BIofuels Newsletter June 2022

BIOFUELS Newsletter Volume 4 | Issue 1, June 2022 FROM THE DESK OF Page 2 ED I/C (E&P) MR. L.R. JAIN Page 3 FROM THE DESK OF Page 4 ED (BIOFUELS & MAJOR PROJECTS) MR. S.K. PAUL FROM AROUND THE WORLD FLEX FUEL ENGINES Page 5 ETHANOL BLENDING STATUS Page 7 CBG AND BIODIESEL STATUS Page 8 BARGARH BIO-REFINERY Page 9 UPDATES WORKSHOP ON BIOMASS SUPPLY CHAIN AT BARGARH Page 10 BIOFUELS EXHIBITIONS Page 13 Page 15 BARGARH PROJECT Page 16 SHOWCASED AT PRC-2022 BIOFUELS CROSSWORD For Internal Circulation Only

FROM THE DESK OF ED I/C (E&P) MR. L.R. JAIN With the volatility in crude oil prices in the world market, significant developments are taking place in the field of Biofuels world over. Even in India, major developments are taking place in the Biofuels domain and specifically efforts to increase Ethanol blending in petrol. It is essential for BPCLians, dealing with various customers one way or another, to always remain acquainted with these significant developments. Biofuels Newsletter will continue the efforts to cover various such developments in India & World over and will keep everyone apprised with developments at BPCL’s very own under construction Integrated 2G+1G Bio-Ethanol Project at Bargarh, Odisha. Recently Union Cabinet has approved various Amendments to the National Policy on Biofuels - 2018. The proposed changes like allowing more feedstock for biofuels production are aimed to pave way for Atmanirbhar Bharat for achieving energy independence by 2047 as envisioned by Hon’ble PM. Also, advancement of 20% Ethanol blending target from 2030 to ESY 2025-26 highlights the importance given by GoI towards the direction. It is a proud moment for team BPCL, being the industry coordinator for Ethanol procurement, that 10% Ethanol blending target was achieved in June, 5 months ahead of schedule. It was encouraging to see response received for the last issue of Biofuels Newsletter with active participation in Crossword quiz. We hope that this issue of Newsletter will continue to enrich & enlighten the readers. Happy Learning! For Internal Circulation Only 2

FROM THE DESK OF ED (BIOFUELS & MAJOR PROJECTS) - MR. S.K. PAUL The construction of Integrated 2G+1G Bio-Ethanol Project at Bargarh, Odisha being executed by Engineering and Projects (E&P) team have gathered pace with award of majority of work orders for the 2G Project. The journey from conceiving to completion of this project continues to be very challenging with various interventions and value engineering added to make the project more commercially viable. These have given unique learning opportunities to the project team. 2G technology adopted being a nascent and being scaled up for the first time, various optimization opportunities were identified at various stages of the project to lower the project capital and operating cost. In this regard change of execution methodology from LSTK to EPCM, integration of 1G Ethanol project within the same cost and adopting purchase order placed on different sub-vendors by LSTK party were major decisions which helped to improve the viability of the project. With the integration various common utilities and offsite facility like Water treatment plant, Effluent Treatment plant, Storage, Gantry, Administration, Fire fighting etc. have been utilised for increasing Ethanol production from 100 KL/day to 200 KL/Day and also production of valuable by-product like DDGS. Vendor developments for many packages were a major challenge to meet the quality and safety standards of BPCL, since many equipment manufacturers were supplying such equipments for the first time. Disposal of some of the by- products is a challenge for which various opportunities are being continuously explored & identified. Development of a robust Biomass Supply Chain is a most important challenge for which a pilot study was carried to understand various elements of the Biomass Supply Chain and the costs associated with the same. Based on the study discussions are being carried forward with the concerned stakeholders & officials in the Government. In cognizance with the project completion timelines, the forthcoming months are full of challenges for the project execution team for Bargarh Project with simultaneous erection activities at various sections of the plant. Also with the receipt of Consent to Establish for 1G Ethanol Project this June, the construction for 1G project has also initiated. Being a unique project with only 2G+1G Integrated Plant under execution in the country, E&P team in charge of this project is geared up for completion & commissioning of project and shall keep everyone updated with the project progress with this Newsletter. For Internal Circulation Only 3

