From Cane to Clean Energy Exploring Sugar’s Potential in Biofuels:
"In this exclusive interview conducted by Balram Gupta of BioEnergy Times, José Orive, Executive Director of the International Sugar Organization, sheds light on the dynamic state of the global sugar industry and its vital contributions to agriculture and bioenergy. With sugarcane producing around 80 percent of the world’s sugar supply, José discusses how the sugar industry is adapting to rising demands for sustainable energy sources. He explores the transformative potential of biofuels, the economic implications for farmers, and the industry’s role in achieving a greener, more sustainable future."
Can you provide an overview of the current state of the global sugar industry and its significance in the agricultural and bioenergy sector?
The global sugar industry is already a significant player in both the agricultural and bioenergy sectors. On the production side, sugarcane is the world’s largest source of sugar, accounting for around 80 percent of the global sugar production. Brazil is the leading producer of sugarcane, followed by India, China and Thailand. Sugar beet is the second source of sugar, which is primarily grown in Europe and North America.
On the consumption side, globally sugar use is still on the rise, driven primarily by emerging economies. The sugar industry is very significant in the agricultural sector by supporting rural economies and by providing employment and income for millions of people. The global sugar industry significantly contributes to national economies through exports and trade.
The global sugar industry’s role in the bioenergy sector is already significant, as it offers a sustainable alternative to traditional fossil fuel-based energy sources.
Presently, the major bioenergy pathways in the sugar industry are the production of bioethanol (from molasses and cane juice in the case of the sugarcane sector) and biopower from cane bagasse. There is growing production of biogas and biomethane and a very strong interest in developing the ethanol-to-jet sustainable aviation fuel.
How do you envision the role of sugar crops in the transition to green energy? What potential do you see for sugarcane in bioenergy production?
Sugar crops have a major role to play in the world’s transition to green energy with vast potential for both beet and cane to produce green renewable energy. The sucro-energetic world is a key pillar towards developing the circular economy and ensuring that the UN sustainable development goals can be met. First and foremost, both beet and cane are feedstocks for bioethanol which can be used to help decarbonise the road transport sector.
In the near future, bioethanol will increasingly be used to produce sustainable aviation fuels (SAF). Furthermore, bioethanol can be a feedstock for the manufacture of green bioplastics and biochemicals.
Apart from bioethanol, the sugarcane sector has vast potential to generate energy from residues and waste products that result during the production of sugar and ethanol, including sugarcane bagasse, straw(trash), filter cake (press mud) and vinasse. A key green energy pathway for a sugarcane mill is the cogeneration of electricity from cane bagasse for their own use and to sell excess electricity to the national grid. Both biogas and biomethane offer an additional pathway to produce renewable energy. In the sugar beet sector, beet pulp will increasingly be used to produce biogas, for use in electricity generation for beet factories.
Could you discuss the potential economic impacts of shifting sugarcane cultivation towards biofuels on farmers and on the overall agricultural economy?
Beyond the clear benefits to the broader energy landscape and the necessity for the global economy to move towards net zero and a circular bioeconomy, biofuels offer the sugarcane industry the ability to generate additional revenue streams to lessen reliability on volatile sugar prices, in both the domestic and international markets.
Farmers benefit with a higher price for sugarcane, depending on the extent to which revenue sharing or cane pricing arrangements adapt to incorporate a share of new revenue streams. More broadly, the demand for biofuels can stimulate growth in the agricultural sector, and ensure stability by creating a steady market for sugarcane as a biofuel feedstock; benefiting the entire agricultural supply chain.
What potential does the sugar industry have in contributing to the production of green hydrogen, biogas and biomethane? How can this contribute to a circular economy within the sugar industry?
The sugar sector has huge potential to contribute to the production of green hydrogen, biogas and biomethane. Biogas and biomethane production are already a reality and offers a sustainable alternative and outlet for residues from both the sugarcane mill (filter mud/press mud/wastewater) and an ethanol plant (vinasse). But we require investment in biodigesters, gas treatment for desulphurization, and purification plants to produce biomethane. By producing biomethane, sugar-energy plants impact the energy matrix by providing even more renewable energy, alongside biofuels, which positively impacts greenhouse gas emission reductions. Biogas and biomethane from waste streams at sugar mills and ethanol distilleries present a significant step toward achieving a circular economy, offering a glimpse into a future where resources can be continuously used and reused; meeting rising demand for bioenergy while also delivering wider environmental benefits.
