Biodiesel opportunities in India

Presented by: Ajay Sahu (M-09-37) Rahul Jain (M-09-25) Unnat Chauhan (M-09-34)

Bio diesel
Biodiesel is an alternative fuel similar to conventional or fossil diesel. Biodiesel derived from the tree borne oil & fats of plants like Jatropha Curcas, Sunflower, Rapeseeds, Palm, and Karanj etc can be used as a substitute or an additive to petroleum diesel.

Feedstock for Indian Biodiesel

Based on extensive research carried out in agricultural research centres, it was decided to use Jatropha Curcas oilseed as the major feedstock for Indias biodiesel programme.It has following advantages: The oil yield per hectare for Jatropha is among the highest for tree-borne oil seeds. Typically, the seed production would be 3.75 t/ha, with an oil yield of 30-35 per cent, giving a net oil yield of about 1.2 t/ha. It can be grown in areas of low rainfall (200 mm per year), on low fertility, marginal, degraded, fallow and waste lands. Canals, roads railway tracks, borders of farmers Jatropha is easily established in nurseries, grows relatively quickly and is hardy. Jatropha seeds are easy to collect as they are ready to be plucked before the rainy season and as the plants are not very tall. Jatropha is not browsed by animals. Being rich in nitrogen, the seed cake is an excellent source of plant nutrients.

Manufacturing process
The most common process for making biodiesel is known as transesterification. This process involves combining any natural oil (vegetable or animal) with virtually any alcohol, and a catalyst.

Role Biodiesel can play

Role in reducing imports

Environmental benefits

Diesel & Biodiesel Demand, Area Required under Jatropha for different Blending Rates

Economics involved:A summary of the cost of biodiesel production

Potential rural impact on jobs and income

* Fossil diesel demand 75 million metric tonnes ** Percentage of 35-40 million hectares of wasteland that can be used for plantations *** Based on ~Rs.5-6 per kg of seeds contracts signed by blenders with farmers

Process required for success in biodiesel

Biodiesel value chain : Key activities

Identification / Allocation of waste / fallow Land in large chunks for Jatropha Cultivation by Local Panchayat / Collector / State Government. Cultivation of Hybrid High Yield Jatropha in a phased manner @ few lakh acres per year. Fruit / Seed produce Collection network. Setting up of Oil extraction plants / Solvent extraction plants. Setting up of Trans-esterification Plants. Distribution & Logistics, Blending & Marketing of Bio-Diesel.

Government Initiatives
Classification of Jatropha crop under Agriculture / Horticulture / Forest Depts.

Single Window facilitation through Bio-Energy Mission Cell or Renewable Energy Dept. created by various State Govts. in co-ordinating with all its concerned Departments at State / District level & upto Village Panchayat level
For smooth implementation of the entire Bio-Diesel Value Chain, and To ensure strong bond between Village Panchayat and Entrepreneurs Starting from land identification to collection of fruits from the allocated fields.

Assistance for identification and leasing on Long Term and or allocation of Suitable land for establishment of
Nurseries Demonstration Units Training Centres R&D Centres Seed collection Centres Expelling Units Trans-esterification Plants.

Cont
To extend the Transport Subsidy Scheme to facilitate the execution of this Project to the farmers as well as the Entrepreneurs. To render support in terms of waiving state level taxation in the best possible manner. To provide applicable subsides to the small industries in establishment of Oil Expellers and Solvent Extraction Units.

To render power tariff waivers for the expelling Units, S.E. Units and Trans-esterification Units.

Cont..
Assist the Entrepreneurs in bringing awareness and Farmers mobilization for Jatropha cultivation, including development of village youths by bringing orientation and perception regarding the plantation activity. Ensuring implementation of Governments Employment Guarantee Scheme and all other relevant schemes to support farmers for Jatropha cultivation. Convergence of various development schemes of State and Union Government for the benefit of this activity. Entrepreneurs to be involved in the restructuring of the existing Advisory Body formed by various State Govts. for implementation of Bio-Diesel Value Chain in the respective States. Facilitates formulation of Policies for Jatropha crop Insurance and also involve Banking Institutions to arrange soft loan to farmers.

National Biodiesel mission

The centrepiece of Indias plans for biodiesel development and commercialization is the National Biodiesel Mission, formulated by the Planning Commission of the Government of India. The implementation of the project consists of two phases: Phase I (2003-2007): A demonstration project that will be carried out between 2003-2007. The project involves the development of Jatropha oilseed nurseries, the cultivation of 400,000 hectares with Jatropha, the setting up of seed collection and Jatropha oil expression centres, and the installation of a 80,000 Mt/year transesterification to produce biodiesel from Jatropha oil.

Phase 2 (2007-2012):This Phase will aim to produce sufficient vegetable oil-based biodiesel to achieve 20 per cent blending. It plans to accomplish this through accelerating the momentum achieved in the demonstration project, converting plantation into a mass movement all over the country. The success of the demonstration project is expected to galvanize all the stakeholders and participants to mobilize resources with the government as facilitator.

Issues confronting Biodiesel prog.

