.
Ethanol/Diesel Blends
Ethanol/diesel blends are not stable, and emulsifiers
are necessary. Further development work is needed to givesatisfactory emulsions which remain stable, and do not damage
the engine. It is also possible to modify a diesel engine to
run on the two fuels using separate fuel systems. Diesel fuel
could be injected into the cylinders, and ethanol mixed with
air in a carburettor. Such an engine might run on 100% diesel
at low power, and 20% diesel/80% ethanol at peak power.
For any large-scale use of ethanol/diesel blends,
significant changes in the design of the fuel system would have
to be incorporated as an option in engine production. This
would require a significant time scale and, more importantly, a
significant demand for such vehicles. Such demand is likely
only if ethanol becomes a widely available fuel or if diesel
fuel becomes scarce.
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26.
APPENDIX 3
ENERGY BALANCE CONSIDERATIONS FOR ETHANOL
PRODUCTION FROM SUGAR CANE
The manufacture of liquid fuel from crops provides a
means for conversion of solar energy to liquid fuels. However,
the production and processing of the crop requires inputs of
energy for the manufacture and operation of plant, equipment
and supplies used on farms and in the factory. Some of these
energy inputs are in the form of liquid fuels and some are inthe form of non-liquid fuels such as coal.
In evaluating a crop as a source of liquid fuel, it is
important to consider the overall energy balance for the
operation, in terms of both total energy and the energy content
of liquid fuels. The energy balance for liquid fuels is the
more relevant for Australia at the present time.
It should be noted that estimation of energy inputs to
agricultural operations and to the manufacture of plant and
equipment is subject to a number of assumptions about which
there is no universal agreement. The estimates of energy
balance made in this appendix should be regarded only as
indicative.
Basis of Method Used to Estimate Energy Balance
The analysis is based on growing, harvesting and
transport of sugar cane, as practised in Queensland. The
factory crushes cane for half the year, with half the juice
being fermented to ethanol, and the other half being
concentrated and stored. In the other half of the year the
concentrated juice is diluted and fermented to ethanol.
The principal energy inputs are "direct" fuel (mostly
diesel fuel and bagasse), fertilisers (which require energy inmanufacture), and "capital" energy of machinery. The energy
equivalents for fertilisers and diesel fuel include energy
required in their manufacture and delivery to the farm.
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27.
The energy equivalent of electricity assumes 25% efficiency of
conversion from coal (1) . The "capital" energy cost of
machinery is taken as 300 MJ/kg (2).
Quoted energy consumption data are divided between
liquid fuel, and non-liquid fuel. Energy inputs via
fertilisers have been considered as liquid fuel since
nitrogenous fertilisers require at present large volumes of
liquid fuel for their manufacture. Electricity inputs have
been considered as non-liquid fuel. "Capital" energy inputs
have been considered to be 31% liquid fuel and the balance
non-liquid fuel (2). This percentage is based on 1975-76, and
will be lower in the future, as coal and natural gas replace
fuel oil in manufacturing industry.
Energy Inputs and Outputs
Agricultural energy inputs for cane production have
been estimated by Austin et al (3) and are shown in Table
3.1. These data refer to sugar cane production in the
high-yielding Bundaberg and Burdekin areas of Queensland.Corresponding agricultural output is 8.7 kl ethanol per hectare
per year.
The crop processing operation uses bagasse as its main
energy source, with coal as fuel during the period when the
distillery operates on concentrated cane juice, rather than
sugar cane as raw material. The quantities of fuel consumed by
the factory have been estimated on the basis of CSR experience
of sugar milling and ethanol production in Queensland.
(1) Leach, G. (1975) "Energy and Food Production".London: International Institute for Environment andDevelopment.
(2) Stewart, G.A. et al (1979) "The potential for liquidfuels from agriculture and forestry in Australia"C.S.I.R.O. Chapter 4.
(3) Austin, R.B. et al (1978) "Gross energy yields and thesupport energy requirements for the production ofsugar from beet and cane; a study of four productionareas"J. agric. sci., Camb. SO., 667-675.
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The overall and liquid fuel energy balance is shown in
Table 3.2 on a basis of 1 kilolitre of ethanol produced. This
balance is on an ex-factory basis. No allowance has been made
for energy required to ship the product to a market (which mustbe done on a case by case basis, as there may be credits
through shipping a lower tonnage of petroleum products).
