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BIO DIESEL-WHY & HOW ?BIO DIESEL-WHY & HOW ?
N.R.Raje
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The Indian Petroleum ScenarioThe Indian Petroleum Scenario
Consumption of petroleum products -120 MMT Import of crude & POL (2003-04) - 90 MMT Production of crude - 33 MMT Consumption of HSDO & LDO - 45 MMT Consumption of motor gasoline (petrol) - 10 MMT
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Oil EconomyOil Economy
Oil import constitutes a major part of our trade deficit and has an enormous impact on our economy and creation of new jobs
We spent annually more than 150,000 crores on import of petroleum
Some day we may be faced with an oil crisis that is not temporary; today oil field discovery and production is on the decline.
Developing a strong market for bio diesel would have tremendous economic benefits
Investments in biodiesel technology may ensure that we have transportation fuel options and we will not be so vulnerable
Bio FuelsBio Fuels
Oxygenated organic compounds from cellulosic biomass
Bio ethanol, Biodiesel
Others include: bio methanol, DME, ETBE, pyrolysis oils, Fischer-
Tropsch fuels
Can provide a market share of ~15%
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Why Bio Fuels?Why Bio Fuels?
SECURITY OF SUPPLY
SUSTAINABILITY
REDUCTION OF GREEN HOUSE GAS EMISSIONS
REGIONAL (RURAL) DEVELOPMENT
SOCIAL STRUCTURE & AGRICULTURE
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Bio DieselBio Diesel
Made by chemically combining any natural oil or fat with an alcohol
Most European Countries, North America and Canada have active Biodiesel programmes
France currently the largest producer
USA produced 30 million gallons in 2004.
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VEGETABLE OILS AS FUELS
• “THE USE OF VEGETABLE OILS FOR ENGINE FUELS MAY SEEM
INSIGNIFICANT TODAY. BUT SUCH OILS MAY BECOME IN
COURSE OF TIME AS IMPORTANT AS PETROLEUM AND COAL
TAR PRODUCTS OF THE PRESENT TIME”
- Rudolf Diesel at the Engg Society of St. Louis, 1912
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Wide AcceptanceWide Acceptance By diesel vehicle industry
Audi BMW Case ClaasDeutz Iseki John Deere KubotaMassey-Ferguson Mercedes-Benz NissanPuegot Renault Same SeatSkoda Steyr Valmet VolkswagenVolvo
By the fuel trade; e.g, Texaco, Shell, Total By the end-user – bus companies, taxi fleets, forestry enterprises, boat
owners More than 100 production sites (capacity 500-120,000 tons/annum)
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Raw MaterialsRaw Materials Rapeseed, the major source (>80%)
Sunflower oil (10%, Italy and Southern France)
Soybean oil (USA)
Palm oil (Malaysia)
Linseed, olive oils (Spain)
Cottonseed oil (Greece)
Beef tallow (Ireland), lard, used frying oil (Austria), Jatropha (Nicaragua), Guang-Pi (China)
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Bio diesel Production BasicsBio diesel Production Basics
Three basic routes Base catalysed transestrification Acid catalysed transestrification Conversion of oil to fatty acids and then to Easter by acid catalysis
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Bio Diesel - ManufactureBio Diesel - Manufacture
CH2-O-COR CH2-OH
| KOH, rt, 6h |
CH-O-COR + 3R’OH 3RCOOR’ + CH-OH
| |
CH2-O-CO-R CH2-OH
(100 kg) (10.55 kg) (.1 kg) (100 kg) (10.55 kg)
Oil Alcohol KOH Bio Diesel Glycerin
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Base Catalysed TransestrificationBase Catalysed Transestrification
Most popular of all method >90% of all bio diesel by this method Low temperature ( 150o F) and pressure (20 PSI) High conversion (>98%) Minimum side reactions Direct conversion- No intermediate step Ordinary material of construction
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Effect of Free Fatty Acid (FFA)Effect of Free Fatty Acid (FFA)