Farmers do not yet consider Jatropha cultivation remunerative enough. For instance, sugarcane plantations yield 70 t/ha and fetch the farmer Rs. 70,000/ha at a sugarcane price of Rs. 1,000/t. In comparison, if the Jatropha farmer gets Rs. 5,000 per ton of oilseeds and if the yield is 3.75 t/ha, his income is only Rs. 18,750 per hectare. The other main issue is the lack of seed collection and oil extraction infrastructure. In the absence of this infrastructure and available oilseeds, it will be difficult to persuade entrepreneurs to install transesterification plants. Finally, there is the problem of glycerol utilization. The by-product glycerol is about 12 per cent of the biodiesel produced and is of about 88 per cent purity. If alternative means are not quickly found for utilizing glycerol, then its price will plummet due to excess supply.

Development in different Indian states

Chhattisgarh Chhattisgarh has decided to plant 160 million saplings of jatropha in all its 16 districts during 2006 with the aim of becoming a bio-fuel self-reliant state by 2015. Chhattisgarh plans to earn Rs.40 billion annually by selling seeds after 2010. The central government has provided Rs.135 million to Chhattisgarh this year for developing jatropha nursery facilities. In May 2005, Chief Minister Raman Singh became the first head of a state government to use jatropha diesel for his official vehicle. Chhattisgarh plans to replace with jatropha fuel all state-owned vehicles using diesel and petrol by 2007. Chattisgarh Biofuel Development Authority now oversees the production of the Jatropha curcas seed as a rich source of bio-diesel..

Karnataka Farmers in semi-arid regions of Karnataka are planting Jatropha as it is well suited to those conditions. Labland Biodiesel is a Mysore based Private Limited Company. Since the year 2002, the Company is active in Biodiesel and Jatropha curcas-based Research and Development activities headed by its Chairman and Managing Director, Dr. Sudheer Shetty.

Rajasthan Jatropha is ideally suited for cultivation in Rajasthan as it needs very little water which is scarce in Rajasthan. Jatropa plantations have been undertaken in Udaipur, Kota, Sikar, Banswara, Chittor and Churu districts. In the Udaipur district, Jatropha curcas is planted in agroforestry formats with food or cash crops on marginal lands (in India often called waste lands). As its leaves are toxic and therefore non-palatable to livestock, they remain intact in their sapling stage, unlike most other tree sapling.

Maharashtra In September 2007, the Hindustan Petroleum Corporation Limited (HPCL) joined hands with the Maharashtra State Farming Corporation Ltd (MSFCL) for a jatropha seed-based bio-diesel venture. As part of the project, a jatropha plant would be grown on 500 acres (2 km) in Nashik and Aurangabad. In November 2005, the Maharashtra Government aimed to cultivate jatropha on 600 km in the state, with half the land going to the public sector and the other half to the private sector. On July 1 2006, Pune Municipal Corporation took the lead among Indian cities in using biodiesel from jatropha in over 100 public buses. Eastern India D1 Williamson Magor Bio Fuel Limited is a joint venture company between D1 Oils plc, UK and Williamson Magor group. This biodiesel initiative was incorporated in July 2006. Advocating the creation of energy from renewable resources, the company promotes Jatropha Plantations on the wasteland possessed by the farmers in the North Eastern States, Orissa and Jharkhand. The Company has a comprehensive network to manufacture bio-diesel from the oilseeds harvested by the farmers

Further India can cater to the global Biodiesel demand

Benefits
Generation of Employment / Self Employment to Lacs of families of farmers Huge area of waste land to be converted into productive use Industrialization through investment of huge capital outlay in the State running into few thousand crores Alleviation of poverty in rural areas Soil and Water conservation Breaking the cycle of drought

Afforestation Reduction of air pollution Reduction of green house gases & Global warming mitigation Curbing rural migration Energy Security and Revenue generation to concerned State Self Reliance of energy needs Foreign Exchange Savings for the Country Rural economy improvement

Problems cited by farmers in Jatropha cultivation

1. Lack of confidence in farmers due to the delay in notifying, publicizing and explaining the government biodiesel policy. 2. No minimum support price. 3. In the absence of long-term purchase contracts, there are no buy-back arrangements or purchase centres for Jatropha plantations. 4. Lack of availability certified seeds of higher yield containing higher oil content. 5. No announcement of incentives/subsidy and other benefits proposed to be provided to farmers.

Some solutions
The government needs to take confidence-building measures and clearly formulate its policy and explain to farmers that their role is vitally important in the success of the biodiesel programme. Financial assistance should be given to NGOs in developing a large-scale awareness/training program for farmers. The government should establish a minimum support price for Jatropha just as it did for sugarcane and farmers assured of timely government payments. Easy loan facilities should be provided

SWOT analysis of Biodiesel

Strengths: Quite simple chemistry. Small volume Biodiesel machines are commercially available. Government is providing help for money and research. Fuel is environmental friendly. We have enough resources for cultivation of raw material. Cost of raw material is low (seed). Weaknesses: Relatively high labour input. Higher capital investment. Methanol involved in process (toxic & derived from fossil fuel). Glycerol is the by-product (sometime it is harmful for skin). Relatively high direct energy input/cost.

Opportunities: Ever increasing crude oil price. Employment generation capacity in rural areas. Better utilization of fallow cultivable waste land. Having carbon credit value(Kyoto protocol). Required in large quantity to sustain huge demand. Threats: Over publicity. Abundance of misleading information. Mall practice in input materials. No sustainable procurement mechanism available in the market. Low support price for the seed. Requirement of seed in large quantity even to fulfill demand of 5% blending with diesel. Government strategies towards Biodiesel projects are not implemented properly.

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