Fuel ethanol will save Rs. 20 billion annually - NCED

by Lalin Fernandopulle

World crude oil prices have increased from US $ 40 to US $ 72 per barrel. The increasing trend will continue and have an adverse effect on the economy of third world countries. As a result, Sri Lanka's fuel bill for 2006 will be around Rs. 150 billion or more, a member of the plantation cluster of the National Council for Economic Development (NCED) Dr. C.S. Weeraratne said.

The annual export earnings from tea, rubber and coconut are Rs. 90 billion. The annual fuel bill is more than what we earn by exporting crop products. Due to the surging world oil prices the local fuel prices of petrol and diesel have increased. This has a spiral effect on all essential commodities.

The staggering fuel prices have a tremendous impact on the country's economy and the low income families. The increase in diesel prices will increase the cost of production of all export items including tea, rubber, coconut and garments, Weeraratne said.

Therefore we need to reduce fuel consumption like Brazil, Philippines, China and India who have adopted the technology of blending 85 percent ethanol(alcohol) with petrol (Gasoline) to produce fuel ethanol as an alternative fuel. By doing so these countries have been able to cut down the fuel power consumption and save a large amount of foreign exchange.

Weeraratne said "If we reduce the energy consumption by 10 percent the country could save approximately Rs. 20 billion annually. European countries have adopted this technology of blending ethanol with petrol to reduce energy costs. For example Brazil blends 85 percent of ethanol with petrol and uses it in cars and other motor vehicles".

The alternative energy sources such as vegetable oil and ethanol are profitable and affordable. Vegetable oil such as soya oil and ethanol produced by sugar can be used as additives. Thus we need to conceptualise and implement a profitable strategy like blending ethanol with petrol (alcohol and gasoline) to power automobiles. Thereby we could reduce this huge energy expenditure.

Ethanol can be produced from high starch crops such as manioc, maze or sugar. Ethanol is produced from sugarcane. Sugarcane is found in Sri Lanka. Sugarcane for producing ethanol could be obtained from Sevanagala and Pelwatte sugarcane factories. Though we had Hingurana and Kantale as well, now these two factories are defunct. This is a big drawback to the growth of the sugarcane industry, Weeraratne said.

Fuel ethanol can be used in three-wheelers and motorcycles. After experiments we could use fuel ethanol to power all motor vehicles. This will be a huge saving on foreign exchange by cutting down fuel consumption which is a costly exercise.

'The strategy of blending ethanol with petrol was formulated by the National Council for Economic Development (NCED) which comprises top private and government sector personalities. The technology in Europe is to blend 85 percent ethanol with 15 percent petrol. It is termed E 85 and is used in Brazil and USA. Fuel ethanol is used as a substitute for petrol, a member of the plantation cluster (NCED), Wesley John said.

There is no emission of carbon monoxide which is an advantage of using fuel ethanol. Since it is environmental friendly and profitable we should promote the use of fuel ethanol, he said.

The NCED plans to blend 10 percent ethanol with petrol. The Ceylon Petroleum Corporation and Pelwatte Sugar Corporation will carry out trial tests on three-wheelers in a geographical area and based on the results the proposed strategy will be introduced to the country, another member of the plantation cluster (NCED), A. Wickremanayake said.

The Pelwatte Sugar Corporation produces 70 percent alcohol for national consumption. The excess quantity will be used to produce ethanol. At present the corporation produces 3,000 to 10,000 litres. The use of fuel ethanol is a proven technology. Today different proportions of ethanol are blended with petrol. The proportion differs from country to country. This is due to the cost of production and government policies. The government has to subsidise the price of ethanol if they want to promote it as an alternative fuel, a member of the plantation cluster (NCED), P. Dodangala said.

"We have to test the blending because there are specifications on fuel such as petrol, diesel and kerosene. Though we blend, the quality should match the market specifications. We have to check the parameters in a single specification so that it will not disturb the market specification," Dodangala said.

If we are to produce fuel ethanol as an alternative fuel the production of ethanol has to be increased. The demand for ethanol(alcohol) per year is very high. If we don't produce sugarcane in excess we would have to import it which is an added cost.

This is not merely another joint proposal from the private and government sectors to drive the economy to achieve an 8 percent GDP growth. Each and every citizen should contribute to develop industries and nation-building. This should be our ethos, Executive Director (NCED), Rohantha Athukorala said.