Soap formation Excessive utilization of alkali Loss of yield Slower reaction Incomplete conversionFor best conversion FFA should be lower than 0.8%
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Troubleshooting in high FFA Troubleshooting in high FFA containing oilscontaining oils
Formation of soapReduction in catalyst efficiencySeparation process is difficultLow yield of Easter (Bio diesel)Therefore, two stage method was used
Esterification of FFA with mineral acidTranesterification with lye
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Bio diesel Process Flow DiagramBio diesel Process Flow Diagram
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US & European specificationUS & European specification
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Indian Specification (BIS) for Indian Specification (BIS) for Bio DieselBio Diesel
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DIESEL vs BIODIESEL
Me Ester Density
150C, g/l
Viscosity
400C, mm2/s
Cetane number
Iodine value
Lower heating value (MJ/kg)
Palm oil 872-877 4.3-4.5 64.3-70.0 52 37
Rapeseed oil
882 4.2 51-59.7 114 37.2
Soybean oil
880 4.0 45.7-56.0 131 37.1
Diesel fuel 830-840 1.2-3.5 51 - 42.7
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BIODIESEL / DIESEL DATABIODIESEL / DIESEL DATA
PROPERTIES Diesel
IS 1460 Specification
Biodiesel
ASTM 6751 Specification
Proposed BIS Specifications
(B100)
DATA B5 DATA B20
DATA (B100)
Density (g/cm3) 820 to 870 NA 860-900 834.2 854.7 885.7
Carbon Residue (100%) % mass
Max. 0.3 Max 0.05 Max 0.05 0.04 0.01 0.01
Sulphated Ash , % mass
Max. 0.01 Max 0.020 Max 0.02 0.002 0.002 0.001
Total Sulfur, % mass Max. 0.25 Max 0.05 Max 0.005 0.02 0.04 NIL
Cetane Number Min. 48 Min 47 Min 51 50.4 54.6 56.6
Flash Point,0C Min. 35 Min 100 Min 120 39.5 77 103
Copper Corrosion Max. 1 No. 3b max Max 1 1 1 1
Viscosity, 40 0C(cSt) 2.0 to 5.0 1.9-6.0 2.5-6.0 2.497 3.25 4.10
Neutralization Value (mg)
Max. 0.2 Max 0.8 Max 0.50 0.1 0.2 0.04
Free Glycerin,% mass N/A Max 0.02 Max 0.02 NA NIL 0.01
Total Glycerin,% mass
N/A Max 0.24 Max. 0.25 NA 0.05 0.22
CFPP, (0C) Max. 6(W) NA NA 0.0 -1 0.0
Pour Point deg C 3 0 C NA NA -6 -3 NA
Water and sediments, (% mass)
NA 0.01 NA 0.05 0.04 <0.01
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HEAT OF COMBUSTIONHEAT OF COMBUSTION
Petro-diesel 130,500 BTU/gallon
Biodiesel (soybean) 128,000 “
Petro-diesel 18,400 BTU/lb
Biodiesel (Rapeseed) 17,900 BTU/lb
Net fuel combustion efficiency is increased – most noticed at low rpm and high engine load
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POWER OUTPUTPOWER OUTPUTSmall difference in overall power output
SRI Study (Cummins truck engine)
20% Blend 98.5% relative to petrodiesel
Neat 92%
Tennessee Study (Volvo marine engine, 110 HP)
Neat biodiesel – power output 2-7% lower
At max throttle (3800 rpm), both fuels performed the same
At the lowest engine speed (1855 rpm), at full throttle and heavy load, power output was 13% higher
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FUEL CONSUMPTIONFUEL CONSUMPTION
Biodiesel contains ~10% oxygen Consequently, slight increase in the apparent fuel
consumption rate 2% for B20 blend; 14% for B100 (Cummins
engine)
Brake-specific fuel consumption figures – Petrodiesel 0.43 lb/HP-hr– B20 0.44 “– B100 0.50 “
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LUBRICITYLUBRICITYLONG TERM ENGINE WEAR EXTENSIVELY STUDIED IN EUROPE & THE US
EXXON STUDY
B20 PROVIDE, SIGNIFICANT, QUANTIFIABLE IMPROVEMENTS IN WEAR
(193 MICRON SCAR VERSUS 492 MICRON SCAR FOR PETRODIESEL)
FRICTION – 0.13 MICRON SCAR (B20); 0.24 MICRON SCAR (DIESEL)
FILM FORMING ABILITY – 93% FILM (B20); 32% FILM (DIESEL)
B20 COMPARED FAVOURABLY WITH EXXON’S OWN LUBRICITY ADDITIVE
COMMENTS FROM STANADYNE AUTOMOTIVE Inc:
1. “LUBRICITY TEST HAVE SHOWN THAT UPTO 2% OF BIODIESEL IS ENOUGH TO MAKE ANY DISTILLATE FUEL FULLY LUBRICIOUS”;
2. “SINCE BIODIESEL IS A FUEL ITSELF, THERE ARE NO TECHNICAL ISSUES RELATED TO OVERDOSING WHICH ARE PRESENT WITH CONVENTIONAL LUBRICITY ADDITIVES”
IOC R&D HAS ALSO DONE EXTENSIVE STUDIES ON LUBRICITY ASPECTS-PAPER PRESENTED IN THE LAST WPC
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EXHAUST EMISSIONSEXHAUST EMISSIONS
Tests conducted at southwest research institute, Texas on a Cummins n14 diesel truck engine (direct injected, 4-stroke, 6 cylinder
Regulated emissions– Total hydrocarbons (hc)– Carbon monoxide (co)– Oxides of nitrogen (nox)– Particulate matter (pm)– Polycyclic aromatic hydrocarbons (pah)– Nitrated pah
Results compared with those of #2 diesel
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EMISSIONS (contd)EMISSIONS (contd)• HC emissions essentially eliminated• CO emissions reduced by 50%• NOx emissions 13% higher• PM reduced by 30%
– Reduced insolubles in PM by more than 80%– Soluble organic fraction increased by ~40%– Net redn in particulates, 30%
• Sulfate emissions essentially eliminated• Also quantitated individual hydrocarbons species (C1-C12) and also aldehydes
and ketones• Assessed the ozone forming potential of total speciated hydrocarbons
– For neat bio diesel, the total speciated hydrocarbons, ~50% less– Ozone forming potential of these HC reduced by the same extent
• Significant reduction in most of the aldehyde components– Formaldehyde and acetaldehyde, 30% lower
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LIFE CYCLE ANALYSISLIFE CYCLE ANALYSIS
An inventory of energy flow to and from the environment during the life cycle of a product (“cradle to grave”)
Study conducted by the National Renewable Energy Laboratory, Colorado, USA
Provides the fuel’s energy balance, its effect on greenhouse gas emissions and on the generation of air, water and solid pollutants for every operation carried out during its preparation and storage
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LIFE CYCLE EMISSIONS – COLIFE CYCLE EMISSIONS – CO22
Biodiesel generates 573.96 g/bhp-h compared to 548.02 g/bhp-h for petroleum diesel
The higher CO2 levels result from more complete combustion
The overall life cycle emissions are 78.45% lower for biodiesel; direct result of carbon cycling by the soybean plants
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CARBON TRADING POTENTIALCARBON TRADING POTENTIAL
• Reduction in GHG (CO2)
• 1 Ton bio-diesel avoids Appx 3 ton CO2e
• Certified Emission reduction (CER) 1 ton of CO2e
• 1 CER @ US $ 5• 75 p/ liter additional revenue
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STORAGE, HANDLINGSTORAGE, HANDLING
Standard Handling And Storage Practice As With Petroleum Diesel
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EFFECT ON ENGINE SEALS, EFFECT ON ENGINE SEALS, GASKETS, HOSESGASKETS, HOSES
Bio diesel has strong solvent properties– Natural rubber and soft plastics especially
vulnerable– Problem substantially reduced for the B20
blend– The only hose and gasket material that is
truly resistant to biodiesel is Viton
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BIODIESEL vs OTHER BIODIESEL vs OTHER ALTERNATE FUELSALTERNATE FUELS
DIESEL CNG LNG METHANOL ETHANOL BIODIESEL
___________________________________________________________________________
Vehicle cost 10 5 5 5 5 10Infrastructure 10 2 5 5 5 10Safety 7 4 3 1 3 8Operating range 10 5 10 10 10 10Operating cost 10 5 7 5 5 7
Reliability 10 7 5 3 3 10
Customer acceptance 5 8 8 8 9 8Funding assistance 1 10 2 0 2 2Training cost 10 5 5 5 5 10Fuel availability 10 10 5 5 5 6Fuel quality 9 5 10 8 8 9Fuel price stability 6 8 8 6 6 6
TOTAL 98 74 73 61 66 96 __
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PROMOTION
of
Bio-diesel…..