Direct Farm Qsa - Diesel- Capital
Fertiliser rjsed - M- P- K
Irrigation pumping
- Capital
Chemicals
Transport of Cane to Factory
- Fuel
- Capital
TOTAL
Total Energy on pec '
Quantity
179 1/ha/crop
150 kg/ha31 kg/ha
130 kg/ha
-
-
16 km avge haul
Energy/unit
52 MJ/kg300 MJ/kg
76 MJ/kg32 MJ/kg )10 MJ/kg :
14.4 MJ/kwH300 MJ/kg
-
Predominantly
GJ/ha/year
7
311
2
0
22
27
3.1
fuel
GJ/ha/year
6
-
4
-
6
19
2.2
Total
GJ/ha/year
9
11
3
a
2
' 46
5.3
TABLE 3.2
OVERALL ENERGY BALANCE
Agricultural energy input
Credit for bagasse
Set Input
Output
Ratio Output/Net input
* Includes 24.4 for bagasse - assumes all bagasse in
Predominantly Predominantly Totalliquid Euel Non-liquid fuel Energy
GJ/kl GJ/kl GJ/kl
3.1 2.2 5.3
0.5 31.2 31.7*
3.4 1.0 1.4 1
4.0 34.4 38.4
24.4 24.4
4.0 10.0 14.0
23.5 - 23.5
5.9 - 1.7
cane is used in factory during crushing
AGRICULTURAL ENERGY INPUT(2) (3)
(per ha per year basis)
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29.
Conclusion
The total liquid fuel used to produce 1 kilolitre of
ethanol amounts to 4.0 GJ/kl and the energy content of the
product is 23.5 GJ/kl. The liquid fuel energy ratio is thus
estimated to be in excess of 5:1.
The overall energy balance depends upon the manner in
which bagasse is treated in the analysis. If bagasse is
considered to be a fuel input the ratio of output to input is
0.6:1. However, if bagasse is considered as part of the crop
and not as a direct fuel input then the ratio of output to
input is 1.7:1.
Compared with other carbohydrate crops, sugar cane is
unique in producing, as part of the harvested crop delivered to
the factory, virtually all the fuel to operate the factory, at
least when cane is being crushed. Research into methods of
bagasse storage may permit operation with bagasse as fuel
outside the cane crushing season, and so further improve the
overall energy balance.
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3 0 .
APPENDIX 4
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PRESS STATEMENT.The Sugar Board,BRISBANE.
21st December, 1979.
FUEL ALCOHOL FROM SUGAR CANE.
(Statement by Mr. C.L. Harris, Chairman, The Sugar Board.)
The Chairman of the Sugar Board, Mr. C.L. Harris, announced
today that a Sugar Industry Consultative Committee had been formed to
study all aspects of alcohol production from sugar cane. This was in
response to increasing concern about liquid fuel supplies, which has
received special emphasis recently by State and Federal Governments.
Fuel alcohol from sugar cane has aroused considerable interest
in Australia and overseas, Mr. Harris said, because sugar cane is a
renewable resource and a very efficient producer of carbohydrate, which
can be readily converted to alcohol.
Almost all of the alochol now produced in Australia for
industrial purposes is made from molasses, a by-product of the sugar
industry. Alcohol/petrol blends, as a fuel for automobiles, have
been used from time to time in various parts of the world includingAustralia. However, until the recent escalation of oil prices, its
use for this purpose has been relatively limited.
Following recent oil price increases, the Australian Sugar
Industry now had to take a view on the production of fuel alcohol from
sugar cane because of the implications for its traditional sugar
activities. Until recently, alcohol had not been regarded as an
alternate end product from sugar cane.
The Committee, to be chaired by the Chairman of the Sugar Board,
comprised the Presidents and Secretaries of the Australian Sugar
Producers Association, the Queensland cane Growers' Council, the
Proprietary Sugar Millers' Association, the New South Wales Cane Growers'
Association, the President of the New South Wales Sugar Milling
Co-operative and CSR Limited, which is the sugar marketing agent for
the Queensland Government. The Committee is thus fully representative
of the Australian sugar industry.
The Committee will consider, as a matter of priority, and from
an overall industry point of view, possible organisation structures which
would enable alcohol and sugar to be produced in the most effective and
compatible manner. However, it should be clearly understood that the
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Committee will have an investigatory role only and will report its
findings to the industry.
Mr. Harris added that State and Federal Governments would
be fully informed of the findings of the Committee-