FROM AROUND THE WORLD U.S. EPA Sets 2020-2022 Biofuel Blending Mandates, Clariant produces first cellulosic bioethanol at new Denies Refiners Waivers Romania plant for Shell Clariant, Switzerland headed sustainable and specialty The U.S. Environmental Protection Agency on Friday chemical company, announced that it has produced the issued biofuel blending mandates for 2022 and the prior first commercial cellulosic Ethanol at its Sunliquid® two years - with this year's number below one proposed production plant in Podari, Romania. in December - while denying oil refiners waivers to be exempt from the requirements. The EPA set biofuel Clariant’s Cellulosic Ethanol Plant in Podari, southwest Romania blending mandates for 2022 at 20.63 billion gallons and retroactive volume mandates for 2021 at 18.84 billion The entire offtake is contracted with a multi-year gallons and for 2020 at 17.13 billion gallons. Though it agreement to Shell. Over the last six months after denied the oil refiners' exemption petitions, the agency mechanical completion, the plant underwent a thorough said it would allow extra time for small refiners to meet commissioning process resulting in the successful start their 2020 blending obligations. of production. The $162 million facility, will process around 250,000 tons of agricultural waste straw to The volume mandates, typically set ahead of time each produce 50,000 tons of cellulosic Ethanol per annum. year, were delayed due to the fallout of the coronavirus pandemic, which severely reduced U.S. energy demand. Reference: Press Release, Clariant, June 2022. Reference: Reuters, June 2022. Cargill, BDI collaborate for opening of advanced biodiesel plant Raizen to build two new cellulosic (2G) Ethanol Minnesota based global food & agri company, Cargill, plants in Brazil announced the opening of an advanced biodiesel plant in Ghent, Belgium. Brazil's energy company Raízen, owned by Royal The facility, which converts waste oils and residues into Dutch Shell and Brazilian company Cosan, announced renewable fuel was built by Austria-based BDI US$395 million investment to build two new cellulosic BioEnergy International. The facility is the third plant to second-generation ethanol plants in São Paulo, Brazil. employ BDI’s RepCAT (repeatable catalyst) technology. The technology has also been installed at commercial The units will be built next to the Univalem plants, in facilities in California and Hungary. Valparaíso and Barra in Barra Bonita and expected to be The new facility in Ghent has the capacity to produce up ready by 2024. The plants shall use sugarcane bagasse to 115,000 metric tons of renewable fuel per year. as feedstock. These two new plants will add to the two second-generation Ethanol plants of Raizen - at Reference: Biodiesel Magazine, June 2022. Piracicaba, which has been in operation since 2015 and under construction plant at Guariba. For Internal Circulation Only With these new investments, the production capacity of 4 cellulosic Ethanol for Raizen shall increase to 280 million liters per annum. Even though volumes of cellulosic Ethanol are still small in relation to the size of the Ethanol market in Brazil (Raízen alone produced and sold 2.5 billion liters of Ethanol in the first nine months of the 2021/22) but second-generation Ethanol is more environmentally friendly and is sold at a premium price over conventional Ethanol in Brazil. Reference: Biofuels Digest, May 2022.