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EuropeEurope
1. EU announces total exemption (reduction) of tax on pure & low blended bio fuels for at least 6 years w.e.f.
01.01.2004 extendable for another 6 years.
Effective Reduction in duty in Germany 587 $/MT
2. Adoption of Directive 2003/30/EC of The European Parliament And of The Council of 8th May 2003 promotion of the use of bio fuels for transport.
NRRaje Feb 06
United StatesUnited States
"Consumers and businesses need reliable supplies of energy to make our economy run
so I urge you to pass legislation to modernizeour electricity system,
promote conservation, and make America less dependent on
foreign sources of energy."-Mr.George W.Bush
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United StatesUnited States
A biodiesel tax incentive was included in the Final Energy Bill. 1 cent per % point of biodiesel blended with petroleum diesel.
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EuropeEurope
EU Finance Minister adopted a political agreement to allow Governments to exempt transport bio fuels,such as biodiesel,from Excise Duties applied to Conventional Fuels.
EU target for bio fuels : At least 2% of total petrol & diesel within transport sector by 2005, to increase by 0.75% each year thereafter to reach 5.75% by 2010.
EU announces exemption of Tax on pure & low Bio fuels for at least 6 years w.e.f. 01.01.2004
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GermanyGermany A total exemption from the Excise Duty on Mineral Oil for pure &
blended Bio fuels w.e.f. January 2004 up to 31st December 2009,which is based on % of Bio fuels included in Final blend. Higher the proportion,greater the reduction.
No excise tax for biodiesel substituting standard fuels,either unblended or blended with fossil diesel in the vehicle tank.
The 2003 Budget Bill allows for a complete exemption of Excise Duties of up to 409 Euro / Kl on all fuels derived from bio mass including Biodiesel.
Tax incentive for VOME (470 Euro/M3) includes Carbon tax incentive & only applies to pure VOME.
Tax Incentive $ 607/ MT
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FranceFrance
Biodiesel to substitute 5% of Diesel fuel by 2005.
Excise Taxes on Petroleum products do not apply to Bio fuels.
Tax incentive adopted for VOME mixed with diesel within allotted quota, 320,000 MT/year for Biodiesel.
Tax Incentive $ 490/ MT
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AustriaAustria
The Austrian Law on Tax Reforms 2000 exempts the use of pure Bio diesel & the blending of it .
100 % tax exemption on pure Biodiesel 100% tax exemption if up to 2% biodiesel is blended with
diesel fuel. Currently a tax incentive of 290 Euro/M3 applies to pure
VOME used in motor fuel blends up to 2%.
Tax Incentive $ 431/ MT
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United KingdomUnited Kingdom
UK Government has EU targets to replace 2% fossil fuels by renewable fuels by 2005, to reach 5% by 2010.
UK Government offered 20 pence per litre duty incentive for Biodiesel on January 1,2003.