Green hydrogen is tantalising on the horizon. There are several ways the sugarcane industry can potentially benefit from the emerging green hydrogen opportunity. The first is to use bagasse cogenerated electricity for the electrolysis of water. The second is by producing compressed biogas (CBG) from filter cake and then converting it to green hydrogen via pyrolysis of bio methanol; powered by bagasse cogenerated electricity.
India’s sugar industry is the world leader on this possibility. Another alternative, presently being pursued in Brazil is to focus on ethanol as an effective hydrogen carrier and produce hydrogen directly from ethanol near the point of end use, using an ionic membrane exchange technology. This is already working in demonstration phase in Brazil.
With the growing demand for renewable fuels what are the current prospects for ethanol production from sugarcane? How can /the industry scale up production to meet these demands?
Despite increasing scrutiny of the sustainability of biofuel production witnessed in many countries, conventional feedstocks are expected to remain predominant in the renewable fuels industry (i.e. maize, sugarcane, molasses, sugar beet, grains and cassava). Ethanol production from sugarcane over the coming decade will continue to be primarily focused in Brazil and India, which by far are the world’s largest producers of sugarcane. The continued increase in global biofuel use relies on two key factors: the rising demand for transport fuel and sustained support from public policies.
For sugarcane industries perusing the bioethanol opportunity, the joint production of sugar and ethanol from cane juice – as done in Brazil – is a key avenue, or if sufficient molasses is available, it can be directed to a distillery instead of being exported onto the world market. Scaling up sugarcane production will be heavily dependent on cane pricing incentives and potential to improve productivity in the field, through better cane husbandry, mechanisation, and improved cane varieties for instance.
What are the implications of global market dynamics on biofuel production and consumption, particularly in developing economies that are rich in biomass resources?
Biofuels are expected to remain important renewable alternatives to fossil fuels within the transportation sector and first-generation biofuels are projected to remain the dominant biofuel type, with maize and sugar products making up most of the feedstock for ethanol.
For that reason, developing economies that are rich in biomass, including sugarcane and sugarcane residues such as trash and straw, have a clear opportunity to embrace the biofuels’ opportunity. Biomass can also be used to fire cane bagasse cogeneration operations during the offseason, and this possibility should not be overlooked. More broadly, the bioenergy and renewables opportunity can stimulate economic growth, improve energy security, provide considerable environmental benefits via decarbonisation, and promote sustainable development.
Could you explain the concept of bagasse-based cogeneration? What are its benefits for sugar mills and the broader energy landscape?
The use of combined heat and power (CHP), or cogeneration plants is dominant in the sugarcane industry and today, the cogeneration of energy using sugarcane bagasse is the norm, powering the mill operations, while providing clean renewable energy.
More modern mills (or older mills that have invested in new high-pressure boilers and associated infrastructure) are therefore able to generate excess electricity which is then sold to national grids. By generating electricity from bagasse, sugarcane mills achieve significant cost savings, which is in stark contrast to sugar beet factories which typically import fossil fuels to operate their plants.
Sugarcane mills generate an additional source of revenue by selling bagasse cogenerated electricity to the national grid. Given the seasonal availability of bagasse feedstock and the requirement by some national utilities for year-round generation, some industries have used other renewable (such as wood chips) and non-renewable feedstocks (such as coal and bunker oil) during their off-season.
Despite the potential benefits of co-generation to a sugar mill, there remain barriers in many cane producing countries towards realising its full potential. These barriers include government policy with respect to renewable energy and how policy is translated into the regulatory setting for Independent Power Producers (IPPs). Policy has to be clearly defined to enable both the sugar industry and public utility companies to negotiate power purchase agreements (PPAs).