FLEX FUEL ENGINES Shashwat Verma Ethanol Blended Petrol (EBP) Program in India has received significant Auto companies to start making flex fuel vehicles within 6 months: Gadkari impetus recently with target for 10% Ethanol blending in petrol already Livemint, 12th March 2022 achieved in the current Ethanol Supply Year (Dec.’21 to Nov.’22). Also the launch of Flex Fuel Engine in India has been in news recently driven After BSVI, auto industry prepares for the Flex by efforts from Ministry of Road, Transport and Highways (MoRT&H). fuel technology challenge Flex Fuel Engines are Internal Combustion (IC) Engines capable of Economictimes, 17th January 2022 operating on varying blends of Gasoline and Ethanol. Properties Ethanol Gasoline The physio-chemical properties of neat E100 Ethanol is quite different to that of Gasoline Density (g/cm3) 0.75 which is tabulated here. One important LHV lower heating value (MJ/kg) 0.79 42.50 advantage of using Ethanol blended 14.5 gasoline is higher RON for Ethanol Stoichiometric air/ fuel ratio 26.90 420 compared to Gasoline. Latent heat of vaporization (KJ/kg) 9 845 91 Octane (RON) 110 The more compression and heat the fuel can withstand before igniting, the GASOLINE ENGINES higher is its the octane number. If RON is lower, then it leads to pre- TYPICAL CR 8:1 to 10:1 ignition or engine knock which alters the piston's stroke and can lead to serious engine damage. With Ethanol blended gasoline, Compression Ratio of the engine may be increased to take advantage of increased RON for better engine efficiency. In view of this, compression ratio of flex fuel engine are tuned to minimum Ethanol percentage which is available in market. For e.g. in Brazil, minimum Ethanol blend in Gasoline available in their market is 27%. Also, since stoichiometric air/fuel ratio of Ethanol is lower compared to gasoline, it requires the fuel delivery system to be re-calibrated to deliver roughly higher quantity to fuel to achieve higher efficiency from the engine. To achieve above, flex fuel vehicle have sensor installed into the fuel line, which can measure the actual percentage content of Ethanol in the fuel. For Internal Circulation Only 5

For example: if Gasoline with 50% Ethanol is filled in the vehicle tank, the Fuel Sensor reads this 50/50 mix and sends a signal to Electronic Control Module in the vehicle. Then, ECM adjusts the fuel delivery control according to the fuel composition to deliver precisely the right amount of fuel for that mixture of Gasoline and Ethanol in the fuel line and monitors the vehicle's overall operation. Besides this due to higher Ethanol percentage in the fuel, there shall be changes in fuel supply line material, gaskets, seals, vehicle suspension due to higher torque etc. The various components of the vehicle which may require changes in Flex Fuel vehicle are depicted. The Ministry of Heavy Industries along with MoRT&H is exploring possibilities for retrofitting of flex fuel capabilities for existing vehicles. As per estimates from SIAM (Society of Indian Automobile Manufacturers) the cost of upgradation to flex fuel vehicles is around Rs. 17000 to Rs. 25000 for 4 wheelers and Rs. 5000 to Rs. 12000 for 2 wheelers. Major automobile manufactures like Honda, Ford, Volkswagen, Yamaha already have various flex fuel models in USA and Brazil. For Internal Circulation Only 6

ETHANOL BLENDING STATUS With inputs from Retail Biofuels Team India achieves 10% Ethanol blending target ahead of schedule With the persistent efforts from Government of India and Oil Marketing companies, the target of achieving 10% blending under the Ethanol Blended Petrol (EBP) programme has been achieved much ahead of the targeted timeline of November 2022. Public Sector OMCs have attained an average 10% Ethanol blending in gasoline across the country on 26th May 2022, 5 months ahead of schedule. The same was declared by Hon’ble PM Narendra Modi while speaking at Save Soil Movement on World Environment Day, 5th June 2022. Prime Minister Narendra Modi Speaking on World Environment Day on 5th June 2022 Hon’ble PM also reiterated that Ethanol Blending % Ethanol PSU OMCs Blended Petrol Programme in the course of last 8 years has not only augmented 10.10% India’s energy security but also translated into a forex saving of over Rs.41,500 8.10% crores, resulted in the reduction of 27 lakh tonnes of carbon emissions and also 4.20% 5% 5% led to the expeditious payment of over Rs.40,600 crores to farmers. 2.10% 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 (as on 19.06.22) Year indicated is Ethanol Supply Year from 1st Dec. to 30th Nov. It is a moment of pride for BPCL as CPO (Marketing) of BPCL is currently the industry coordinator for Ethanol procurement for Oil PSUs while Retail team ensures fulfillment of order placed and blending of Ethanol across locations in India. In FY 2021-22, BPCL itself has blended around 97.3 crore liters of bio-Ethanol achieving blending percentage of around 8.68%. This has resulted in GHG emission reduction of around 2.07 MMT. For Internal Circulation Only 7