UK is authorized to apply a differentiated rate of Excise Duty to fuels containing Biodiesel
Tax Incentive $ 205/ MT
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Summary of Support EUSummary of Support EUCountry Feedstock Price of Processing Total cost PROCESSING COST BREAK - UP
for Feedstock Cost of biodiesel Particulars $ / MTBiodiesel in $/MT in $/MT in $/MT Other Chemicals 80
1 2 3 = ( 1 + 2 ) (Net of recovered Byproducts)Austria Rapeseed oil 590 500 1,090 Oil, Fuel, Electricity 100 Finland Rapeseed oil 590 500 1,090 Labour & other factory expenses 100 France Rapeseed oil 590 500 1,090 Depreciation 60 Germany Sunflower oil 565 500 1,065 Interest 60 Greece Rapeseed oil 590 500 1,090 Processor's Margin 100 Ireland Sunflower oil 565 500 1,065 Italy Sunflower oil 565 500 1,065 Total Processing Cost 500 Portugal Sunflower oil 565 500 1,065 Spain Sunflower oil 565 500 1,065 Sweden Rapeseed oil 590 500 1,090 U.K. Rapeseed oil 590 500 1,090
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Summary of Support /subsidy EUSummary of Support /subsidy EU
Country Diesel Price Duty on Diesel Total cost Subsidy givennet of duty Diesel Price of biodiesel on biodiesel
$/MT $/MT $/MT $/MT $/MTAustria 584 353 936 1,090 431 Finland 581 433 1,014 1,090 625 France 541 486 1,027 1,090 490 Germany 517 588 1,104 1,065 607 Greece 591 306 897 1,090 Not KnownIreland 502 525 1,027 1,065 Not KnownItaly 627 504 1,130 1,065 598 Portugal 536 374 910 1,065 374 Spain 544 366 910 1,065 579 Sweden 718 435 1,153 1,090 511 U.K. 385 1,060 1,445 1,090 205
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Biodiesel production remained flat until the Biodiesel production remained flat until the creation of USDA’s Bioenergy Program in creation of USDA’s Bioenergy Program in FY 2000 that caused production to jump FY 2000 that caused production to jump from about 2 million gallons to 6.5 million from about 2 million gallons to 6.5 million gallons in FY 2001gallons in FY 2001
0
2000
4000
6000
8000
10000
12000
14000
16000
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
1000 gallons
The National Soy Fuels Advisory Committee wasEstablished in 1992
Congress amends EPACTto include biodiesel
USDA started the Bio energy Program under the authority of the CCC Charter Act
The Farm Bill extends USDA’sBioenergy Program to 2006
Source: Anecdotal information and USDA, Farm Services Agency
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CAN BIODIESEL WORK IN INDIA?CAN BIODIESEL WORK IN INDIA?
India with just 2.4% of global area supports more than 16% of the human population and 17% of the cattle population
India is one of the largest importers of edible oil
Where do we find the oil for biodiesel?
A sustainable source of vegetable oil is to be found before we can think of biodiesel
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JATROPHA JATROPHA THE ANSWER?THE ANSWER?• Jatropha (Jatropha curcas, Ratanjyot, wild castor) thrives on any type of
soil– Needs minimal inputs or management– Has no insect pests, not browsed by cattle or sheep– Can survive long periods of drought– Propagation is easy– Rapid growth; forms a thick live hedge after only 9 months of planting– Yield from the 3rd year onwards and continues for 25-30 years– Yield from established plantations in Brazil, 1.5 to 2.3 tons per
hectare– 25% oil from seeds by expelling; 30% by solvent extraction– The meal after extraction an excellent organic manure (38% protein)
• According to the National Mission on Bio Fuels out of 197 million hectors,13.4 MH available for Jatropha plantation
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BIODIESEL FROM JATROPHABIODIESEL FROM JATROPHA
1 MILLION HECATRES OF WASTE LAND IS BROUGHT UNDER JATROPHA CULTIVATION– Can yield – 0.8-1 million tons of oil – For 66.9 MMT diesel (Projected 2011-12)– 13 MMT bio diesel for 20% blend – 11 MH land required– 11 million jobs
NRRaje Feb 06
Initiatives taken by GovtInitiatives taken by Govt
Planning commission Committee formed Report
Indian Railways – Planted 7.5 million Jatropha plants on railway track Bureau of Industrial Standards (BIS) has given specification for pure
bio-diesel (B100) MOP&NG
MSP of Bio-diesel Rs.25/- per liter 20 centres designated for blending
Oil marketing companies to make available comprehensive industry guidelines “ Operation, Quality & Safety
IOC R&D taken up extensive studies
NRRaje Feb 06
Phase I Demonstration ProjectPhase I Demonstration Project
4 laks ha has been phased in 3 years i.e. 80,000 ( 2006-07), 1.6 lakh (2007-08)and 1.6 lakh (2008-09) by the MORD
The quality planting material for total 4 lakh ha areas is to be arranged by the NOVOD Board and DST
Quality planting material means- The seed should be selected from superior plants having yield of 2 kg per plant and oil content should be more than 30%
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TARGET OF BIO-DIESEL PRODUCTIONTARGET OF BIO-DIESEL PRODUCTION
Year Diesel Demand MMT
Bio-Diesel @5% MMT
Area for 5% Mha
Bio-Diesel @10% MMT
Area for 10% MMT
Bio-Diesel @20% MMT
Area for 20% Mha
2006-07 52.33 2.62 2.19 5.23 4.38 10.47 8.76
2011-12 66.90 3.35 2.79 6.69 5.58 13.38 11.19
2012-15 80.00 4.00 4.88 8.00 9.60 16.00 19.21
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Initiatives taken by State Govt.Initiatives taken by State Govt.
