Bio Diesel Project - India

India's demand for diesel fuel for transport is rising rapidly as it economy expands, and much of the increase has to met with expensive oil imports. In addition, local pollution and poor air quality are becoming more serious as the use of fossil fuels increases. However, inexpensive biodiesel produced from India's vast agricultural resources offers a clean substitute for expensive fossil fuel imports. Domestic biodiesel production could enable India to meet the three often conflicting objectives of economic growth, fuel security and cleaner air.

The Indian Government is introducing a $300 million programme to encourage biofuels development and production, and is also in the process of mandating the blending of biodiesel with mineral diesel. A 5% blend is expected to be introduced shortly, rising to 20% by 2020

The Indian government’s $300 million national biofuels programme has the potential to create the world’s first large-scale national biodiesel industry. Currently jatropha appears to be one of the most promising feedstocks upon which the industry will be built. India has the available land and the scientific know-how in planting and cultivation to develop rapidly jatropha planting on a large scale.

Biodiesel as an option for Energy Security : India ranks sixth in the world in terms of energy demand accounting for 3.5% of world commercial energy demand in 2001. The energy demand is expected to grow at 4.8%. The demand of Diesel (HSD) is projected to grow from 39.81 million metric tons in 2001-02 to 52.32 million metric tons in 2006-07 @5.6% per annum

What is Biodiesel : Biodiesel is methyl or ethyl ester of fatty acid made from virgin or used vegetable oils (both edible & non-edible) and animal fats. The main commodity sources for biodiesel in India can be non-edible oils obtained from plant species such as Jatropha Curcas (Ratanjyot), Pongamia Pinnata (Karanj), Calophyllum inophyllum (Nagchampa), Hevca brasiliensis (Rubber) etc. Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend or can be used in its pure form. Just like petroleum diesel, biodiesel operates in compression ignition (diesel) engine, which essentially require very little or no engine modifications because biodiesel has properties similar to petroleum diesel fuels. It can be stored just like the petroleum diesel fuel and hence does not require separate infrastructure. The use of biodiesel in conventional diesel engines results in substantial reduction of unburned hydrocarbons, carbon monoxide and particulate matters. Biodiesel is considered clean fuel since it has no sulphur, no aromatics and has about 10 % built-in oxygen, which helps it to burn fully

Reasoning for the promotion of this project:

1) 33 Million hectares of wasteland have been allotted to tree plantation in India. Jatropha can grow well on wastelands with little inputs. The plantation yields upto 5 tones/hectare oil seeds possible under optimum conditions. If the potential is fully realized India’s current diesel annual requirement of 40 Million tones can be easily met. It is surprising that 5 tones of oilseeds can produce 2 tones of bio-diesel which can be used in automobiles, other agro industrially useful bi-products.

2) Jatropha Curcas plants grow on poor degraded soils and are able to ensure a reasonable production of seeds with very little inputs. It is not grazed by animals. It is highly pest and disease resistant.

3) Time taken for net yield is 3 - 5 years based on soil and rainfall conditions. Yields vary from 0.5 to 12 tones per year based on soil and rainfall conditions. An average seed production of about 5 tones per hectare can be converted into bio-diesel by a process call transesterification. A yield of 0.75 to 2 tones of Bio-diesel could be expected per hectare per year from the 5th year onwards.

4) Bio-diesel from Jatropha are similar to the Bio-diesel produced from rape seed oil which could be used in any automobile. Brand which has been approved for its use by the manufacturers without any modification to use engine or accessories

We are South India based promoters looking at partnering with serious investors on long term basis.The total cost of the project is around US$ 500,000.Based on your interest we can arrange to send a detailed Feasibilty & Project report with complete financials, working capital requirements and profitability.