CBG AND BIODIESEL STATUS With inputs from Retail Biofuels Team EOI FOR UCO BASED BIODIESEL PROUREMENT Under Expression for Interest (EOI) floated by Oil marketing companies (BPCL, IOCL, HPCL) for inviting offers from entrepreneurs to set up plants for processing UCO to Biodiesel and supplying to OMCs, BPCL has issued Letter of Intents (LOIs) for 4 nos. plants under the EOI with combined production capacity of around 133 TPD (around 4.7 crore liters per annum) till May 2022. Besides above around 91.7 kilolitres of non-UCO Biodiesel was also blended in Diesel by BPCL in FY 2021-2022. EOI FOR COMPRESSED BIO GAS PROCUREMENT (SATAT) Under Sustainable Alternate Towards Affordable Transportation (SATAT) scheme launched on 1st October 2018 BPCL has also issued Letter of Intents (LOIs) for setting up 299 nos. of plants after evaluation of bids received against EOIs with combined production capacity of around 1265 TPD till May 2022. 7 nos. of CBG plants having LOIs issued by BPCL has also been commissioned. BPCL has started dispensing CBG from 14 nos. our Retail outlet and more than 400 tons of CBG has been sold since the inception of the scheme. Under SATAT scheme Expression for Interest for procurement of CBG is being floated by Oil and Gas companies (BPCL, IOCL, HPCL, GAIL etc.) for inviting offers from potential entrepreneurs to set up CBG production plants processing biomass / waste. At industry level 3263 no. LOIs have been issued till May 2022. Industry status of LOIs and plants is depicted below: . Number of LOIs issued CBG sale initiated CBG sale initiated CBG Industry status (No. of CBG Plants) (No. of Retail Outlets) Injection in Grid 3263 29 45 2 For Internal Circulation Only 8

BARGARH BIO-REFINERY UPDATES The site for Integrated 2G+1G Bio-Ethanol Project at Bargarh Odisha has started to take shape of a Bio-Refinery with erection of all six distillation columns for the 2G Ethanol Plant in the month of March. With all the columns standing high, other equipment, tank & reactors of the plant are also taking their place in respective sections. Ethanol Daily Receiver Tanks Hydrolysis and Fermentation Reactors Also in the month of June 2022, prior drawing approval from Petroleum Explosives Safety Organization (PESO), Nagpur was also received. The construction of the project has been gathering pace steadily. The 2G Ethanol Project has achieved more than 52% physical progress. Fire Water Tanks The detailed engineering for 1G Ethanol Plant for the project are also in progress at steady pace with order already placed for proprietary equipment, Boiler etc. For 1G project 16% physical progress has been achieved. With the receipt of Consent to Establish for the 1G Ethanol project from State Pollution Control Board, Odisha on 13th June 2022, the construction activities for the 1G project has also been initiated at site. For Internal Circulation Only 9