Various State Govts have taken initiatives for Jatropha Plantation notablyUttranchal Constituted “Uttranchal Bio-fuel Board” to promote Bio-fuel in the
state 2 lakh ha.Jatropha plantation is proposed on degraded community land
through Van PanchayatChhattisgarh Chhattisgarh Bio-fuel Development Authority setup on Jan.2005 for
development of bio-fuel in the state Govt. fallow land being offered to private entrepreneur. Action initiated to allot 70000 ha Land on lease to private entrepreneur
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RESEARCH & DEVELOPMENTRESEARCH & DEVELOPMENT‘National Network on Jatropha’‘National Network on Jatropha’
Objectives Selection of Superior planning material Standardization of Propagation techniques-Micro and Macro
propagation. Standardizing agro- techniques Establishment of model plantation Tree improvement Detoxification of seed meal Development of pre-processing & processing equipments Imparting training to the farmers.
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Issues for InvestorsIssues for Investors
Feed stock souring own /external source Long term contract
Technology Appropriate for multi food stock Etraction of value added feed stock like phytochemical formulations
during pre treatment Product quality Economic consumption of chemicals
Domestic Export
Glycerin quality & outlet Process plant size Transportation Infrastructure sharing
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Key Factors of ProductionKey Factors of Production
Feed stock cost Yield Conversion cost Product quality Bio-diesel sale price Glycerin sale price Energy cost Investment
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Cost of Bio Diesel Production in IndiaCost of Bio Diesel Production in India(As per Planning Com Report)(As per Planning Com Report)
* The price of glycerol is likely to be depressed with processing of such large quantities of
oil and consequent production of glycerol. However , new applications are likely to be found creating additional demand and stabilizing its price.
Rate (Rs. Kg) Quantity(Kg) Cost (Rs.)
Seed 5.00 3.28 16.40
Cost of collection & oil extraction 2.36 1.05 2.48
Less cake produced 1.00 2.23 -2.23
Trans- esterification cost 6.67 1.00 6.67
* Less cost of glycerol produced *40 to 60.00 0.095 -*3.8 to – 5.70
Cost of Bio- Diesel per Kg 19.52-17.62
Cost of Bio –Diesel per liter ( SP. Gravity 0.85)
16.59-14.98
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Comparative Economic StudyComparative Economic Study
Country Diesel Price Duty on Diesel Total cost Subsidy givennet of duty Diesel Price of biodiesel on biodiesel
$/MT $/MT $/MT $/MT $/MTGermany 517 588 1,104 1,065 607 USA 369 166 535 1,060 540 India 410 250 660 1,020
Country Feedstock Price of Processing Total Costfor Feedstock Cost of biodiesel
Biodiesel in $/MT in $/MT in $/MT1 2 3 = ( 1 + 2 )
USA Soybean Oil 560 500 1,060 Europe Rapeseed Oil 590 500 1,090
Sunflower Oil 565 500 1,065 India Jatropha Oil 770 250 1,020
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Issues of Seed / Oil AllocationIssues of Seed / Oil Allocation Investors perspective
Legislated for seed / oil allocation Price Policy on contract farming Feasibility / project report Covering all aspects of farming including yield guarantees.
Farmers perspective Seed quality/ certification No certification available for non-edible oil seeds Management practices for Jatropha cultivation Crop behavior Holding pattern
11 million hectares 1crore farmers assuming 3,000 / hectare loan 3,000 crore required by farmers
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Long Term Govt. PoliciesLong Term Govt. Policies
Long term plan for Energy Encourage production & usage of bio fuels Standards notification Directive /policy on procurement distribution & allocation
of seeds / oils Firm Selling Price Policy on Excise & Sales Tax Encouraging Policy Customs duty Waiver on non-edible oils import & machinery initially
NRRaje Feb 06
ThanksFor
Attention…