The benefits of bagasse cogeneration for the broader energy landscape are manifold. It reduces GHG emissions and helps combat climate change. Incorporating bagasse-based energy diversifies the energy mix, reducing dependence on fossil fuels and enhancing energy security. There are clear environmental benefits by minimising waste and promoting sustainable agricultural practices.
Overall, the use of sugarcane bagasse for electricity generation presents a win-win scenario, benefiting both sugarcane mills and the broader energy landscape by promoting sustainability, reducing costs, and contributing to a cleaner environment.
What role do government policies play in promoting the sugar industries’ movement towards bioenergy and sustainable practices?
Governments generally encourage the use of biofuels primarily to bolster energy security and to advance the reduction of GHG emissions. With the costs of producing biofuels still exceeding those of their fossil fuel counterparts, biofuel production has been facilitated by public support policies.
Similarly, governments need clear policy and institution arrangements to foster the development of independent power producers (including cane bagasse cogeneration) with attractive feed-in tariffs. Biogas and biomethane potential can only be realised with overt government policy to ensure these biofuels are competitive in the broader energy matrix.
Sustainable practices in the sugar industry are being driven by the market whereby large end users (food and beverage manufacturers) are demanding sugar industries to prove their sustainability credentials. More broadly though, governments play a crucial role in promoting sustainability within the agricultural sector through various mechanisms and initiatives such as regulations and policies that promote sustainable farming practices, investment in research and development to advance sustainable agricultural technologies and practices, such as climate smart agriculture, and even through financial incentives to encourage farmers to adopt sustainable practices.
What advancements in research and technology do you think will have the most significant impact on the sugar industry’s bioenergy potential, on a global scale?
Of the clear pathways to bioenergy from the sugar industry (bioethanol, biopower, biogas, biomethane, SAF and green hydrogen), the green hydrogen pathway is yet to be proven in terms of the production technology beyond electrolysis of water, through use of renewable energy.
The scale up and proven commercialisation possibilities of the pyrolysis of biomethane (under investigation in India) or reformulating ethanol into hydrogen via the ionic membrane exchange technology (proven at a demonstration scale in Brazil) would both have a very significant impact on the sugar industry’s bioenergy potential. Elsewhere, R&D could help lower costs of second-generation ethanol production from cane bagasse, and potentially improve yields and lower costs for biogas production from cane bagasse.
How does the use of bioenergy contribute to environmental sustainability beyond just reducing greenhouse gas emissions? Can you discuss the broader ecological, economical and societal benefits associated with renewable energy adoption? What do you think are the biggest challenges towards making this transition more widespread?
Fully capturing the bioenergy’s and other renewables’ opportunities from sugar crops certainly would achieve much more than helping to decarbonise the world economy and combat climate change.
First, bioenergy helps to reduce air pollution in general, leading to better air quality and healthier ecosystems, with considerable benefits from public health. More broadly though, bioenergy allows countries to reduce their dependence on imported fossil fuels, improving energy security. Bioenergy can also provide access to electricity/bioethanol for cooking/ biogas/biomethane in remote and underserved areas; improving living standards and meeting goals for social equity and improved community resilience.
In short, biofuels, as part of a broader renewable energy matrix, represents a golden opportunity to foster a healthier environment, a robust economy, and a more equitable society.
What message would you like to convey to stakeholders in the sugar industry regarding the importance of sustainability and bioenergy initiatives?
I firmly believe sustainability and bioenergy initiatives will continue to transition and transform the global sugar industry into a bioenergy and renewables powerhouse. Many sugar industries are already well on the pathway to sustainability, hand-in-hand with the renewables opportunity. Sugar industries across the world need to embrace bioenergy and renewables to ensure long-term sustainability and to advance the global economy towards decarbonisation and net zero ambitions.
Those sugar industries yet to embrace the elixir of renewables, the need is paramount, and I urge sugar industries to keep working with governments to realise the clear opportunities that renewables bring not only to the sugar industry, but to the nation and the world.
The ISO stands ready to help our members understand the bioenergy’s opportunities from beet and cane, and to work with them to ensure the remarkable benefits of bioenergy for their industry.