WORKSHOP ON BIOMASS SUPPLY CHAIN Dr. Pravin Chendge for 2G Bio-Ethanol Refinery Bharat Petroleum Corporation Ltd organized a \"Workshop on Biomass Supply Chain for 2G Bio-Ethanol Refinery\" at Bargarh on 25.05.2022 as a part of drive to create awareness about biomass supply chain among various stakeholders in Bargarh District. The Additional District Magistrate Shri. Mridha Toppo and Sub Divisional Magistrate Shri Suvendra Kumar Samal inaugurated the workshop. The event was attended by government Officials from the Department of Agriculture, Co-operation and Administration, Rice Mill owners, Farmers Producing Organizations, Self-help Groups, Local Entrepreneurs and Farmers Government & BPCL officials during Workshop on Biomass Supply Chain at Bargarh Also, the workshop was attended by Shri Sasiprakash R, Shri. Sanjeev Pol, Shri. Dipesh Kamdar, Shri Muralidhar Rao, Shri G Krishna Kumar. Shri Sanjeev Pol, Project Leader (E&P), spoke about the project details and various benefits to the farmers from the 2G Bio-ethanol Refinery. Welcome Speech by Sh. Sanjeev Pol, Project Leader, E&P, BPCL Shri Mridha Toppo, ADM-Bargarh in his inaugural address spoke about the scope and prospect of biomass use for renewables energy and involvement of Self-Help groups, Farmers Producing Organization and Local Entrepreneurs in Biomass Supply Chain. Inaugural address by Sh. Mridha Toppo, Additional District Magistrate, Bargarh For Internal Circulation Only 10

The Additional District Magistrate appreciated BPCL for taking up the 2G Bio-Ethanol Refinery in Bargarh and holding a work-shop on biomass supply chain to bring awareness amongst the stakeholders. Sub Divisional Magistrate urged all stake holders to be part of biomass supply chain, which will in improving the local economy. The Chief District Agriculture Officer explained on various subsidies provided by the Department of Agriculture, Government of Odisha for purchase of Farm Implements and its benefits. Guest Speaker Sh. Suvendra Kumar Samal, Guest Speaker Sh. Santosh Maharana, Chief Sub- Divisional magistrate, Bargarh District Agriculture Officer, Bargarh Interaction among stakeholders during the session. For Internal Circulation Only 11

Dr. Pravin Chendge, Manager Agriculture (E&P), Bargarh presented the Biomass Supply Chain model and roles of various stakeholders and their benefits in biomass supply chain. The Progressive Farmers, Private Entrepreneurs, Farmers Producing Organizations and Self-Help Groups interacted with the BPCL officials and held discussions during the session. Presentation by Dr. Pravin Chendge, Manager Agriculture, E&P, BPCL. Shri. Anil Deep Puriya, Manager Civil Vote of Thanks by Sh. Anil deep Puriya, Manager Civil, (E&P), Bargarh and Shri Sougata Kar, Site BPCL. Engineer, (E&P) Bargarh proposed the vote of thanks to the Dignitaries and Participants for making the workshop a grand success. Post lunch, an interactive session on supply chain conducted for participants for resolving their queries. For Internal Circulation Only 12

BIOFUEL EXHIBITIONS organised by BPCL With inputs from at Kurushetra, Shimla and Udaipur Retail Biofuels Team Bharat Petroleum Corporation Ltd. on behalf of Oil & Gas Marketing companies organized Biofuel Exhibitions as a part of “Azaadi Ka Amrut Mahotsav” to commemorate 75 years of India’s independence celebrations at NIT Kurukshetra (Haryana) on 13.04.22, Shimla (Himachal Pradesh) on 28.04.2022 and Udaipur (Rajasthan) on 12.05.2022. The exhibition was inaugurated by Professor. B.V. Ramana Reddy (Director NIT Kurukshetra) at Kurushetra, Shri. Rajinder Garg ((Hon’ble Minister Food Civil Supplies and Consumer Affairs) at Shimla and Prof. C.R. Suthar (Officiating Vice Chancellor Mohanlal Sukhadia University Campus) at Udaipur. The events were graced by senior officials from BPCL, IOCL, HPCL, GAIL and other distinguished dignitaries from the region. The exhibitions saw active participation by entrepreneurs, technology providers, dealers, distributers and students from various schools and colleges. In the exhibition area Oil & Gas Marketing companies displayed India’s journey and achievements in Biofuel sector. Models of all many biofuel plants were on display in the exhibition which were explained in detail to all the dignitaries and participants. An interactive quiz session on Biofuels were also organized for students participating in the exhibition. These Biofuel exhibitions has been quite a success in creating awareness and acceptance for Biofuels among the netizens. For Internal Circulation Only 13

BARGARH PROJECT SHOWCASED at Petrochemical & Refining Congress, Helsinki Cross Functional Team of E&P Biofuels, Corporate HSSE, BORL, HSSE KR and renewable Energy and CRDC participated virtually in 6th Edition of Petrochemical and Refining Congress (PRC) - Europe 2022 organised at Helsinki, Finland on 30th &31st May 2022. Industry leaders from Oil & Gas Companies, EPCs, Refineries and Petrochemical Plants, Licensors, Chemical Companies highlighted ongoing Technology trends, Energy Transition challenges that downstream industry deals with and discussed innovative solutions & business practises to overcome the challenges and also shared the lessons learned. Various topics discussed were Energy Transition, Sustainability, Renewable Fuels Production, Intelligent Operations in Refining and Petrochemical Operations, Plastic Recycling, Usage of Clean Hydrogen and many others. Mr. Sanjeeb Kumar Paul (Executive Director, Biofuels and Major Projects, E&P HQ) and Mr. Dipesh Kamdar (Dy. General Manager, Technology Biofuels, E&P HQ) virtually participated in PRC Europe 2022. Mr. Sanjeeb Kumar Paul, Panellist for Round table discussion on \"The role of biofuels in a low carbon future\", made presentation on genesis of 2G Bio-Ethanol projects in India and how the initial concept of only 2G Ethanol project got changed into a 2G + 1G integrated project for BPCL. He also highlighted the challenges in construction of a 2G Ethanol plant, the mitigation measures and way forward. 2G Ethanol technology is in nascent stage of scale up from Pilot / Demonstration plant level to Commercial Plant level and world is looking forward for successful implementation of project and sustainable operation. During Networking sessions, Team BPCL gathered insight on Energy Transition trends and sustainable low carbon technologies. For Internal Circulation Only 14

BIOFUELS CROSSWORD SOLUTION DECEMBER 2021 P SA EL SOLAR 22 correct entries BARGARH AA I were received. NAU TNC U E CORS I A D E Winners were T OO TFS selected by Lucky M IT Draw and awarded R I CEGRA I N LR N LA Amazon Gift I GW vouchers. R E N EWA B L E A BS BPCL CROSSWORD WINNERS DECEMBER 2021 Name Designation Mr. Milind C. Rasam Asst. Manager Ops. (Pipelines) Mr. Ravindra Lanjewar Manager (Inspection), MR Asst. Manager (OM&S), KR Mr. Vijayan A N Asst. Mgr. Ops (FCCU), MR Ms. Sinthia Pandit Mr. Sreejith Balakrishnan Manager Instr. Maint. (Pipelines) We thank all the participants of the Crossword and urge them to keep reading Biofuels Newsletter and participating in future quizzes/crossword. 15

BIOFUELS CROSSWORD 1 3 6 Email your responses to 2 5 [email protected] with subject ‘CROSSWORD 4 7 BIOFUELS NEWSLETTER 3.2 8 Please submit response by 9 31st July 2022. 11 10 ACROSS Attractive prizes awaits winners. 1 Coordination Committee for Biofuels in India (4) 2 Feedstock for 2G Ethanol Plants in Brazil (7) Hint: All answers are 4 Brazil based major Ethanol producer (6) available in this Newsletter 5 Acronym for Global Refining Meet held at Helsinki (3) 7 US govt. agency for environmental protection matters (3) 9 Ethanol has higher ________ than petrol (6) 10 ___Fuel engines can handle varying blends of Gasoline and Ethanol (4) DOWN 1 Location of one 2G Ethanol Plant in India (10) 3 Owner of advanced Biodiesel plant in Belgium (7) 6 Main process of bio-Ethanol production (12) 8 Ethanol blending achieved more than Rs.40000 crores of __savings (5) 11 Acronym for embedded system in automotive electronics (3) Feedback & suggestions for improvement of the Newsletter are welcome. You may also send informative articles related to Biofuels for inclusion in the forthcoming issues. Do write to us at [email protected]/ [email protected] For Internal Circulation Only 16